D. Revenue Recognition

Revenues from Contracts with Customers

Asset Management and Deployment Services under DBD Contract

Asset management and deployment services are recognized monthly based on the number of BESS battery systems deployed to End Customer, and upon fulfilment of the Company’s monthly performance obligations under the contract.

Performance Obligations under DBD Contract

The Company’s contractual performance obligations include performing monitoring and maintenance of the BESS battery systems, deployment of BESS battery systems to End Customer locations, End Customer support, and negotiation of rental agreement with End Customers, as defined in the contract and subject to approval by DBD.

During the years ended December 31, 2025 and 2024, there were no revenues earned from this contract, as no BESS battery systems were deployed during these periods.

Equity Instruments Issued as Consideration

In connection to the DBD contract, the Company issued warrants to purchase 62,312,964 Class A common shares of the Company on December 30, 2025. The warrants were accounted for under ASC 815 and ASU 2025-04 utilizing the Black Scholes valuation methodology, resulting in the Company recording a Contract Asset from the DBD contract of $2,394,598 on the accompanying consolidated balance sheets. The Contract Asset will be amortized over the life of the DBD contract.

Battery Management and Monitoring System Contract

In September 2025, the Company entered into an Agreement with GridCore whereby the Company would provide the design, manufacture and integration of its proprietary battery management system to GridCore’s existing fleet of BESS battery systems. The contract price was $97.2 million, of which the Company received a cash down payment of $10.6 million on September 11, 2025. The remaining purchase price of $86.6 million was paid in the form of a secured promissory note issued by GridCore calling for semi-annual interest payments beginning March 10, 2026 and quarterly principal payments of $21.65 million beginning December 10, 2026, with the final payment due on September 10, 2027.

Performance Obligations under Battery Management and Monitoring System Contract

The Company’s contractual performance obligations included delivery of the BESS battery systems and necessary Power Conversion Systems to a rental yard capable of charging the BESS battery systems, commission the Company’s proprietary battery management system onto the BESS battery systems, and all other services necessary to achieve Final Acceptance and Placed-In Service status. The Company successfully delivered, installed, deployed and energized its battery management and monitoring system on the BESS units during September 2025, establishing the Placed-In-Service date for the BESS battery systems, effectively satisfying the Company’s contractual obligations under the Agreement.