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4017808

10-K true 2025-12-31 --12-31 false 000-30351 KOIL ENERGY SOLUTIONS, INC. NV 75-2263732 1310 Rankin Road Houston TX 77073 281 517-5000 No No Yes Yes Non-accelerated Filer true false false false false 14245200 12188202 Cybersecurity Risk Management and Strategy Overall Risk Management We maintain a cybersecurity program that is reasonably designed to protect our information, and that of our customers, against cybersecurity threats that may result in adverse effects on the confidentiality, integrity, and availability of our information systems. <span class="xdx_phnt_RGlzY2xvc3VyZSAtIEN5YmVyc2VjdXJpdHkgUmlzayBNYW5hZ2VtZW50IGFuZCBTdHJhdGVneSBEaXNjbG9zdXJlAA__" id="xdx_90A_ecyd--CybersecurityRiskManagementProcessesIntegratedTextBlock_c20250101__20251231_zDMOjKo23pA5">The Company <span class="xdx_phnt_RGlzY2xvc3VyZSAtIEN5YmVyc2VjdXJpdHkgUmlzayBNYW5hZ2VtZW50IGFuZCBTdHJhdGVneSBEaXNjbG9zdXJlAA__" id="xdx_90C_ecyd--CybersecurityRiskManagementProcessesIntegratedFlag_dbT_c20250101__20251231_zom1G0GRenZ5">integrates cybersecurity risk management into its broader risk management framework to promote a company-wide culture of cyber risk awareness. The head of our IT department continuously evaluates and addresses cyber risks in alignment with business objectives, operational needs, and industry-accepted standards, such as the National Institute of Standards and Technology (“NIST”). The Company has processes and procedures in place to monitor the prevention, detection, mitigation and remediation of cybersecurity risks. These include but are not limited to:<div> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 24px"> </td> <td style="width: 24px">·</td> <td style="text-align: justify">Maintaining a defined and practiced incident response plan;</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: top"> <td style="width: 24px"> </td> <td style="width: 24px">·</td> <td style="text-align: justify">Maintaining cyber insurance coverage;</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: top"> <td style="width: 24px"> </td> <td style="width: 24px">·</td> <td style="text-align: justify">Employing appropriate incident prevention and detection safeguards;</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: top"> <td style="width: 24px"> </td> <td style="width: 24px">·</td> <td style="text-align: justify">Maintaining a defined disaster recovery policy and employing disaster recovery software, where appropriate;</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: top"> <td style="width: 24px"> </td> <td style="width: 24px">·</td> <td style="text-align: justify">Educating, training and testing our user community on information security practices and identification of potential cybersecurity risks and threats; and</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: top"> <td style="width: 24px"> </td> <td style="width: 24px">·</td> <td style="text-align: justify">Reviewing and evaluating new developments in the cyber threat landscape.</td></tr> </table> </div>Managing Third Party Risk <span class="xdx_phnt_RGlzY2xvc3VyZSAtIEN5YmVyc2VjdXJpdHkgUmlzayBNYW5hZ2VtZW50IGFuZCBTdHJhdGVneSBEaXNjbG9zdXJlAA__" id="xdx_906_ecyd--CybersecurityRiskThirdPartyOversightAndIdentificationProcessesFlag_dbT_c20250101__20251231_zJx2cfxJf6g4">Koil Energy recognizes the risks associated with the use of vendors, service providers and other third parties that provide information system services to us, process information on our behalf, or have access to our information systems, and the Company has processes in place to oversee and manage these risks. We conduct thorough risk-weighted security assessments of various <span class="xdx_phnt_RGlzY2xvc3VyZSAtIEN5YmVyc2VjdXJpdHkgUmlzayBNYW5hZ2VtZW50IGFuZCBTdHJhdGVneSBEaXNjbG9zdXJlAA__" id="xdx_908_ecyd--CybersecurityRiskManagementThirdPartyEngagedFlag_dbT_c20250101__20251231_zD6lyYreGDRb">third-parties and maintain ongoing monitoring to ensure compliance with our cybersecurity standards. This monitoring includes both annual assessments and assessments on an ongoing basis. Risks from Cybersecurity Incidents <span class="xdx_phnt_RGlzY2xvc3VyZSAtIEN5YmVyc2VjdXJpdHkgUmlzayBNYW5hZ2VtZW50IGFuZCBTdHJhdGVneSBEaXNjbG9zdXJlAA__" id="xdx_90B_ecyd--CybersecurityRiskMateriallyAffectedOrReasonablyLikelyToMateriallyAffectRegistrantTextBlock_c20250101__20251231_zizXF6lPuLY8">To our knowledge, Koil Energy has <span class="xdx_phnt_RGlzY2xvc3VyZSAtIEN5YmVyc2VjdXJpdHkgUmlzayBNYW5hZ2VtZW50IGFuZCBTdHJhdGVneSBEaXNjbG9zdXJlAA__" id="xdx_903_ecyd--CybersecurityRiskMateriallyAffectedOrReasonablyLikelyToMateriallyAffectRegistrantFlag_dbF_c20250101__20251231_zoFB2o2OoNtf">not been subject to cybersecurity incidents that have materially affected, or are reasonably likely to materially affect the Company, its operations or financial condition. The Company <span class="xdx_phnt_RGlzY2xvc3VyZSAtIEN5YmVyc2VjdXJpdHkgUmlzayBNYW5hZ2VtZW50IGFuZCBTdHJhdGVneSBEaXNjbG9zdXJlAA__" id="xdx_90C_ecyd--CybersecurityRiskManagementProcessesIntegratedFlag_dbT_c20250101__20251231_zom1G0GRenZ5">integrates cybersecurity risk management into its broader risk management framework to promote a company-wide culture of cyber risk awareness. true true true To our knowledge, Koil Energy has <span class="xdx_phnt_RGlzY2xvc3VyZSAtIEN5YmVyc2VjdXJpdHkgUmlzayBNYW5hZ2VtZW50IGFuZCBTdHJhdGVneSBEaXNjbG9zdXJlAA__" id="xdx_903_ecyd--CybersecurityRiskMateriallyAffectedOrReasonablyLikelyToMateriallyAffectRegistrantFlag_dbF_c20250101__20251231_zoFB2o2OoNtf">not been subject to cybersecurity incidents that have materially affected, or are reasonably likely to materially affect the Company, its operations or financial condition. false Cybersecurity Governance Internal Cybersecurity Team <span class="xdx_phnt_RGlzY2xvc3VyZSAtIEN5YmVyc2VjdXJpdHkgUmlzayBNYW5hZ2VtZW50IGFuZCBTdHJhdGVneSBEaXNjbG9zdXJlAA__" id="xdx_900_ecyd--CybersecurityRiskManagementPositionsOrCommitteesResponsibleTextBlock_c20250101__20251231_zuZYYrZce0d">Our internal cybersecurity team, led by our <span class="xdx_phnt_RGlzY2xvc3VyZSAtIEN5YmVyc2VjdXJpdHkgUmlzayBNYW5hZ2VtZW50IGFuZCBTdHJhdGVneSBEaXNjbG9zdXJlAA__" id="xdx_908_ecyd--CybersecurityRiskManagementPositionsOrCommitteesResponsibleFlag_dbT_c20250101__20251231_zXZ0OVzVoZta">IT Manager, is responsible for implementing, monitoring, and maintaining cybersecurity and data protection practices across the Company. <span class="xdx_phnt_RGlzY2xvc3VyZSAtIEN5YmVyc2VjdXJpdHkgUmlzayBNYW5hZ2VtZW50IGFuZCBTdHJhdGVneSBEaXNjbG9zdXJlAA__" id="xdx_907_ecyd--CybersecurityRiskManagementExpertiseOfManagementResponsibleTextBlock_c20250101__20251231_za3AAzOj1By6">Our IT Manager has over 15 years in cybersecurity work experience and managing all levels of the Company’s on-premises and cloud infrastructure. Management <span class="xdx_phnt_RGlzY2xvc3VyZSAtIEN5YmVyc2VjdXJpdHkgUmlzayBNYW5hZ2VtZW50IGFuZCBTdHJhdGVneSBEaXNjbG9zdXJlAA__" id="xdx_90A_ecyd--CybersecurityRiskRoleOfManagementTextBlock_c20250101__20251231_zyr0scttWFc3">Our management team periodically participates in the review of our cybersecurity systems, processes, threats and incidents with our internal cybersecurity team, including the controls and procedures that provide for the prompt escalation of certain cybersecurity incidents so that decisions regarding the public disclosure and reporting of such incidents can be made by management in a timely manner. Board of Directors <span class="xdx_phnt_RGlzY2xvc3VyZSAtIEN5YmVyc2VjdXJpdHkgUmlzayBNYW5hZ2VtZW50IGFuZCBTdHJhdGVneSBEaXNjbG9zdXJlAA__" id="xdx_908_ecyd--CybersecurityRiskBoardCommitteeOrSubcommitteeResponsibleForOversightTextBlock_c20250101__20251231_z0MZ4KNERK1j">The Audit Committee of the Company’s Board of Directors (the “Board”) is responsible for overseeing the Company’s cyber risk. <span class="xdx_phnt_RGlzY2xvc3VyZSAtIEN5YmVyc2VjdXJpdHkgUmlzayBNYW5hZ2VtZW50IGFuZCBTdHJhdGVneSBEaXNjbG9zdXJlAA__" id="xdx_906_ecyd--CybersecurityRiskProcessForInformingBoardCommitteeOrSubcommitteeResponsibleForOversightTextBlock_c20250101__20251231_zJu3keuFmMFa">Management has established a process for the <span class="xdx_phnt_RGlzY2xvc3VyZSAtIEN5YmVyc2VjdXJpdHkgUmlzayBNYW5hZ2VtZW50IGFuZCBTdHJhdGVneSBEaXNjbG9zdXJlAA__" id="xdx_901_ecyd--CybersecurityRiskManagementPositionsOrCommitteesResponsibleReportToBoardFlag_dbT_c20250101__20251231_z2ttsNy4D3H1">Audit Committee to receive regular updates that encompass a broad range of topics, including: Our internal cybersecurity team, led by our <span class="xdx_phnt_RGlzY2xvc3VyZSAtIEN5YmVyc2VjdXJpdHkgUmlzayBNYW5hZ2VtZW50IGFuZCBTdHJhdGVneSBEaXNjbG9zdXJlAA__" id="xdx_908_ecyd--CybersecurityRiskManagementPositionsOrCommitteesResponsibleFlag_dbT_c20250101__20251231_zXZ0OVzVoZta">IT Manager, is responsible for implementing, monitoring, and maintaining cybersecurity and data protection practices across the Company. true Our IT Manager has over 15 years in cybersecurity work experience and managing all levels of the Company’s on-premises and cloud infrastructure. Our management team periodically participates in the review of our cybersecurity systems, processes, threats and incidents with our internal cybersecurity team, including the controls and procedures that provide for the prompt escalation of certain cybersecurity incidents so that decisions regarding the public disclosure and reporting of such incidents can be made by management in a timely manner. The Audit Committee of the Company’s Board of Directors (the “Board”) is responsible for overseeing the Company’s cyber risk. Management has established a process for the <span class="xdx_phnt_RGlzY2xvc3VyZSAtIEN5YmVyc2VjdXJpdHkgUmlzayBNYW5hZ2VtZW50IGFuZCBTdHJhdGVneSBEaXNjbG9zdXJlAA__" id="xdx_901_ecyd--CybersecurityRiskManagementPositionsOrCommitteesResponsibleReportToBoardFlag_dbT_c20250101__20251231_z2ttsNy4D3H1">Audit Committee to receive regular updates that encompass a broad range of topics true 23 false false false false true Baker Tilly US, LLP Houston, Texas

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NOTE 1: DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND ESTIMATES Description of Business Koil Energy Solutions, Inc., a Nevada corporation (“Koil Energy Nevada”), and its direct wholly owned subsidiary, Koil Energy Solutions, Inc., a Delaware corporation (“Koil Energy Delaware”), and its direct wholly owned subsidiary Koil Energy Solutions Brazil Ltda., a Brazilian limited liability company (“Koil Energy Brazil”) and together with Koil Energy Nevada, (“Koil Energy”, “we”, “us” or the “Company”), is an energy services company that provides equipment and support services to the world’s energy and offshore industries. The Company provides innovative solutions to complex customer challenges presented between the production facility and the energy source. Koil Energy’s core services and technological solutions include distribution system installation support and engineering services, umbilical terminations, loose-tube steel flying leads, and related services. Additionally, Koil Energy’s experienced professionals can support subsea engineering, manufacturing, installation, commissioning, and maintenance projects located anywhere in the world. The Company’s broad line of solutions are engineered and manufactured primarily for major integrated, large independent, and foreign national energy companies in offshore areas throughout the world. These products are often developed in direct response to customer requests for solutions to critical needs in the field. The Company primarily serves the offshore oil and gas market; however, the Company’s product offerings and service capabilities are based on core competencies that are energy source agnostic and can be applied to additional markets, including offshore wind, offshore wave energy, hydrogen, and liquefied natural gas. Liquidity Koil Energy’s cash on hand was $1,535 and working capital was $4,805 as of December 31, 2025. The Company generally depends on cash on hand, cash flows from operations, and the potential opportunistic sales of property, plant and equipment (“PP&E”) to satisfy its liquidity needs. The Company believes it will have adequate liquidity to meet its future operating requirements through a combination of cash on hand, cash expected to be generated from operations, and potential sales of PP&E. Given the inherent volatility in oil prices and global economic activity, the Company cannot predict this with certainty. To mitigate this uncertainty, the Company exercises discipline when making capital investments and pursues opportunistic cost containment initiatives, which can include workforce alignment, limiting overhead spending, and limiting research and development efforts to only critical items. Additionally, on May 24, 2023, the Company entered into a Purchase and Sale Agreement/Security Agreement with Zions Bancorporation, N.A., d/b/a Amegy Bank Business Credit (“Amegy”), which provides for Koil Energy from time to time to sell its accounts receivable and other rights to payment to Amegy, subject to Amegy’s right to approve or reject future accounts receivable and other rights proposed for sale, in its sole discretion. Any receivables sold shall bear an interest rate computed as Wall Street Journal Prime Rate (“Prime Rate”) plus 2.00%. The Prime Rate has a floor and at no time shall it be less than 8.00% for the purposes of this agreement. On December 31, 2025, the Company had $541 outstanding sales of accounts receivable to Amegy. Summary of Significant Accounting Policies and Estimates Principles of Consolidation The consolidated financial statements include the accounts of Koil Energy for the years ended December 31, 2025 and 2024. All intercompany transactions and balances have been eliminated. Use of Estimates The preparation of these financial statements in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) requires us to make estimates and judgments that may affect assets and liabilities. On an ongoing basis, we evaluate our estimates, including those related to revenue recognition and related allowances, contract assets and liabilities, impairments of long-lived assets, income taxes including the valuation allowance for deferred tax assets, contingencies and litigation, and share-based payments. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results may differ from these estimates under different assumptions or conditions. Foreign Currencies Assets and liabilities in foreign currencies are translated at the exchange rate on the balance sheet date. Revenue and expenses are translated at average rates of exchange prevailing during the year. Translation adjustments resulting from this process are recorded to other comprehensive loss. Segments For the years ended December 31, 2025 and 2024, the Company’s operations were organized as one reportable segment and one operating segment. Cash Cash consists of cash on deposit with domestic banks which, at times, may exceed federally insured limits. Fair Value of Financial Instruments Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. We utilize a fair value hierarchy, which maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. The fair value hierarchy has three levels of inputs that may be used to measure fair value: Level 1 – Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2 – Quoted prices in markets that are not active; or other inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability. Level 3 – Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable. Our financial instruments consist primarily of cash, accounts receivable, and accounts payable. The carrying values of cash, accounts receivables, and payables approximated their fair values at December 31, 2025 and 2024 due to their short-term maturities. Accounts Receivable and Allowance for Credit Losses Accounts receivable are uncollateralized customer obligations due under normal trade terms. The estimation of anticipated credit losses that may be incurred as we work through the invoice collection process with our customers requires us to make judgments and estimates regarding our customers’ ability to pay amounts due. We monitor our customers’ payment history and current credit worthiness, if needed, to determine that collectability is reasonably assured. We provide an allowance for credit losses based upon a review of each accounts receivable balance with respect to a customer’s ability to make payments. We also evaluate historical loss rates as well as consider forward-looking factors specific to the customers, the overall economic environment, and management expectations to determine expected losses. Generally, we do not charge interest on past due accounts. When certain accounts are determined to require an allowance, they are expensed by a provision for credit losses in that period. At December 31, 2025, and 2024, we estimated the allowance for credit losses requirement to be $569 and $0, respectively. Credit losses expense totaled $569 and $0 for the years ended December 31, 2025 and 2024, respectively. We believe that our allowance for credit losses is adequate to cover the anticipated credit losses under current conditions; however, uncertainties regarding changes in the financial condition of our customers, either adverse or positive, could impact the amount and timing of any additional credit losses that may be required. Concentration of Revenues and Credit Risk Koil Energy’s revenues are derived from the sale of products and services to customers who participate in the offshore sector of the energy industry. Customers may be similarly affected by economic and other changes in the energy industry. For the year ended December 31, 2025, our two largest customers accounted for <span id="xdx_908_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20250101__20251231__us-gaap--ConcentrationRiskByBenchmarkAxis__custom--TotalRevenuesMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--Customer1Member_zqzdn1t0f55a" title="Concentration risk percentage">23 percent and <span id="xdx_90D_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20250101__20251231__us-gaap--ConcentrationRiskByBenchmarkAxis__custom--TotalRevenuesMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--Customer2Member_zX36oLOT6L74" title="Concentration risk percentage">16 percent of total revenues, respectively. For the year ended December 31, 2024, our two largest customers accounted for <span id="xdx_905_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20240101__20241231__us-gaap--ConcentrationRiskByBenchmarkAxis__custom--TotalRevenuesMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--Customer1Member_zxPphZe0ozEh" title="Concentration risk percentage">47 percent and <span id="xdx_902_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20240101__20241231__us-gaap--ConcentrationRiskByBenchmarkAxis__custom--TotalRevenuesMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--Customer2Member_zFlRWYefhJNk" title="Concentration risk percentage">27 percent of total revenues, respectively. No other customers were in excess of <span id="xdx_90B_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20240101__20241231__us-gaap--ConcentrationRiskByBenchmarkAxis__custom--TotalRevenuesMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--OtherCustomersMember_zSCOVwGJZJR6" title="Concentration risk percentage">10 percent of revenues. The loss of one or more of these customers could have a material impact on our results of operations and cash flows. As of December 31, 2025, five of our customers accounted for <span id="xdx_909_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20250101__20251231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--Customer1Member_zWPkvHLNMXk6" title="Concentration risk percentage">22 percent, <span id="xdx_906_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20250101__20251231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--Customer2Member_zQHYywkFa1Oa" title="Concentration risk percentage">16 percent, <span id="xdx_901_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20250101__20251231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--Customer3Member_zVHbG51lEoXi" title="Concentration risk percentage">12 percent, <span id="xdx_90E_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20250101__20251231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--Customer4Member_zKxRYmUlL5lj" title="Concentration risk percentage">12 percent and <span id="xdx_904_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20250101__20251231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--Customer5Member_zQ8CdQ4ZklGb" title="Concentration risk percentage">10 percent of total accounts receivable. As of December 31, 2024, three of our customers accounted for <span id="xdx_906_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20240101__20241231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--Customer1Member_z7TGIeW9U5te" title="Concentration risk percentage">37 percent, <span id="xdx_906_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20240101__20241231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--Customer2Member_zk8NJO2LA4pi" title="Concentration risk percentage">20 percent, and <span id="xdx_90A_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20240101__20241231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--Customer3Member_z2pKS8vEQUHk" title="Concentration risk percentage">14 percent of total accounts receivable. Inventory Koil Energy maintains an inventory of components that would otherwise have long lead times to purchase as needed. Inventory costs are determined principally by the use of the specific identification method. Company manufactured inventory is valued using direct costs incurred. We periodically review the value of items in inventory and record write-downs or write-offs of inventory based on our assessment of obsolescence or marketability. We did not record any write-downs or write-offs of inventory in recent years; therefore, we do not consider a reserve against inventory to be necessary. Property, Plant and Equipment PP&E is stated at cost, net of accumulated depreciation, amortization, and related impairments. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the respective assets. Replacements and betterments are capitalized, while maintenance and repairs are expensed as incurred. It is our policy to include amortization expense on assets acquired under finance leases with depreciation expense on owned assets. Additionally, we record depreciation and amortization expense related to revenue-generating assets as a component of cost of sales in the accompanying consolidated statements of operations. If circumstances associated with our PP&E have changed or a significant event has occurred that may affect the recoverability of the carrying amount of our PP&E, an impairment indicator exists, and we test the PP&E for impairment. Before testing for impairment, we group PP&E with other finite-lived long-lived assets (“long-lived assets”) at the lowest level of identifiable cash flows that are largely independent of cash flows from other assets or groups of assets. Testing long-lived assets for impairment is a two-step process: Step 1 – We test the long-lived asset group for recoverability by comparing the carrying amount of the asset group with the sum of the undiscounted future cash flows from use and the eventual disposal of the asset group. If the carrying amount of the long-lived asset group is determined to be greater than the sum of the undiscounted future cash flows from use and disposal, we would need to perform step 2. Step 2 – If the long-lived group of assets fails the recoverability test in step 1, we would record an impairment expense for the difference between the carrying amount and the fair value of the long-lived asset group. During the years ended December 31, 2025, and December 31, 2024, the Company conducted assessments of whether impairment indicators were present that indicate the carrying amount of its long-lived asset (group) might not be recoverable and determined that no such events or changes in circumstances were present. Intangible Capitalized Software Development Costs The Company capitalizes certain costs related to the implementation of software systems during the application development stage. Capitalized software development costs are capitalized when application development begins and it is probable that the project will be completed and used as intended by the Company. The capitalization policy provides for capitalizing certain payroll and payroll-related costs for employees who spend time directly associated with the configuration, development, and enhancement of software systems. Costs associated with preliminary project activities, data migration, training, maintenance, and all other post-implementation stage activities are expensed as incurred. Lease Obligations Lessees are required to recognize on the balance sheet a lease liability and a right-of-use (“ROU”) asset for all leases, except for short-term leases with terms of twelve months or less. The lease liability represents the lessee’s obligation to make lease payments arising from a lease and will initially be measured as the present value of the lease payments. The ROU asset represents the lessee’s right to use a specified asset for the lease term, and will be measured at the lease liability amount, adjusted for lease prepayment, lease incentives received and the lessee’s initial direct costs. ROU assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term and include options to extend or terminate the lease when they are reasonably certain to be exercised. The present value of lease payments is determined primarily using the incremental borrowing rate based on the information available at the lease commencement date. Lease agreements with lease and non-lease components are generally accounted for as a single lease component. The Company’s operating lease expense is recognized on a straight-line basis over the lease term and a portion is recorded in cost of sales, and the remainder is recorded in selling, general and administrative expenses. The accounting for some leases may require significant judgment, which includes determining whether a contract contains a lease, determining the incremental borrowing rate to utilize in our net present value calculation of lease payments for lease agreements which do not provide an implicit rate, and assessing the likelihood of renewal or termination options and impairment. At the inception of a lease, Koil Energy evaluates the agreement to determine whether the lease will be accounted for as an operating or finance lease. The term of the lease used for such an evaluation includes renewal option periods only in instances in which the exercise of the renewal option can be reasonably assured, and if the contract contains a substantial penalty for failure to renew or extend the lease, it could lead the Company to conclude it has a significant economic incentive to extend the lease beyond the base rental period. Income Taxes We follow the asset and liability method of accounting for income taxes. This method considers the differences between financial statement treatment and tax treatment of certain transactions. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates is recognized as income or expense in the period that includes the enactment date. We record a valuation allowance to reduce the carrying value of our deferred tax assets when it is more likely than not that some or all of the deferred tax assets will expire before realization of the benefit or that future deductibility is not probable. The ultimate realization of the deferred tax assets depends upon our ability to generate sufficient taxable income of the appropriate character in the future. This requires management to use estimates and make assumptions regarding significant future events such as the taxability of entities operating in the various taxing jurisdictions. In evaluating our ability to recover our deferred tax assets, we consider all reasonably available positive and negative evidence, including our past operating results, the existence of cumulative losses in the most recent years and our forecast of future taxable income. In estimating future taxable income, we develop assumptions, including the amount of future state and federal pre-tax operating income, the reversal of temporary differences and the implementation of feasible and prudent tax planning strategies. These assumptions require significant judgment. When the likelihood of the realization of existing deferred tax assets changes, adjustments to the valuation allowance are charged in the period in which the determination is made, either to income or goodwill, depending upon when that portion of the valuation allowance was originally created. We record an estimated tax liability or tax benefit for income and other taxes based on what we determine will likely be paid in the various tax jurisdictions in which we operate. We use our best judgment in the determination of these amounts. However, the liabilities ultimately realized and paid are dependent upon various matters, including resolution of tax audits, and may differ from amounts recorded. An adjustment to the estimated liability would be recorded as a provision or benefit to income tax expense in the period in which it becomes probable that the amount of the actual liability or benefit differs from the recorded amount. Our future effective tax rates could be adversely affected by changes in the valuation of our deferred tax assets or liabilities or changes in tax laws or interpretations thereof. If and when our deferred tax assets are no longer fully reserved, we will begin to provide for taxes at the full statutory rate. In addition, we are subject to the examination of our income tax returns by the Internal Revenue Service and other tax authorities. We regularly assess the likelihood of adverse outcomes resulting from these examinations to determine the adequacy of our provision for income taxes. Share-Based Compensation We record share-based awards exchanged for employee service at fair value on the date of grant and expense the awards in the consolidated statements of operations over the requisite employee service period. Restricted stock awards are valued at the closing price on the date of grant. Determining the grant date fair value for options requires management to make estimates regarding the variables used in the calculation of the grant date fair value. Those variables are the future volatility of our Common Stock price and the length of time an optionee will hold their options until exercising them (the “expected term”). Share-based compensation expense is generally recognized over the expected term of the award on a straight-line basis, and forfeitures are recorded as they occur. Earnings or Loss per Common Share Basic earnings or loss per common share (“EPS”) is calculated by dividing net income or loss by the weighted-average number of common shares outstanding for the period. Diluted EPS is calculated by dividing net income or loss by the weighted-average number of common shares and dilutive common stock equivalents (stock options) outstanding during the period. Diluted EPS reflects the potential dilution that could occur if stock options and warrants to purchase common stock were exercised for shares of common stock. In periods where losses are reported, the weighted-average number of common shares outstanding excludes common stock equivalents, because their inclusion would be anti-dilutive. Recently Issued Accounting Standards New Accounting Standards Adopted In December 2023, the FASB issued ASU 2023-09, “Improvements to Income Tax Disclosures,” which requires enhanced income tax disclosures, including additional disaggregated information related to the effective tax rate reconciliation, the underlying nature and category of individual reconciling items, and income taxes paid by jurisdictions. We adopted ASU 2023-09 in the fourth quarter of 2025 for the disclosure in Note 8. New Accounting Standards Not Yet Adopted In September 2025, the FASB issued ASU 2025-06 - “Targeted Improvements to the Accounting for Internal-Use Software” (Topic 350). ASU 2025-06 eliminates references to software development project stages and revises the criteria that must be met to begin capitalizing internal-use software costs. The standard permits entities to adopt the guidance using a prospective, retrospective, or modified transition approach and becomes effective for us beginning January 1, 2028, with early adoption permitted. We are currently assessing the potential impact that ASU 2025-06 will have on our financial statements and disclosures.

Description of Business Koil Energy Solutions, Inc., a Nevada corporation (“Koil Energy Nevada”), and its direct wholly owned subsidiary, Koil Energy Solutions, Inc., a Delaware corporation (“Koil Energy Delaware”), and its direct wholly owned subsidiary Koil Energy Solutions Brazil Ltda., a Brazilian limited liability company (“Koil Energy Brazil”) and together with Koil Energy Nevada, (“Koil Energy”, “we”, “us” or the “Company”), is an energy services company that provides equipment and support services to the world’s energy and offshore industries. The Company provides innovative solutions to complex customer challenges presented between the production facility and the energy source. Koil Energy’s core services and technological solutions include distribution system installation support and engineering services, umbilical terminations, loose-tube steel flying leads, and related services. Additionally, Koil Energy’s experienced professionals can support subsea engineering, manufacturing, installation, commissioning, and maintenance projects located anywhere in the world. The Company’s broad line of solutions are engineered and manufactured primarily for major integrated, large independent, and foreign national energy companies in offshore areas throughout the world. These products are often developed in direct response to customer requests for solutions to critical needs in the field. The Company primarily serves the offshore oil and gas market; however, the Company’s product offerings and service capabilities are based on core competencies that are energy source agnostic and can be applied to additional markets, including offshore wind, offshore wave energy, hydrogen, and liquefied natural gas.

Liquidity Koil Energy’s cash on hand was $1,535 and working capital was $4,805 as of December 31, 2025. The Company generally depends on cash on hand, cash flows from operations, and the potential opportunistic sales of property, plant and equipment (“PP&E”) to satisfy its liquidity needs. The Company believes it will have adequate liquidity to meet its future operating requirements through a combination of cash on hand, cash expected to be generated from operations, and potential sales of PP&E. Given the inherent volatility in oil prices and global economic activity, the Company cannot predict this with certainty. To mitigate this uncertainty, the Company exercises discipline when making capital investments and pursues opportunistic cost containment initiatives, which can include workforce alignment, limiting overhead spending, and limiting research and development efforts to only critical items. Additionally, on May 24, 2023, the Company entered into a Purchase and Sale Agreement/Security Agreement with Zions Bancorporation, N.A., d/b/a Amegy Bank Business Credit (“Amegy”), which provides for Koil Energy from time to time to sell its accounts receivable and other rights to payment to Amegy, subject to Amegy’s right to approve or reject future accounts receivable and other rights proposed for sale, in its sole discretion. Any receivables sold shall bear an interest rate computed as Wall Street Journal Prime Rate (“Prime Rate”) plus 2.00%. The Prime Rate has a floor and at no time shall it be less than 8.00% for the purposes of this agreement. On December 31, 2025, the Company had $541 outstanding sales of accounts receivable to Amegy. Summary of Significant Accounting Policies and Estimates

1535000

4805000

541

Principles of Consolidation The consolidated financial statements include the accounts of Koil Energy for the years ended December 31, 2025 and 2024. All intercompany transactions and balances have been eliminated.

Use of Estimates The preparation of these financial statements in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) requires us to make estimates and judgments that may affect assets and liabilities. On an ongoing basis, we evaluate our estimates, including those related to revenue recognition and related allowances, contract assets and liabilities, impairments of long-lived assets, income taxes including the valuation allowance for deferred tax assets, contingencies and litigation, and share-based payments. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results may differ from these estimates under different assumptions or conditions.

Foreign Currencies Assets and liabilities in foreign currencies are translated at the exchange rate on the balance sheet date. Revenue and expenses are translated at average rates of exchange prevailing during the year. Translation adjustments resulting from this process are recorded to other comprehensive loss.

Segments For the years ended December 31, 2025 and 2024, the Company’s operations were organized as one reportable segment and one operating segment.

Cash Cash consists of cash on deposit with domestic banks which, at times, may exceed federally insured limits.

Fair Value of Financial Instruments Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. We utilize a fair value hierarchy, which maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. The fair value hierarchy has three levels of inputs that may be used to measure fair value: Level 1 – Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2 – Quoted prices in markets that are not active; or other inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability. Level 3 – Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable. Our financial instruments consist primarily of cash, accounts receivable, and accounts payable. The carrying values of cash, accounts receivables, and payables approximated their fair values at December 31, 2025 and 2024 due to their short-term maturities.

Accounts Receivable and Allowance for Credit Losses Accounts receivable are uncollateralized customer obligations due under normal trade terms. The estimation of anticipated credit losses that may be incurred as we work through the invoice collection process with our customers requires us to make judgments and estimates regarding our customers’ ability to pay amounts due. We monitor our customers’ payment history and current credit worthiness, if needed, to determine that collectability is reasonably assured. We provide an allowance for credit losses based upon a review of each accounts receivable balance with respect to a customer’s ability to make payments. We also evaluate historical loss rates as well as consider forward-looking factors specific to the customers, the overall economic environment, and management expectations to determine expected losses. Generally, we do not charge interest on past due accounts. When certain accounts are determined to require an allowance, they are expensed by a provision for credit losses in that period. At December 31, 2025, and 2024, we estimated the allowance for credit losses requirement to be $569 and $0, respectively. Credit losses expense totaled $569 and $0 for the years ended December 31, 2025 and 2024, respectively. We believe that our allowance for credit losses is adequate to cover the anticipated credit losses under current conditions; however, uncertainties regarding changes in the financial condition of our customers, either adverse or positive, could impact the amount and timing of any additional credit losses that may be required.

569000

Concentration of Revenues and Credit Risk Koil Energy’s revenues are derived from the sale of products and services to customers who participate in the offshore sector of the energy industry. Customers may be similarly affected by economic and other changes in the energy industry. For the year ended December 31, 2025, our two largest customers accounted for <span id="xdx_908_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20250101__20251231__us-gaap--ConcentrationRiskByBenchmarkAxis__custom--TotalRevenuesMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--Customer1Member_zqzdn1t0f55a" title="Concentration risk percentage">23 percent and <span id="xdx_90D_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20250101__20251231__us-gaap--ConcentrationRiskByBenchmarkAxis__custom--TotalRevenuesMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--Customer2Member_zX36oLOT6L74" title="Concentration risk percentage">16 percent of total revenues, respectively. For the year ended December 31, 2024, our two largest customers accounted for <span id="xdx_905_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20240101__20241231__us-gaap--ConcentrationRiskByBenchmarkAxis__custom--TotalRevenuesMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--Customer1Member_zxPphZe0ozEh" title="Concentration risk percentage">47 percent and <span id="xdx_902_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20240101__20241231__us-gaap--ConcentrationRiskByBenchmarkAxis__custom--TotalRevenuesMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--Customer2Member_zFlRWYefhJNk" title="Concentration risk percentage">27 percent of total revenues, respectively. No other customers were in excess of <span id="xdx_90B_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20240101__20241231__us-gaap--ConcentrationRiskByBenchmarkAxis__custom--TotalRevenuesMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--OtherCustomersMember_zSCOVwGJZJR6" title="Concentration risk percentage">10 percent of revenues. The loss of one or more of these customers could have a material impact on our results of operations and cash flows. As of December 31, 2025, five of our customers accounted for <span id="xdx_909_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20250101__20251231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--Customer1Member_zWPkvHLNMXk6" title="Concentration risk percentage">22 percent, <span id="xdx_906_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20250101__20251231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--Customer2Member_zQHYywkFa1Oa" title="Concentration risk percentage">16 percent, <span id="xdx_901_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20250101__20251231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--Customer3Member_zVHbG51lEoXi" title="Concentration risk percentage">12 percent, <span id="xdx_90E_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20250101__20251231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--Customer4Member_zKxRYmUlL5lj" title="Concentration risk percentage">12 percent and <span id="xdx_904_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20250101__20251231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--Customer5Member_zQ8CdQ4ZklGb" title="Concentration risk percentage">10 percent of total accounts receivable. As of December 31, 2024, three of our customers accounted for <span id="xdx_906_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20240101__20241231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--Customer1Member_z7TGIeW9U5te" title="Concentration risk percentage">37 percent, <span id="xdx_906_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20240101__20241231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--Customer2Member_zk8NJO2LA4pi" title="Concentration risk percentage">20 percent, and <span id="xdx_90A_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20240101__20241231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--Customer3Member_z2pKS8vEQUHk" title="Concentration risk percentage">14 percent of total accounts receivable.

0.23

0.16

0.47

0.27

0.10

0.22

0.16

0.12

0.10

0.37

0.20

0.14

Inventory Koil Energy maintains an inventory of components that would otherwise have long lead times to purchase as needed. Inventory costs are determined principally by the use of the specific identification method. Company manufactured inventory is valued using direct costs incurred. We periodically review the value of items in inventory and record write-downs or write-offs of inventory based on our assessment of obsolescence or marketability. We did not record any write-downs or write-offs of inventory in recent years; therefore, we do not consider a reserve against inventory to be necessary.

Property, Plant and Equipment PP&E is stated at cost, net of accumulated depreciation, amortization, and related impairments. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the respective assets. Replacements and betterments are capitalized, while maintenance and repairs are expensed as incurred. It is our policy to include amortization expense on assets acquired under finance leases with depreciation expense on owned assets. Additionally, we record depreciation and amortization expense related to revenue-generating assets as a component of cost of sales in the accompanying consolidated statements of operations. If circumstances associated with our PP&E have changed or a significant event has occurred that may affect the recoverability of the carrying amount of our PP&E, an impairment indicator exists, and we test the PP&E for impairment. Before testing for impairment, we group PP&E with other finite-lived long-lived assets (“long-lived assets”) at the lowest level of identifiable cash flows that are largely independent of cash flows from other assets or groups of assets. Testing long-lived assets for impairment is a two-step process: Step 1 – We test the long-lived asset group for recoverability by comparing the carrying amount of the asset group with the sum of the undiscounted future cash flows from use and the eventual disposal of the asset group. If the carrying amount of the long-lived asset group is determined to be greater than the sum of the undiscounted future cash flows from use and disposal, we would need to perform step 2. Step 2 – If the long-lived group of assets fails the recoverability test in step 1, we would record an impairment expense for the difference between the carrying amount and the fair value of the long-lived asset group. During the years ended December 31, 2025, and December 31, 2024, the Company conducted assessments of whether impairment indicators were present that indicate the carrying amount of its long-lived asset (group) might not be recoverable and determined that no such events or changes in circumstances were present.

Intangible Capitalized Software Development Costs The Company capitalizes certain costs related to the implementation of software systems during the application development stage. Capitalized software development costs are capitalized when application development begins and it is probable that the project will be completed and used as intended by the Company. The capitalization policy provides for capitalizing certain payroll and payroll-related costs for employees who spend time directly associated with the configuration, development, and enhancement of software systems. Costs associated with preliminary project activities, data migration, training, maintenance, and all other post-implementation stage activities are expensed as incurred.

Lease Obligations Lessees are required to recognize on the balance sheet a lease liability and a right-of-use (“ROU”) asset for all leases, except for short-term leases with terms of twelve months or less. The lease liability represents the lessee’s obligation to make lease payments arising from a lease and will initially be measured as the present value of the lease payments. The ROU asset represents the lessee’s right to use a specified asset for the lease term, and will be measured at the lease liability amount, adjusted for lease prepayment, lease incentives received and the lessee’s initial direct costs. ROU assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term and include options to extend or terminate the lease when they are reasonably certain to be exercised. The present value of lease payments is determined primarily using the incremental borrowing rate based on the information available at the lease commencement date. Lease agreements with lease and non-lease components are generally accounted for as a single lease component. The Company’s operating lease expense is recognized on a straight-line basis over the lease term and a portion is recorded in cost of sales, and the remainder is recorded in selling, general and administrative expenses. The accounting for some leases may require significant judgment, which includes determining whether a contract contains a lease, determining the incremental borrowing rate to utilize in our net present value calculation of lease payments for lease agreements which do not provide an implicit rate, and assessing the likelihood of renewal or termination options and impairment. At the inception of a lease, Koil Energy evaluates the agreement to determine whether the lease will be accounted for as an operating or finance lease. The term of the lease used for such an evaluation includes renewal option periods only in instances in which the exercise of the renewal option can be reasonably assured, and if the contract contains a substantial penalty for failure to renew or extend the lease, it could lead the Company to conclude it has a significant economic incentive to extend the lease beyond the base rental period.

Income Taxes We follow the asset and liability method of accounting for income taxes. This method considers the differences between financial statement treatment and tax treatment of certain transactions. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates is recognized as income or expense in the period that includes the enactment date. We record a valuation allowance to reduce the carrying value of our deferred tax assets when it is more likely than not that some or all of the deferred tax assets will expire before realization of the benefit or that future deductibility is not probable. The ultimate realization of the deferred tax assets depends upon our ability to generate sufficient taxable income of the appropriate character in the future. This requires management to use estimates and make assumptions regarding significant future events such as the taxability of entities operating in the various taxing jurisdictions. In evaluating our ability to recover our deferred tax assets, we consider all reasonably available positive and negative evidence, including our past operating results, the existence of cumulative losses in the most recent years and our forecast of future taxable income. In estimating future taxable income, we develop assumptions, including the amount of future state and federal pre-tax operating income, the reversal of temporary differences and the implementation of feasible and prudent tax planning strategies. These assumptions require significant judgment. When the likelihood of the realization of existing deferred tax assets changes, adjustments to the valuation allowance are charged in the period in which the determination is made, either to income or goodwill, depending upon when that portion of the valuation allowance was originally created. We record an estimated tax liability or tax benefit for income and other taxes based on what we determine will likely be paid in the various tax jurisdictions in which we operate. We use our best judgment in the determination of these amounts. However, the liabilities ultimately realized and paid are dependent upon various matters, including resolution of tax audits, and may differ from amounts recorded. An adjustment to the estimated liability would be recorded as a provision or benefit to income tax expense in the period in which it becomes probable that the amount of the actual liability or benefit differs from the recorded amount. Our future effective tax rates could be adversely affected by changes in the valuation of our deferred tax assets or liabilities or changes in tax laws or interpretations thereof. If and when our deferred tax assets are no longer fully reserved, we will begin to provide for taxes at the full statutory rate. In addition, we are subject to the examination of our income tax returns by the Internal Revenue Service and other tax authorities. We regularly assess the likelihood of adverse outcomes resulting from these examinations to determine the adequacy of our provision for income taxes.

Share-Based Compensation We record share-based awards exchanged for employee service at fair value on the date of grant and expense the awards in the consolidated statements of operations over the requisite employee service period. Restricted stock awards are valued at the closing price on the date of grant. Determining the grant date fair value for options requires management to make estimates regarding the variables used in the calculation of the grant date fair value. Those variables are the future volatility of our Common Stock price and the length of time an optionee will hold their options until exercising them (the “expected term”). Share-based compensation expense is generally recognized over the expected term of the award on a straight-line basis, and forfeitures are recorded as they occur.

Earnings or Loss per Common Share Basic earnings or loss per common share (“EPS”) is calculated by dividing net income or loss by the weighted-average number of common shares outstanding for the period. Diluted EPS is calculated by dividing net income or loss by the weighted-average number of common shares and dilutive common stock equivalents (stock options) outstanding during the period. Diluted EPS reflects the potential dilution that could occur if stock options and warrants to purchase common stock were exercised for shares of common stock. In periods where losses are reported, the weighted-average number of common shares outstanding excludes common stock equivalents, because their inclusion would be anti-dilutive.

Recently Issued Accounting Standards New Accounting Standards Adopted In December 2023, the FASB issued ASU 2023-09, “Improvements to Income Tax Disclosures,” which requires enhanced income tax disclosures, including additional disaggregated information related to the effective tax rate reconciliation, the underlying nature and category of individual reconciling items, and income taxes paid by jurisdictions. We adopted ASU 2023-09 in the fourth quarter of 2025 for the disclosure in Note 8. New Accounting Standards Not Yet Adopted In September 2025, the FASB issued ASU 2025-06 - “Targeted Improvements to the Accounting for Internal-Use Software” (Topic 350). ASU 2025-06 eliminates references to software development project stages and revises the criteria that must be met to begin capitalizing internal-use software costs. The standard permits entities to adopt the guidance using a prospective, retrospective, or modified transition approach and becomes effective for us beginning January 1, 2028, with early adoption permitted. We are currently assessing the potential impact that ASU 2025-06 will have on our financial statements and disclosures.

NOTE 2: LEASES We lease land, buildings, and certain equipment under non-cancellable operating leases. The Company leases office, indoor manufacturing, warehouse, and operating space in Houston, Texas and Macaé Brazil. Additionally, the company leases storage space in Mobile, Alabama to house its 3,400 metric ton and 3,500 metric ton carousel systems. We classify our leases related to certain office furniture and computer equipment as financing leases. The Company elects to apply the short-term lease exception; therefore, the Company will not record an ROU asset or corresponding lease liability for leases with an initial term of twelve months or less that are not reasonably certain of being renewed and instead will recognize a single lease cost allocated over the lease term, generally on a straight-line basis. The Company elects to apply the practical expedient to not separate lease components from non-lease components and instead account for both as a single lease component for all asset classes. Most leases include one or more options to renew, with renewal terms that can extend the lease term on a monthly, annual, or longer basis. The exercise of lease renewal options is at the Company’s sole discretion. Certain leases also include options to purchase the leased property. The depreciable life of assets and leasehold improvements is limited by the expected lease term unless there is a transfer of title or purchase option that is reasonably certain of being exercised. The Company elects to not capitalize any lease in which the estimated value of the underlying asset at the commencement date is less than the Company’s capitalization threshold. A lease would need to qualify for the low value exception based on various criteria. On November 19, 2025, Koil Energy Solutions do Brazil Ltda, began subleasing a portion of its administrative offices for $R30 per month (or approximately $5 at current exchange rates). This sub-lease is for 3 months and renewable. The following tables present information about our operating and finance leases: <table cellpadding="0" cellspacing="0" id="xdx_896_ecustom--OperatingAndFinanceLeaseInformationTableTextBlock_pn3n3_z69oYC9wj794" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse" summary="xdx: Disclosure - LEASES (Details - Operating and finance lease information)"> <tr style="vertical-align: bottom"> <td>Schedule of operating and finance leases</td><td> </td> <td style="text-align: center"> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Classification</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 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; font-weight: bold; text-align: center">December 31, 2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold">Assets</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; background-color: White"> <td style="padding-left: 10pt; width: 35%">Operating</td><td style="width: 1%"> </td> <td style="width: 32%; text-align: left">Right-of-use operating lease assets</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_981_eus-gaap--OperatingLeaseRightOfUseAsset_pn3n3_c20251231_zJw0NV8JNeO2" style="width: 13%; text-align: right" title="Operating, Right-of-use operating lease assets">5,770</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_986_eus-gaap--OperatingLeaseRightOfUseAsset_pn3n3_c20241231_ztJdqGn05WXl" style="width: 13%; text-align: right" title="Operating, Right-of-use operating lease assets">5,383</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-left: 10pt; padding-bottom: 1pt">Finance</td><td style="padding-bottom: 1pt"> </td> <td style="text-align: left; padding-bottom: 1pt">Right-of-use finance lease assets</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_989_eus-gaap--FinanceLeaseRightOfUseAsset_pn3n3_c20251231_zrL09tY25MV6" style="border-bottom: Black 1pt solid; text-align: right" title="Finance, Right-of-use finance lease assets">53</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98D_eus-gaap--FinanceLeaseRightOfUseAsset_pn3n3_c20241231_zLCLLNJcmPcf" style="border-bottom: Black 1pt solid; text-align: right" title="Finance, Right-of-use finance lease assets">29</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 20pt; text-align: left; padding-bottom: 2.5pt">Total lease assets</td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_988_ecustom--LeaseAssets_iI_pn3n3_c20251231_zHSqVy5HZSHc" style="border-bottom: Black 2.5pt double; text-align: right" title="Total lease assets">5,823</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">$</td><td id="xdx_986_ecustom--LeaseAssets_pn3n3_c20241231_zVptWKGQnwsh" style="border-bottom: Black 2.5pt double; text-align: right" title="Total lease assets">5,412</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td> </td><td> </td> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold">Liabilities</td><td> </td> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold">Current</td><td> </td> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt">Operating</td><td> </td> <td style="text-align: left">Current operating lease liabilities</td><td> </td> <td style="text-align: left">$</td><td id="xdx_981_eus-gaap--OperatingLeaseLiabilityCurrent_pn3n3_c20251231_zK4VzT29CWt9" style="text-align: right" title="Operating, Current operating lease liabilities">899</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_98C_eus-gaap--OperatingLeaseLiabilityCurrent_pn3n3_c20241231_zTtQ2u4f5rAd" style="text-align: right" title="Operating, Current operating lease liabilities">537</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-left: 10pt">Finance</td><td> </td> <td style="text-align: left">Current finance lease liabilities</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--FinanceLeaseLiabilityCurrent_pn3n3_c20251231_zV0D0v3RSXpd" style="text-align: right" title="Finance, Current finance lease liabilities">20</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_eus-gaap--FinanceLeaseLiabilityCurrent_pn3n3_c20241231_zaiEcdlRqu4f" style="text-align: right" title="Finance, Current finance lease liabilities">12</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <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; background-color: rgb(238,238,238)"> <td style="font-weight: bold">Non-current</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; background-color: White"> <td style="padding-left: 10pt">Operating</td><td> </td> <td style="text-align: left">Operating lease liability, long-term</td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--OperatingLeaseLiabilityNoncurrent_pn3n3_c20251231_zEdpBAjAvmXa" style="text-align: right" title="Operating Non-current, Operating lease liability, long-term">5,658</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_eus-gaap--OperatingLeaseLiabilityNoncurrent_pn3n3_c20241231_zJFTU5CzMte1" style="text-align: right" title="Operating Non-current, Operating lease liability, long-term">5,600</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-left: 10pt; padding-bottom: 1pt">Finance</td><td style="padding-bottom: 1pt"> </td> <td style="text-align: left; padding-bottom: 1pt">Finance lease liability, long-term</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98C_eus-gaap--FinanceLeaseLiabilityNoncurrent_pn3n3_c20251231_zZKDoXNtuxD7" style="border-bottom: Black 1pt solid; text-align: right" title="Finance Non-current, Finance lease liability, long-term">29</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 id="xdx_980_eus-gaap--FinanceLeaseLiabilityNoncurrent_pn3n3_c20241231_zwhGkOMXXh83" style="border-bottom: Black 1pt solid; text-align: right" title="Finance Non-current, Finance lease liability, long-term">12</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 20pt; text-align: left; padding-bottom: 2.5pt">Total lease liabilities</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 id="xdx_98C_ecustom--TotalLeaseLiabilities_iI_pn3n3_c20251231_zJNwkE1RUkt6" style="border-bottom: Black 2.5pt double; text-align: right" title="Total lease liabilities">6,606</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 id="xdx_98C_ecustom--TotalLeaseLiabilities_pn3n3_c20241231_zPf048IJupo4" style="border-bottom: Black 2.5pt double; text-align: right" title="Total lease liabilities">6,161</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> The components of our lease expense were as follows: <table cellpadding="0" cellspacing="0" id="xdx_894_eus-gaap--LeaseCostTableTextBlock_pn3n3_z5D4NEMUYBPh" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse" summary="xdx: Disclosure - LEASES (Details - Components of lease expense)"> <tr style="vertical-align: bottom"> <td>Schedule of components of lease expense</td><td> </td> <td> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Years Ended December 31,</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Classification</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; 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; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left">Finance lease costs</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; background-color: White"> <td style="padding-left: 10pt; width: 35%; text-align: left">Amortization of ROU assets</td><td style="width: 1%"> </td> <td style="width: 32%; text-align: left">Selling, general and administrative</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_986_eus-gaap--FinanceLeaseRightOfUseAssetAmortization_pn3n3_c20250101__20251231_zjA5YVGDP1Qa" style="width: 13%; text-align: right" title="Amortization of ROU assets">16</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_981_eus-gaap--FinanceLeaseRightOfUseAssetAmortization_pn3n3_c20240101__20241231_zzRvPuI35idb" style="width: 13%; text-align: right" title="Amortization of ROU assets">74</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-left: 10pt; text-align: left">Interest on lease liabilities</td><td> </td> <td style="text-align: left">Interest (income) expense, net</td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--FinanceLeaseInterestExpense_pn3n3_c20250101__20251231_zYBoCPLdrwJ5" style="text-align: right" title="Interest on lease liabilities">2</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--FinanceLeaseInterestExpense_pn3n3_c20240101__20241231_zINE83SDw04i" style="text-align: right" title="Interest on lease liabilities">4</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Operating lease expense</td><td> </td> <td>Cost of sales</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--OperatingLeaseExpense_pn3n3_c20250101__20251231__us-gaap--NatureOfExpenseAxis__custom--CostOfSales1Member_zFaq65p6b8c2" style="text-align: right" title="Operating lease expense">1,049</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--OperatingLeaseExpense_pn3n3_c20240101__20241231__us-gaap--NatureOfExpenseAxis__custom--CostOfSales1Member_ztJNOR3XRcqe" style="text-align: right" title="Operating lease expense">756</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left">Operating lease expense</td><td> </td> <td style="text-align: left">Selling, general and administrative</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--OperatingLeaseExpense_pn3n3_c20250101__20251231__us-gaap--NatureOfExpenseAxis__custom--SellingGenlAndAdminMember_ztMK8Omi6Wf5" style="text-align: right" title="Operating lease expense">219</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_eus-gaap--OperatingLeaseExpense_pn3n3_c20240101__20241231__us-gaap--NatureOfExpenseAxis__custom--SellingGenlAndAdminMember_zeIuF8bJqtL7" style="text-align: right" title="Operating lease expense">220</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Short term lease expense</td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt">Cost of sales</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_988_eus-gaap--ShortTermLeaseCost_pn3n3_c20250101__20251231_zHowT7pvUOh5" style="border-bottom: Black 1pt solid; text-align: right" title="Short term lease expense">600</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 id="xdx_98D_eus-gaap--ShortTermLeaseCost_pn3n3_c20240101__20241231_zdHMZrLWTBDa" style="border-bottom: Black 1pt solid; text-align: right" title="Short term lease expense">380</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 2.5pt">Total lease expense</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 id="xdx_98B_eus-gaap--LeaseCost_pn3n3_c20250101__20251231_zlDFahDnMLbb" style="border-bottom: Black 2.5pt double; text-align: right" title="Total lease expense">1,886</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 id="xdx_986_eus-gaap--LeaseCost_pn3n3_c20240101__20241231_zmFkB0tycvP" style="border-bottom: Black 2.5pt double; text-align: right" title="Total lease expense">1,434</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> The lease term and discount rate for our operating and financing leases were as follows: <table cellpadding="0" cellspacing="0" id="xdx_893_ecustom--LeaseTermAndDiscountRateTableTextBlock_pn3n3_ztCbH48zlmaf" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - LEASES (Details - Lease term and discount)"> <tr style="vertical-align: bottom"> <td>Schedule of lease term and discount rate</td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 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; font-weight: bold; text-align: center">December 31, 2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid">Weighted-average remaining lease terms (years)</td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="text-align: center"> </td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="text-align: center"> </td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 66%; text-align: left">Operating leases</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 13%; text-align: right">6.67</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 13%; text-align: right">7.72</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Finance leases</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3.47</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2.40</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <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="border-bottom: Black 1pt solid; text-align: left">Weighted-average discount rates</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(238,238,238)"> <td style="text-align: left">Operating leases</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">7.44%</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">7.94%</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Finance leases</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4.66%</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">0.02%</td><td style="text-align: left"> </td></tr> </table> Present value of lease liabilities: <table cellpadding="0" cellspacing="0" id="xdx_89E_eus-gaap--LesseeOperatingLeaseLiabilityMaturityTableTextBlock_pn3n3_zIRRKo5gqmmb" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 70%" summary="xdx: Disclosure - LEASES (Details - Present value)"> <tr style="vertical-align: bottom"> <td>Schedule of present value of lease liabilities</td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt; font-weight: bold; text-align: right">Years ending December 31,</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Operating Leases</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; font-weight: bold; text-align: center">Finance Leases</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 36%; text-align: right">2026</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98A_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths_iI_pn3n3_c20251231_zwvW1DGVfp36" style="width: 13%; text-align: right" title="Operating Leases, 2026">1,357</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98B_eus-gaap--FinanceLeaseLiabilityPaymentsDueNextTwelveMonths_iI_pn3n3_c20251231_zLzZWzndqTJf" style="width: 13%; text-align: right" title="Finance Leases, 2026">22</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: right">2027</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearTwo_iI_pn3n3_c20251231_zrqzPeo51WP8" style="text-align: right" title="Operating Leases, 2027">1,378</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--FinanceLeaseLiabilityPaymentsDueYearTwo_iI_pn3n3_c20251231_zrEUReqa98Vl" style="text-align: right" title="Finance Leases, 2027">9</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: right">2028</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearThree_iI_pn3n3_c20251231_zaf0bL7ShzPl" style="text-align: right" title="Operating Leases, 2028">1,362</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--FinanceLeaseLiabilityPaymentsDueYearThree_iI_pn3n3_d0_c20251231_z2kRpR3oCLnc" style="text-align: right" title="Finance Leases, 2028">9</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: right">2029</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearFour_iI_pn3n3_c20251231_zcBHf3mLOTtc" style="text-align: right" title="Operating Leases, 2029">1,100</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_eus-gaap--FinanceLeaseLiabilityPaymentsDueYearFour_iI_pn3n3_d0_c20251231_z8xCvM6b1iIk" style="text-align: right" title="Finance Leases, 2029">9</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: right">2030</td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearFive_iI_pn3n3_c20251231_zCkkSVT2pvGa" style="text-align: right" title="Operating Leases, 2030">1,080</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--FinanceLeaseLiabilityPaymentsDueYearFive_iI_pn3n3_d0_c20251231_zerNynoOviB9" style="text-align: right" title="Finance Leases, 2030">4</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: right; padding-bottom: 1pt">Thereafter</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98D_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueAfterYearFive_iI_pn3n3_c20251231_zI7hu8tw07Wl" style="border-bottom: Black 1pt solid; text-align: right" title="Operating Leases, Thereafter">2,035</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 id="xdx_983_eus-gaap--FinanceLeaseLiabilityPaymentsDueAfterYearFive_iI_pn3n3_d0_c20251231_zAYTvZdGi7w9" style="border-bottom: Black 1pt solid; text-align: right" title="Finance Leases, Thereafter">–</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: right">Total lease payments</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDue_pn3n3_c20251231_zDRLfr0pQHSa" style="text-align: right" title="Operating Leases, Total lease payments">8,312</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--FinanceLeaseLiabilityPaymentsDue_pn3n3_c20251231_zHQTs8UL7273" style="text-align: right" title="Finance Leases, Total lease payments">53</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: right; padding-bottom: 1pt">Less: Interest</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98A_eus-gaap--LesseeOperatingLeaseLiabilityUndiscountedExcessAmount_iNI_pn3n3_di_c20251231_zSaPgQgt1yrh" style="border-bottom: Black 1pt solid; text-align: right" title="Operating Leases, Less: Interest">(1,755</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 id="xdx_982_eus-gaap--FinanceLeaseLiabilityUndiscountedExcessAmount_iNI_pn3n3_di_c20251231_zGx9UU4ymgph" style="border-bottom: Black 1pt solid; text-align: right" title="Finance Leases, Less: Interest">(4</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: right; padding-bottom: 2.5pt">Present value of lease liabilities</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_982_eus-gaap--OperatingLeaseLiability_pn3n3_c20251231_zgZMN0eoPgTg" style="border-bottom: Black 2.5pt double; text-align: right" title="Operating Leases, Present value of lease liabilities">6,557</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 id="xdx_985_eus-gaap--FinanceLeaseLiability_pn3n3_c20251231_z93s2DjxPcq7" style="border-bottom: Black 2.5pt double; text-align: right" title="Finance Leases, Present value of lease liabilities">49</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> The Company had no material non-cash financing or operating leases entered into during the years ended December 31, 2025, and 2024.

<table cellpadding="0" cellspacing="0" id="xdx_896_ecustom--OperatingAndFinanceLeaseInformationTableTextBlock_pn3n3_z69oYC9wj794" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse" summary="xdx: Disclosure - LEASES (Details - Operating and finance lease information)"> <tr style="vertical-align: bottom"> <td>Schedule of operating and finance leases</td><td> </td> <td style="text-align: center"> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Classification</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 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; font-weight: bold; text-align: center">December 31, 2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold">Assets</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; background-color: White"> <td style="padding-left: 10pt; width: 35%">Operating</td><td style="width: 1%"> </td> <td style="width: 32%; text-align: left">Right-of-use operating lease assets</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_981_eus-gaap--OperatingLeaseRightOfUseAsset_pn3n3_c20251231_zJw0NV8JNeO2" style="width: 13%; text-align: right" title="Operating, Right-of-use operating lease assets">5,770</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_986_eus-gaap--OperatingLeaseRightOfUseAsset_pn3n3_c20241231_ztJdqGn05WXl" style="width: 13%; text-align: right" title="Operating, Right-of-use operating lease assets">5,383</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-left: 10pt; padding-bottom: 1pt">Finance</td><td style="padding-bottom: 1pt"> </td> <td style="text-align: left; padding-bottom: 1pt">Right-of-use finance lease assets</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_989_eus-gaap--FinanceLeaseRightOfUseAsset_pn3n3_c20251231_zrL09tY25MV6" style="border-bottom: Black 1pt solid; text-align: right" title="Finance, Right-of-use finance lease assets">53</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 id="xdx_98D_eus-gaap--FinanceLeaseRightOfUseAsset_pn3n3_c20241231_zLCLLNJcmPcf" style="border-bottom: Black 1pt solid; text-align: right" title="Finance, Right-of-use finance lease assets">29</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 20pt; text-align: left; padding-bottom: 2.5pt">Total lease assets</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">$</td><td id="xdx_988_ecustom--LeaseAssets_iI_pn3n3_c20251231_zHSqVy5HZSHc" style="border-bottom: Black 2.5pt double; text-align: right" title="Total lease assets">5,823</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_986_ecustom--LeaseAssets_pn3n3_c20241231_zVptWKGQnwsh" style="border-bottom: Black 2.5pt double; text-align: right" title="Total lease assets">5,412</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <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; background-color: White"> <td style="font-weight: bold">Liabilities</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; background-color: rgb(238,238,238)"> <td style="font-weight: bold">Current</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; background-color: White"> <td style="padding-left: 10pt">Operating</td><td> </td> <td style="text-align: left">Current operating lease liabilities</td><td> </td> <td style="text-align: left">$</td><td id="xdx_981_eus-gaap--OperatingLeaseLiabilityCurrent_pn3n3_c20251231_zK4VzT29CWt9" style="text-align: right" title="Operating, Current operating lease liabilities">899</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_98C_eus-gaap--OperatingLeaseLiabilityCurrent_pn3n3_c20241231_zTtQ2u4f5rAd" style="text-align: right" title="Operating, Current operating lease liabilities">537</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-left: 10pt">Finance</td><td> </td> <td style="text-align: left">Current finance lease liabilities</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--FinanceLeaseLiabilityCurrent_pn3n3_c20251231_zV0D0v3RSXpd" style="text-align: right" title="Finance, Current finance lease liabilities">20</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_eus-gaap--FinanceLeaseLiabilityCurrent_pn3n3_c20241231_zaiEcdlRqu4f" style="text-align: right" title="Finance, Current finance lease liabilities">12</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <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; background-color: rgb(238,238,238)"> <td style="font-weight: bold">Non-current</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; background-color: White"> <td style="padding-left: 10pt">Operating</td><td> </td> <td style="text-align: left">Operating lease liability, long-term</td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--OperatingLeaseLiabilityNoncurrent_pn3n3_c20251231_zEdpBAjAvmXa" style="text-align: right" title="Operating Non-current, Operating lease liability, long-term">5,658</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_eus-gaap--OperatingLeaseLiabilityNoncurrent_pn3n3_c20241231_zJFTU5CzMte1" style="text-align: right" title="Operating Non-current, Operating lease liability, long-term">5,600</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-left: 10pt; padding-bottom: 1pt">Finance</td><td style="padding-bottom: 1pt"> </td> <td style="text-align: left; padding-bottom: 1pt">Finance lease liability, long-term</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98C_eus-gaap--FinanceLeaseLiabilityNoncurrent_pn3n3_c20251231_zZKDoXNtuxD7" style="border-bottom: Black 1pt solid; text-align: right" title="Finance Non-current, Finance lease liability, long-term">29</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 id="xdx_980_eus-gaap--FinanceLeaseLiabilityNoncurrent_pn3n3_c20241231_zwhGkOMXXh83" style="border-bottom: Black 1pt solid; text-align: right" title="Finance Non-current, Finance lease liability, long-term">12</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 20pt; text-align: left; padding-bottom: 2.5pt">Total lease liabilities</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">$</td><td id="xdx_98C_ecustom--TotalLeaseLiabilities_iI_pn3n3_c20251231_zJNwkE1RUkt6" style="border-bottom: Black 2.5pt double; text-align: right" title="Total lease liabilities">6,606</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98C_ecustom--TotalLeaseLiabilities_pn3n3_c20241231_zPf048IJupo4" style="border-bottom: Black 2.5pt double; text-align: right" title="Total lease liabilities">6,161</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

5770000

5383000

53000

29000

5823000 5412000

899000

537000

20000

12000

5658000

5600000

29000

12000

6606000 6161000

<table cellpadding="0" cellspacing="0" id="xdx_894_eus-gaap--LeaseCostTableTextBlock_pn3n3_z5D4NEMUYBPh" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse" summary="xdx: Disclosure - LEASES (Details - Components of lease expense)"> <tr style="vertical-align: bottom"> <td>Schedule of components of lease expense</td><td> </td> <td> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Years Ended December 31,</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Classification</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; 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; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left">Finance lease costs</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; background-color: White"> <td style="padding-left: 10pt; width: 35%; text-align: left">Amortization of ROU assets</td><td style="width: 1%"> </td> <td style="width: 32%; text-align: left">Selling, general and administrative</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_986_eus-gaap--FinanceLeaseRightOfUseAssetAmortization_pn3n3_c20250101__20251231_zjA5YVGDP1Qa" style="width: 13%; text-align: right" title="Amortization of ROU assets">16</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_981_eus-gaap--FinanceLeaseRightOfUseAssetAmortization_pn3n3_c20240101__20241231_zzRvPuI35idb" style="width: 13%; text-align: right" title="Amortization of ROU assets">74</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-left: 10pt; text-align: left">Interest on lease liabilities</td><td> </td> <td style="text-align: left">Interest (income) expense, net</td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--FinanceLeaseInterestExpense_pn3n3_c20250101__20251231_zYBoCPLdrwJ5" style="text-align: right" title="Interest on lease liabilities">2</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--FinanceLeaseInterestExpense_pn3n3_c20240101__20241231_zINE83SDw04i" style="text-align: right" title="Interest on lease liabilities">4</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Operating lease expense</td><td> </td> <td>Cost of sales</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--OperatingLeaseExpense_pn3n3_c20250101__20251231__us-gaap--NatureOfExpenseAxis__custom--CostOfSales1Member_zFaq65p6b8c2" style="text-align: right" title="Operating lease expense">1,049</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--OperatingLeaseExpense_pn3n3_c20240101__20241231__us-gaap--NatureOfExpenseAxis__custom--CostOfSales1Member_ztJNOR3XRcqe" style="text-align: right" title="Operating lease expense">756</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left">Operating lease expense</td><td> </td> <td style="text-align: left">Selling, general and administrative</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--OperatingLeaseExpense_pn3n3_c20250101__20251231__us-gaap--NatureOfExpenseAxis__custom--SellingGenlAndAdminMember_ztMK8Omi6Wf5" style="text-align: right" title="Operating lease expense">219</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_eus-gaap--OperatingLeaseExpense_pn3n3_c20240101__20241231__us-gaap--NatureOfExpenseAxis__custom--SellingGenlAndAdminMember_zeIuF8bJqtL7" style="text-align: right" title="Operating lease expense">220</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Short term lease expense</td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt">Cost of sales</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_988_eus-gaap--ShortTermLeaseCost_pn3n3_c20250101__20251231_zHowT7pvUOh5" style="border-bottom: Black 1pt solid; text-align: right" title="Short term lease expense">600</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 id="xdx_98D_eus-gaap--ShortTermLeaseCost_pn3n3_c20240101__20241231_zdHMZrLWTBDa" style="border-bottom: Black 1pt solid; text-align: right" title="Short term lease expense">380</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 2.5pt">Total lease expense</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">$</td><td id="xdx_98B_eus-gaap--LeaseCost_pn3n3_c20250101__20251231_zlDFahDnMLbb" style="border-bottom: Black 2.5pt double; text-align: right" title="Total lease expense">1,886</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_986_eus-gaap--LeaseCost_pn3n3_c20240101__20241231_zmFkB0tycvP" style="border-bottom: Black 2.5pt double; text-align: right" title="Total lease expense">1,434</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

16000

74000

2000

4000

1049000

756000

219000

220000

600000

380000

1886000

1434000

<table cellpadding="0" cellspacing="0" id="xdx_893_ecustom--LeaseTermAndDiscountRateTableTextBlock_pn3n3_ztCbH48zlmaf" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - LEASES (Details - Lease term and discount)"> <tr style="vertical-align: bottom"> <td>Schedule of lease term and discount rate</td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 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; font-weight: bold; text-align: center">December 31, 2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid">Weighted-average remaining lease terms (years)</td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="text-align: center"> </td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="text-align: center"> </td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 66%; text-align: left">Operating leases</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 13%; text-align: right">6.67</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 13%; text-align: right">7.72</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Finance leases</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3.47</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2.40</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <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="border-bottom: Black 1pt solid; text-align: left">Weighted-average discount rates</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(238,238,238)"> <td style="text-align: left">Operating leases</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">7.44%</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">7.94%</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Finance leases</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4.66%</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">0.02%</td><td style="text-align: left"> </td></tr> </table>

P6Y8M1D

P7Y8M19D

P3Y5M19D

P2Y4M24D

0.0744

0.0794

0.0466

0.0002

<table cellpadding="0" cellspacing="0" id="xdx_89E_eus-gaap--LesseeOperatingLeaseLiabilityMaturityTableTextBlock_pn3n3_zIRRKo5gqmmb" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 70%" summary="xdx: Disclosure - LEASES (Details - Present value)"> <tr style="vertical-align: bottom"> <td>Schedule of present value of lease liabilities</td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt; font-weight: bold; text-align: right">Years ending December 31,</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Operating Leases</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; font-weight: bold; text-align: center">Finance Leases</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 36%; text-align: right">2026</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98A_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths_iI_pn3n3_c20251231_zwvW1DGVfp36" style="width: 13%; text-align: right" title="Operating Leases, 2026">1,357</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98B_eus-gaap--FinanceLeaseLiabilityPaymentsDueNextTwelveMonths_iI_pn3n3_c20251231_zLzZWzndqTJf" style="width: 13%; text-align: right" title="Finance Leases, 2026">22</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: right">2027</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearTwo_iI_pn3n3_c20251231_zrqzPeo51WP8" style="text-align: right" title="Operating Leases, 2027">1,378</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--FinanceLeaseLiabilityPaymentsDueYearTwo_iI_pn3n3_c20251231_zrEUReqa98Vl" style="text-align: right" title="Finance Leases, 2027">9</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: right">2028</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearThree_iI_pn3n3_c20251231_zaf0bL7ShzPl" style="text-align: right" title="Operating Leases, 2028">1,362</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--FinanceLeaseLiabilityPaymentsDueYearThree_iI_pn3n3_d0_c20251231_z2kRpR3oCLnc" style="text-align: right" title="Finance Leases, 2028">9</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: right">2029</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearFour_iI_pn3n3_c20251231_zcBHf3mLOTtc" style="text-align: right" title="Operating Leases, 2029">1,100</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_eus-gaap--FinanceLeaseLiabilityPaymentsDueYearFour_iI_pn3n3_d0_c20251231_z8xCvM6b1iIk" style="text-align: right" title="Finance Leases, 2029">9</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: right">2030</td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearFive_iI_pn3n3_c20251231_zCkkSVT2pvGa" style="text-align: right" title="Operating Leases, 2030">1,080</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--FinanceLeaseLiabilityPaymentsDueYearFive_iI_pn3n3_d0_c20251231_zerNynoOviB9" style="text-align: right" title="Finance Leases, 2030">4</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: right; padding-bottom: 1pt">Thereafter</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98D_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueAfterYearFive_iI_pn3n3_c20251231_zI7hu8tw07Wl" style="border-bottom: Black 1pt solid; text-align: right" title="Operating Leases, Thereafter">2,035</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 id="xdx_983_eus-gaap--FinanceLeaseLiabilityPaymentsDueAfterYearFive_iI_pn3n3_d0_c20251231_zAYTvZdGi7w9" style="border-bottom: Black 1pt solid; text-align: right" title="Finance Leases, Thereafter">–</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: right">Total lease payments</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDue_pn3n3_c20251231_zDRLfr0pQHSa" style="text-align: right" title="Operating Leases, Total lease payments">8,312</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--FinanceLeaseLiabilityPaymentsDue_pn3n3_c20251231_zHQTs8UL7273" style="text-align: right" title="Finance Leases, Total lease payments">53</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: right; padding-bottom: 1pt">Less: Interest</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98A_eus-gaap--LesseeOperatingLeaseLiabilityUndiscountedExcessAmount_iNI_pn3n3_di_c20251231_zSaPgQgt1yrh" style="border-bottom: Black 1pt solid; text-align: right" title="Operating Leases, Less: Interest">(1,755</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 id="xdx_982_eus-gaap--FinanceLeaseLiabilityUndiscountedExcessAmount_iNI_pn3n3_di_c20251231_zGx9UU4ymgph" style="border-bottom: Black 1pt solid; text-align: right" title="Finance Leases, Less: Interest">(4</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: right; padding-bottom: 2.5pt">Present value of lease liabilities</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_982_eus-gaap--OperatingLeaseLiability_pn3n3_c20251231_zgZMN0eoPgTg" style="border-bottom: Black 2.5pt double; text-align: right" title="Operating Leases, Present value of lease liabilities">6,557</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_985_eus-gaap--FinanceLeaseLiability_pn3n3_c20251231_z93s2DjxPcq7" style="border-bottom: Black 2.5pt double; text-align: right" title="Finance Leases, Present value of lease liabilities">49</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

1357000

22000

1378000

9000

1362000

9000

1100000

9000

1080000

4000

2035000

8312000

53000

1755000

4000

6557000

49000

NOTE 3: REVENUE FROM CONTRACTS WITH CUSTOMERS Revenues are recognized when control of the promised goods or services is transferred to our customers in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. To determine the proper revenue recognition method for our customer contracts, we evaluate whether two or more contracts should be combined and accounted for as one single contract and whether the combined or single contract should be accounted for as more than one performance obligation. This evaluation requires significant judgment and the decision to combine a group of contracts or separate the combined or single contract into multiple performance obligations could change the amount of revenue and profit recorded in a given period. For most of our fixed price contracts, the customer contracts with us to provide a significant service of integrating a complex set of tasks and components into a single project or capability even if that single project results in the delivery of multiple units. Hence, the entire contract is accounted for as one performance obligation. We account for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. Disaggregation of Revenue The following table presents our revenues disaggregated by fixed price and service contracts. Sales taxes are excluded from revenues. <table cellpadding="0" cellspacing="0" id="xdx_893_eus-gaap--DisaggregationOfRevenueTableTextBlock_pn3n3_zCLbOLDlj77f" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - REVENUE FROM CONTRACTS WITH CUSTOMERS (Details - Disaggregation of revenue)"> <tr style="vertical-align: bottom"> <td>Schedule of disaggregation of revenues</td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Years Ended December 31,</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; 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; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 66%">Fixed price contracts</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_984_eus-gaap--Revenues_pn3n3_c20250101__20251231__us-gaap--ContractWithCustomerBasisOfPricingAxis__us-gaap--FixedPriceContractMember_zvh3FZxNJ9Qg" style="width: 13%; text-align: right" title="Revenues">14,047</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_985_eus-gaap--Revenues_pn3n3_c20240101__20241231__us-gaap--ContractWithCustomerBasisOfPricingAxis__us-gaap--FixedPriceContractMember_zuAv3FmyGXj7" style="width: 13%; text-align: right" title="Revenues">15,842</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Service contracts</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_983_eus-gaap--Revenues_pn3n3_c20250101__20251231__us-gaap--ContractWithCustomerBasisOfPricingAxis__us-gaap--ServicingContractsMember_zcbg6nWEvYm9" style="border-bottom: Black 1pt solid; text-align: right" title="Revenues">10,004</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 id="xdx_988_eus-gaap--Revenues_pn3n3_c20240101__20241231__us-gaap--ContractWithCustomerBasisOfPricingAxis__us-gaap--ServicingContractsMember_zcvHjU5nstKa" style="border-bottom: Black 1pt solid; text-align: right" title="Revenues">6,892</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <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">$</td><td id="xdx_982_eus-gaap--Revenues_pn3n3_c20250101__20251231_zV0OVVvzD6Mj" style="border-bottom: Black 2.5pt double; text-align: right" title="Revenues">24,051</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_987_eus-gaap--Revenues_pn3n3_c20240101__20241231_zJN08u7dfSI9" style="border-bottom: Black 2.5pt double; text-align: right" title="Revenues">22,734</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> Fixed price contracts For fixed price contracts, we generally recognize revenue over time as we perform because of continuous transfer of control to the customer. This continuous transfer of control to the customer is supported by clauses in the contract that allow the customer to unilaterally terminate the contract for convenience, pay us for costs incurred plus a reasonable profit and take control of any work in process. In our fixed price contracts, the customer either controls the work in process or we deliver products with no alternative use to the Company and have rights to payment for work performed to date plus a reasonable profit as evidenced by contractual termination clauses. Because of control transferring over time, revenue is recognized based on the extent of progress towards completion of the performance obligation. The selection of the method to measure progress towards completion requires judgment and is based on the nature of the products or services to be provided. We generally use the cost-to-cost measure of progress for our contracts because it best depicts the transfer of control to the customer which occurs as we incur costs on our contracts. Under the cost-to-cost measure of progress, the extent of progress towards completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. Revenues, including estimated fees or profits, are recorded proportionally as costs are incurred. Contracts are often modified to account for changes in contract specifications and requirements. We consider a contract modification to exist when the modification either creates new, or changes the existing, enforceable rights and obligations. Most of our contract modifications are for goods or services that are not distinct from the existing contract due to the significant integration service provided in the context of the contract and are accounted for as if they were part of that existing contract. The effect of a contract modification on the transaction price, and our measure of progress for the performance obligation to which it relates, is recognized as an adjustment to revenue (either as an increase in or a reduction of revenue) on a cumulative catch-up basis. We have a company-wide standard and disciplined quarterly estimate at completion process in which management reviews the progress and execution of our performance obligations. As part of this process, management reviews information including, but not limited to, any outstanding key contract matters, progress towards completion and the related program schedule, identified risks and opportunities and the related changes in estimates of revenues and costs. Changes in estimates of net sales, cost of sales and the related impact to operating income are recognized quarterly on a cumulative catch-up basis, which recognizes in the current period the cumulative effect of the changes on current and prior periods based on a performance obligation’s percentage of completion. A significant change in one or more of these estimates could affect the profitability of one or more of our performance obligations. When estimates of total costs to be incurred exceed total estimates of revenue to be earned on a performance obligation related to fixed price contracts, a provision for the entire loss on the performance obligation is recognized in the period the loss is estimated. Service Contracts We recognize revenue for service contracts measuring progress toward satisfying the performance obligation in a manner that best depicts the transfer of goods or services to the customer. The control over services is transferred over time when the services are rendered to the customer on a daily basis. Specifically, we recognize revenue as the services are provided as we have the right to invoice the customer for the services performed. Services are billed on a monthly basis. Payment terms for services are usually 30 days from invoice receipt, but have increased to 45, 60, or 90 days, depending on the customer. Contract balances Costs and estimated earnings in excess of billings on uncompleted contracts arise when revenues are recorded based on the extent of progress towards completion but cannot be invoiced under the terms of the contract. Such amounts are invoiced upon completion of contractual milestones. Billings in excess of costs and estimated earnings on uncompleted contracts arise when milestone billings are permissible under the contract, but the related costs have not yet been incurred. All contract costs are recognized currently on jobs formally approved by the customer and contracts are not shown as complete until virtually all anticipated costs have been incurred and the risk of loss has passed to the customer. Assets related to costs and estimated earnings in excess of billings on uncompleted contracts, as well as liabilities related to billings in excess of costs and estimated earnings on uncompleted contracts, have been classified as current. The contract cycle for certain long-term contracts may extend beyond one year; thus, complete collection of amounts related to these contracts may extend beyond one year though such long-term contracts include contractual milestone billings as discussed above. For the years ending 2025 and 2024, there were no contracts with terms that extended beyond one year. The following table summarizes our contract assets, which are “Costs and estimated earnings in excess of billings on uncompleted contracts” and our contract liabilities, which are “Billings in excess of costs and estimated earnings on uncompleted contracts”. <table cellpadding="0" cellspacing="0" id="xdx_897_eus-gaap--CostsInExcessOfBillingsAndBillingsInExcessOfCostsTableTextBlock_pn3n3_zmS7Cl2cjGCj" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - REVENUE FROM CONTRACTS WITH CUSTOMERS (Details - Contract balances)"> <tr style="vertical-align: bottom"> <td>Schedule of earnings in excess of billings on uncompleted contracts</td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_495_20251231_z54t6e3oxSm1" style="font-weight: bold; text-align: center"> </td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_493_20241231_zDUEEtSYaLi" style="font-weight: bold; text-align: center"> </td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 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; font-weight: bold; text-align: center">December 31, 2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_403_ecustom--Costsincurredonuncompletedcontracts_iI_z65GjEkMzxO8" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 66%; text-align: left">Costs incurred on uncompleted contracts</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">7,522</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">4,281</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_405_ecustom--Estimatedearningsonuncompletedcontracts_iI_z5bkcenLcBLk" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Estimated earnings on uncompleted contracts</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">7,138</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,925</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_ecustom--EstimatedLossOnUncompletedContracts_iI_d0_ziD0XDO40Fwj" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-bottom: 1pt">Estimated loss on uncompleted contracts</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><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">(100</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_404_ecustom--GrossCostsAndEstimatedEarnings_iI_zqOazZst6WF1" style="vertical-align: bottom; background-color: White"> <td>Gross costs and estimated earnings</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">14,660</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">9,106</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_ecustom--Billingstodateonuncompletedcontracts_iNI_di_zxamDtwGcUcl" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-bottom: 1pt">Less: Billings to date on uncompleted contracts</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">(11,975</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">(6,682</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_40E_ecustom--CostsIncurredPlusEstimatedEarningLessBillingsOnUncompletedContractsNet_iI_zjawiL7hny84" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt">Costs incurred plus estimated earning less billings on uncompleted contracts, net</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">2,685</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">2,424</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> Contract assets, and contract liabilities consisted of the following: Schedule of contract assets and contract liabilities <table cellpadding="0" cellspacing="0" id="xdx_896_eus-gaap--ContractWithCustomerAssetAndLiabilityTableTextBlock_pn3n3_zAzfGM4J7FA6" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - REVENUE FROM CONTRACTS WITH CUSTOMERS (Details - Accounts receivable, net)"> <tr style="vertical-align: bottom"> <td>Schedule of accounts receivable, net, contract assets, and contract liabilities</td><td> </td> <td colspan="2" id="xdx_496_20251231_z4BkyF6rpe53" style="text-align: center"> </td><td> </td><td> </td> <td colspan="2" id="xdx_490_20241231_zRETFkA0Uzh" style="text-align: center"> </td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 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; font-weight: bold; text-align: center">December 31, 2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_40E_eus-gaap--ContractWithCustomerAssetNet_iI_pn3n3" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; width: 66%">Contract assets</td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%">$</td><td style="text-align: right; width: 13%">2,857</td><td style="text-align: left; width: 1%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%">$</td><td style="text-align: right; width: 13%">3,080</td><td style="text-align: left; width: 1%"> </td></tr> <tr id="xdx_405_eus-gaap--ContractWithCustomerLiability_iNI_pn3n3_di_ztT45ZpFFtjd" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt; text-align: left">Contract liabilities</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">(172</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">(656</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_40E_ecustom--CostsIncurredPlusEstimatedEarningLessBillingsOnUncompletedContractNet_iI_pn3n3_zKfFG3BJ5mIh" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-bottom: 2.5pt">Total contract assets and contract liabilities</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">2,685</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">2,424</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> Contract assets and liabilities fluctuate period to period based on various factors, including, among others, changes in the number and size of projects in progress at period end; variability in billing and payment terms, such as up-front or advance billings, interim or milestone billings, or deferred billings; and recognized unapproved change orders and contract claims. The contract asset and liability balances at December 31, 2025, and 2024 consisted primarily of revenue related to fixed-price projects. Remaining Performance Obligations Remaining performance obligations represent the transaction price of firm orders for which work has not been performed and excludes unexercised contract options, potential orders, and any remaining performance obligations for any sales arrangements that had not fully satisfied the criteria to be considered a contract with a customer pursuant to the requirements of ASC 606. Practical Expedients and Exemptions We generally expense sales commissions when incurred because the amortization period would have been one year or less. These costs are recorded within selling, general and administrative expenses. Many of our services contracts are short-term in nature with a contract term of one year or less. For those contracts, we have utilized the practical expedient exempting the Company from disclosure of the transaction price allocated to remaining performance obligations if the performance obligation is part of a contract that has an original expected duration of one year or less. Additionally, our payment terms are short-term in nature with settlements of one year or less. We have, therefore, utilized the practical expedient exempting the Company from adjusting the promised amount of consideration for the effects of a significant financing component given that the period between when the entity transfers a promised good or service to a customer and when the customer pays for that good or service will be one year or less. Further, in many of our service contracts, we have a right to consideration from a customer in an amount that corresponds directly with the value to the customer of our performance completed to date (for example, a service contract in which we bill a fixed amount for each hour of service provided). For those contracts, we have utilized the practical expedient allowing us to recognize revenue in the amount for which we have the right to invoice. Accordingly, we do not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed.

<table cellpadding="0" cellspacing="0" id="xdx_893_eus-gaap--DisaggregationOfRevenueTableTextBlock_pn3n3_zCLbOLDlj77f" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - REVENUE FROM CONTRACTS WITH CUSTOMERS (Details - Disaggregation of revenue)"> <tr style="vertical-align: bottom"> <td>Schedule of disaggregation of revenues</td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Years Ended December 31,</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; 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; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 66%">Fixed price contracts</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_984_eus-gaap--Revenues_pn3n3_c20250101__20251231__us-gaap--ContractWithCustomerBasisOfPricingAxis__us-gaap--FixedPriceContractMember_zvh3FZxNJ9Qg" style="width: 13%; text-align: right" title="Revenues">14,047</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_985_eus-gaap--Revenues_pn3n3_c20240101__20241231__us-gaap--ContractWithCustomerBasisOfPricingAxis__us-gaap--FixedPriceContractMember_zuAv3FmyGXj7" style="width: 13%; text-align: right" title="Revenues">15,842</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Service contracts</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_983_eus-gaap--Revenues_pn3n3_c20250101__20251231__us-gaap--ContractWithCustomerBasisOfPricingAxis__us-gaap--ServicingContractsMember_zcbg6nWEvYm9" style="border-bottom: Black 1pt solid; text-align: right" title="Revenues">10,004</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 id="xdx_988_eus-gaap--Revenues_pn3n3_c20240101__20241231__us-gaap--ContractWithCustomerBasisOfPricingAxis__us-gaap--ServicingContractsMember_zcvHjU5nstKa" style="border-bottom: Black 1pt solid; text-align: right" title="Revenues">6,892</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <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">$</td><td id="xdx_982_eus-gaap--Revenues_pn3n3_c20250101__20251231_zV0OVVvzD6Mj" style="border-bottom: Black 2.5pt double; text-align: right" title="Revenues">24,051</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_987_eus-gaap--Revenues_pn3n3_c20240101__20241231_zJN08u7dfSI9" style="border-bottom: Black 2.5pt double; text-align: right" title="Revenues">22,734</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

14047000

15842000

10004000

6892000

24051000

22734000

<table cellpadding="0" cellspacing="0" id="xdx_897_eus-gaap--CostsInExcessOfBillingsAndBillingsInExcessOfCostsTableTextBlock_pn3n3_zmS7Cl2cjGCj" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - REVENUE FROM CONTRACTS WITH CUSTOMERS (Details - Contract balances)"> <tr style="vertical-align: bottom"> <td>Schedule of earnings in excess of billings on uncompleted contracts</td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_495_20251231_z54t6e3oxSm1" style="font-weight: bold; text-align: center"> </td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_493_20241231_zDUEEtSYaLi" style="font-weight: bold; text-align: center"> </td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 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; font-weight: bold; text-align: center">December 31, 2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_403_ecustom--Costsincurredonuncompletedcontracts_iI_z65GjEkMzxO8" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 66%; text-align: left">Costs incurred on uncompleted contracts</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">7,522</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">4,281</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_405_ecustom--Estimatedearningsonuncompletedcontracts_iI_z5bkcenLcBLk" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Estimated earnings on uncompleted contracts</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">7,138</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,925</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_ecustom--EstimatedLossOnUncompletedContracts_iI_d0_ziD0XDO40Fwj" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-bottom: 1pt">Estimated loss on uncompleted contracts</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><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">(100</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_404_ecustom--GrossCostsAndEstimatedEarnings_iI_zqOazZst6WF1" style="vertical-align: bottom; background-color: White"> <td>Gross costs and estimated earnings</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">14,660</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">9,106</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_ecustom--Billingstodateonuncompletedcontracts_iNI_di_zxamDtwGcUcl" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-bottom: 1pt">Less: Billings to date on uncompleted contracts</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">(11,975</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">(6,682</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_40E_ecustom--CostsIncurredPlusEstimatedEarningLessBillingsOnUncompletedContractsNet_iI_zjawiL7hny84" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt">Costs incurred plus estimated earning less billings on uncompleted contracts, net</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">2,685</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">2,424</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

7522000 4281000 7138000 4925000 0 -100000 14660000 9106000 11975000 6682000 2685000 2424000

<table cellpadding="0" cellspacing="0" id="xdx_896_eus-gaap--ContractWithCustomerAssetAndLiabilityTableTextBlock_pn3n3_zAzfGM4J7FA6" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - REVENUE FROM CONTRACTS WITH CUSTOMERS (Details - Accounts receivable, net)"> <tr style="vertical-align: bottom"> <td>Schedule of accounts receivable, net, contract assets, and contract liabilities</td><td> </td> <td colspan="2" id="xdx_496_20251231_z4BkyF6rpe53" style="text-align: center"> </td><td> </td><td> </td> <td colspan="2" id="xdx_490_20241231_zRETFkA0Uzh" style="text-align: center"> </td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 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; font-weight: bold; text-align: center">December 31, 2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_40E_eus-gaap--ContractWithCustomerAssetNet_iI_pn3n3" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; width: 66%">Contract assets</td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%">$</td><td style="text-align: right; width: 13%">2,857</td><td style="text-align: left; width: 1%"> </td><td style="width: 2%"> </td> <td style="text-align: left; width: 1%">$</td><td style="text-align: right; width: 13%">3,080</td><td style="text-align: left; width: 1%"> </td></tr> <tr id="xdx_405_eus-gaap--ContractWithCustomerLiability_iNI_pn3n3_di_ztT45ZpFFtjd" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt; text-align: left">Contract liabilities</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">(172</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">(656</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_40E_ecustom--CostsIncurredPlusEstimatedEarningLessBillingsOnUncompletedContractNet_iI_pn3n3_zKfFG3BJ5mIh" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-bottom: 2.5pt">Total contract assets and contract liabilities</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">2,685</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">2,424</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

2857000

3080000

172000

656000

2685000 2424000

NOTE 4: PROPERTY, PLANT AND EQUIPMENT Net property, plant and equipment consisted of the following: <table cellpadding="0" cellspacing="0" id="xdx_881_eus-gaap--PropertyPlantAndEquipmentTextBlock_pn3n3_zXZFpYyfBhM7" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - PROPERTY, PLANT AND EQUIPMENT (Details)"> <tr style="vertical-align: bottom"> <td>Schedule of property, plant and equipment</td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td><td> </td> <td style="text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">December 31, 2025</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">December 31, 2024</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: center">Range of Asset Lives</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 49%; text-align: left">Leasehold improvements</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_984_eus-gaap--PropertyPlantAndEquipmentGross_pn3n3_c20251231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember_zzTYUzG5xJo4" style="width: 13%; text-align: right" title="Total property, plant and equipment">2,439</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_985_eus-gaap--PropertyPlantAndEquipmentGross_pn3n3_c20241231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember_z5Zc2BQfJ9tg" style="width: 13%; text-align: right" title="Total property, plant and equipment">2,316</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 15%; text-align: center"><span id="xdx_905_ecustom--PropertyPlantAndEquipmentEstimatedUsefulLives1_c20250101__20251231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember_zrJRaz52S14" title="Range of Asset Lives">lease term</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Equipment</td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--PropertyPlantAndEquipmentGross_pn3n3_c20251231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--EquipmentMember_ziqRcPB0z7lk" style="text-align: right" title="Total property, plant and equipment">6,818</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--PropertyPlantAndEquipmentGross_pn3n3_c20241231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--EquipmentMember_z9Wk2AKXKpbd" style="text-align: right" title="Total property, plant and equipment">5,790</td><td style="text-align: left"> </td><td> </td> <td style="text-align: center"><span id="xdx_90E_ecustom--PropertyPlantAndEquipmentEstimatedUsefulLives1_c20250101__20251231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--EquipmentMember_zghHD1P4J501" title="Range of Asset Lives">2 - 30 years</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left">Furniture, computers and office equipment</td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--PropertyPlantAndEquipmentGross_pn3n3_c20251231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--FurnitureAndFixturesMember_zJ4bfZkx3E4i" style="text-align: right" title="Total property, plant and equipment">111</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--PropertyPlantAndEquipmentGross_pn3n3_c20241231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--FurnitureAndFixturesMember_zSym3Z9CjWP5" style="text-align: right" title="Total property, plant and equipment">30</td><td style="text-align: left"> </td><td> </td> <td style="text-align: center"><span id="xdx_903_ecustom--PropertyPlantAndEquipmentEstimatedUsefulLives1_c20250101__20251231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--FurnitureAndFixturesMember_zkxDxJUxNlAe" title="Range of Asset Lives">2 - 8 years</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Construction in progress</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98D_eus-gaap--PropertyPlantAndEquipmentGross_iI_pn3n3_c20251231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--ConstructionInProgressMember_zANTUm4ltvs8" style="border-bottom: Black 1pt solid; text-align: right" title="Total property, plant and equipment">213</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 id="xdx_987_eus-gaap--PropertyPlantAndEquipmentGross_iI_pn3n3_c20241231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--ConstructionInProgressMember_zkcq3AG7RJy" style="border-bottom: Black 1pt solid; text-align: right" title="Total property, plant and equipment">253</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="text-align: center; padding-bottom: 1pt">–</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <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><td> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Total property, plant and equipment</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--PropertyPlantAndEquipmentGross_pn3n3_c20251231_zKQXudCWvd31" style="text-align: right" title="Total property, plant and equipment">9,581</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--PropertyPlantAndEquipmentGross_pn3n3_c20241231_zx9075CUeZB1" style="text-align: right" title="Total property, plant and equipment">8,389</td><td style="text-align: left"> </td><td> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-bottom: 1pt">Less: Accumulated depreciation and amortization</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98D_eus-gaap--AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment_iNI_pn3n3_di_c20251231_zVbRI63zH1d9" style="border-bottom: Black 1pt solid; text-align: right" title="Less: Accumulated depreciation and amortization">(5,939</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 id="xdx_984_eus-gaap--AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment_iNI_pn3n3_di_c20241231_znc6olPRF7D8" style="border-bottom: Black 1pt solid; text-align: right" title="Less: Accumulated depreciation and amortization">(5,598</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Property, plant and equipment, net</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_987_eus-gaap--PropertyPlantAndEquipmentNet_pn3n3_c20251231_zEUxu8Psgv93" style="border-bottom: Black 2.5pt double; text-align: right" title="Property, plant and equipment, net">3,642</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_986_eus-gaap--PropertyPlantAndEquipmentNet_pn3n3_c20241231_zG7qwIyqHO5f" style="border-bottom: Black 2.5pt double; text-align: right" title="Property, plant and equipment, net">2,791</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td></tr> </table> Depreciation and amortization expense included in cost of sales in the accompanying consolidated statements of operations was $504 and $459 for the years ended December 31, 2025, and 2024, respectively. Depreciation and amortization expense excluded from cost of sales in the accompanying consolidated statements of operations was $65 and $53 for the years ended December 31, 2025, and 2024, respectively. Construction in progress represents assets that are not ready for service or are in the construction stage. Assets are depreciated once they are placed into service.

<table cellpadding="0" cellspacing="0" id="xdx_881_eus-gaap--PropertyPlantAndEquipmentTextBlock_pn3n3_zXZFpYyfBhM7" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - PROPERTY, PLANT AND EQUIPMENT (Details)"> <tr style="vertical-align: bottom"> <td>Schedule of property, plant and equipment</td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td><td> </td> <td style="text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">December 31, 2025</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">December 31, 2024</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: center">Range of Asset Lives</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 49%; text-align: left">Leasehold improvements</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_984_eus-gaap--PropertyPlantAndEquipmentGross_pn3n3_c20251231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember_zzTYUzG5xJo4" style="width: 13%; text-align: right" title="Total property, plant and equipment">2,439</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_985_eus-gaap--PropertyPlantAndEquipmentGross_pn3n3_c20241231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember_z5Zc2BQfJ9tg" style="width: 13%; text-align: right" title="Total property, plant and equipment">2,316</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 15%; text-align: center"><span id="xdx_905_ecustom--PropertyPlantAndEquipmentEstimatedUsefulLives1_c20250101__20251231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember_zrJRaz52S14" title="Range of Asset Lives">lease term</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Equipment</td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--PropertyPlantAndEquipmentGross_pn3n3_c20251231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--EquipmentMember_ziqRcPB0z7lk" style="text-align: right" title="Total property, plant and equipment">6,818</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--PropertyPlantAndEquipmentGross_pn3n3_c20241231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--EquipmentMember_z9Wk2AKXKpbd" style="text-align: right" title="Total property, plant and equipment">5,790</td><td style="text-align: left"> </td><td> </td> <td style="text-align: center"><span id="xdx_90E_ecustom--PropertyPlantAndEquipmentEstimatedUsefulLives1_c20250101__20251231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--EquipmentMember_zghHD1P4J501" title="Range of Asset Lives">2 - 30 years</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left">Furniture, computers and office equipment</td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--PropertyPlantAndEquipmentGross_pn3n3_c20251231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--FurnitureAndFixturesMember_zJ4bfZkx3E4i" style="text-align: right" title="Total property, plant and equipment">111</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--PropertyPlantAndEquipmentGross_pn3n3_c20241231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--FurnitureAndFixturesMember_zSym3Z9CjWP5" style="text-align: right" title="Total property, plant and equipment">30</td><td style="text-align: left"> </td><td> </td> <td style="text-align: center"><span id="xdx_903_ecustom--PropertyPlantAndEquipmentEstimatedUsefulLives1_c20250101__20251231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--FurnitureAndFixturesMember_zkxDxJUxNlAe" title="Range of Asset Lives">2 - 8 years</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Construction in progress</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98D_eus-gaap--PropertyPlantAndEquipmentGross_iI_pn3n3_c20251231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--ConstructionInProgressMember_zANTUm4ltvs8" style="border-bottom: Black 1pt solid; text-align: right" title="Total property, plant and equipment">213</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 id="xdx_987_eus-gaap--PropertyPlantAndEquipmentGross_iI_pn3n3_c20241231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--ConstructionInProgressMember_zkcq3AG7RJy" style="border-bottom: Black 1pt solid; text-align: right" title="Total property, plant and equipment">253</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="text-align: center; padding-bottom: 1pt">–</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <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><td> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Total property, plant and equipment</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--PropertyPlantAndEquipmentGross_pn3n3_c20251231_zKQXudCWvd31" style="text-align: right" title="Total property, plant and equipment">9,581</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--PropertyPlantAndEquipmentGross_pn3n3_c20241231_zx9075CUeZB1" style="text-align: right" title="Total property, plant and equipment">8,389</td><td style="text-align: left"> </td><td> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-bottom: 1pt">Less: Accumulated depreciation and amortization</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98D_eus-gaap--AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment_iNI_pn3n3_di_c20251231_zVbRI63zH1d9" style="border-bottom: Black 1pt solid; text-align: right" title="Less: Accumulated depreciation and amortization">(5,939</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 id="xdx_984_eus-gaap--AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment_iNI_pn3n3_di_c20241231_znc6olPRF7D8" style="border-bottom: Black 1pt solid; text-align: right" title="Less: Accumulated depreciation and amortization">(5,598</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Property, plant and equipment, net</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_987_eus-gaap--PropertyPlantAndEquipmentNet_pn3n3_c20251231_zEUxu8Psgv93" style="border-bottom: Black 2.5pt double; text-align: right" title="Property, plant and equipment, net">3,642</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_986_eus-gaap--PropertyPlantAndEquipmentNet_pn3n3_c20241231_zG7qwIyqHO5f" style="border-bottom: Black 2.5pt double; text-align: right" title="Property, plant and equipment, net">2,791</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td></tr> </table>

2439000

2316000

lease term

6818000

5790000

2 - 30 years

111000

30000

2 - 8 years

213000

253000

9581000

8389000

5939000

5598000

3642000

2791000

504000

459000

65000

53000

NOTE 5: EARNINGS PER COMMON SHARE Basic EPS is calculated by dividing net income (loss) by the weighted-average number of common shares outstanding for the period. Diluted EPS is calculated by dividing net income (loss) by the weighted-average number of common shares and the dilutive effect of common stock equivalents (warrants, nonvested stock awards and stock options) using the treasury method. In each relevant period, the net income used in the basic and diluted EPS calculations is the same. The following table reconciles the weighted-average basic number of common shares outstanding, and the weighted-average diluted number of common shares deemed outstanding for the purpose of calculating basic and diluted EPS. <table cellpadding="0" cellspacing="0" id="xdx_885_eus-gaap--ScheduleOfEarningsPerShareBasicAndDilutedTableTextBlock_zlYGGaSASf04" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - EARNINGS PER COMMON SHARE (Details)"> <tr style="vertical-align: bottom"> <td>Schedule of earnings per common share</td><td> </td> <td colspan="2" id="xdx_493_20250101__20251231_zhTQLLmlQtc2" style="text-align: center"> </td><td> </td><td> </td> <td colspan="2" id="xdx_492_20240101__20241231_z37lp2HOZosg" style="text-align: center"> </td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Years Ended December 31,</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; 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; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_401_eus-gaap--NetIncomeLossAbstract_iB" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold">Numerator:</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_40B_eus-gaap--NetIncomeLoss_i01_pn3n3" style="vertical-align: bottom; background-color: White"> <td style="width: 66%; text-align: left; padding-left: 10pt">Net (Loss) Income </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">(38</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">2,620</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <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 id="xdx_400_ecustom--DenominatorAbstract_iB_zJUp2eqz5FZa" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold">Denominator:</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_407_eus-gaap--WeightedAverageNumberOfSharesIssuedBasic_i01_pdd" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-left: 10pt">Weighted average number of common shares outstanding:</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_40F_eus-gaap--WeightedAverageNumberOfSharesOutstandingBasic_i01_pip0_zElRxBOIGu7a" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 20pt">Basic</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">12,133</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">12,187</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--WeightedAverageNumberOfDilutedSharesOutstanding_i01_pip0_z4uK76fianc4" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-left: 20pt">Diluted</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">12,133</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">12,344</td><td style="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 id="xdx_404_ecustom--LossPerCommonShareOutstandingAbstract_iB_znfKVc4ExQb1" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-left: 10pt">Income (Loss) per common share outstanding:</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_408_eus-gaap--EarningsPerShareBasic_pip0_zp0Cih1cdIR2" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 20pt">Basic</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">0.21</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--EarningsPerShareDiluted_pip0_zWBA7kYwdtJi" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-left: 20pt">Diluted</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">0.21</td><td style="text-align: left"> </td></tr> </table> At December 31, 2025, and 2024, there were outstanding options that were vested and exercisable into <span id="xdx_90D_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pip0_c20250101__20251231__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--OutstandingOptionsMember_zoFM647FkGU6" title="Outstanding options vested and exercisable">371 and <span id="xdx_905_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pip0_c20240101__20241231__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--OutstandingOptionsMember_z0aF8DEu5Xxi" title="Outstanding options vested and exercisable">438 shares of common stock, respectively; however, they have been excluded from the calculation of EPS because their exercise would be anti-dilutive.

<table cellpadding="0" cellspacing="0" id="xdx_885_eus-gaap--ScheduleOfEarningsPerShareBasicAndDilutedTableTextBlock_zlYGGaSASf04" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - EARNINGS PER COMMON SHARE (Details)"> <tr style="vertical-align: bottom"> <td>Schedule of earnings per common share</td><td> </td> <td colspan="2" id="xdx_493_20250101__20251231_zhTQLLmlQtc2" style="text-align: center"> </td><td> </td><td> </td> <td colspan="2" id="xdx_492_20240101__20241231_z37lp2HOZosg" style="text-align: center"> </td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Years Ended December 31,</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; 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; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_401_eus-gaap--NetIncomeLossAbstract_iB" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold">Numerator:</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_40B_eus-gaap--NetIncomeLoss_i01_pn3n3" style="vertical-align: bottom; background-color: White"> <td style="width: 66%; text-align: left; padding-left: 10pt">Net (Loss) Income </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">(38</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">2,620</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <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 id="xdx_400_ecustom--DenominatorAbstract_iB_zJUp2eqz5FZa" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold">Denominator:</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_407_eus-gaap--WeightedAverageNumberOfSharesIssuedBasic_i01_pdd" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-left: 10pt">Weighted average number of common shares outstanding:</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_40F_eus-gaap--WeightedAverageNumberOfSharesOutstandingBasic_i01_pip0_zElRxBOIGu7a" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 20pt">Basic</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">12,133</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">12,187</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--WeightedAverageNumberOfDilutedSharesOutstanding_i01_pip0_z4uK76fianc4" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-left: 20pt">Diluted</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">12,133</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">12,344</td><td style="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 id="xdx_404_ecustom--LossPerCommonShareOutstandingAbstract_iB_znfKVc4ExQb1" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-left: 10pt">Income (Loss) per common share outstanding:</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_408_eus-gaap--EarningsPerShareBasic_pip0_zp0Cih1cdIR2" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 20pt">Basic</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">0.21</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--EarningsPerShareDiluted_pip0_zWBA7kYwdtJi" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-left: 20pt">Diluted</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">0.21</td><td style="text-align: left"> </td></tr> </table>

-38000

2620000

12133

12187

12133

12344

-0.00

0.21

-0.00

0.21

371

438

NOTE 6: SHARE-BASED COMPENSATION At December 31, 2025, the Company had stock-based compensation plans as described in detail below. On August 11, 2025, the Company’s independent directors each received stock options to purchase <span id="xdx_904_eus-gaap--StockIssuedDuringPeriodSharesStockOptionsExercised_pip0_c20250810__20250811__srt--TitleOfIndividualAxis__custom--IndependentDirectorsMember_z320bYFUUrH6" title="Received stock options shares">50,000 shares of our common stock with an exercise price of $<span id="xdx_90D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iI_pip0_c20250811__srt--TitleOfIndividualAxis__custom--IndependentDirectorsMember_zA0N1NATB3Ec" title="Exercise per price">1.26 per share. Fair value of these stock options was $<span id="xdx_907_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisesInPeriodFairValue_pip0_c20250810__20250811__srt--TitleOfIndividualAxis__custom--IndependentDirectorsMember_zQ8Oq4WVcbs8" title="Stock options per price">0.81 per share at the date of grant. Twenty-five percent of the shares vested on each of August 31, 2025, November 30, 2025, February 28, 2026, and the remainder are scheduled to vest on May 31, 2026. In addition to the foregoing, all shares shall vest immediately prior to a change in control. On August 11, 2025, the Company granted each independent director <span id="xdx_90F_eus-gaap--StockIssuedDuringPeriodSharesRestrictedStockAwardGross_c20250810__20250811__srt--CounterpartyNameAxis__custom--EachIndependentDirectorMember_zxU4VNq4NzJg" title="Restricted stock granted, shares">23,810 shares of restricted stock. The shares vest on August 11, 2026. In addition to the foregoing, all shares shall vest immediately prior to a change in control. On April 19, 2025, in connection with entering into the CFO Employment Agreement, the Company granted 80,000 shares of restricted stock, and options for <span id="xdx_90D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriod_c20250418__20250419__srt--CounterpartyNameAxis__custom--KurtKellerMember_zm7S0FPr7Cvd" title="Options granted, shares">160,000 shares, to Kurt Keller. The stock options have an exercise price of $<span id="xdx_90C_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_c20250418__20250419__srt--CounterpartyNameAxis__custom--KurtKellerMember_zwsTQ38CKkSb" title="Options granted, exericse price">1.88 per share and had a fair value of $1.29 per share at the date of the grant. Each of the foregoing will vest in three equal installments on the anniversaries of the grant date. On August 26, 2024, the Company’s independent directors each received stock options to purchase 50,000 shares of our common stock with an exercise price of $<span id="xdx_900_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_c20240825__20240826__srt--CounterpartyNameAxis__custom--EachIndependentDirectorMember_zSCBLghvDsDc">1.28 per share. Fair value of these stock options was $0.99 per share at the date of grant. Twenty-five percent of the shares vested on each of August 31, 2024, November 30, 2024, February 28, 2025, and May 31, 2025. On March 6, 2024, in connection with entering into the CEO Employment Agreement, the Company granted <span id="xdx_907_eus-gaap--StockIssuedDuringPeriodSharesRestrictedStockAwardGross_c20240305__20240306__srt--CounterpartyNameAxis__custom--ErikWiikMember_z8Bup21nsiZk" title="Restricted stock granted, shares">300,000 shares of restricted stock, and options for 300,000 shares, to Erik Wiik. The stock options have an exercise price of $<span id="xdx_90E_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_c20240305__20240306__srt--CounterpartyNameAxis__custom--ErikWiikMember_zcm1qTfxcm98">0.56 per share and had a fair value of $0.35 per share at the date of the grant. Each of the foregoing will vest in three equal installments on the anniversaries of the grant date. The fair value of each option award is estimated as of the date of grant using a Black-Scholes-Merton option pricing formula. Expected volatility is based on historical volatility of the Company’s stock over a preceding period commensurate with the expected term of the option. The expected term is based upon historical exercise patterns. The risk-free rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of grant. Expected dividend yield was not considered in the option pricing formula since the Company does not pay dividends and has not paid any dividends since its incorporation. Weighted average Black-Scholes-Merton fair value assumptions <table cellpadding="0" cellspacing="0" id="xdx_88F_eus-gaap--ScheduleOfShareBasedPaymentAwardStockOptionsValuationAssumptionsTableTextBlock_zhPeE7gv1Tif" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse" summary="xdx: Disclosure - SHARE-BASED COMPENSATION (Details - Assumptions)"> <tr style="vertical-align: bottom"> <td>Schedule of assumptions for option valuation</td> <td> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Year Ended December 2025</td> <td> </td> <td> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Year Ended December 2024</td></tr> <tr style="vertical-align: bottom; background-color: #EEEEEE"> <td style="width: 71%">Risk free interest rate</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 12%; text-align: right"><span id="xdx_902_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRateMinimum_dp_c20250101__20251231__us-gaap--AwardTypeAxis__custom--OptionsMember_z06vU7Il2Bo1" title="Risk free interest rate">3.83% - <span id="xdx_902_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRateMaximum_dp_c20250101__20251231__us-gaap--AwardTypeAxis__custom--OptionsMember_zWM1Ltqwqts5" title="Risk free interest rate">4.06%</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--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRateMinimum_dp_c20240101__20241231__us-gaap--AwardTypeAxis__custom--OptionsMember_zoWLuThDdnlb" title="Risk free interest rate">3.66% - <span id="xdx_906_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRateMaximum_dp_c20240101__20241231__us-gaap--AwardTypeAxis__custom--OptionsMember_zjaay00nLDJi" title="Risk free interest rate">4.08%</td></tr> <tr style="vertical-align: bottom"> <td>Expected life (in years) </td> <td> </td> <td> </td> <td style="text-align: right"><span id="xdx_909_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20250101__20251231__us-gaap--AwardTypeAxis__custom--OptionsMember_zWqmZZ9T0vhg" title="Expected life (in years)">5</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"><span id="xdx_90F_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20240101__20241231__us-gaap--AwardTypeAxis__custom--OptionsMember_zefwfwpsOD7c" title="Expected life (in years)">5</td></tr> <tr style="vertical-align: bottom; background-color: #EEEEEE"> <td>Expected volatility</td> <td> </td> <td> </td> <td style="text-align: right"><span id="xdx_90F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRateMinimum_dp_c20250101__20251231__us-gaap--AwardTypeAxis__custom--OptionsMember_zvZNc69IR0Fi" title="Expected volatility">76.3% - <span id="xdx_906_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRateMaximum_dp_c20250101__20251231__us-gaap--AwardTypeAxis__custom--OptionsMember_zxNBGQFwIAcb" title="Expected volatility">84.2%</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"><span id="xdx_90B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRateMinimum_dp_c20240101__20241231__us-gaap--AwardTypeAxis__custom--OptionsMember_zX9YQb0QHrKk" title="Expected volatility">72.8% - <span id="xdx_908_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRateMaximum_dp_c20240101__20241231__us-gaap--AwardTypeAxis__custom--OptionsMember_zYZggRUqQb43" title="Expected volatility">102.6%</td></tr> <tr style="vertical-align: bottom"> <td>Expected dividend yield </td> <td> </td> <td> </td> <td style="text-align: right"><span id="xdx_902_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate_dp_c20250101__20251231__us-gaap--AwardTypeAxis__custom--OptionsMember_zTxkEvNj8bce" title="Expected dividend yield">0.00%</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"><span id="xdx_90C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate_dp_c20240101__20241231__us-gaap--AwardTypeAxis__custom--OptionsMember_zLzmRKq2iDDh" title="Expected dividend yield">0.00%</td></tr> </table> The following table summarizes the activity of our stock options for the years ended December 31, 2025, and 2024: <table cellpadding="0" cellspacing="0" id="xdx_88C_eus-gaap--ScheduleOfShareBasedCompensationStockOptionsActivityTableTextBlock_pn3n3_z8cdoTYxnEh2" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - SHARE-BASED COMPENSATION (Details - Stock options)"> <tr style="vertical-align: bottom"> <td>Schedule of option activity</td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Shares Underlying Options</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Weighted- Average Exercise Price</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Weighted- Average Remaining Contractual Term (in years)</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 49%">Outstanding at December 31, 2023</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_988_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iS_pip0_c20240101__20241231_zDXR5PDpSqm1" style="width: 13%; text-align: right" title="Options Outstanding, beginning balance">950</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iS_pip0_c20240101__20241231_zgfJHUwW3Ws7" style="width: 13%; text-align: right" title="Weighted Average Exercise Price, beginning balance">0.62</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 13%; text-align: right"><span id="xdx_90F_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20230101__20231231_zkOpUrEjrJT3" title="Weighted- Average Remaining Contractual Term">1.8</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt">Granted</td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_pip0_c20240101__20241231_z7QeYujDST4l" style="text-align: right" title="Options, Granted">500</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_pip0_c20240101__20241231_zfUy0iXoDAO3" style="text-align: right" title="Weighted Average Exercise Price, Granted">0.80</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(238,238,238)"> <td style="padding-left: 10pt">Forfeited</td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedOptionsForfeitedNumberOfShares_iN_pip0_di_c20240101__20241231_z8K1SRq5K5xh" style="text-align: right" title="Options, Forfeited">(300</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedOptionsForfeitedWeightedAverageGrantDateFairValue_pip0_c20240101__20241231_ziAQjIcb3Cu2" style="text-align: right" title="Weighted Average Exercise Price, Forfeited">0.70</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; padding-left: 10pt">Exercised</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_985_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisedNumberOfShares_iN_pip0_di_c20240101__20241231_zIlwSPNSDjnl" style="border-bottom: Black 1pt solid; text-align: right" title="Options, Exercised">(300</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 id="xdx_985_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisedWeightedAverageGrantDateFairValue_pip0_c20240101__20241231_zoSHGgtZeWe8" style="border-bottom: Black 1pt solid; text-align: right" title="Weighted Average Exercise Price, Exercised">0.63</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(238,238,238)"> <td>Outstanding at December 31, 2024</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iS_pip0_c20250101__20251231_zQCLboN2FQze" style="text-align: right" title="Options Outstanding, beginning balance">850</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iS_pip0_c20250101__20251231_z47X1cpEpAf3" style="text-align: right" title="Weighted Average Exercise Price, beginning balance">0.69</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--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20240101__20241231_znzOloj3EAcl" title="Weighted- Average Remaining Contractual Term">1.2</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt">Granted</td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_pip0_c20250101__20251231_zuRDsY9Bfm45" style="text-align: right" title="Options, Granted">360</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_pip0_c20250101__20251231_zjmW7SShTEK2" style="text-align: right" title="Weighted Average Exercise Price, Granted">1.54</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(238,238,238)"> <td style="padding-bottom: 1pt; padding-left: 10pt">Exercised</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_986_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisedNumberOfShares_iN_pip0_di_c20250101__20251231_z9kvIKwJFYri" style="border-bottom: Black 1pt solid; text-align: right" title="Options, Exercised">(100</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 id="xdx_981_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisedWeightedAverageGrantDateFairValue_pip0_c20250101__20251231_z5lt9PkRjyF9" style="border-bottom: Black 1pt solid; text-align: right" title="Weighted Average Exercise Price, Exercised">0.37</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="padding-bottom: 2.5pt">Outstanding at December 31, 2025</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_988_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iE_pip0_c20250101__20251231_zMDJ1lueYLif" style="border-bottom: Black 2.5pt double; text-align: right" title="Options Outstanding, ending balance">1,110</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">$</td><td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iE_pip0_c20250101__20251231_zKigF8jF9g5d" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted Average Exercise Price, ending balance">0.99</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right"><span id="xdx_901_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20250101__20251231_zcG0466rvWie" title="Weighted- Average Remaining Contractual Term">3.3</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-bottom: 2.5pt">Exercisable at December 31, 2025</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_981_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber_iI_pip0_c20251231_zagUjIWVpXJ4" style="border-bottom: Black 2.5pt double; text-align: right" title="Options Outstanding, exercisable">650</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice_iI_pip0_c20251231_zSVUsRyXU78d" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted Average Exercise Price, exercisable">0.87</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_909_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1_dtY_c20250101__20251231_zQ1ZrTZH8GMa" title="Weighted- Average Remaining Contractual Term, exercisable">2.8</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> The following table summarizes the activity of restricted stock awards (RSAs) for the years ended December 31, 2025, and 2024: <table cellpadding="0" cellspacing="0" id="xdx_888_eus-gaap--ScheduleOfNonvestedRestrictedStockUnitsActivityTableTextBlock_zbsD82R7JFaj" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - SHARE-BASED COMPENSATION (Details - RSAs)"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt; font-size: 10pt">Schedule of RSA activity</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center">Shares Underlying RSAs</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center">Weighted- Average Grant Date Fair Value</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center">Weighted- Average Remaining Contractual Term (in years)</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-size: 10pt">Outstanding at December 31, 2023</td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber_iI_d0_c20231231__us-gaap--AwardTypeAxis__custom--RestrictedStockAwardsMember_zAbglmIKmjqk" style="font-size: 10pt; text-align: right" title="RSAs outstanding">–</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue_iI_d0_c20231231__us-gaap--AwardTypeAxis__custom--RestrictedStockAwardsMember_z8kzKX26WW23" style="font-size: 10pt; text-align: right" title="RSAs outstanding">–</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">–</td><td style="font-size: 10pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 49%; font-size: 10pt; padding-bottom: 1pt">Granted</td><td style="width: 2%; font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; font-size: 10pt; text-align: left"> </td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_d0_c20240101__20241231__us-gaap--AwardTypeAxis__custom--RestrictedStockAwardsMember_zpYX1760f7d" style="border-bottom: Black 1pt solid; width: 13%; font-size: 10pt; text-align: right" title="RSAs granted">300</td><td style="width: 1%; padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="width: 2%; font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; font-size: 10pt; text-align: left">$</td><td id="xdx_98F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriodWeightedAverageGrantDateFairValue_d0_c20240101__20241231__us-gaap--AwardTypeAxis__custom--RestrictedStockAwardsMember_zHPpJjLvm9pi" style="border-bottom: Black 1pt solid; width: 13%; font-size: 10pt; text-align: right" title="RSAs granted">0.56</td><td style="width: 1%; padding-bottom: 1pt; font-size: 10pt; 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(238,238,238)"> <td style="font-size: 10pt">Outstanding at December 31, 2024</td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber_iI_d0_c20241231__us-gaap--AwardTypeAxis__custom--RestrictedStockAwardsMember_zmSzZIAlPOS2" style="font-size: 10pt; text-align: right" title="RSAs outstanding">300</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td id="xdx_981_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue_iI_d0_c20241231__us-gaap--AwardTypeAxis__custom--RestrictedStockAwardsMember_zJWsYzOeUqZj" style="font-size: 10pt; text-align: right">0.56</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td id="xdx_988_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsOutstandingWeightedAverageRemainingContractualTerms_dtY0_c20240101__20241231__us-gaap--AwardTypeAxis__custom--RestrictedStockAwardsMember_zMvkb6MNpurg" style="font-size: 10pt; text-align: right" title="RSAs outstanding">3</td><td style="font-size: 10pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt">Granted</td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_d0_c20250101__20251231__us-gaap--AwardTypeAxis__custom--RestrictedStockAwardsMember_z5sseOGgdAzk" style="font-size: 10pt; text-align: right" title="RSAs granted">175</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriodWeightedAverageGrantDateFairValue_d0_c20250101__20251231__us-gaap--AwardTypeAxis__custom--RestrictedStockAwardsMember_z3e7VOybvfnk" style="font-size: 10pt; text-align: right" title="RSAs granted">1.54</td><td style="font-size: 10pt; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-size: 10pt; padding-bottom: 1pt">Vested</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriod_iN_di0_c20250101__20251231__us-gaap--AwardTypeAxis__custom--RestrictedStockAwardsMember_zondJ804bKcb" style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right" title="RSAs vested">(100</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">$</td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriodWeightedAverageGrantDateFairValue_d0_c20250101__20251231__us-gaap--AwardTypeAxis__custom--RestrictedStockAwardsMember_zlfFD6mDvAc7" style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right" title="RSAs vested">0.56</td><td style="padding-bottom: 1pt; font-size: 10pt; 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="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">Outstanding at December 31, 2025 </td><td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber_iI_d0_c20251231__us-gaap--AwardTypeAxis__custom--RestrictedStockAwardsMember_zjMSgkvRl1Ve" style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right" title="RSAs outstanding">375</td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue_iI_d0_c20251231__us-gaap--AwardTypeAxis__custom--RestrictedStockAwardsMember_zrzqRS8MnVzk" style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">1.02</td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsOutstandingWeightedAverageRemainingContractualTerms_dtY0_c20250101__20251231__us-gaap--AwardTypeAxis__custom--RestrictedStockAwardsMember_zhA1nk7t2Iv2" style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right" title="RSAs outstanding">1.27</td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"> </td></tr> </table> For the years ended December 31, 2025 and 2024, we recognized a total of $237 and $178, respectively, of share-based compensation expense related to stock options, which is included in selling, general and administrative expenses in the accompanying consolidated statements of operations. The unamortized estimated fair value of nonvested stock options was $<span id="xdx_90C_eus-gaap--EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognizedStockOptions_iI_pn3n3_c20251231__us-gaap--AwardTypeAxis__custom--OptionsMember_zoarK3CySH5j" title="Unamortized estimated fair value of nonvested stock">283 and $<span id="xdx_90B_eus-gaap--EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognizedStockOptions_iI_pn3n3_c20241231__us-gaap--AwardTypeAxis__custom--OptionsMember_zCz5g3UVx6S6" title="Unamortized estimated fair value of nonvested stock">157 at December 31, 2025 and 2024, respectively. These costs are expected to be recognized as expenses over a weighted-average period of <span id="xdx_904_eus-gaap--EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognizedPeriodForRecognition1_dtY_c20250101__20251231__us-gaap--AwardTypeAxis__custom--OptionsMember_zlacZEvaZXT1" title="Unamortized expense recognition period">1.22 and <span id="xdx_905_eus-gaap--EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognizedPeriodForRecognition1_dtY_c20240101__20241231__us-gaap--AwardTypeAxis__custom--OptionsMember_zsuPkTFAes46" title="Unamortized expense recognition period">1.82 years respectively. For the years ended December 31, 2025, and 2024, we recognized a total of $138 and $46, respectively, of share-based compensation expense related to restricted stock awards, which is included in selling, general and administrative expenses in the accompanying consolidated statements of operations. The unamortized estimated fair value of nonvested stock awards was $<span id="xdx_90E_eus-gaap--EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognizedShareBasedAwardsOtherThanOptions_iI_pn3n3_c20251231__us-gaap--AwardTypeAxis__custom--RestrictedStockAwardsMember_z42d18u6Aqfa" title="Unamortized estimated fair value of nonvested stock">254 and $<span id="xdx_907_eus-gaap--EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognizedShareBasedAwardsOtherThanOptions_iI_pn3n3_c20241231__us-gaap--AwardTypeAxis__custom--RestrictedStockAwardsMember_zzTiY14gNeKi" title="Unamortized estimated fair value of nonvested stock">122 at December 31, 2025 and 2024, respectively. These costs are expected to be recognized as expenses over a weighted-average period of <span id="xdx_908_eus-gaap--EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognizedPeriodForRecognition1_dtY_c20250101__20251231__us-gaap--AwardTypeAxis__custom--RestrictedStockAwardsMember_zgV2TzEAqwF1" title="Unamortized expense recognition period">1.25 years and <span id="xdx_908_eus-gaap--EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognizedPeriodForRecognition1_dtY_c20240101__20241231__us-gaap--AwardTypeAxis__custom--RestrictedStockAwardsMember_z3cbAKyq72Dd" title="Unamortized expense recognition period">2.25 years respectively.

50000

1.26

0.81

23810

80000

160000

1.88

50000

1.28

300000

0.56

<table cellpadding="0" cellspacing="0" id="xdx_88F_eus-gaap--ScheduleOfShareBasedPaymentAwardStockOptionsValuationAssumptionsTableTextBlock_zhPeE7gv1Tif" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse" summary="xdx: Disclosure - SHARE-BASED COMPENSATION (Details - Assumptions)"> <tr style="vertical-align: bottom"> <td>Schedule of assumptions for option valuation</td> <td> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Year Ended December 2025</td> <td> </td> <td> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Year Ended December 2024</td></tr> <tr style="vertical-align: bottom; background-color: #EEEEEE"> <td style="width: 71%">Risk free interest rate</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 12%; text-align: right"><span id="xdx_902_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRateMinimum_dp_c20250101__20251231__us-gaap--AwardTypeAxis__custom--OptionsMember_z06vU7Il2Bo1" title="Risk free interest rate">3.83% - <span id="xdx_902_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRateMaximum_dp_c20250101__20251231__us-gaap--AwardTypeAxis__custom--OptionsMember_zWM1Ltqwqts5" title="Risk free interest rate">4.06%</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--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRateMinimum_dp_c20240101__20241231__us-gaap--AwardTypeAxis__custom--OptionsMember_zoWLuThDdnlb" title="Risk free interest rate">3.66% - <span id="xdx_906_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRateMaximum_dp_c20240101__20241231__us-gaap--AwardTypeAxis__custom--OptionsMember_zjaay00nLDJi" title="Risk free interest rate">4.08%</td></tr> <tr style="vertical-align: bottom"> <td>Expected life (in years) </td> <td> </td> <td> </td> <td style="text-align: right"><span id="xdx_909_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20250101__20251231__us-gaap--AwardTypeAxis__custom--OptionsMember_zWqmZZ9T0vhg" title="Expected life (in years)">5</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"><span id="xdx_90F_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20240101__20241231__us-gaap--AwardTypeAxis__custom--OptionsMember_zefwfwpsOD7c" title="Expected life (in years)">5</td></tr> <tr style="vertical-align: bottom; background-color: #EEEEEE"> <td>Expected volatility</td> <td> </td> <td> </td> <td style="text-align: right"><span id="xdx_90F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRateMinimum_dp_c20250101__20251231__us-gaap--AwardTypeAxis__custom--OptionsMember_zvZNc69IR0Fi" title="Expected volatility">76.3% - <span id="xdx_906_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRateMaximum_dp_c20250101__20251231__us-gaap--AwardTypeAxis__custom--OptionsMember_zxNBGQFwIAcb" title="Expected volatility">84.2%</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"><span id="xdx_90B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRateMinimum_dp_c20240101__20241231__us-gaap--AwardTypeAxis__custom--OptionsMember_zX9YQb0QHrKk" title="Expected volatility">72.8% - <span id="xdx_908_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRateMaximum_dp_c20240101__20241231__us-gaap--AwardTypeAxis__custom--OptionsMember_zYZggRUqQb43" title="Expected volatility">102.6%</td></tr> <tr style="vertical-align: bottom"> <td>Expected dividend yield </td> <td> </td> <td> </td> <td style="text-align: right"><span id="xdx_902_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate_dp_c20250101__20251231__us-gaap--AwardTypeAxis__custom--OptionsMember_zTxkEvNj8bce" title="Expected dividend yield">0.00%</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"><span id="xdx_90C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate_dp_c20240101__20241231__us-gaap--AwardTypeAxis__custom--OptionsMember_zLzmRKq2iDDh" title="Expected dividend yield">0.00%</td></tr> </table>

0.0383

0.0406

0.0366

0.0408

P5Y

0.763

0.842

0.728

1.026

0.0000

<table cellpadding="0" cellspacing="0" id="xdx_88C_eus-gaap--ScheduleOfShareBasedCompensationStockOptionsActivityTableTextBlock_pn3n3_z8cdoTYxnEh2" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - SHARE-BASED COMPENSATION (Details - Stock options)"> <tr style="vertical-align: bottom"> <td>Schedule of option activity</td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Shares Underlying Options</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Weighted- Average Exercise Price</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Weighted- Average Remaining Contractual Term (in years)</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 49%">Outstanding at December 31, 2023</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_988_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iS_pip0_c20240101__20241231_zDXR5PDpSqm1" style="width: 13%; text-align: right" title="Options Outstanding, beginning balance">950</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iS_pip0_c20240101__20241231_zgfJHUwW3Ws7" style="width: 13%; text-align: right" title="Weighted Average Exercise Price, beginning balance">0.62</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 13%; text-align: right"><span id="xdx_90F_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20230101__20231231_zkOpUrEjrJT3" title="Weighted- Average Remaining Contractual Term">1.8</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt">Granted</td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_pip0_c20240101__20241231_z7QeYujDST4l" style="text-align: right" title="Options, Granted">500</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_pip0_c20240101__20241231_zfUy0iXoDAO3" style="text-align: right" title="Weighted Average Exercise Price, Granted">0.80</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(238,238,238)"> <td style="padding-left: 10pt">Forfeited</td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedOptionsForfeitedNumberOfShares_iN_pip0_di_c20240101__20241231_z8K1SRq5K5xh" style="text-align: right" title="Options, Forfeited">(300</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedOptionsForfeitedWeightedAverageGrantDateFairValue_pip0_c20240101__20241231_ziAQjIcb3Cu2" style="text-align: right" title="Weighted Average Exercise Price, Forfeited">0.70</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; padding-left: 10pt">Exercised</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_985_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisedNumberOfShares_iN_pip0_di_c20240101__20241231_zIlwSPNSDjnl" style="border-bottom: Black 1pt solid; text-align: right" title="Options, Exercised">(300</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 id="xdx_985_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisedWeightedAverageGrantDateFairValue_pip0_c20240101__20241231_zoSHGgtZeWe8" style="border-bottom: Black 1pt solid; text-align: right" title="Weighted Average Exercise Price, Exercised">0.63</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(238,238,238)"> <td>Outstanding at December 31, 2024</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iS_pip0_c20250101__20251231_zQCLboN2FQze" style="text-align: right" title="Options Outstanding, beginning balance">850</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iS_pip0_c20250101__20251231_z47X1cpEpAf3" style="text-align: right" title="Weighted Average Exercise Price, beginning balance">0.69</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--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20240101__20241231_znzOloj3EAcl" title="Weighted- Average Remaining Contractual Term">1.2</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt">Granted</td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_pip0_c20250101__20251231_zuRDsY9Bfm45" style="text-align: right" title="Options, Granted">360</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_pip0_c20250101__20251231_zjmW7SShTEK2" style="text-align: right" title="Weighted Average Exercise Price, Granted">1.54</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(238,238,238)"> <td style="padding-bottom: 1pt; padding-left: 10pt">Exercised</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_986_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisedNumberOfShares_iN_pip0_di_c20250101__20251231_z9kvIKwJFYri" style="border-bottom: Black 1pt solid; text-align: right" title="Options, Exercised">(100</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 id="xdx_981_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisedWeightedAverageGrantDateFairValue_pip0_c20250101__20251231_z5lt9PkRjyF9" style="border-bottom: Black 1pt solid; text-align: right" title="Weighted Average Exercise Price, Exercised">0.37</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="padding-bottom: 2.5pt">Outstanding at December 31, 2025</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_988_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iE_pip0_c20250101__20251231_zMDJ1lueYLif" style="border-bottom: Black 2.5pt double; text-align: right" title="Options Outstanding, ending balance">1,110</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 id="xdx_989_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iE_pip0_c20250101__20251231_zKigF8jF9g5d" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted Average Exercise Price, ending balance">0.99</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--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20250101__20251231_zcG0466rvWie" title="Weighted- Average Remaining Contractual Term">3.3</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-bottom: 2.5pt">Exercisable at December 31, 2025</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_981_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber_iI_pip0_c20251231_zagUjIWVpXJ4" style="border-bottom: Black 2.5pt double; text-align: right" title="Options Outstanding, exercisable">650</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 id="xdx_98E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice_iI_pip0_c20251231_zSVUsRyXU78d" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted Average Exercise Price, exercisable">0.87</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_909_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1_dtY_c20250101__20251231_zQ1ZrTZH8GMa" title="Weighted- Average Remaining Contractual Term, exercisable">2.8</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

950

0.62

P1Y9M18D

500

0.80

300

0.70

300 0.63

850

0.69

P1Y2M12D

360

1.54

100 0.37

1110

0.99

P3Y3M18D

650

0.87

P2Y9M18D

<table cellpadding="0" cellspacing="0" id="xdx_888_eus-gaap--ScheduleOfNonvestedRestrictedStockUnitsActivityTableTextBlock_zbsD82R7JFaj" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - SHARE-BASED COMPENSATION (Details - RSAs)"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt; font-size: 10pt">Schedule of RSA activity</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center">Shares Underlying RSAs</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center">Weighted- Average Grant Date Fair Value</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center">Weighted- Average Remaining Contractual Term (in years)</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-size: 10pt">Outstanding at December 31, 2023</td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber_iI_d0_c20231231__us-gaap--AwardTypeAxis__custom--RestrictedStockAwardsMember_zAbglmIKmjqk" style="font-size: 10pt; text-align: right" title="RSAs outstanding">–</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue_iI_d0_c20231231__us-gaap--AwardTypeAxis__custom--RestrictedStockAwardsMember_z8kzKX26WW23" style="font-size: 10pt; text-align: right" title="RSAs outstanding">–</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">–</td><td style="font-size: 10pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 49%; font-size: 10pt; padding-bottom: 1pt">Granted</td><td style="width: 2%; font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; font-size: 10pt; text-align: left"> </td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_d0_c20240101__20241231__us-gaap--AwardTypeAxis__custom--RestrictedStockAwardsMember_zpYX1760f7d" style="border-bottom: Black 1pt solid; width: 13%; font-size: 10pt; text-align: right" title="RSAs granted">300</td><td style="width: 1%; padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td><td style="width: 2%; font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; font-size: 10pt; text-align: left">$</td><td id="xdx_98F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriodWeightedAverageGrantDateFairValue_d0_c20240101__20241231__us-gaap--AwardTypeAxis__custom--RestrictedStockAwardsMember_zHPpJjLvm9pi" style="border-bottom: Black 1pt solid; width: 13%; font-size: 10pt; text-align: right" title="RSAs granted">0.56</td><td style="width: 1%; padding-bottom: 1pt; font-size: 10pt; 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(238,238,238)"> <td style="font-size: 10pt">Outstanding at December 31, 2024</td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber_iI_d0_c20241231__us-gaap--AwardTypeAxis__custom--RestrictedStockAwardsMember_zmSzZIAlPOS2" style="font-size: 10pt; text-align: right" title="RSAs outstanding">300</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td id="xdx_981_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue_iI_d0_c20241231__us-gaap--AwardTypeAxis__custom--RestrictedStockAwardsMember_zJWsYzOeUqZj" style="font-size: 10pt; text-align: right">0.56</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td id="xdx_988_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsOutstandingWeightedAverageRemainingContractualTerms_dtY0_c20240101__20241231__us-gaap--AwardTypeAxis__custom--RestrictedStockAwardsMember_zMvkb6MNpurg" style="font-size: 10pt; text-align: right" title="RSAs outstanding">3</td><td style="font-size: 10pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt">Granted</td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_d0_c20250101__20251231__us-gaap--AwardTypeAxis__custom--RestrictedStockAwardsMember_z5sseOGgdAzk" style="font-size: 10pt; text-align: right" title="RSAs granted">175</td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td><td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriodWeightedAverageGrantDateFairValue_d0_c20250101__20251231__us-gaap--AwardTypeAxis__custom--RestrictedStockAwardsMember_z3e7VOybvfnk" style="font-size: 10pt; text-align: right" title="RSAs granted">1.54</td><td style="font-size: 10pt; text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-size: 10pt; padding-bottom: 1pt">Vested</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriod_iN_di0_c20250101__20251231__us-gaap--AwardTypeAxis__custom--RestrictedStockAwardsMember_zondJ804bKcb" style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right" title="RSAs vested">(100</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">$</td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriodWeightedAverageGrantDateFairValue_d0_c20250101__20251231__us-gaap--AwardTypeAxis__custom--RestrictedStockAwardsMember_zlfFD6mDvAc7" style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right" title="RSAs vested">0.56</td><td style="padding-bottom: 1pt; font-size: 10pt; 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="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">Outstanding at December 31, 2025 </td><td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber_iI_d0_c20251231__us-gaap--AwardTypeAxis__custom--RestrictedStockAwardsMember_zjMSgkvRl1Ve" style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right" title="RSAs outstanding">375</td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue_iI_d0_c20251231__us-gaap--AwardTypeAxis__custom--RestrictedStockAwardsMember_zrzqRS8MnVzk" style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">1.02</td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsOutstandingWeightedAverageRemainingContractualTerms_dtY0_c20250101__20251231__us-gaap--AwardTypeAxis__custom--RestrictedStockAwardsMember_zhA1nk7t2Iv2" style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right" title="RSAs outstanding">1.27</td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"> </td></tr> </table>

300

0.56

300

0.56

P3Y

175

1.54

100

0.56

375

1.02

P1Y3M7D

237000

178000

283000

157000

P1Y2M19D

P1Y9M25D

138000

46000

254000

122000

P1Y3M

P2Y3M

NOTE 7: TREASURY STOCK Treasury shares are accounted for using the cost method. The Company had 4,018 shares of common stock held in treasury as of December 31, 2025, and 2024.

NOTE 8: INCOME TAXES Income tax expense is comprised of the following: <table cellpadding="0" cellspacing="0" id="xdx_89C_eus-gaap--ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock_pn3n3_zrt5Fd99GmO7" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - INCOME TAXES (Details - Provision for income taxes)"> <tr style="vertical-align: bottom"> <td>Schedule of income tax expense</td><td> </td> <td colspan="2" id="xdx_497_20250101__20251231__srt--StatementGeographicalAxis__country--US_zO0NFf5Oaqbk" style="text-align: center"> </td><td> </td><td> </td> <td colspan="2" id="xdx_495_20250101__20251231__srt--StatementGeographicalAxis__country--BR_zd5lDDBu02Mi" style="text-align: center"> </td><td> </td><td> </td> <td colspan="2" id="xdx_49C_20250101__20251231_z5WNhFsGnxVb" style="text-align: center"> </td><td> </td><td> </td> <td colspan="2" id="xdx_49B_20240101__20241231_zhxLXypN3jc1" style="text-align: center"> </td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="14" style="text-align: center">Years Ended December 31,</td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="10" style="border-bottom: Black 1pt solid; 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; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">US</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Brazil</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Total</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">US</td><td style="padding-bottom: 1pt"> </td></tr> <tr id="xdx_406_eus-gaap--ProfitLoss_zgp6IOANUVcf" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 40%; text-align: left; padding-bottom: 2.5pt">Income (loss) from Continuing operations</td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; width: 11%; text-align: right">389</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; width: 11%; text-align: right">(354</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left">)</td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; width: 11%; text-align: right">35</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; width: 11%; text-align: right">2,636</td><td style="width: 1%; 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><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_40C_ecustom--FederalIncomeTaxAbstract_iB_zIudSeldbpm3" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td>Federal:</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 id="xdx_40F_eus-gaap--CurrentIncomeTaxExpenseBenefit_i01_pn3n3_d0_zypwGLs3gmJd" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt">Current</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 id="xdx_40E_eus-gaap--DeferredFederalIncomeTaxExpenseBenefit_i01_pn3n3_d0_zY6sHxpXnMPh" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-bottom: 1pt; padding-left: 10pt">Deferred</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><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><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><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 id="xdx_408_eus-gaap--FederalIncomeTaxExpenseBenefitContinuingOperations_i01_pn3n3_d0_zu3ArXDe3jh8" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 20pt">Total Federal</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><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><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><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 id="xdx_404_ecustom--StateIncomeTaxAbstract_iB_zrjrniKJZ752" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td>State:</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 id="xdx_40F_eus-gaap--CurrentStateAndLocalTaxExpenseBenefit_i01_pn3n3_d0_zI0jEqi9InQ5" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt">Current</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">68</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">73</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">16</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--DeferredStateAndLocalIncomeTaxExpenseBenefit_i01N_pn3n3_di0_zIBgyM7OKfrl" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-bottom: 1pt; padding-left: 10pt">Deferred</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><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><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><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 id="xdx_408_eus-gaap--StateAndLocalIncomeTaxExpenseBenefitContinuingOperations_i01_pn3n3_d0_zHUbK9yeckx1" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 20pt">Total State</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><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><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</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">16</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--IncomeTaxExpenseBenefit_i01_pn3n3_d0_zM6ZjeKwgnOh" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-bottom: 2.5pt; padding-left: 20pt">Total income tax expense</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">68</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">6</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">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">73</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">16</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> Income tax expense differs from the amount computed by applying the U.S. statutory income tax rate to loss before income taxes for the reasons set forth below. <table cellpadding="0" cellspacing="0" id="xdx_897_eus-gaap--ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock_pn3n3_zZdhNIwtPla1" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - INCOME TAXES (Details - Tax rates)"> <tr style="vertical-align: bottom"> <td>Schedule of income tax expense (benefit)</td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">$</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">%</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">$</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">%</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 40%; text-align: left">Income tax expense (benefit) at federal statutory rate</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_982_eus-gaap--IncomeTaxReconciliationIncomeTaxExpenseBenefitAtFederalStatutoryIncomeTaxRate_pn3n3_c20250101__20251231__us-gaap--IncomeTaxAuthorityAxis__us-gaap--DomesticCountryMember_z98bRrc5dM6l" style="width: 11%; text-align: right" title="Income tax expense (benefit) at federal statutory rate, amount">(7</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: 11%; text-align: right"><span id="xdx_902_eus-gaap--EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate_pip0_dp_c20250101__20251231__us-gaap--IncomeTaxAuthorityAxis__us-gaap--DomesticCountryMember_z0Gp6UjoagQc" title="Income tax expense (benefit) at federal statutory rate">21.00</td><td style="width: 3%; text-align: left">%</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_988_eus-gaap--IncomeTaxReconciliationIncomeTaxExpenseBenefitAtFederalStatutoryIncomeTaxRate_pn3n3_c20240101__20241231__us-gaap--IncomeTaxAuthorityAxis__us-gaap--DomesticCountryMember_zuT2AO0Fia0f" style="width: 11%; text-align: right" title="Income tax expense (benefit) at federal statutory rate, amount">(554</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: 11%; text-align: right"><span id="xdx_901_eus-gaap--EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate_pip0_dp_c20240101__20241231__us-gaap--IncomeTaxAuthorityAxis__us-gaap--DomesticCountryMember_zvwfd33sun" title="Income tax expense (benefit) at federal statutory rate">21.00</td><td style="width: 3%; text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Domestic federal reconciling items</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right" title="Income tax expense (benefit) at federal statutory rate, amount"> </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" title="Income tax expense (benefit) at federal statutory rate, amount"> </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(238,238,238)"> <td style="text-align: left; padding-left: 10pt">Meals and Entertainment</td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--IncomeTaxReconciliationNondeductibleExpenseMealsAndEntertainment_iN_pn3n3_di_c20250101__20251231_zsPivNYVHlR2" style="text-align: right" title="Income tax expense (benefit) at federal statutory rate, amount">(12</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(35</td><td style="text-align: left">)%</td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--IncomeTaxReconciliationNondeductibleExpenseMealsAndEntertainment_iN_pn3n3_di_c20240101__20241231_zZrLn5RcSnSg" style="text-align: right" title="Income tax expense (benefit) at federal statutory rate, amount">(6</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> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt">Other permanent differences</td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_ecustom--IncomeTaxReconciliationNondeductibleExpenseOther1_pn3n3_c20250101__20251231_zrS6eQpC4oMd" style="text-align: right" title="Income tax expense (benefit) at federal statutory rate, amount">1</td><td style="text-align: left"> </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 id="xdx_98D_eus-gaap--IncomeTaxReconciliationNondeductibleExpenseOther_pn3n3_c20240101__20241231_zDmbqkIRe4m" style="text-align: right" title="Income tax expense (benefit) at federal statutory rate, amount">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(0.24</td><td style="text-align: left">)%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-left: 10pt">Change in valuation allowance</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--IncomeTaxReconciliationChangeInDeferredTaxAssetsValuationAllowance_pn3n3_c20250101__20251231_zq3Q9QKIi8F5" style="text-align: right" title="Income tax expense (benefit) at federal statutory rate, amount">79</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">227</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--IncomeTaxReconciliationChangeInDeferredTaxAssetsValuationAllowance_pn3n3_c20240101__20241231_zguwcC0DEdr" style="text-align: right" title="Income tax expense (benefit) at federal statutory rate, amount">569</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">21.58</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Domestic state tax benefit (expense), net of federal benefit</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--IncomeTaxReconciliationStateAndLocalIncomeTaxes_pn3n3_c20250101__20251231__us-gaap--IncomeTaxAuthorityAxis__us-gaap--StateAndLocalJurisdictionMember_zxDFKbGX1xE6" style="text-align: right" title="Income tax expense (benefit) at federal statutory rate, amount">(54</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--EffectiveIncomeTaxRateReconciliationStateAndLocalIncomeTaxes_pip0_dp_c20250101__20251231__us-gaap--IncomeTaxAuthorityAxis__us-gaap--StateAndLocalJurisdictionMember_zUtN12x9Cmnj" title="Domestic state tax benefit (expense), net of federal benefit, percent">(154</td><td style="text-align: left">)%</td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--IncomeTaxReconciliationStateAndLocalIncomeTaxes_pn3n3_c20240101__20241231__us-gaap--IncomeTaxAuthorityAxis__us-gaap--StateAndLocalJurisdictionMember_zBlAuJkt6Led" style="text-align: right" title="Income tax expense (benefit) at federal statutory rate, amount">(25</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_901_eus-gaap--EffectiveIncomeTaxRateReconciliationStateAndLocalIncomeTaxes_pip0_dp_c20240101__20241231__us-gaap--IncomeTaxAuthorityAxis__us-gaap--StateAndLocalJurisdictionMember_z5GXZxW2ndt" title="Domestic state tax benefit (expense), net of federal benefit, percent">(0.96</td><td style="text-align: left">)%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left">Foreign reconciling items - Brazil</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right" title="Income tax expense (benefit) at federal statutory rate, amount"> </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" title="Income tax expense (benefit) at federal statutory rate, amount"> </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; padding-left: 10pt">Rate differential</td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--IncomeTaxReconciliationForeignIncomeTaxRateDifferential_pn3n3_c20250101__20251231__us-gaap--IncomeTaxAuthorityAxis__country--BR_zfTH1Irkp4u5" style="text-align: right" title="Income tax expense (benefit) at federal statutory rate, amount">(22</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90E_eus-gaap--EffectiveIncomeTaxRateReconciliationForeignIncomeTaxRateDifferential_pip0_dp_c20250101__20251231__us-gaap--IncomeTaxAuthorityAxis__country--BR_zPuUUl0AySok" title="Rate differential, percent">(62</td><td style="text-align: left">)%</td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--IncomeTaxReconciliationForeignIncomeTaxRateDifferential_pn3n3_d0_c20240101__20241231__us-gaap--IncomeTaxAuthorityAxis__country--BR_z60wZ0j3MZej" style="text-align: right" title="Income tax expense (benefit) at federal statutory rate, amount">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_909_eus-gaap--EffectiveIncomeTaxRateReconciliationForeignIncomeTaxRateDifferential_pip0_dp_c20240101__20241231__us-gaap--IncomeTaxAuthorityAxis__country--BR_zRj4vw26Ond2" title="Rate differential, percent">0.00</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-left: 10pt">Change in valuation allowance</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--IncomeTaxReconciliationChangeInDeferredTaxAssetsValuationAllowance_pn3n3_c20250101__20251231__us-gaap--IncomeTaxAuthorityAxis__country--BR_zTlp2ddFSwya" style="text-align: right" title="Income tax expense (benefit) at federal statutory rate, amount">(54</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_907_eus-gaap--EffectiveIncomeTaxRateReconciliationChangeInDeferredTaxAssetsValuationAllowance_pip0_dp_c20250101__20251231__us-gaap--IncomeTaxAuthorityAxis__country--BR_zg7VHvEw3MUb" title="Change in valuation allowance, percent">(155</td><td style="text-align: left">)%</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_eus-gaap--IncomeTaxReconciliationChangeInDeferredTaxAssetsValuationAllowance_pn3n3_d0_c20240101__20241231__us-gaap--IncomeTaxAuthorityAxis__country--BR_zc2DF3hIGIee" style="text-align: right" title="Income tax expense (benefit) at federal statutory rate, amount">–</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--EffectiveIncomeTaxRateReconciliationChangeInDeferredTaxAssetsValuationAllowance_pip0_dp_c20240101__20241231__us-gaap--IncomeTaxAuthorityAxis__country--BR_ztKRFjyB7yNa" title="Change in valuation allowance, percent">0.00</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Foreign withholding taxes</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right" title="Income tax expense (benefit) at federal statutory rate, amount"> </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" title="Income tax expense (benefit) at federal statutory rate, amount"> </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(238,238,238)"> <td style="text-align: left; padding-bottom: 1pt">Foreign state tax benefit (expense), net of federal effect -Brazil</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_984_eus-gaap--IncomeTaxReconciliationForeignIncomeTaxRateDifferential_pn3n3_c20250101__20251231_zBdZpaaG6gja" style="border-bottom: Black 1pt solid; text-align: right" title="Income tax expense (benefit) at federal statutory rate, amount">(4</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_909_eus-gaap--EffectiveIncomeTaxRateReconciliationForeignIncomeTaxRateDifferential_pip0_dp_c20250101__20251231_zHrNq49n5mP2" title="Foreign state tax benefit (expense), net of federal effect -Brazil, percent">(13</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 id="xdx_981_eus-gaap--IncomeTaxReconciliationForeignIncomeTaxRateDifferential_pn3n3_d0_c20240101__20241231_zshMJ80erkhb" style="border-bottom: Black 1pt solid; text-align: right" title="Income tax expense (benefit) at federal statutory rate, amount">–</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_903_eus-gaap--EffectiveIncomeTaxRateReconciliationForeignIncomeTaxRateDifferential_pip0_dp_c20240101__20241231_zKwIsBNpvtWj" title="Foreign state tax benefit (expense), net of federal effect -Brazil, percent">0.00</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">Income tax expense at effective rate</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_986_eus-gaap--IncomeTaxExpenseBenefit_iN_pn3n3_di_c20250101__20251231_zmhqos3gPeN7" style="border-bottom: Black 2.5pt double; text-align: right" title="Income tax expense (benefit) at federal statutory rate, amount">(73</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">(211</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 id="xdx_983_eus-gaap--IncomeTaxExpenseBenefit_iN_pn3n3_di_c20240101__20241231_zHozbdm3zh9g" style="border-bottom: Black 2.5pt double; text-align: right" title="Income tax expense (benefit) at federal statutory rate, amount">(16</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">(0.62</td><td style="padding-bottom: 2.5pt; text-align: left">)%</td></tr> </table> Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, as well as operating loss and tax credit carryforwards. The tax effects of the temporary differences and carryforwards are as follows: <table cellpadding="0" cellspacing="0" id="xdx_893_eus-gaap--ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock_pn3n3_zQUqvdJvY7dl" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - INCOME TAXES (Details - Deferred tax assets)"> <tr style="vertical-align: bottom"> <td>Schedule of deferred income taxes</td><td> </td> <td colspan="2" id="xdx_49E_20251231_zAzDALT51NHj" style="text-align: center"> </td><td> </td><td> </td> <td colspan="2" id="xdx_492_20241231_znU6hEtO2aFd" style="text-align: center"> </td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31,</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; 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; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_407_eus-gaap--DeferredTaxAssetsTaxDeferredExpenseAbstract_iB" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left">Deferred tax 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"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--DeferredTaxAssetsDeferredIncome_i01I_pn3n3" style="vertical-align: bottom; background-color: White"> <td style="width: 66%; text-align: left; text-indent: -10pt; padding-left: 20pt">Net operating loss carryforwards</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">5,346</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">5,432</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--DeferredTaxAssetsTaxCreditCarryforwardsResearch_i01I_pn3n3" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; text-indent: -10pt; padding-left: 20pt">Research and development and other credit carryforwards</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">618</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">618</td><td style="text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--DeferredTaxAssetsTaxDeferredExpenseOther_i01I_pn3n3" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 20pt">Share-based compensation</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">877</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">859</td><td style="text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--DeferredTaxAssetsTaxDeferredExpenseReservesAndAccrualsAllowanceForDoubtfulAccounts_i01I_pn3n3_d0_zkzMXTCvSTyi" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; text-indent: -10pt; padding-left: 20pt">Allowance for credit losses</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">124</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_40C_ecustom--RightofuseOperatingAsset_i01I_pn3n3_d0_z4ycqQZ39gu2" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 20pt">Right-of-use operating lease liabilities</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,377</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,289</td><td style="text-align: left"> </td></tr> <tr id="xdx_408_ecustom--DeferredIncomeTaxesAndOtherAssetsNoncurrent1_i01I_pn3n3_zgfWnupAYXt9" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-bottom: 1pt; text-indent: -10pt; padding-left: 20pt">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">16</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">62</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--DeferredTaxAssetsGross_i01I_pn3n3" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 20pt">Total deferred tax assets</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">8,358</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">8,260</td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--DeferredTaxAssetsValuationAllowance_i01NI_pn3n3_di_zR7tw3FmATi1" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-bottom: 1pt; text-indent: -10pt; padding-left: 20pt">Less: valuation allowance</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">(6,954</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">(6,978</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_40D_eus-gaap--DeferredTaxAssetsNet_iI_pn3n3" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt; text-indent: -10pt; padding-left: 20pt">Net deferred tax assets</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,404</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,282</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <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 id="xdx_40C_eus-gaap--DeferredTaxLiabilitiesDeferredExpenseAbstract_iB" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Deferred tax liabilities:</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_408_eus-gaap--DeferredTaxLiabilitiesOtherFiniteLivedAssets_iNI_di_zubeEoyhFEWg" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-left: 10pt; text-align: left">Intangible amortization</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(42</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(10</td><td style="text-align: left">)</td></tr> <tr id="xdx_408_eus-gaap--DeferredTaxLiabilitiesPropertyPlantAndEquipment_i01NI_pn3n3_di_z9IiVjrQ8o86" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 20pt">Depreciation and amortization on property, plant and equipment</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(150</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(141</td><td style="text-align: left">)</td></tr> <tr id="xdx_40C_ecustom--RightofuseOperatingLiabilities_i01I_pn3n3_d0_zSivr8NZCQAl" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-bottom: 1pt; text-indent: -10pt; padding-left: 20pt">Right-of-use operating lease assets</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">(1,212</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">(1,131</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_40C_eus-gaap--DeferredIncomeTaxLiabilities_iNI_pn3n3_di_zMjwm2uLOQci" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt; text-indent: -10pt; padding-left: 20pt">Total deferred tax liabilities</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(1,404</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(1,282</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <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 id="xdx_40E_eus-gaap--DeferredTaxAssetsLiabilitiesNet_iI_pn3n3_d0_zxcCvluRTezc" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Net deferred tax position</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> We have $24,721 of US federal, $360 of Brazil, and $1,313 of state net operating loss (“NOL”) carryforwards and $618 in research and development and other credits available to offset future taxable income. These federal and state NOLs will expire at various dates through 2034, except for federal NOLs generated in 2018 and subsequent years, which have no expiration dates. Management analyzed the Company’s current operating results and future projections and determined that a full valuation allowance was needed due to our cumulative losses in recent years. We have no uncertain tax positions at December 31, 2025. Accordingly, we do not have any accruals for penalties or interest related to our tax returns. Should an examination or audit arise, we would evaluate the need for an accrual and record one, if necessary. Our federal tax returns from the tax years ended December 31, 2021 through December 31, 2024 are open to examination by the Internal Revenue Service.

<table cellpadding="0" cellspacing="0" id="xdx_89C_eus-gaap--ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock_pn3n3_zrt5Fd99GmO7" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - INCOME TAXES (Details - Provision for income taxes)"> <tr style="vertical-align: bottom"> <td>Schedule of income tax expense</td><td> </td> <td colspan="2" id="xdx_497_20250101__20251231__srt--StatementGeographicalAxis__country--US_zO0NFf5Oaqbk" style="text-align: center"> </td><td> </td><td> </td> <td colspan="2" id="xdx_495_20250101__20251231__srt--StatementGeographicalAxis__country--BR_zd5lDDBu02Mi" style="text-align: center"> </td><td> </td><td> </td> <td colspan="2" id="xdx_49C_20250101__20251231_z5WNhFsGnxVb" style="text-align: center"> </td><td> </td><td> </td> <td colspan="2" id="xdx_49B_20240101__20241231_zhxLXypN3jc1" style="text-align: center"> </td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="14" style="text-align: center">Years Ended December 31,</td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="10" style="border-bottom: Black 1pt solid; 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; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">US</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Brazil</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Total</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">US</td><td style="padding-bottom: 1pt"> </td></tr> <tr id="xdx_406_eus-gaap--ProfitLoss_zgp6IOANUVcf" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 40%; text-align: left; padding-bottom: 2.5pt">Income (loss) from Continuing operations</td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; width: 11%; text-align: right">389</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; width: 11%; text-align: right">(354</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left">)</td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; width: 11%; text-align: right">35</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; width: 11%; text-align: right">2,636</td><td style="width: 1%; 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><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_40C_ecustom--FederalIncomeTaxAbstract_iB_zIudSeldbpm3" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td>Federal:</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 id="xdx_40F_eus-gaap--CurrentIncomeTaxExpenseBenefit_i01_pn3n3_d0_zypwGLs3gmJd" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt">Current</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 id="xdx_40E_eus-gaap--DeferredFederalIncomeTaxExpenseBenefit_i01_pn3n3_d0_zY6sHxpXnMPh" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-bottom: 1pt; padding-left: 10pt">Deferred</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><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><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><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 id="xdx_408_eus-gaap--FederalIncomeTaxExpenseBenefitContinuingOperations_i01_pn3n3_d0_zu3ArXDe3jh8" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 20pt">Total Federal</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><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><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><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 id="xdx_404_ecustom--StateIncomeTaxAbstract_iB_zrjrniKJZ752" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td>State:</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 id="xdx_40F_eus-gaap--CurrentStateAndLocalTaxExpenseBenefit_i01_pn3n3_d0_zI0jEqi9InQ5" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt">Current</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">68</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">73</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">16</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--DeferredStateAndLocalIncomeTaxExpenseBenefit_i01N_pn3n3_di0_zIBgyM7OKfrl" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-bottom: 1pt; padding-left: 10pt">Deferred</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><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><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><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 id="xdx_408_eus-gaap--StateAndLocalIncomeTaxExpenseBenefitContinuingOperations_i01_pn3n3_d0_zHUbK9yeckx1" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 20pt">Total State</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><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><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</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">16</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--IncomeTaxExpenseBenefit_i01_pn3n3_d0_zM6ZjeKwgnOh" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-bottom: 2.5pt; padding-left: 20pt">Total income tax expense</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">68</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">6</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">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">73</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">16</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

389

-354

2636

68000

6000

73000

16000

-0

73000

16000

68000

6000

73000

16000

<table cellpadding="0" cellspacing="0" id="xdx_897_eus-gaap--ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock_pn3n3_zZdhNIwtPla1" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - INCOME TAXES (Details - Tax rates)"> <tr style="vertical-align: bottom"> <td>Schedule of income tax expense (benefit)</td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">$</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">%</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">$</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">%</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 40%; text-align: left">Income tax expense (benefit) at federal statutory rate</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_982_eus-gaap--IncomeTaxReconciliationIncomeTaxExpenseBenefitAtFederalStatutoryIncomeTaxRate_pn3n3_c20250101__20251231__us-gaap--IncomeTaxAuthorityAxis__us-gaap--DomesticCountryMember_z98bRrc5dM6l" style="width: 11%; text-align: right" title="Income tax expense (benefit) at federal statutory rate, amount">(7</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: 11%; text-align: right"><span id="xdx_902_eus-gaap--EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate_pip0_dp_c20250101__20251231__us-gaap--IncomeTaxAuthorityAxis__us-gaap--DomesticCountryMember_z0Gp6UjoagQc" title="Income tax expense (benefit) at federal statutory rate">21.00</td><td style="width: 3%; text-align: left">%</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_988_eus-gaap--IncomeTaxReconciliationIncomeTaxExpenseBenefitAtFederalStatutoryIncomeTaxRate_pn3n3_c20240101__20241231__us-gaap--IncomeTaxAuthorityAxis__us-gaap--DomesticCountryMember_zuT2AO0Fia0f" style="width: 11%; text-align: right" title="Income tax expense (benefit) at federal statutory rate, amount">(554</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: 11%; text-align: right"><span id="xdx_901_eus-gaap--EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate_pip0_dp_c20240101__20241231__us-gaap--IncomeTaxAuthorityAxis__us-gaap--DomesticCountryMember_zvwfd33sun" title="Income tax expense (benefit) at federal statutory rate">21.00</td><td style="width: 3%; text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Domestic federal reconciling items</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right" title="Income tax expense (benefit) at federal statutory rate, amount"> </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" title="Income tax expense (benefit) at federal statutory rate, amount"> </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(238,238,238)"> <td style="text-align: left; padding-left: 10pt">Meals and Entertainment</td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--IncomeTaxReconciliationNondeductibleExpenseMealsAndEntertainment_iN_pn3n3_di_c20250101__20251231_zsPivNYVHlR2" style="text-align: right" title="Income tax expense (benefit) at federal statutory rate, amount">(12</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(35</td><td style="text-align: left">)%</td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--IncomeTaxReconciliationNondeductibleExpenseMealsAndEntertainment_iN_pn3n3_di_c20240101__20241231_zZrLn5RcSnSg" style="text-align: right" title="Income tax expense (benefit) at federal statutory rate, amount">(6</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> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt">Other permanent differences</td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_ecustom--IncomeTaxReconciliationNondeductibleExpenseOther1_pn3n3_c20250101__20251231_zrS6eQpC4oMd" style="text-align: right" title="Income tax expense (benefit) at federal statutory rate, amount">1</td><td style="text-align: left"> </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 id="xdx_98D_eus-gaap--IncomeTaxReconciliationNondeductibleExpenseOther_pn3n3_c20240101__20241231_zDmbqkIRe4m" style="text-align: right" title="Income tax expense (benefit) at federal statutory rate, amount">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(0.24</td><td style="text-align: left">)%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-left: 10pt">Change in valuation allowance</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--IncomeTaxReconciliationChangeInDeferredTaxAssetsValuationAllowance_pn3n3_c20250101__20251231_zq3Q9QKIi8F5" style="text-align: right" title="Income tax expense (benefit) at federal statutory rate, amount">79</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">227</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--IncomeTaxReconciliationChangeInDeferredTaxAssetsValuationAllowance_pn3n3_c20240101__20241231_zguwcC0DEdr" style="text-align: right" title="Income tax expense (benefit) at federal statutory rate, amount">569</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">21.58</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Domestic state tax benefit (expense), net of federal benefit</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--IncomeTaxReconciliationStateAndLocalIncomeTaxes_pn3n3_c20250101__20251231__us-gaap--IncomeTaxAuthorityAxis__us-gaap--StateAndLocalJurisdictionMember_zxDFKbGX1xE6" style="text-align: right" title="Income tax expense (benefit) at federal statutory rate, amount">(54</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--EffectiveIncomeTaxRateReconciliationStateAndLocalIncomeTaxes_pip0_dp_c20250101__20251231__us-gaap--IncomeTaxAuthorityAxis__us-gaap--StateAndLocalJurisdictionMember_zUtN12x9Cmnj" title="Domestic state tax benefit (expense), net of federal benefit, percent">(154</td><td style="text-align: left">)%</td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--IncomeTaxReconciliationStateAndLocalIncomeTaxes_pn3n3_c20240101__20241231__us-gaap--IncomeTaxAuthorityAxis__us-gaap--StateAndLocalJurisdictionMember_zBlAuJkt6Led" style="text-align: right" title="Income tax expense (benefit) at federal statutory rate, amount">(25</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_901_eus-gaap--EffectiveIncomeTaxRateReconciliationStateAndLocalIncomeTaxes_pip0_dp_c20240101__20241231__us-gaap--IncomeTaxAuthorityAxis__us-gaap--StateAndLocalJurisdictionMember_z5GXZxW2ndt" title="Domestic state tax benefit (expense), net of federal benefit, percent">(0.96</td><td style="text-align: left">)%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left">Foreign reconciling items - Brazil</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right" title="Income tax expense (benefit) at federal statutory rate, amount"> </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" title="Income tax expense (benefit) at federal statutory rate, amount"> </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; padding-left: 10pt">Rate differential</td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--IncomeTaxReconciliationForeignIncomeTaxRateDifferential_pn3n3_c20250101__20251231__us-gaap--IncomeTaxAuthorityAxis__country--BR_zfTH1Irkp4u5" style="text-align: right" title="Income tax expense (benefit) at federal statutory rate, amount">(22</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90E_eus-gaap--EffectiveIncomeTaxRateReconciliationForeignIncomeTaxRateDifferential_pip0_dp_c20250101__20251231__us-gaap--IncomeTaxAuthorityAxis__country--BR_zPuUUl0AySok" title="Rate differential, percent">(62</td><td style="text-align: left">)%</td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--IncomeTaxReconciliationForeignIncomeTaxRateDifferential_pn3n3_d0_c20240101__20241231__us-gaap--IncomeTaxAuthorityAxis__country--BR_z60wZ0j3MZej" style="text-align: right" title="Income tax expense (benefit) at federal statutory rate, amount">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_909_eus-gaap--EffectiveIncomeTaxRateReconciliationForeignIncomeTaxRateDifferential_pip0_dp_c20240101__20241231__us-gaap--IncomeTaxAuthorityAxis__country--BR_zRj4vw26Ond2" title="Rate differential, percent">0.00</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-left: 10pt">Change in valuation allowance</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--IncomeTaxReconciliationChangeInDeferredTaxAssetsValuationAllowance_pn3n3_c20250101__20251231__us-gaap--IncomeTaxAuthorityAxis__country--BR_zTlp2ddFSwya" style="text-align: right" title="Income tax expense (benefit) at federal statutory rate, amount">(54</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_907_eus-gaap--EffectiveIncomeTaxRateReconciliationChangeInDeferredTaxAssetsValuationAllowance_pip0_dp_c20250101__20251231__us-gaap--IncomeTaxAuthorityAxis__country--BR_zg7VHvEw3MUb" title="Change in valuation allowance, percent">(155</td><td style="text-align: left">)%</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_eus-gaap--IncomeTaxReconciliationChangeInDeferredTaxAssetsValuationAllowance_pn3n3_d0_c20240101__20241231__us-gaap--IncomeTaxAuthorityAxis__country--BR_zc2DF3hIGIee" style="text-align: right" title="Income tax expense (benefit) at federal statutory rate, amount">–</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--EffectiveIncomeTaxRateReconciliationChangeInDeferredTaxAssetsValuationAllowance_pip0_dp_c20240101__20241231__us-gaap--IncomeTaxAuthorityAxis__country--BR_ztKRFjyB7yNa" title="Change in valuation allowance, percent">0.00</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Foreign withholding taxes</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right" title="Income tax expense (benefit) at federal statutory rate, amount"> </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" title="Income tax expense (benefit) at federal statutory rate, amount"> </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(238,238,238)"> <td style="text-align: left; padding-bottom: 1pt">Foreign state tax benefit (expense), net of federal effect -Brazil</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_984_eus-gaap--IncomeTaxReconciliationForeignIncomeTaxRateDifferential_pn3n3_c20250101__20251231_zBdZpaaG6gja" style="border-bottom: Black 1pt solid; text-align: right" title="Income tax expense (benefit) at federal statutory rate, amount">(4</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_909_eus-gaap--EffectiveIncomeTaxRateReconciliationForeignIncomeTaxRateDifferential_pip0_dp_c20250101__20251231_zHrNq49n5mP2" title="Foreign state tax benefit (expense), net of federal effect -Brazil, percent">(13</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 id="xdx_981_eus-gaap--IncomeTaxReconciliationForeignIncomeTaxRateDifferential_pn3n3_d0_c20240101__20241231_zshMJ80erkhb" style="border-bottom: Black 1pt solid; text-align: right" title="Income tax expense (benefit) at federal statutory rate, amount">–</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_903_eus-gaap--EffectiveIncomeTaxRateReconciliationForeignIncomeTaxRateDifferential_pip0_dp_c20240101__20241231_zKwIsBNpvtWj" title="Foreign state tax benefit (expense), net of federal effect -Brazil, percent">0.00</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">Income tax expense at effective rate</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_986_eus-gaap--IncomeTaxExpenseBenefit_iN_pn3n3_di_c20250101__20251231_zmhqos3gPeN7" style="border-bottom: Black 2.5pt double; text-align: right" title="Income tax expense (benefit) at federal statutory rate, amount">(73</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">(211</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 id="xdx_983_eus-gaap--IncomeTaxExpenseBenefit_iN_pn3n3_di_c20240101__20241231_zHozbdm3zh9g" style="border-bottom: Black 2.5pt double; text-align: right" title="Income tax expense (benefit) at federal statutory rate, amount">(16</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">(0.62</td><td style="padding-bottom: 2.5pt; text-align: left">)%</td></tr> </table>

-7000

0.2100

-554000

0.2100

12000

0.35

6000

-0.0000

1000 0.01

-0.0024

79000

2.27

569000

0.2158

-54000

-1.54

-25000

-0.0096

-22000

-0.62

0.0000

-54000

-1.55

0.0000

-4000

-0.13

0.0000

73000

2.11

16000

0.0062

<table cellpadding="0" cellspacing="0" id="xdx_893_eus-gaap--ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock_pn3n3_zQUqvdJvY7dl" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - INCOME TAXES (Details - Deferred tax assets)"> <tr style="vertical-align: bottom"> <td>Schedule of deferred income taxes</td><td> </td> <td colspan="2" id="xdx_49E_20251231_zAzDALT51NHj" style="text-align: center"> </td><td> </td><td> </td> <td colspan="2" id="xdx_492_20241231_znU6hEtO2aFd" style="text-align: center"> </td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31,</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; 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; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_407_eus-gaap--DeferredTaxAssetsTaxDeferredExpenseAbstract_iB" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left">Deferred tax 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"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--DeferredTaxAssetsDeferredIncome_i01I_pn3n3" style="vertical-align: bottom; background-color: White"> <td style="width: 66%; text-align: left; text-indent: -10pt; padding-left: 20pt">Net operating loss carryforwards</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">5,346</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">5,432</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--DeferredTaxAssetsTaxCreditCarryforwardsResearch_i01I_pn3n3" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; text-indent: -10pt; padding-left: 20pt">Research and development and other credit carryforwards</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">618</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">618</td><td style="text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--DeferredTaxAssetsTaxDeferredExpenseOther_i01I_pn3n3" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 20pt">Share-based compensation</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">877</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">859</td><td style="text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--DeferredTaxAssetsTaxDeferredExpenseReservesAndAccrualsAllowanceForDoubtfulAccounts_i01I_pn3n3_d0_zkzMXTCvSTyi" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; text-indent: -10pt; padding-left: 20pt">Allowance for credit losses</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">124</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_40C_ecustom--RightofuseOperatingAsset_i01I_pn3n3_d0_z4ycqQZ39gu2" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 20pt">Right-of-use operating lease liabilities</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,377</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,289</td><td style="text-align: left"> </td></tr> <tr id="xdx_408_ecustom--DeferredIncomeTaxesAndOtherAssetsNoncurrent1_i01I_pn3n3_zgfWnupAYXt9" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-bottom: 1pt; text-indent: -10pt; padding-left: 20pt">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">16</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">62</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--DeferredTaxAssetsGross_i01I_pn3n3" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 20pt">Total deferred tax assets</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">8,358</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">8,260</td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--DeferredTaxAssetsValuationAllowance_i01NI_pn3n3_di_zR7tw3FmATi1" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-bottom: 1pt; text-indent: -10pt; padding-left: 20pt">Less: valuation allowance</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">(6,954</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">(6,978</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_40D_eus-gaap--DeferredTaxAssetsNet_iI_pn3n3" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt; text-indent: -10pt; padding-left: 20pt">Net deferred tax assets</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,404</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,282</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <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 id="xdx_40C_eus-gaap--DeferredTaxLiabilitiesDeferredExpenseAbstract_iB" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Deferred tax liabilities:</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_408_eus-gaap--DeferredTaxLiabilitiesOtherFiniteLivedAssets_iNI_di_zubeEoyhFEWg" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-left: 10pt; text-align: left">Intangible amortization</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(42</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(10</td><td style="text-align: left">)</td></tr> <tr id="xdx_408_eus-gaap--DeferredTaxLiabilitiesPropertyPlantAndEquipment_i01NI_pn3n3_di_z9IiVjrQ8o86" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 20pt">Depreciation and amortization on property, plant and equipment</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(150</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(141</td><td style="text-align: left">)</td></tr> <tr id="xdx_40C_ecustom--RightofuseOperatingLiabilities_i01I_pn3n3_d0_zSivr8NZCQAl" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-bottom: 1pt; text-indent: -10pt; padding-left: 20pt">Right-of-use operating lease assets</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">(1,212</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">(1,131</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_40C_eus-gaap--DeferredIncomeTaxLiabilities_iNI_pn3n3_di_zMjwm2uLOQci" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt; text-indent: -10pt; padding-left: 20pt">Total deferred tax liabilities</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(1,404</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(1,282</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <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 id="xdx_40E_eus-gaap--DeferredTaxAssetsLiabilitiesNet_iI_pn3n3_d0_zxcCvluRTezc" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Net deferred tax position</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>

5346000

5432000

618000

877000

859000

124000

1377000 1289000 16000 62000

8358000

8260000

6954000

6978000

1404000

1282000

150000

141000

-1212000 -1131000

1404000

1282000

24721000

360000

1313000

618000

NOTE 9: COMMITMENTS AND CONTINGENCIES Litigation From time to time, the Company is party to various legal proceedings arising in the ordinary course of business. The Company expenses or accrues legal costs as incurred and is not involved in any material legal proceedings as of the date of these financial statements. WW Champion Developments Lawsuit The Company was previously involved in a legal dispute with its former landlord, WW Champion Developments, Inc. ("WW Champion”). On September 23, 2024, WW Champion filed a lawsuit against the Company alleging breach of contract and seeking money damages of $1,229 in the 281st District Court of Harris County in an action styled WW Champion Developments, Inc. vs. Koil Energy Solutions, Inc., Cause Number 2024-65006. WW Champion alleged that Koil Energy breached a lease agreement between the parties by abandoning the premises, failing to maintain proper fire prevention measures, and failing to pay its remaining rental payments. The matter was settled in June 2025 for $590. The Company had previously recorded a liability of $923 and therefore recognized a gain of $333 upon resolution of the lawsuit. This gain is recorded in the consolidated statements of operations under Other income, net. Payment terms for the settlement included the forfeiture of a $90 deposit, a $200 payment on July 1, 2025, and six monthly payments of $50 each commencing August 1, 2025. As of January 2026, all amounts had been paid. OMSi Lawsuit In December 2024, the Company completed work under purchase orders with OMS International Limited (OMSi), a UK-based subsea engineering firm. The Company successfully completed the project in March 2025 and issued invoices totaling $569. OMSi has not remitted payment on the outstanding invoices and has not responded to the Company’s repeated requests for payment. On September 29, 2025, the Company filed a civil action against OMSi in the United States District Court for the Southern District of Texas seeking to recover the unpaid amounts. OMSi has not yet filed a response. For the quarter ending September 30, 2025, the Company recorded a reserve of $569 in Allowance for Credit Losses. The Company received a favorable judgment against OMSi in January 2026 and intends to pursue enforcement. The Company will adjust the reserve as new information becomes available.

590000

923000

333000

569000

NOTE 10: EMPLOYEE RETENTION CREDIT Under the provisions of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) signed into law on March 27, 2020 and the subsequent extension of the CARES Act, the Company was eligible for a refundable employee retention credit subject to certain criteria. Since there is no U.S. GAAP for for-profit business entities that receive government assistance that is not in the form of a loan, an income tax credit or revenue from a contract with a customer, we determined the appropriate accounting treatment by analogy to other guidance. The Company accounted for the employee retention credit by analogy to International Accounting Standards (IAS) 20, “Accounting for Government Grants and Disclosure of Government Assistance,” of International Financial Reporting Standards. Under an IAS 20 analogy, a business entity would recognize the employee retention credit on a systematic basis over the periods in which the entity recognizes the payroll expenses for which the grant (i.e., tax credit) is intended to compensate when there is reasonable assurance (i.e., it is probable) that the entity will comply with any conditions attached to the grant and the grant (i.e., tax credit) will be received. The Company initially recognized a $650 employee retention credit as other income on its consolidated statement of operations for the year ended December 31, 2021. As of December 31, 2024, the Company had a $323 employee retention credit receivable balance recorded on its consolidated balance sheet. In January 2025, the Company received $365 related to the remaining employee retention credit balance, consisting of $<span id="xdx_906_ecustom--EmployeeRetentionCreditReceived_pn3n3_c20250101__20250131__us-gaap--TransactionTypeAxis__custom--EmployeeCreditReceivableMember_zqtw1yx61LI8" title="Employee retention credit received">323 applied against the employee retention credit receivable and $42 of interest income. 650000 323000 365000 323000 42000

NOTE 11: SEGMENT INFORMATION The Company operates as a single operating segment, as an energy services company that provides equipment and support services to the world’s energy and offshore industries. The Company’s chief operating decision maker (“CODM”) is its chief executive officer, who reviews financial information presented on a consolidated basis. The CODM uses consolidated net income to monitor budget versus actual results in assessing segment performance and the allocation of resources. Significant segment expenses are presented in the Company’s consolidated statements of operations. Total operating expenses are presented as follows: <table cellpadding="0" cellspacing="0" id="xdx_884_eus-gaap--ScheduleOfSegmentReportingInformationBySegmentTextBlock_zcM1irwCW2bk" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - SEGMENT INFORMATION (Details - Operating expenses)"> <tr style="vertical-align: bottom"> <td>Schedule of operating expenses</td><td> </td> <td colspan="2" id="xdx_497_20250101__20251231__srt--ConsolidationItemsAxis__us-gaap--OperatingSegmentsMember_z6o8uGYCNg67" style="text-align: center"> </td><td> </td><td> </td> <td colspan="2" id="xdx_496_20240101__20241231__srt--ConsolidationItemsAxis__us-gaap--OperatingSegmentsMember_zvOJPNeJaQ8h" style="text-align: center"> </td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Years Ended December 31,</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; 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; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_402_eus-gaap--Revenues_pn3n3_z5TOWQH9eRGe" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 66%">Revenues</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">24,051</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">22,734</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40D_ecustom--SharebasedCompensationAndOtherPersonnelCosts_pn3n3_zlgXjmFolJxh" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Share-based compensation and other personnel costs</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">10,794</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">9,426</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_ecustom--Materials_pn3n3_zZnNfIC0VkSh" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td>Materials</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,478</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,064</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--DepreciationDepletionAndAmortization_pn3n3_z9upqbF7BiJj" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Depreciation and amortization</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">590</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">571</td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--SellingGeneralAndAdministrativeExpense_pn3n3_zVZGAzT01iue" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left">Other cost of sales and selling, general and administrative expenses</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">9,558</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6,116</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--IncomeTaxExpenseBenefit_pn3n3_zi3D2SRYe8lc" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Income tax expense</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">73</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">16</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--InterestRevenueExpenseNet_pn3n3_d0_zaf6YuS1VRP5" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-bottom: 1pt">Interest and other (income) expense</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">(404</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">(79</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_400_eus-gaap--NetIncomeLoss_pn3n3_zAeHZYSGq3S8" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Net (loss) income</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(38</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">2,620</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> The CODM regularly reviews asset information by consolidated assets since we only have one reportable segment.

<table cellpadding="0" cellspacing="0" id="xdx_884_eus-gaap--ScheduleOfSegmentReportingInformationBySegmentTextBlock_zcM1irwCW2bk" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - SEGMENT INFORMATION (Details - Operating expenses)"> <tr style="vertical-align: bottom"> <td>Schedule of operating expenses</td><td> </td> <td colspan="2" id="xdx_497_20250101__20251231__srt--ConsolidationItemsAxis__us-gaap--OperatingSegmentsMember_z6o8uGYCNg67" style="text-align: center"> </td><td> </td><td> </td> <td colspan="2" id="xdx_496_20240101__20241231__srt--ConsolidationItemsAxis__us-gaap--OperatingSegmentsMember_zvOJPNeJaQ8h" style="text-align: center"> </td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Years Ended December 31,</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; 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; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_402_eus-gaap--Revenues_pn3n3_z5TOWQH9eRGe" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 66%">Revenues</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">24,051</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">22,734</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40D_ecustom--SharebasedCompensationAndOtherPersonnelCosts_pn3n3_zlgXjmFolJxh" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Share-based compensation and other personnel costs</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">10,794</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">9,426</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_ecustom--Materials_pn3n3_zZnNfIC0VkSh" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td>Materials</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,478</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,064</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--DepreciationDepletionAndAmortization_pn3n3_z9upqbF7BiJj" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Depreciation and amortization</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">590</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">571</td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--SellingGeneralAndAdministrativeExpense_pn3n3_zVZGAzT01iue" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left">Other cost of sales and selling, general and administrative expenses</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">9,558</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6,116</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--IncomeTaxExpenseBenefit_pn3n3_zi3D2SRYe8lc" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Income tax expense</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">73</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">16</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--InterestRevenueExpenseNet_pn3n3_d0_zaf6YuS1VRP5" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-bottom: 1pt">Interest and other (income) expense</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">(404</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">(79</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_400_eus-gaap--NetIncomeLoss_pn3n3_zAeHZYSGq3S8" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Net (loss) income</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(38</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">2,620</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

24051000

22734000

10794000 9426000 3478000 4064000

590000

571000

9558000

6116000

73000

16000

-404000

-79000

-38000

2620000

NOTE 12: INTANGIBLE CAPITALIZED SOFTWARE DEVELOPMENT COSTS, NET The Company capitalizes certain costs related to the implementation of software systems during the application development stage. Capitalized software development costs are capitalized when application development begins and it is probable that the project will be completed and used as intended by the Company. The capitalization policy provides for capitalizing certain payroll and payroll-related costs for employees who spend time directly associated with the configuration, development, and enhancement of software systems. Costs associated with preliminary project activities, data migration, training, maintenance, and all other post-implementation stage activities are expensed as incurred. Capitalized software development costs related to the implementation of the Company’s ERP system are classified as Intangibles on the Consolidated Balance Sheets, and costs will be amortized on a straight-line basis over their estimated useful lives and will be included within depreciation and amortization expense in the condensed consolidated statements of operations. For the year ending December 31, 2025, capitalized software development costs totaled $263. Amortization cost related to capitalized software was $13 for the year ended December 31, 2025.

263000

13000

NOTE 13: SUBSEQUENT EVENTS The Company has evaluated subsequent events through the date these financial statements were available to be issued.