The Company had net losses of $27.0 million for the year ended December 31, 2025 which includes $18.9 million of non-cash expenses that mainly included impairment of goodwill of $10.8 million, employee stock-based compensation of $3.0 million, depreciation and amortization of $3.5 million and $1.0 million of amortization of operating lease right of use asset. The Company had net cash used in operating activities of $10.5 million for the year ending December 31, 2025.

At December 31, 2025, the Company had a cash balance of $1.0 million and working capital of $8.9 million. Based on the Company’s current operating plan and the available working capital it believes can be converted to cash (specifically the accounts receivable balance of approximately $8.2 million), the Company believes that it has the ability to fund its operations and meet contractual obligations for at least twelve months from the date of this report.

In March 2023, the Company entered into a supply chain line of credit agreement with OCI Group for up to $100 million with a 5-year term to further support our working capital requirements. Subject to the terms of the agreement, OCI Group will make available to the Company funding based on amounts owed to the Company by its customers. To date, the Company has not borrowed against this line of credit.

On April 11, 2025, we entered into an At Market Issuance Sales Agreement (the “Sales Agreement”) with B. Riley Securities, Inc. (“B. Riley”), pursuant to which we may issue and sell shares of our common stock from time to time, at our option, through B. Riley as our sales agent, subject to certain terms and conditions. Upon our delivery and B. Riley’s acceptance of a placement notice, B. Riley will use commercially reasonable efforts to sell shares, consistent with its normal trading and sales practices, in transactions deemed to be “at the market” offerings as defined in Rule 415 of the Securities Act of 1933, as amended, including by means of ordinary brokers’ transactions at market prices, in block transactions or as otherwise agreed by B. Riley and us. B. Riley may also sell the shares of common stock in negotiated transactions, subject to our prior approval. Any shares sold will be sold pursuant to our effective shelf registration statement on Form S-3 (File No. 333-272396), as supplemented by a prospectus supplement dated April 11, 2025 and November 13, 2025, which allows us to sell up to $15.6 million in shares of our common stock. We will pay B. Riley a commission of up to 2.5% of the gross proceeds of the sale of any shares sold through B. Riley.

As of December 31, 2025, the Company has received gross proc eeds of $8.0 million from sales of its common stock under the Sales Agreement.

Although the Company believes that it will become profitable in the next few years as our revenues grow, our gross profit improves and we leverage our overhead costs, we expect to continue to incur losses for a period of time. If necessary, the Company may raise additional capital to finance its future operations through equity or debt financings. There is no guarantee that profitable operations will be achieved, or that additional capital or debt financing will be available on a timely basis, on favorable terms, or at all, and such funding, if raised, may not be sufficient to meet our obligations or enable us to continue to implement our long-term business strategy. In addition, obtaining additional funding or entering into other strategic transactions could result in significant dilution to our stockholders.