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DE 98-0551945 3350 Virginia Street Suite 200 Miami FL 33133 800 583-2652 Common Stock, par value $0.0001 per share WRAP NASDAQ Yes Yes Non-accelerated Filer true false false 55738250 7264000 3468000 1991000 2787000 4645000 4971000 574000 194000 14474000 11420000 105000 123000 447000 2175000 1592000 1572000 104000 128000 16722000 15418000 787000 620000 531000 407000 51000 62000 449000 408000 90000 320000 1908000 1817000 11000 14000 369000 2097000 380000 2111000 2288000 3928000 5000000 5000000 0.0001 0.0001 11707 11707 12707 12707 0 0 200000000 200000000 0.0001 0.0001 55506692 55506692 51733217 51733217 5000 5000 10000 10000 0.0001 0.0001 8107 8107 8207 8207 0 0 4500 4500 0.0001 0.0001 3600 3600 4500 4500 0 0 135537000 127804000 -121108000 -116319000 14434000 11490000 16722000 15418000 883000 309000 228000 456000 1111000 765000 420000 170000 691000 595000 5355000 4139000 105000 378000 5460000 4517000 -4769000 -3922000 1000 2000 0 -4029000 227000 0 1000 0 229000 4031000 -4540000 109000 249000 164000 -4789000 -55000 -0.09 -0.09 0 0 54001602 54001602 48396271 48396271 -4540000 109000 -4540000 109000 51733217 5000 8207 0 4500 0 127804000 -116319000 11490000 0 0 0 2384000 0 2384000 462656 0 0 0 0 0 249000 -249000 0 72888 0 0 0 0 0 0 0 0 668965 0 -100 0 -900 0 0 0 0 2500000 0 0 0 0 0 5000000 0 5000000 68966 0 0 0 0 0 100000 0 100000 0 0 0 0 -4540000 -4540000 55506692 5000 8107 0 3600 0 135537000 -121108000 14434000 47101631 5000 8207 0 0 0 105326000 -105081000 250000 0 0 0 1665000 0 1665000 113205 0 0 0 0 0 164000 -164000 0 63199 0 0 0 0 0 0 0 0 3216666 0 0 0 0 0 543000 0 543000 0 0 0 0 109000 109000 50494701 5000 8207 0 0 0 107698000 -105136000 2567000 -4540000 109000 56000 155000 2384000 1665000 4000 2000 227000 0 0 -4029000 54000 74000 -1000 37000 0 18000 -797000 184000 -326000 -71000 380000 404000 167000 -115000 -57000 -74000 11000 0 122000 -272000 -2000 -7000 38000 -155000 -24000 -40000 -1246000 -3069000 5000 2000 53000 44000 0 54000 -58000 -100000 5000000 0 100000 0 0 5729000 5100000 5729000 3796000 2560000 3468000 3610000 7264000 6170000 -249000 -164000 249000 164000 <p id="xdx_802_eus-gaap--OrganizationConsolidationBasisOfPresentationBusinessDescriptionAndAccountingPoliciesTextBlock_z9Rk19gcvcsh" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><b>1. <span id="xdx_823_zNLQhQBAhwsd">ORGANIZATION, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENT DEVELOPMENTS</span></b></p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p id="xdx_846_ecustom--OrganizationAndBusinessDescriptionPolicyTextBlock_za9INplApsl6" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><b>Organization and Business Description</b></p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-size-adjust: none; font-language-override: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-variant-emoji: normal; font-stretch: normal; line-height: normal; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">Wrap Technologies, Inc., a Delaware corporation (the “Company”, “we”, “us”, and “our”), is a publicly traded company with its common stock, par value $<span id="xdx_901_eus-gaap--CommonStockParOrStatedValuePerShare_iI_pid_c20250630_z4HpQzBNuiX7" title="Common stock, par value">0.0001</span> per share (“Common Stock”), listed on the Nasdaq Capital Market (“Nasdaq”) under the trading symbol “WRAP.” The Company is a developer and supplier of public safety products and training services for law enforcement and security personnel. The Company's product and service portfolio also includes Wrap Reality, a virtual reality training simulator, WrapTactics™, a subscription-based digital training platform, WrapVision™, a body-worn camera and digital evidence management solution, and technology-enabled services including managed services and policy support. The principal markets for the Company's proprietary products and services are in North and South America, Europe, the Middle East, and Asia.</p><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p id="xdx_840_eus-gaap--BasisOfPresentationAndSignificantAccountingPoliciesTextBlock_zcYt58qpVaM4" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><b>Basis of Presentation</b></p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">The Company’s unaudited interim condensed consolidated financial statements included herein have been prepared in accordance with the instructions to Form 10-Q and Article 8 of Regulation S-X and the rules and regulations of the Securities and Exchange Commission (“<i>SEC</i>”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“<i>U.S. GAAP</i>”) have been condensed or omitted pursuant to such rules and regulations. In management’s opinion, the accompanying financial statements reflect adjustments necessary to present fairly the financial position, results of operations, and cash flows for those periods indicated, and contain adequate disclosure to make the information presented not misleading. Adjustments included herein are of a normal, recurring nature unless otherwise disclosed in the footnotes. The condensed consolidated financial statements and notes thereto should be read in conjunction with the Company’s audited financial statements and notes thereto for the year ended December 31, 2025, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 (the “<i>Annual Report</i>”), as filed with the SEC on March 26, 2026. The accompanying unaudited condensed consolidated balance sheet as of March 31, 2026 has been derived from the audited consolidated balance sheet as of December 31, 2025, contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2025. Results of operations for interim periods are not necessarily indicative of the results of operations for a full year.</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p id="xdx_844_eus-gaap--ConsolidationPolicyTextBlock_zRfEfSQKEPEe" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><b>Principles of Consolidation</b></p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">The Company has <span id="xdx_902_ecustom--NumberOfWhollyOwnedSubsidiaries_iI_dc_uInteger_c20250630_z9BJYYCqGBTf" title="Number of wholly-owned subsidiaries">three</span> wholly owned subsidiaries, Wrap Reality, Inc., that sells a virtual reality (“<i>VR</i>”) training system primarily targeting law enforcement agencies, Intrensic, LLC (“Intrensic”), specializing in Body Worn Camera and Digital Evidence Management solutions and Wrap Federal, LLC, formed to support federal government clients in federal agencies. The condensed consolidated financial statements include the accounts of these subsidiaries after elimination of intercompany transactions and accounts.</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p id="xdx_842_ecustom--SegmentAndRelatedInformationPolicyTextBlock_z2euPdQFqrsg" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><b>Segment and Related Information</b></p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-size-adjust: none; font-language-override: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-variant-emoji: normal; font-stretch: normal; line-height: normal; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">The Company operates as a <span style="-sec-ix-hidden: hidden-fact-2"><span style="-sec-ix-hidden: hidden-fact-3">single</span></span> operating and reportable segment. The Company's Chief Operating Decision Maker is its Chief Executive Officer, who manages operations for purposes of allocating resources on a consolidated basis.</p><div> <p id="xdx_84C_eus-gaap--UseOfEstimates_zud4SIsdupHe" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><b>Use of Estimates</b></p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-size-adjust: none; font-language-override: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-variant-emoji: normal; font-stretch: normal; line-height: normal; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting period. Actual results could materially differ from those estimates.</p><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">  </p></div><div> <p id="xdx_842_eus-gaap--RevenueFromContractWithCustomerPolicyTextBlock_zA5uvOOAFhd9" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><b>Revenue Recognition</b></p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-size-adjust: none; font-language-override: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-variant-emoji: normal; font-stretch: normal; line-height: normal; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">The Company recognizes revenue under ASC Topic 606 - Revenue from Contracts with Customers (“ASC 606”). Revenue is recognized when control of promised goods or services is transferred to customers in an amount that reflects the consideration the Company expects to receive. The Company's revenues consist of product sales (BolaWrap devices, cassettes, and accessories) and technology-enabled services (software subscriptions, body-worn cameras, managed services, policy support, training, and shipping). </p><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"> </p></div><div> <p style="font: bold 10pt &quot;Times New Roman&quot;; margin-top: 0pt; margin-bottom: 0pt;">Warrants</p><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"> </p><p style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-size-adjust: none; font-language-override: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-variant-emoji: normal; font-stretch: normal; line-height: normal; margin-top: 0pt; margin-bottom: 0pt;">As of March 31, 2026, all outstanding warrants (Series A Warrants, PIPE Warrants, Series B Warrants, and February 2026 Warrants each defined herein) are classified within permanent equity (additional paid-in capital) following amendments executed on June 30, 2025 that enabled equity classification under ASC 815-40 as discussed further in Note 8. These warrants are not subject to subsequent fair value remeasurement and no warrant liability is recorded as of March 31, 2026 or December 31, 2025.</p><p style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-size-adjust: none; font-language-override: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-variant-emoji: normal; font-stretch: normal; line-height: normal; margin-top: 0pt; margin-bottom: 0pt;">  </p></div><div> <p id="xdx_847_eus-gaap--EarningsPerSharePolicyTextBlock_ztarpDhZ8gA4" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><b>Loss per Share</b></p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">Basic loss per share (EPS) is computed by dividing net loss, less any dividends, accretion or decretion, redemption or induced conversion, if any, on the Company’s Series A Convertible Preferred Stock ("Series A Preferred Stock"), by the weighted average number of shares outstanding during the reported period.</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-size-adjust: none; font-language-override: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-variant-emoji: normal; font-stretch: normal; line-height: normal; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">In computing diluted EPS, the Company adjusts the numerator used in the basic EPS computation, subject to anti-dilution requirements, to add back the dividends (declared or cumulative undeclared) applicable to the Series A and Series B Convertible Preferred Stock. Such add-back would also include any adjustments to equity in the period to accrete the Series A and Series B Convertible Preferred Stock to its redemption price, or recorded upon a redemption or induced conversion, if any. The Company adjusts the denominator used in the basic EPS computation, subject to anti-dilution requirements, to include the dilution from potential shares resulting from the issuance of the Series A and Series B Convertible Preferred Stock, restricted stock units, and stock options. Stock options and restricted stock units exercisable or issuable for a total <span style="background-color: rgb(255, 255, 255);">of 11,369,761 shares and <span id="xdx_90C_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20240101__20240630_zeoBNTeRAyK8" title="Antidilutive securities excluded from computation of earnings per share, amount">7,595,515</span> sh</span>ares of Common Stock were outstanding as of March 31, 2026 and 2025, respectively. These securities are not included in the computation of diluted net loss per share of Common Stock for the periods presented as their inclusion would be antidilutive due to losses incurred by the Company.</p><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p><p style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-size-adjust: none; font-language-override: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-variant-emoji: normal; font-stretch: normal; line-height: normal; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><b>Reclassifications</b></p><p style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-size-adjust: none; font-language-override: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-variant-emoji: normal; font-stretch: normal; line-height: normal; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p><p style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-size-adjust: none; font-language-override: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-variant-emoji: normal; font-stretch: normal; line-height: normal; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">Certain prior year amounts have been reclassified to conform to the current year presentation. These reclassifications had no effect on previously reported net loss, total assets, total liabilities, stockholders’ equity, or cash flows.</p><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">   </p> <p id="xdx_841_eus-gaap--NewAccountingPronouncementsPolicyPolicyTextBlock_zlHJBf9iCYi" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><b>Recently Issued Accounting Guidance Not Yet Effective</b></p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-size-adjust: none; font-language-override: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-variant-emoji: normal; font-stretch: normal; line-height: normal; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">In November 2024, the FASB issued ASU 2024-03, which requires disaggregated disclosure of income statement expenses for public business entities. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. The Company is currently evaluating the impact of ASU 2024-03 on its financial statements.</p><p id="xdx_851_zjg3JsRcN7r3" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p></div> <p id="xdx_846_ecustom--OrganizationAndBusinessDescriptionPolicyTextBlock_za9INplApsl6" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><b>Organization and Business Description</b></p><p style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-size-adjust: none; font-language-override: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-variant-emoji: normal; font-stretch: normal; line-height: normal; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">Wrap Technologies, Inc., a Delaware corporation (the “Company”, “we”, “us”, and “our”), is a publicly traded company with its common stock, par value $<span id="xdx_901_eus-gaap--CommonStockParOrStatedValuePerShare_iI_pid_c20250630_z4HpQzBNuiX7" title="Common stock, par value">0.0001</span> per share (“Common Stock”), listed on the Nasdaq Capital Market (“Nasdaq”) under the trading symbol “WRAP.” The Company is a developer and supplier of public safety products and training services for law enforcement and security personnel. The Company's product and service portfolio also includes Wrap Reality, a virtual reality training simulator, WrapTactics™, a subscription-based digital training platform, WrapVision™, a body-worn camera and digital evidence management solution, and technology-enabled services including managed services and policy support. The principal markets for the Company's proprietary products and services are in North and South America, Europe, the Middle East, and Asia.</p> 0.0001 0.0001 <p id="xdx_840_eus-gaap--BasisOfPresentationAndSignificantAccountingPoliciesTextBlock_zcYt58qpVaM4" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><b>Basis of Presentation</b></p><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">The Company’s unaudited interim condensed consolidated financial statements included herein have been prepared in accordance with the instructions to Form 10-Q and Article 8 of Regulation S-X and the rules and regulations of the Securities and Exchange Commission (“<i>SEC</i>”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“<i>U.S. GAAP</i>”) have been condensed or omitted pursuant to such rules and regulations. In management’s opinion, the accompanying financial statements reflect adjustments necessary to present fairly the financial position, results of operations, and cash flows for those periods indicated, and contain adequate disclosure to make the information presented not misleading. Adjustments included herein are of a normal, recurring nature unless otherwise disclosed in the footnotes. The condensed consolidated financial statements and notes thereto should be read in conjunction with the Company’s audited financial statements and notes thereto for the year ended December 31, 2025, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 (the “<i>Annual Report</i>”), as filed with the SEC on March 26, 2026. The accompanying unaudited condensed consolidated balance sheet as of March 31, 2026 has been derived from the audited consolidated balance sheet as of December 31, 2025, contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2025. Results of operations for interim periods are not necessarily indicative of the results of operations for a full year.</p> <p id="xdx_844_eus-gaap--ConsolidationPolicyTextBlock_zRfEfSQKEPEe" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><b>Principles of Consolidation</b></p><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">The Company has <span id="xdx_902_ecustom--NumberOfWhollyOwnedSubsidiaries_iI_dc_uInteger_c20250630_z9BJYYCqGBTf" title="Number of wholly-owned subsidiaries">three</span> wholly owned subsidiaries, Wrap Reality, Inc., that sells a virtual reality (“<i>VR</i>”) training system primarily targeting law enforcement agencies, Intrensic, LLC (“Intrensic”), specializing in Body Worn Camera and Digital Evidence Management solutions and Wrap Federal, LLC, formed to support federal government clients in federal agencies. The condensed consolidated financial statements include the accounts of these subsidiaries after elimination of intercompany transactions and accounts.</p> 3 <p id="xdx_842_ecustom--SegmentAndRelatedInformationPolicyTextBlock_z2euPdQFqrsg" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><b>Segment and Related Information</b></p><p style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-size-adjust: none; font-language-override: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-variant-emoji: normal; font-stretch: normal; line-height: normal; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">The Company operates as a <span style="-sec-ix-hidden: hidden-fact-2"><span style="-sec-ix-hidden: hidden-fact-3">single</span></span> operating and reportable segment. The Company's Chief Operating Decision Maker is its Chief Executive Officer, who manages operations for purposes of allocating resources on a consolidated basis.</p> <p id="xdx_84C_eus-gaap--UseOfEstimates_zud4SIsdupHe" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><b>Use of Estimates</b></p><p style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-size-adjust: none; font-language-override: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-variant-emoji: normal; font-stretch: normal; line-height: normal; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting period. Actual results could materially differ from those estimates.</p> <p id="xdx_842_eus-gaap--RevenueFromContractWithCustomerPolicyTextBlock_zA5uvOOAFhd9" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><b>Revenue Recognition</b></p><p style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-size-adjust: none; font-language-override: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-variant-emoji: normal; font-stretch: normal; line-height: normal; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">The Company recognizes revenue under ASC Topic 606 - Revenue from Contracts with Customers (“ASC 606”). Revenue is recognized when control of promised goods or services is transferred to customers in an amount that reflects the consideration the Company expects to receive. The Company's revenues consist of product sales (BolaWrap devices, cassettes, and accessories) and technology-enabled services (software subscriptions, body-worn cameras, managed services, policy support, training, and shipping). </p> <p style="font: bold 10pt &quot;Times New Roman&quot;; margin-top: 0pt; margin-bottom: 0pt;">Warrants</p><p style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-size-adjust: none; font-language-override: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-variant-emoji: normal; font-stretch: normal; line-height: normal; margin-top: 0pt; margin-bottom: 0pt;">As of March 31, 2026, all outstanding warrants (Series A Warrants, PIPE Warrants, Series B Warrants, and February 2026 Warrants each defined herein) are classified within permanent equity (additional paid-in capital) following amendments executed on June 30, 2025 that enabled equity classification under ASC 815-40 as discussed further in Note 8. These warrants are not subject to subsequent fair value remeasurement and no warrant liability is recorded as of March 31, 2026 or December 31, 2025.</p> <p id="xdx_847_eus-gaap--EarningsPerSharePolicyTextBlock_ztarpDhZ8gA4" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><b>Loss per Share</b></p><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">Basic loss per share (EPS) is computed by dividing net loss, less any dividends, accretion or decretion, redemption or induced conversion, if any, on the Company’s Series A Convertible Preferred Stock ("Series A Preferred Stock"), by the weighted average number of shares outstanding during the reported period.</p><p style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-size-adjust: none; font-language-override: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-variant-emoji: normal; font-stretch: normal; line-height: normal; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">In computing diluted EPS, the Company adjusts the numerator used in the basic EPS computation, subject to anti-dilution requirements, to add back the dividends (declared or cumulative undeclared) applicable to the Series A and Series B Convertible Preferred Stock. Such add-back would also include any adjustments to equity in the period to accrete the Series A and Series B Convertible Preferred Stock to its redemption price, or recorded upon a redemption or induced conversion, if any. The Company adjusts the denominator used in the basic EPS computation, subject to anti-dilution requirements, to include the dilution from potential shares resulting from the issuance of the Series A and Series B Convertible Preferred Stock, restricted stock units, and stock options. Stock options and restricted stock units exercisable or issuable for a total <span style="background-color: rgb(255, 255, 255);">of 11,369,761 shares and <span id="xdx_90C_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20240101__20240630_zeoBNTeRAyK8" title="Antidilutive securities excluded from computation of earnings per share, amount">7,595,515</span> sh</span>ares of Common Stock were outstanding as of March 31, 2026 and 2025, respectively. These securities are not included in the computation of diluted net loss per share of Common Stock for the periods presented as their inclusion would be antidilutive due to losses incurred by the Company.</p> 11369761 7595515 <p style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-size-adjust: none; font-language-override: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-variant-emoji: normal; font-stretch: normal; line-height: normal; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><b>Reclassifications</b></p><p style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-size-adjust: none; font-language-override: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-variant-emoji: normal; font-stretch: normal; line-height: normal; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">Certain prior year amounts have been reclassified to conform to the current year presentation. These reclassifications had no effect on previously reported net loss, total assets, total liabilities, stockholders’ equity, or cash flows.</p> <p id="xdx_841_eus-gaap--NewAccountingPronouncementsPolicyPolicyTextBlock_zlHJBf9iCYi" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><b>Recently Issued Accounting Guidance Not Yet Effective</b></p><p style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-size-adjust: none; font-language-override: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-variant-emoji: normal; font-stretch: normal; line-height: normal; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">In November 2024, the FASB issued ASU 2024-03, which requires disaggregated disclosure of income statement expenses for public business entities. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. The Company is currently evaluating the impact of ASU 2024-03 on its financial statements.</p> <div> <p id="xdx_808_eus-gaap--RevenueFromContractWithCustomerTextBlock_z6pcWuyPC44h" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><b>2. <span id="xdx_824_zO3LHCm9u2J">REVENUE AND PRODUCT COSTS</span></b></p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-size-adjust: none; font-language-override: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-variant-emoji: normal; font-stretch: normal; line-height: normal; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">Revenues consist of product sales and technology-enabled services. Product sales include BolaWrap devices, cassettes, and accessories. Technology-enabled services include software subscriptions, body-worn cameras, managed services, policy and training support, and shipping revenue.</p><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> </div><div> <p id="xdx_894_eus-gaap--ContractWithCustomerAssetAndLiabilityTableTextBlock_zCttMYt4Olu4" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">The table below details the activity in our contract liabilities during the three months ended March 31, 2026.</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><span id="xdx_8BE_zcWFvXjWEzIc" style="display: none">SCHEDULE OF CONTRACT LIABILITIES</span></p><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr style="height: 0px; font-size: 0px;"><td> </td><td style="width: 1%;"> </td><td style="width: 1%;" title="FN 2 Revenues Product Costs - C3"> </td><td style="width: 9%;"></td><td style="width: 1%;" title="FN 2 Revenues Product Costs - C3"> </td><td style="width: 1%;"> </td><td style="width: 1%;" title="FN 2 Revenues Product Costs - E3"> </td><td style="width: 9%;"></td><td style="width: 1%;" title="FN 2 Revenues Product Costs - E3"> </td></tr><tr style="white-space : nowrap; "><td> </td><td> </td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 2 Revenues Product Costs - C4"> </td><td style="width: 9%; font-weight: bold; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); text-align: center;">Customer Deposits</td><td style="width: 1%;" title="FN 2 Revenues Product Costs - C4"> </td><td> </td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 2 Revenues Product Costs - E4"> </td><td style="width: 9%; font-weight: bold; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); text-align: center;">Deferred Revenue</td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 2 Revenues Product Costs - E4"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Balance at January 1, 2026</td><td> </td><td style="width: 1%; text-align: left;" title="FN 2 Revenues Product Costs - C6">$</td><td style="width: 9%; text-align: right;">62</td><td style="width: 1%; text-align: left;" title="FN 2 Revenues Product Costs - C6"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN 2 Revenues Product Costs - E6">$</td><td style="width: 9%; text-align: right;">422</td><td style="width: 1%; text-align: left;" title="FN 2 Revenues Product Costs - E6"> </td></tr><tr><td style="padding-left: 10px;">Additions, net</td><td> </td><td style="width: 1%; text-align: left;" title="FN 2 Revenues Product Costs - C7"> </td><td style="width: 9%; text-align: right;">19</td><td style="width: 1%; text-align: left;" title="FN 2 Revenues Product Costs - C7"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN 2 Revenues Product Costs - E7"> </td><td style="width: 9%; text-align: right;">259</td><td style="width: 1%; text-align: left;" title="FN 2 Revenues Product Costs - E7"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="padding-left: 10px;">Transfer to revenue</td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 2 Revenues Product Costs - C8"> </td><td style="width: 9%; text-align: right; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">(30</td><td style="width: 1%; text-align: left;" title="FN 2 Revenues Product Costs - C8">) </td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 2 Revenues Product Costs - E8"> </td><td style="width: 9%; text-align: right; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">(221</td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 2 Revenues Product Costs - E8">) </td></tr><tr><td>Balance at March 31, 2026</td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 2 Revenues Product Costs - C9">$</td><td style="width: 9%; text-align: right; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">51</td><td style="width: 1%; text-align: left;" title="FN 2 Revenues Product Costs - C9"> </td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 2 Revenues Product Costs - E9">$</td><td style="width: 9%; text-align: right; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">460</td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 2 Revenues Product Costs - E9"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td> </td><td> </td><td style="width: 1%;" title="FN 2 Revenues Product Costs - C10"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="FN 2 Revenues Product Costs - C10"> </td><td> </td><td style="width: 1%;" title="FN 2 Revenues Product Costs - E10"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="FN 2 Revenues Product Costs - E10"> </td></tr><tr><td>Current portion</td><td> </td><td style="width: 1%; text-align: left;" title="FN 2 Revenues Product Costs - C11">$</td><td style="width: 9%; text-align: right;">51</td><td style="width: 1%; text-align: left;" title="FN 2 Revenues Product Costs - C11"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN 2 Revenues Product Costs - E11">$</td><td style="width: 9%; text-align: right;">449</td><td style="width: 1%; text-align: left;" title="FN 2 Revenues Product Costs - E11"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Long-term portion</td><td> </td><td style="width: 1%; text-align: left;" title="FN 2 Revenues Product Costs - C12">$</td><td style="width: 9%; text-align: right;">-</td><td style="width: 1%; text-align: left;" title="FN 2 Revenues Product Costs - C12"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN 2 Revenues Product Costs - E12">$</td><td style="width: 9%; text-align: right;">11</td><td style="width: 1%; text-align: left;" title="FN 2 Revenues Product Costs - E12"> </td></tr></table><p id="xdx_8AC_zLscB1ibma18" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p></div><div><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">As of March 31, 2026, the Company’s deferred revenue of $460 consisted of $9 related to BolaWrap extended warranties and services, $27 related to WRAP Ready, $379 related to Intrensic extended warranties and services, $21 related to VR, $14 related to training and $10 related to WrapTactics.</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p></div> <p id="xdx_894_eus-gaap--ContractWithCustomerAssetAndLiabilityTableTextBlock_zCttMYt4Olu4" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">The table below details the activity in our contract liabilities during the three months ended March 31, 2026.</p><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr style="height: 0px; font-size: 0px;"><td> </td><td style="width: 1%;"> </td><td style="width: 1%;" title="FN 2 Revenues Product Costs - C3"> </td><td style="width: 9%;"></td><td style="width: 1%;" title="FN 2 Revenues Product Costs - C3"> </td><td style="width: 1%;"> </td><td style="width: 1%;" title="FN 2 Revenues Product Costs - E3"> </td><td style="width: 9%;"></td><td style="width: 1%;" title="FN 2 Revenues Product Costs - E3"> </td></tr><tr style="white-space : nowrap; "><td> </td><td> </td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 2 Revenues Product Costs - C4"> </td><td style="width: 9%; font-weight: bold; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); text-align: center;">Customer Deposits</td><td style="width: 1%;" title="FN 2 Revenues Product Costs - C4"> </td><td> </td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 2 Revenues Product Costs - E4"> </td><td style="width: 9%; font-weight: bold; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); text-align: center;">Deferred Revenue</td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 2 Revenues Product Costs - E4"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Balance at January 1, 2026</td><td> </td><td style="width: 1%; text-align: left;" title="FN 2 Revenues Product Costs - C6">$</td><td style="width: 9%; text-align: right;">62</td><td style="width: 1%; text-align: left;" title="FN 2 Revenues Product Costs - C6"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN 2 Revenues Product Costs - E6">$</td><td style="width: 9%; text-align: right;">422</td><td style="width: 1%; text-align: left;" title="FN 2 Revenues Product Costs - E6"> </td></tr><tr><td style="padding-left: 10px;">Additions, net</td><td> </td><td style="width: 1%; text-align: left;" title="FN 2 Revenues Product Costs - C7"> </td><td style="width: 9%; text-align: right;">19</td><td style="width: 1%; text-align: left;" title="FN 2 Revenues Product Costs - C7"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN 2 Revenues Product Costs - E7"> </td><td style="width: 9%; text-align: right;">259</td><td style="width: 1%; text-align: left;" title="FN 2 Revenues Product Costs - E7"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="padding-left: 10px;">Transfer to revenue</td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 2 Revenues Product Costs - C8"> </td><td style="width: 9%; text-align: right; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">(30</td><td style="width: 1%; text-align: left;" title="FN 2 Revenues Product Costs - C8">) </td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 2 Revenues Product Costs - E8"> </td><td style="width: 9%; text-align: right; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">(221</td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 2 Revenues Product Costs - E8">) </td></tr><tr><td>Balance at March 31, 2026</td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 2 Revenues Product Costs - C9">$</td><td style="width: 9%; text-align: right; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">51</td><td style="width: 1%; text-align: left;" title="FN 2 Revenues Product Costs - C9"> </td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 2 Revenues Product Costs - E9">$</td><td style="width: 9%; text-align: right; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">460</td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 2 Revenues Product Costs - E9"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td> </td><td> </td><td style="width: 1%;" title="FN 2 Revenues Product Costs - C10"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="FN 2 Revenues Product Costs - C10"> </td><td> </td><td style="width: 1%;" title="FN 2 Revenues Product Costs - E10"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="FN 2 Revenues Product Costs - E10"> </td></tr><tr><td>Current portion</td><td> </td><td style="width: 1%; text-align: left;" title="FN 2 Revenues Product Costs - C11">$</td><td style="width: 9%; text-align: right;">51</td><td style="width: 1%; text-align: left;" title="FN 2 Revenues Product Costs - C11"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN 2 Revenues Product Costs - E11">$</td><td style="width: 9%; text-align: right;">449</td><td style="width: 1%; text-align: left;" title="FN 2 Revenues Product Costs - E11"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Long-term portion</td><td> </td><td style="width: 1%; text-align: left;" title="FN 2 Revenues Product Costs - C12">$</td><td style="width: 9%; text-align: right;">-</td><td style="width: 1%; text-align: left;" title="FN 2 Revenues Product Costs - C12"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN 2 Revenues Product Costs - E12">$</td><td style="width: 9%; text-align: right;">11</td><td style="width: 1%; text-align: left;" title="FN 2 Revenues Product Costs - E12"> </td></tr></table> 62000 422000 19000 259000 -30000 -221000 51000 460000 51000 449000 0 11000 460000 9000 27000 379000 21000 14000 10000 <div> <p id="xdx_803_eus-gaap--FinancialInstrumentsDisclosureTextBlock_zNGbl1Ra3Ffg" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><b>3. <span id="xdx_82A_zO4WXiP8bYW9">FINANCIAL INSTRUMENTS</span></b></p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">Assets and liabilities recorded at fair value on a recurring basis in the Condensed Consolidated Balance Sheets and assets and liabilities measured at fair value on a non-recurring basis or disclosed at fair value, are categorized based upon the level of judgment associated with inputs used to measure their fair values. The accounting guidance for fair value provides a framework for measuring fair value and requires certain disclosures about how fair value is determined. Fair value is defined as the price that would be received upon the sale of an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. The accounting guidance also establishes a three-level valuation hierarchy that prioritizes the inputs to valuation techniques used to measure fair value based upon whether such inputs are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect market assumptions made by the reporting entity. The three-level hierarchy for the inputs to valuation techniques is briefly summarized as follows:</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><i>Level 1</i>-Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date;</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><i> </i></p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><i>Level 2</i>-Inputs are observable, unadjusted quoted prices in active markets for similar assets or liabilities, unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities; and</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><i>Level 3</i>-Unobservable inputs that are significant to the measurement of the fair value of the assets or liabilities that are supported by little or no market data.</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p></div><div> <p id="xdx_891_eus-gaap--FairValueAssetsAndLiabilitiesMeasuredOnRecurringAndNonrecurringBasisTableTextBlock_zUPN8pak1Fk6" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">The following table shows the Company’s short-term investments by significant investment category as of March 31, 2026, and December 31, 2025.</p> <p id="xdx_891_eus-gaap--FairValueAssetsAndLiabilitiesMeasuredOnRecurringAndNonrecurringBasisTableTextBlock_zUPN8pak1Fk6-0" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr style="height: 0px; font-size: 0px;"><td></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td></tr><tr><td> </td><td colspan="15" style="text-align: center; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); font-weight: bold;">As of March 31, 2026</td></tr><tr><td> </td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - B4"> </td><td style="font-weight: bold; text-align: center; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%;">Adjusted Cost</td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - B4"> </td><td> </td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - D4"> </td><td style="text-align: center; font-weight: bold; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%;">Unrealized Gains</td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - D4"> </td><td> </td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - F4"> </td><td style="text-align: center; font-weight: bold; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%;">Unrealized Losses</td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - F4"> </td><td> </td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - H4"> </td><td style="text-align: center; font-weight: bold; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%;">Market Value</td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - H4"> </td></tr><tr><td>Level 1:</td><td style="width: 1%;" title="FN 3 Financial Instruments - B6"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="FN 3 Financial Instruments - B6"> </td><td> </td><td style="width: 1%;" title="FN 3 Financial Instruments - D6"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="FN 3 Financial Instruments - D6"> </td><td> </td><td style="width: 1%;" title="FN 3 Financial Instruments - F6"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="FN 3 Financial Instruments - F6"> </td><td> </td><td style="width: 1%;" title="FN 3 Financial Instruments - H6"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="FN 3 Financial Instruments - H6"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Money Market Funds</td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - B7">$</td><td style="width: 9%; text-align: right; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">640</td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - B7"> </td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - D7">$</td><td style="width: 9%; text-align: right; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">-</td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - D7"> </td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - F7">$</td><td style="width: 9%; text-align: right; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">-</td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - F7"> </td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - H7">$</td><td style="width: 9%; text-align: right; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">640</td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - H7"> </td></tr><tr><td>Total financial assets</td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - B8">$</td><td style="width: 9%; text-align: right; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">640</td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - B8"> </td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - D8">$</td><td style="width: 9%; text-align: right; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">-</td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - D8"> </td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - F8">$</td><td style="width: 9%; text-align: right; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">-</td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - F8"> </td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - H8">$</td><td style="width: 9%; text-align: right; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">640</td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - H8"> </td></tr></table><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"> </p><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr style="height: 0px; font-size: 0px;"><td></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td></tr><tr><td> </td><td colspan="15" style="text-align: center; font-weight: bold; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">As of December 31, 2025</td></tr><tr><td> </td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - B11"> </td><td style="font-weight: bold; text-align: center; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%;">Adjusted Cost</td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - B11"> </td><td> </td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - D11"> </td><td style="font-weight: bold; text-align: center; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%;">Unrealized Gains</td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - D11"> </td><td> </td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - F11"> </td><td style="font-weight: bold; text-align: center; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%;">Unrealized Losses</td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - F11"> </td><td> </td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - H11"> </td><td style="font-weight: bold; text-align: center; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%;">Market Value</td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - H11"> </td></tr><tr><td>Level 1:</td><td style="width: 1%;" title="FN 3 Financial Instruments - B12"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="FN 3 Financial Instruments - B12"> </td><td> </td><td style="width: 1%;" title="FN 3 Financial Instruments - D12"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="FN 3 Financial Instruments - D12"> </td><td> </td><td style="width: 1%;" title="FN 3 Financial Instruments - F12"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="FN 3 Financial Instruments - F12"> </td><td> </td><td style="width: 1%;" title="FN 3 Financial Instruments - H12"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="FN 3 Financial Instruments - H12"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Money Market Funds</td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - B13">$</td><td style="width: 9%; text-align: right; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">639</td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - B13"> </td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - D13">$</td><td style="width: 9%; text-align: right; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">-</td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - D13"> </td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - F13">$</td><td style="width: 9%; text-align: right; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">-</td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - F13"> </td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - H13">$</td><td style="width: 9%; text-align: right; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">639</td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - H13"> </td></tr><tr><td>Total financial assets</td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - B14">$</td><td style="width: 9%; text-align: right; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">639</td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - B14"> </td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - D14">$</td><td style="width: 9%; text-align: right; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">-</td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - D14"> </td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - F14">$</td><td style="width: 9%; text-align: right; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">-</td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - F14"> </td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - H14">$</td><td style="width: 9%; text-align: right; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">639</td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - H14"> </td></tr></table> <p id="xdx_8A9_zIWDQ6NkPAw2" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p></div><div> <p style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-size-adjust: none; font-language-override: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-variant-emoji: normal; font-stretch: normal; line-height: normal; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">As of March 31, 2026 and December 31, 2025, the Company has no warrant liabilities. All outstanding warrants are classified within permanent equity following amendments completed on June 30, 2025. Refer to Note 8 for further discussion. Other financial instruments, including accounts receivable, accounts payable, accrued liabilities and customer deposits, are carried at cost which approximates fair value due to their short-term nature. </p> </div> <div> <p id="xdx_891_eus-gaap--FairValueAssetsAndLiabilitiesMeasuredOnRecurringAndNonrecurringBasisTableTextBlock_zUPN8pak1Fk6" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">The following table shows the Company’s short-term investments by significant investment category as of March 31, 2026, and December 31, 2025.</p> <p id="xdx_891_eus-gaap--FairValueAssetsAndLiabilitiesMeasuredOnRecurringAndNonrecurringBasisTableTextBlock_zUPN8pak1Fk6-0" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr style="height: 0px; font-size: 0px;"><td></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td></tr><tr><td> </td><td colspan="15" style="text-align: center; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); font-weight: bold;">As of March 31, 2026</td></tr><tr><td> </td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - B4"> </td><td style="font-weight: bold; text-align: center; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%;">Adjusted Cost</td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - B4"> </td><td> </td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - D4"> </td><td style="text-align: center; font-weight: bold; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%;">Unrealized Gains</td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - D4"> </td><td> </td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - F4"> </td><td style="text-align: center; font-weight: bold; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%;">Unrealized Losses</td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - F4"> </td><td> </td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - H4"> </td><td style="text-align: center; font-weight: bold; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%;">Market Value</td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - H4"> </td></tr><tr><td>Level 1:</td><td style="width: 1%;" title="FN 3 Financial Instruments - B6"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="FN 3 Financial Instruments - B6"> </td><td> </td><td style="width: 1%;" title="FN 3 Financial Instruments - D6"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="FN 3 Financial Instruments - D6"> </td><td> </td><td style="width: 1%;" title="FN 3 Financial Instruments - F6"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="FN 3 Financial Instruments - F6"> </td><td> </td><td style="width: 1%;" title="FN 3 Financial Instruments - H6"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="FN 3 Financial Instruments - H6"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Money Market Funds</td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - B7">$</td><td style="width: 9%; text-align: right; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">640</td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - B7"> </td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - D7">$</td><td style="width: 9%; text-align: right; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">-</td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - D7"> </td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - F7">$</td><td style="width: 9%; text-align: right; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">-</td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - F7"> </td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - H7">$</td><td style="width: 9%; text-align: right; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">640</td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - H7"> </td></tr><tr><td>Total financial assets</td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - B8">$</td><td style="width: 9%; text-align: right; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">640</td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - B8"> </td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - D8">$</td><td style="width: 9%; text-align: right; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">-</td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - D8"> </td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - F8">$</td><td style="width: 9%; text-align: right; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">-</td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - F8"> </td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - H8">$</td><td style="width: 9%; text-align: right; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">640</td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - H8"> </td></tr></table><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"> </p><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr style="height: 0px; font-size: 0px;"><td></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td></tr><tr><td> </td><td colspan="15" style="text-align: center; font-weight: bold; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">As of December 31, 2025</td></tr><tr><td> </td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - B11"> </td><td style="font-weight: bold; text-align: center; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%;">Adjusted Cost</td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - B11"> </td><td> </td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - D11"> </td><td style="font-weight: bold; text-align: center; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%;">Unrealized Gains</td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - D11"> </td><td> </td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - F11"> </td><td style="font-weight: bold; text-align: center; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%;">Unrealized Losses</td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - F11"> </td><td> </td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - H11"> </td><td style="font-weight: bold; text-align: center; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%;">Market Value</td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - H11"> </td></tr><tr><td>Level 1:</td><td style="width: 1%;" title="FN 3 Financial Instruments - B12"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="FN 3 Financial Instruments - B12"> </td><td> </td><td style="width: 1%;" title="FN 3 Financial Instruments - D12"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="FN 3 Financial Instruments - D12"> </td><td> </td><td style="width: 1%;" title="FN 3 Financial Instruments - F12"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="FN 3 Financial Instruments - F12"> </td><td> </td><td style="width: 1%;" title="FN 3 Financial Instruments - H12"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="FN 3 Financial Instruments - H12"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Money Market Funds</td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - B13">$</td><td style="width: 9%; text-align: right; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">639</td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - B13"> </td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - D13">$</td><td style="width: 9%; text-align: right; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">-</td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - D13"> </td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - F13">$</td><td style="width: 9%; text-align: right; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">-</td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - F13"> </td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - H13">$</td><td style="width: 9%; text-align: right; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">639</td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - H13"> </td></tr><tr><td>Total financial assets</td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - B14">$</td><td style="width: 9%; text-align: right; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">639</td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - B14"> </td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - D14">$</td><td style="width: 9%; text-align: right; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">-</td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - D14"> </td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - F14">$</td><td style="width: 9%; text-align: right; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">-</td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - F14"> </td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - H14">$</td><td style="width: 9%; text-align: right; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">639</td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 3 Financial Instruments - H14"> </td></tr></table> <p id="xdx_8A9_zIWDQ6NkPAw2" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p></div> 640000 0 0 640000 640000 0 0 640000 639000 0 0 639000 639000 0 0 639000 0 0 <div> <p id="xdx_80B_eus-gaap--InventoryDisclosureTextBlock_zKeog42AtFsc" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><b>4. <span id="xdx_821_zrPbiZbajRme">INVENTORIES</span></b></p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p id="xdx_896_eus-gaap--ScheduleOfInventoryCurrentTableTextBlock_z3jKjgtX4Ae1" style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-size-adjust: none; font-language-override: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-variant-emoji: normal; font-stretch: normal; line-height: normal; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">Inventory is recorded at the lower of cost or net realizable value using the weighted average cost method. Inventories consisted of the following:</p><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> <span id="xdx_8B4_zZYS7UM68Ss7" style="display: none">SCHEDULE OF INVENTORY</span></p> <table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr style="height: 0px; font-size: 0px;"><td></td><td style="width: 1%;"></td><td style="width: 1%;"> </td><td style="width: 9%;"></td><td style="width: 1%;"> </td><td style="width: 1%;"></td><td style="width: 1%;"> </td><td style="width: 9%;"></td><td style="width: 1%;"> </td></tr><tr style="white-space : nowrap; "><td> </td><td style="text-align: center; font-weight: bold; border-width: medium; border-style: none; border-color: currentcolor;"></td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 4 Inventory - C4"> </td><td style="font-weight: bold; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); text-align: center; width: 9%;">March 31, 2026</td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 4 Inventory - C4"> </td><td style="text-align: center; font-weight: bold; border-width: medium; border-style: none; border-color: currentcolor;"></td><td style="text-align: center; font-weight: bold; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 1%;" title="FN 4 Inventory - E4"> </td><td style="text-align: center; font-weight: bold; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%;">December 31, 2025</td><td style="text-align: center; font-weight: bold; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 1%;" title="FN 4 Inventory - E4"> </td></tr><tr><td></td><td style="text-align: right;"></td><td style="width: 1%;" title="FN 4 Inventory - C5"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="FN 4 Inventory - C5"> </td><td style="text-align: right;"></td><td style="text-align: right; width: 1%;" title="FN 4 Inventory - E5"> </td><td style="text-align: right; width: 9%;"></td><td style="text-align: right; width: 1%;" title="FN 4 Inventory - E5"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Finished goods</td><td style="text-align: right;"></td><td style="text-align: left; width: 1%;" title="FN 4 Inventory - C6">$</td><td style="text-align: right; width: 9%;">3,198</td><td style="text-align: left; width: 1%;" title="FN 4 Inventory - C6"> </td><td style="text-align: right;"></td><td style="text-align: left; width: 1%;" title="FN 4 Inventory - E6">$</td><td style="text-align: right; width: 9%;">3,509</td><td style="text-align: left; width: 1%;" title="FN 4 Inventory - E6"> </td></tr><tr><td>Raw materials</td><td style="text-align: right; border-width: medium; border-style: none; border-color: currentcolor;"></td><td style="text-align: left; width: 1%;" title="FN 4 Inventory - D7"> </td><td style="text-align: right; width: 9%;">1,963</td><td style="text-align: left; width: 1%;" title="FN 4 Inventory - D7"> </td><td style="text-align: right; border-width: medium; border-style: none; border-color: currentcolor;"></td><td style="text-align: left; border-width: medium; border-style: none; border-color: currentcolor; width: 1%;" title="FN 4 Inventory - E7"> </td><td style="text-align: right; border-width: medium; border-style: none; border-color: currentcolor; width: 9%;">1,978</td><td style="text-align: left; border-width: medium; border-style: none; border-color: currentcolor; width: 1%;" title="FN 4 Inventory - E7"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Reserve for obsolescence</td><td style="text-align: right; border-width: medium; border-style: none; border-color: currentcolor;"></td><td style="text-align: left; width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 4 Inventory - D8"> </td><td style="text-align: right; width: 9%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">(516</td><td style="text-align: left; width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 4 Inventory - D8">) </td><td style="text-align: right; border-width: medium; border-style: none; border-color: currentcolor;"></td><td style="text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 1%;" title="FN 4 Inventory - E8"> </td><td style="text-align: right; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%;">(516</td><td style="text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 1%;" title="FN 4 Inventory - E8">) </td></tr><tr><td>Inventories, net</td><td style="text-align: right; border-width: medium; border-style: none; border-color: currentcolor;"></td><td style="text-align: left; width: 1%; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 4 Inventory - D9">$</td><td style="text-align: right; width: 9%; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">4,645</td><td style="text-align: left; width: 1%; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 4 Inventory - D9"> </td><td style="text-align: right; border-width: medium; border-style: none; border-color: currentcolor;"></td><td style="text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 1%;" title="FN 4 Inventory - E9">$</td><td style="text-align: right; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%;">4,971</td><td style="text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 1%;" title="FN 4 Inventory - E9"> </td></tr></table><p id="xdx_8A0_zESm2vtYUxda" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"> </p><p style="font: 10pt 'Times New Roman'; text-align: justify; margin-top: 0pt; margin-bottom: 0pt;">Inventory reserve expense was $0 and $18 for the three months ended March 31, 2026 and 2025, respectively.</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><b> </b></p></div> <p id="xdx_896_eus-gaap--ScheduleOfInventoryCurrentTableTextBlock_z3jKjgtX4Ae1" style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-size-adjust: none; font-language-override: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-variant-emoji: normal; font-stretch: normal; line-height: normal; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">Inventory is recorded at the lower of cost or net realizable value using the weighted average cost method. Inventories consisted of the following:</p><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr style="height: 0px; font-size: 0px;"><td></td><td style="width: 1%;"></td><td style="width: 1%;"> </td><td style="width: 9%;"></td><td style="width: 1%;"> </td><td style="width: 1%;"></td><td style="width: 1%;"> </td><td style="width: 9%;"></td><td style="width: 1%;"> </td></tr><tr style="white-space : nowrap; "><td> </td><td style="text-align: center; font-weight: bold; border-width: medium; border-style: none; border-color: currentcolor;"></td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 4 Inventory - C4"> </td><td style="font-weight: bold; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); text-align: center; width: 9%;">March 31, 2026</td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 4 Inventory - C4"> </td><td style="text-align: center; font-weight: bold; border-width: medium; border-style: none; border-color: currentcolor;"></td><td style="text-align: center; font-weight: bold; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 1%;" title="FN 4 Inventory - E4"> </td><td style="text-align: center; font-weight: bold; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%;">December 31, 2025</td><td style="text-align: center; font-weight: bold; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 1%;" title="FN 4 Inventory - E4"> </td></tr><tr><td></td><td style="text-align: right;"></td><td style="width: 1%;" title="FN 4 Inventory - C5"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="FN 4 Inventory - C5"> </td><td style="text-align: right;"></td><td style="text-align: right; width: 1%;" title="FN 4 Inventory - E5"> </td><td style="text-align: right; width: 9%;"></td><td style="text-align: right; width: 1%;" title="FN 4 Inventory - E5"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Finished goods</td><td style="text-align: right;"></td><td style="text-align: left; width: 1%;" title="FN 4 Inventory - C6">$</td><td style="text-align: right; width: 9%;">3,198</td><td style="text-align: left; width: 1%;" title="FN 4 Inventory - C6"> </td><td style="text-align: right;"></td><td style="text-align: left; width: 1%;" title="FN 4 Inventory - E6">$</td><td style="text-align: right; width: 9%;">3,509</td><td style="text-align: left; width: 1%;" title="FN 4 Inventory - E6"> </td></tr><tr><td>Raw materials</td><td style="text-align: right; border-width: medium; border-style: none; border-color: currentcolor;"></td><td style="text-align: left; width: 1%;" title="FN 4 Inventory - D7"> </td><td style="text-align: right; width: 9%;">1,963</td><td style="text-align: left; width: 1%;" title="FN 4 Inventory - D7"> </td><td style="text-align: right; border-width: medium; border-style: none; border-color: currentcolor;"></td><td style="text-align: left; border-width: medium; border-style: none; border-color: currentcolor; width: 1%;" title="FN 4 Inventory - E7"> </td><td style="text-align: right; border-width: medium; border-style: none; border-color: currentcolor; width: 9%;">1,978</td><td style="text-align: left; border-width: medium; border-style: none; border-color: currentcolor; width: 1%;" title="FN 4 Inventory - E7"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Reserve for obsolescence</td><td style="text-align: right; border-width: medium; border-style: none; border-color: currentcolor;"></td><td style="text-align: left; width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 4 Inventory - D8"> </td><td style="text-align: right; width: 9%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">(516</td><td style="text-align: left; width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 4 Inventory - D8">) </td><td style="text-align: right; border-width: medium; border-style: none; border-color: currentcolor;"></td><td style="text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 1%;" title="FN 4 Inventory - E8"> </td><td style="text-align: right; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%;">(516</td><td style="text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 1%;" title="FN 4 Inventory - E8">) </td></tr><tr><td>Inventories, net</td><td style="text-align: right; border-width: medium; border-style: none; border-color: currentcolor;"></td><td style="text-align: left; width: 1%; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 4 Inventory - D9">$</td><td style="text-align: right; width: 9%; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">4,645</td><td style="text-align: left; width: 1%; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 4 Inventory - D9"> </td><td style="text-align: right; border-width: medium; border-style: none; border-color: currentcolor;"></td><td style="text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 1%;" title="FN 4 Inventory - E9">$</td><td style="text-align: right; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%;">4,971</td><td style="text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 1%;" title="FN 4 Inventory - E9"> </td></tr></table> 3198000 3509000 1963000 1978000 516000 516000 4645000 4971000 0 18000 <div> <p id="xdx_80D_eus-gaap--PropertyPlantAndEquipmentDisclosureTextBlock_zhgPYS5SIbyg" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><b>5. <span id="xdx_82D_zKdcgkAot0Tl">PROPERTY AND EQUIPMENT, NET</span></b></p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p id="xdx_898_eus-gaap--PropertyPlantAndEquipmentTextBlock_zDwaQBa2sro5" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">Property and equipment consisted of the following:</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><span id="xdx_8B0_zOGAAWwAEW32" style="display: none">SCHEDULE OF PROPERTY AND EQUIPMENT</span></p><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr style="height: 0px; font-size: 0px;"><td></td><td style="width: 1%;"></td><td style="width: 1%;"> </td><td style="width: 9%;"></td><td style="width: 1%;"> </td><td style="width: 1%;"></td><td style="width: 1%;"> </td><td style="width: 9%;"></td><td style="width: 1%;"> </td></tr><tr><td></td><td style="text-align: right;"></td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 5 Property and Equipment, Net - C4"> </td><td style="text-align: center; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); font-weight: bold; width: 9%;">March 31, 2026</td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 5 Property and Equipment, Net - C4"> </td><td style="text-align: right;"></td><td style="text-align: right; width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 5 Property and Equipment, Net - J4"> </td><td style="font-weight: bold; text-align: center; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%;">December 31, 2025</td><td style="text-align: right; width: 1%;" title="FN 5 Property and Equipment, Net - J4"> </td></tr><tr><td></td><td style="text-align: right;"></td><td style="width: 1%;" title="FN 5 Property and Equipment, Net - C5"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="FN 5 Property and Equipment, Net - C5"> </td><td style="text-align: right;"></td><td style="text-align: right; width: 1%;" title="FN 5 Property and Equipment, Net - J5"> </td><td style="text-align: right; width: 9%;"></td><td style="text-align: right; width: 1%;" title="FN 5 Property and Equipment, Net - J5"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Production and lab equipment</td><td style="text-align: right; border-width: medium; border-style: none; border-color: currentcolor;"></td><td style="text-align: left; width: 1%; border-spacing: 0px;" title="FN 5 Property and Equipment, Net - C6">$</td><td style="text-align : right; width : 9%; ; border-spacing: 0px;">391</td><td style="text-align: left; width: 1%; border-spacing: 0px;" title="FN 5 Property and Equipment, Net - C6"> </td><td style="text-align: right; border-width: medium; border-style: none; border-color: currentcolor;"></td><td style="text-align: left; border-width: medium; border-style: none; border-color: currentcolor; width: 1%;" title="FN 5 Property and Equipment, Net - J6">$</td><td style="text-align: right; border-width: medium; border-style: none; border-color: currentcolor; width: 9%;">391</td><td style="text-align: left; border-width: medium; border-style: none; border-color: currentcolor; width: 1%;" title="FN 5 Property and Equipment, Net - J6"> </td></tr><tr><td>Tooling</td><td style="text-align: right;"></td><td style="width: 1%;" title="FN 5 Property and Equipment, Net - I7"> </td><td style="text-align: right; width: 9%;">570</td><td style="width: 1%;" title="FN 5 Property and Equipment, Net - I7"> </td><td style="text-align: right;"></td><td style="text-align: right; width: 1%;" title="FN 5 Property and Equipment, Net - J7"> </td><td style="text-align: right; width: 9%;">570</td><td style="text-align: right; width: 1%;" title="FN 5 Property and Equipment, Net - J7"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Computer equipment</td><td style="text-align: right;"></td><td style="width: 1%;" title="FN 5 Property and Equipment, Net - I7"> </td><td style="text-align: right; width: 9%;">188</td><td style="width: 1%;" title="FN 5 Property and Equipment, Net - I7"> </td><td style="text-align: right;"></td><td style="text-align: right; width: 1%;" title="FN 5 Property and Equipment, Net - J7"> </td><td style="text-align: right; width: 9%;">183</td><td style="text-align: right; width: 1%;" title="FN 5 Property and Equipment, Net - J7"> </td></tr><tr><td>Furniture, fixtures and improvements</td><td style="text-align: right;"></td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 5 Property and Equipment, Net - I7"> </td><td style="text-align: right; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%;">81</td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 5 Property and Equipment, Net - I7"> </td><td style="text-align: right;"></td><td style="text-align: right; width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 5 Property and Equipment, Net - J7"> </td><td style="text-align: right; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%;">81</td><td style="text-align: right; width: 1%;" title="FN 5 Property and Equipment, Net - J7"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Property and equipment, gross</td><td style="text-align: right;"></td><td style="width: 1%; text-align: left;" title="FN 5 Property and Equipment, Net - I7">$</td><td style="text-align: right; width: 9%; border-spacing: 0px;">1,230</td><td style="width: 1%; text-align: left;" title="FN 5 Property and Equipment, Net - I7"> </td><td style="text-align: right;"></td><td style="text-align: left; width: 1%;" title="FN 5 Property and Equipment, Net - J7">$</td><td style="text-align: right; width: 9%;">1,225</td><td style="text-align: left; width: 1%;" title="FN 5 Property and Equipment, Net - J7"> </td></tr><tr><td>Accumulated depreciation</td><td style="text-align: right;"></td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 5 Property and Equipment, Net - I7"> </td><td style="text-align: right; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%;">(1,125)</td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 5 Property and Equipment, Net - I7"> </td><td style="text-align: right;"></td><td style="text-align: right; width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 5 Property and Equipment, Net - J7"> </td><td style="text-align: right; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%;">(1,102)</td><td style="text-align: right; width: 1%;" title="FN 5 Property and Equipment, Net - J7"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Property and equipment, net</td><td style="text-align: right;"></td><td style="width: 1%; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0); text-align: left;" title="FN 5 Property and Equipment, Net - I7">$</td><td style="text-align: right; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%;">105</td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 5 Property and Equipment, Net - I7"> </td><td style="text-align: right;"></td><td style="text-align: left; width: 1%; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 5 Property and Equipment, Net - J7">$</td><td style="text-align: right; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%;">123</td><td style="text-align: left; width: 1%;" title="FN 5 Property and Equipment, Net - J7"> </td></tr></table><p id="xdx_8AC_zenEPHVzSCW9" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">Depreciation expense was $23 and $40 for the three months ended March 31, 2026 and 2025, respectively.</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p></div> <p id="xdx_898_eus-gaap--PropertyPlantAndEquipmentTextBlock_zDwaQBa2sro5" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">Property and equipment consisted of the following:</p><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr style="height: 0px; font-size: 0px;"><td></td><td style="width: 1%;"></td><td style="width: 1%;"> </td><td style="width: 9%;"></td><td style="width: 1%;"> </td><td style="width: 1%;"></td><td style="width: 1%;"> </td><td style="width: 9%;"></td><td style="width: 1%;"> </td></tr><tr><td></td><td style="text-align: right;"></td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 5 Property and Equipment, Net - C4"> </td><td style="text-align: center; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); font-weight: bold; width: 9%;">March 31, 2026</td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 5 Property and Equipment, Net - C4"> </td><td style="text-align: right;"></td><td style="text-align: right; width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 5 Property and Equipment, Net - J4"> </td><td style="font-weight: bold; text-align: center; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%;">December 31, 2025</td><td style="text-align: right; width: 1%;" title="FN 5 Property and Equipment, Net - J4"> </td></tr><tr><td></td><td style="text-align: right;"></td><td style="width: 1%;" title="FN 5 Property and Equipment, Net - C5"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="FN 5 Property and Equipment, Net - C5"> </td><td style="text-align: right;"></td><td style="text-align: right; width: 1%;" title="FN 5 Property and Equipment, Net - J5"> </td><td style="text-align: right; width: 9%;"></td><td style="text-align: right; width: 1%;" title="FN 5 Property and Equipment, Net - J5"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Production and lab equipment</td><td style="text-align: right; border-width: medium; border-style: none; border-color: currentcolor;"></td><td style="text-align: left; width: 1%; border-spacing: 0px;" title="FN 5 Property and Equipment, Net - C6">$</td><td style="text-align : right; width : 9%; ; border-spacing: 0px;">391</td><td style="text-align: left; width: 1%; border-spacing: 0px;" title="FN 5 Property and Equipment, Net - C6"> </td><td style="text-align: right; border-width: medium; border-style: none; border-color: currentcolor;"></td><td style="text-align: left; border-width: medium; border-style: none; border-color: currentcolor; width: 1%;" title="FN 5 Property and Equipment, Net - J6">$</td><td style="text-align: right; border-width: medium; border-style: none; border-color: currentcolor; width: 9%;">391</td><td style="text-align: left; border-width: medium; border-style: none; border-color: currentcolor; width: 1%;" title="FN 5 Property and Equipment, Net - J6"> </td></tr><tr><td>Tooling</td><td style="text-align: right;"></td><td style="width: 1%;" title="FN 5 Property and Equipment, Net - I7"> </td><td style="text-align: right; width: 9%;">570</td><td style="width: 1%;" title="FN 5 Property and Equipment, Net - I7"> </td><td style="text-align: right;"></td><td style="text-align: right; width: 1%;" title="FN 5 Property and Equipment, Net - J7"> </td><td style="text-align: right; width: 9%;">570</td><td style="text-align: right; width: 1%;" title="FN 5 Property and Equipment, Net - J7"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Computer equipment</td><td style="text-align: right;"></td><td style="width: 1%;" title="FN 5 Property and Equipment, Net - I7"> </td><td style="text-align: right; width: 9%;">188</td><td style="width: 1%;" title="FN 5 Property and Equipment, Net - I7"> </td><td style="text-align: right;"></td><td style="text-align: right; width: 1%;" title="FN 5 Property and Equipment, Net - J7"> </td><td style="text-align: right; width: 9%;">183</td><td style="text-align: right; width: 1%;" title="FN 5 Property and Equipment, Net - J7"> </td></tr><tr><td>Furniture, fixtures and improvements</td><td style="text-align: right;"></td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 5 Property and Equipment, Net - I7"> </td><td style="text-align: right; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%;">81</td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 5 Property and Equipment, Net - I7"> </td><td style="text-align: right;"></td><td style="text-align: right; width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 5 Property and Equipment, Net - J7"> </td><td style="text-align: right; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%;">81</td><td style="text-align: right; width: 1%;" title="FN 5 Property and Equipment, Net - J7"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Property and equipment, gross</td><td style="text-align: right;"></td><td style="width: 1%; text-align: left;" title="FN 5 Property and Equipment, Net - I7">$</td><td style="text-align: right; width: 9%; border-spacing: 0px;">1,230</td><td style="width: 1%; text-align: left;" title="FN 5 Property and Equipment, Net - I7"> </td><td style="text-align: right;"></td><td style="text-align: left; width: 1%;" title="FN 5 Property and Equipment, Net - J7">$</td><td style="text-align: right; width: 9%;">1,225</td><td style="text-align: left; width: 1%;" title="FN 5 Property and Equipment, Net - J7"> </td></tr><tr><td>Accumulated depreciation</td><td style="text-align: right;"></td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 5 Property and Equipment, Net - I7"> </td><td style="text-align: right; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%;">(1,125)</td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 5 Property and Equipment, Net - I7"> </td><td style="text-align: right;"></td><td style="text-align: right; width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 5 Property and Equipment, Net - J7"> </td><td style="text-align: right; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%;">(1,102)</td><td style="text-align: right; width: 1%;" title="FN 5 Property and Equipment, Net - J7"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Property and equipment, net</td><td style="text-align: right;"></td><td style="width: 1%; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0); text-align: left;" title="FN 5 Property and Equipment, Net - I7">$</td><td style="text-align: right; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%;">105</td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 5 Property and Equipment, Net - I7"> </td><td style="text-align: right;"></td><td style="text-align: left; width: 1%; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 5 Property and Equipment, Net - J7">$</td><td style="text-align: right; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%;">123</td><td style="text-align: left; width: 1%;" title="FN 5 Property and Equipment, Net - J7"> </td></tr></table> 391000 391000 570000 570000 188000 183000 81000 81000 1230000 1225000 1125000 1102000 105000 123000 23000 40000 <div> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p id="xdx_80F_eus-gaap--IntangibleAssetsDisclosureTextBlock_zTfd89AZUF5a" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><b>6. <span id="xdx_824_zuXT4qwqCOqf">INTANGIBLE ASSETS</span></b></p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><b>Intangible Assets, net</b></p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p id="xdx_89B_eus-gaap--ScheduleOfFiniteLivedIntangibleAssetsTableTextBlock_zLRFVhHobhP7" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">Intangible assets, net consisted of the following:</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"> </p><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr style="height: 0px; font-size: 0px;"><td></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td></tr><tr><td> </td><td> </td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 6 Intangible Rollforward - C4"> </td><td style="font-weight: bold; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); text-align: center; width: 9%;">March 31, 2026</td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 6 Intangible Rollforward - C4"> </td><td> </td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 6 Intangible Rollforward - E4"> </td><td style="font-weight: bold; text-align: center; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%;">December 31, 2025</td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 6 Intangible Rollforward - E4"> </td></tr><tr><td>Amortizable intangible assets:</td><td> </td><td style="width: 1%;" title="FN 6 Intangible Rollforward - C6"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="FN 6 Intangible Rollforward - C6"> </td><td> </td><td style="width: 1%;" title="FN 6 Intangible Rollforward - E6"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="FN 6 Intangible Rollforward - E6"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Patents</td><td> </td><td style="width: 1%; text-align: left;" title="FN 6 Intangible Rollforward - C7">$</td><td style="width: 9%; text-align: right;">1,182</td><td style="width: 1%; text-align: left;" title="FN 6 Intangible Rollforward - C7"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN 6 Intangible Rollforward - E7">$</td><td style="width: 9%; text-align: right;">1,142</td><td style="width: 1%; text-align: left;" title="FN 6 Intangible Rollforward - E7"> </td></tr><tr><td>Trademarks</td><td> </td><td style="width: 1%; text-align: left;" title="FN 6 Intangible Rollforward - C8"> </td><td style="width: 9%; text-align: right;">380</td><td style="width: 1%; text-align: left;" title="FN 6 Intangible Rollforward - C8"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN 6 Intangible Rollforward - E8"> </td><td style="width: 9%; text-align: right;">367</td><td style="width: 1%; text-align: left;" title="FN 6 Intangible Rollforward - E8"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Purchased software and technology</td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 6 Intangible Rollforward - C9"> </td><td style="width: 9%; text-align: right; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">512</td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 6 Intangible Rollforward - C9"> </td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 6 Intangible Rollforward - E9"> </td><td style="width: 9%; text-align: right; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">512</td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 6 Intangible Rollforward - E9"> </td></tr><tr><td>Gross amortizable intangibles</td><td> </td><td style="width: 1%; text-align: left;" title="FN 6 Intangible Rollforward - C10">$</td><td style="width: 9%; text-align: right;">2,074</td><td style="width: 1%; text-align: left;" title="FN 6 Intangible Rollforward - C10"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN 6 Intangible Rollforward - E10">$</td><td style="width: 9%; text-align: right;">2,021</td><td style="width: 1%; text-align: left;" title="FN 6 Intangible Rollforward - E10"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Accumulated amortization</td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 6 Intangible Rollforward - C11"> </td><td style="width: 9%; text-align: right; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">(903</td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 6 Intangible Rollforward - C11">) </td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 6 Intangible Rollforward - E11"> </td><td style="width: 9%; text-align: right; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">(870</td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 6 Intangible Rollforward - E11">) </td></tr><tr><td>Total amortizable, net</td><td> </td><td style="width: 1%; text-align: left;" title="FN 6 Intangible Rollforward - C12">$</td><td style="width: 9%; text-align: right;">1,171</td><td style="width: 1%; text-align: left;" title="FN 6 Intangible Rollforward - C12"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN 6 Intangible Rollforward - E12">$</td><td style="width: 9%; text-align: right;">1,151</td><td style="width: 1%; text-align: left;" title="FN 6 Intangible Rollforward - E12"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Indefinite life assets (non-amortizable)</td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 6 Intangible Rollforward - C13"> </td><td style="width: 9%; text-align: right; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">421</td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 6 Intangible Rollforward - C13"> </td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 6 Intangible Rollforward - E13"> </td><td style="width: 9%; text-align: right; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">421</td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 6 Intangible Rollforward - E13"> </td></tr><tr><td>Total intangible assets, net</td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 6 Intangible Rollforward - C14">$</td><td style="width: 9%; text-align: right; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">1,592</td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 6 Intangible Rollforward - C14"> </td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 6 Intangible Rollforward - E14">$</td><td style="width: 9%; text-align: right; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">1,572</td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 6 Intangible Rollforward - E14"> </td></tr></table><p id="xdx_8AC_zyzxSRZHW0Ob" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-size-adjust: none; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-variant-emoji: normal; font-stretch: normal; line-height: normal; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">Amortization expense was $33<span id="xdx_908_eus-gaap--AmortizationOfIntangibleAssets_pn3n3_c20250401__20250630_zAfUDrPyl2h1" title="Amortization of Intangible"></span> and $115<span id="xdx_900_eus-gaap--AmortizationOfIntangibleAssets_pn3n3_c20250101__20250630_zdO8IlWw5ZHh" title="Amortization of Intangible"></span> for the three months ended March 31, 2026 and 2025 respectively. </p><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"> </p></div><div> <p id="xdx_89E_eus-gaap--ScheduleofFiniteLivedIntangibleAssetsFutureAmortizationExpenseTableTextBlock_z9sdgcbr2gTd" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">As of March 31, 2026, future amortization expense is as follows:</p> </div><div> <p id="xdx_8A4_zU9qbSEOw7Lk" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr style="height: 0px; font-size: 0px;"><td></td><td style="width: 1%;"></td><td style="width: 1%;"> </td><td style="width: 9%;"></td><td style="width: 1%;"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>2026 (9 months)</td><td style="text-align: right; border-width: initial; border-style: none; border-color: initial;"></td><td style="text-align: left; border-width: initial; border-style: none; border-color: initial; width: 1%;" title="FN 6 Intangible Rollforward - C19">$</td><td style="width: 9%; text-align: right; border-width: initial; border-style: none; border-color: initial;">88</td><td style="text-align: left; border-width: initial; border-style: none; border-color: initial; width: 1%;" title="FN 6 Intangible Rollforward - C19"> </td></tr><tr><td>2027</td><td style="text-align: right; border-width: initial; border-style: none; border-color: initial;"></td><td style="text-align: left; border-width: initial; border-style: none; border-color: initial; width: 1%;" title="FN 6 Intangible Rollforward - C20"> </td><td style="width: 9%; text-align: right; border-width: initial; border-style: none; border-color: initial;">116</td><td style="text-align: left; border-width: initial; border-style: none; border-color: initial; width: 1%;" title="FN 6 Intangible Rollforward - C20"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>2028</td><td style="text-align: right; border-width: initial; border-style: none; border-color: initial;"></td><td style="text-align: left; border-width: initial; border-style: none; border-color: initial; width: 1%;" title="FN 6 Intangible Rollforward - C21"> </td><td style="width: 9%; text-align: right; border-width: initial; border-style: none; border-color: initial;">116</td><td style="text-align: left; border-width: initial; border-style: none; border-color: initial; width: 1%;" title="FN 6 Intangible Rollforward - C21"> </td></tr><tr><td>2029</td><td style="text-align: right; border-width: initial; border-style: none; border-color: initial;"></td><td style="text-align: left; border-width: initial; border-style: none; border-color: initial; width: 1%;" title="FN 6 Intangible Rollforward - C22"> </td><td style="width: 9%; text-align: right; border-width: initial; border-style: none; border-color: initial;">116</td><td style="text-align: left; border-width: initial; border-style: none; border-color: initial; width: 1%;" title="FN 6 Intangible Rollforward - C22"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>2030</td><td style="text-align: right; border-width: initial; border-style: none; border-color: initial;"></td><td style="text-align: left; border-width: initial; border-style: none; border-color: initial; width: 1%;" title="FN 6 Intangible Rollforward - C23"> </td><td style="width: 9%; text-align: right; border-width: initial; border-style: none; border-color: initial;">116</td><td style="text-align: left; border-width: initial; border-style: none; border-color: initial; width: 1%;" title="FN 6 Intangible Rollforward - C23"> </td></tr><tr><td>Thereafter</td><td style="text-align: right; border-width: medium; border-style: none; border-color: currentcolor;"></td><td style="text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 1%;" title="FN 6 Intangible Rollforward - C24"> </td><td style="width: 9%; text-align: right; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">619</td><td style="text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 1%;" title="FN 6 Intangible Rollforward - C24"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Total</td><td style="text-align: right; border-width: medium; border-style: none; border-color: currentcolor;"></td><td style="text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 1%;" title="FN 6 Intangible Rollforward - C25">$</td><td style="width: 9%; text-align: right; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">1,171</td><td style="text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 1%;" title="FN 6 Intangible Rollforward - C25"> </td></tr></table></div> <p id="xdx_89B_eus-gaap--ScheduleOfFiniteLivedIntangibleAssetsTableTextBlock_zLRFVhHobhP7" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">Intangible assets, net consisted of the following:</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"> </p><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr style="height: 0px; font-size: 0px;"><td></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td></tr><tr><td> </td><td> </td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 6 Intangible Rollforward - C4"> </td><td style="font-weight: bold; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); text-align: center; width: 9%;">March 31, 2026</td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 6 Intangible Rollforward - C4"> </td><td> </td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 6 Intangible Rollforward - E4"> </td><td style="font-weight: bold; text-align: center; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%;">December 31, 2025</td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 6 Intangible Rollforward - E4"> </td></tr><tr><td>Amortizable intangible assets:</td><td> </td><td style="width: 1%;" title="FN 6 Intangible Rollforward - C6"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="FN 6 Intangible Rollforward - C6"> </td><td> </td><td style="width: 1%;" title="FN 6 Intangible Rollforward - E6"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="FN 6 Intangible Rollforward - E6"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Patents</td><td> </td><td style="width: 1%; text-align: left;" title="FN 6 Intangible Rollforward - C7">$</td><td style="width: 9%; text-align: right;">1,182</td><td style="width: 1%; text-align: left;" title="FN 6 Intangible Rollforward - C7"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN 6 Intangible Rollforward - E7">$</td><td style="width: 9%; text-align: right;">1,142</td><td style="width: 1%; text-align: left;" title="FN 6 Intangible Rollforward - E7"> </td></tr><tr><td>Trademarks</td><td> </td><td style="width: 1%; text-align: left;" title="FN 6 Intangible Rollforward - C8"> </td><td style="width: 9%; text-align: right;">380</td><td style="width: 1%; text-align: left;" title="FN 6 Intangible Rollforward - C8"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN 6 Intangible Rollforward - E8"> </td><td style="width: 9%; text-align: right;">367</td><td style="width: 1%; text-align: left;" title="FN 6 Intangible Rollforward - E8"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Purchased software and technology</td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 6 Intangible Rollforward - C9"> </td><td style="width: 9%; text-align: right; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">512</td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 6 Intangible Rollforward - C9"> </td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 6 Intangible Rollforward - E9"> </td><td style="width: 9%; text-align: right; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">512</td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 6 Intangible Rollforward - E9"> </td></tr><tr><td>Gross amortizable intangibles</td><td> </td><td style="width: 1%; text-align: left;" title="FN 6 Intangible Rollforward - C10">$</td><td style="width: 9%; text-align: right;">2,074</td><td style="width: 1%; text-align: left;" title="FN 6 Intangible Rollforward - C10"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN 6 Intangible Rollforward - E10">$</td><td style="width: 9%; text-align: right;">2,021</td><td style="width: 1%; text-align: left;" title="FN 6 Intangible Rollforward - E10"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Accumulated amortization</td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 6 Intangible Rollforward - C11"> </td><td style="width: 9%; text-align: right; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">(903</td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 6 Intangible Rollforward - C11">) </td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 6 Intangible Rollforward - E11"> </td><td style="width: 9%; text-align: right; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">(870</td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 6 Intangible Rollforward - E11">) </td></tr><tr><td>Total amortizable, net</td><td> </td><td style="width: 1%; text-align: left;" title="FN 6 Intangible Rollforward - C12">$</td><td style="width: 9%; text-align: right;">1,171</td><td style="width: 1%; text-align: left;" title="FN 6 Intangible Rollforward - C12"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN 6 Intangible Rollforward - E12">$</td><td style="width: 9%; text-align: right;">1,151</td><td style="width: 1%; text-align: left;" title="FN 6 Intangible Rollforward - E12"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Indefinite life assets (non-amortizable)</td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 6 Intangible Rollforward - C13"> </td><td style="width: 9%; text-align: right; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">421</td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 6 Intangible Rollforward - C13"> </td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 6 Intangible Rollforward - E13"> </td><td style="width: 9%; text-align: right; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">421</td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 6 Intangible Rollforward - E13"> </td></tr><tr><td>Total intangible assets, net</td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 6 Intangible Rollforward - C14">$</td><td style="width: 9%; text-align: right; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">1,592</td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 6 Intangible Rollforward - C14"> </td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 6 Intangible Rollforward - E14">$</td><td style="width: 9%; text-align: right; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">1,572</td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 6 Intangible Rollforward - E14"> </td></tr></table> 1182000 1142000 380000 367000 512000 512000 2074000 2021000 903000 870000 1171000 1151000 421000 421000 1592000 1572000 33000 115000 <div> <p id="xdx_89E_eus-gaap--ScheduleofFiniteLivedIntangibleAssetsFutureAmortizationExpenseTableTextBlock_z9sdgcbr2gTd" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">As of March 31, 2026, future amortization expense is as follows:</p> </div><div> <p id="xdx_8A4_zU9qbSEOw7Lk" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr style="height: 0px; font-size: 0px;"><td></td><td style="width: 1%;"></td><td style="width: 1%;"> </td><td style="width: 9%;"></td><td style="width: 1%;"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>2026 (9 months)</td><td style="text-align: right; border-width: initial; border-style: none; border-color: initial;"></td><td style="text-align: left; border-width: initial; border-style: none; border-color: initial; width: 1%;" title="FN 6 Intangible Rollforward - C19">$</td><td style="width: 9%; text-align: right; border-width: initial; border-style: none; border-color: initial;">88</td><td style="text-align: left; border-width: initial; border-style: none; border-color: initial; width: 1%;" title="FN 6 Intangible Rollforward - C19"> </td></tr><tr><td>2027</td><td style="text-align: right; border-width: initial; border-style: none; border-color: initial;"></td><td style="text-align: left; border-width: initial; border-style: none; border-color: initial; width: 1%;" title="FN 6 Intangible Rollforward - C20"> </td><td style="width: 9%; text-align: right; border-width: initial; border-style: none; border-color: initial;">116</td><td style="text-align: left; border-width: initial; border-style: none; border-color: initial; width: 1%;" title="FN 6 Intangible Rollforward - C20"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>2028</td><td style="text-align: right; border-width: initial; border-style: none; border-color: initial;"></td><td style="text-align: left; border-width: initial; border-style: none; border-color: initial; width: 1%;" title="FN 6 Intangible Rollforward - C21"> </td><td style="width: 9%; text-align: right; border-width: initial; border-style: none; border-color: initial;">116</td><td style="text-align: left; border-width: initial; border-style: none; border-color: initial; width: 1%;" title="FN 6 Intangible Rollforward - C21"> </td></tr><tr><td>2029</td><td style="text-align: right; border-width: initial; border-style: none; border-color: initial;"></td><td style="text-align: left; border-width: initial; border-style: none; border-color: initial; width: 1%;" title="FN 6 Intangible Rollforward - C22"> </td><td style="width: 9%; text-align: right; border-width: initial; border-style: none; border-color: initial;">116</td><td style="text-align: left; border-width: initial; border-style: none; border-color: initial; width: 1%;" title="FN 6 Intangible Rollforward - C22"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>2030</td><td style="text-align: right; border-width: initial; border-style: none; border-color: initial;"></td><td style="text-align: left; border-width: initial; border-style: none; border-color: initial; width: 1%;" title="FN 6 Intangible Rollforward - C23"> </td><td style="width: 9%; text-align: right; border-width: initial; border-style: none; border-color: initial;">116</td><td style="text-align: left; border-width: initial; border-style: none; border-color: initial; width: 1%;" title="FN 6 Intangible Rollforward - C23"> </td></tr><tr><td>Thereafter</td><td style="text-align: right; border-width: medium; border-style: none; border-color: currentcolor;"></td><td style="text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 1%;" title="FN 6 Intangible Rollforward - C24"> </td><td style="width: 9%; text-align: right; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">619</td><td style="text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 1%;" title="FN 6 Intangible Rollforward - C24"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Total</td><td style="text-align: right; border-width: medium; border-style: none; border-color: currentcolor;"></td><td style="text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 1%;" title="FN 6 Intangible Rollforward - C25">$</td><td style="width: 9%; text-align: right; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">1,171</td><td style="text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 1%;" title="FN 6 Intangible Rollforward - C25"> </td></tr></table></div> 88000 116000 116000 116000 116000 619000 1171000 <div><p id="xdx_80A_eus-gaap--AccountsPayableAndAccruedLiabilitiesDisclosureTextBlock_zBKpFmwWyFf9" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><b>7. <span id="xdx_82C_zZcXiusnwfl6">ACCOUNTS PAYABLE AND ACCRUED LIABILITIES</span></b></p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p id="xdx_89C_eus-gaap--ScheduleOfAccruedLiabilitiesTableTextBlock_zB4sb8F3WHQ6" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">Accrued liabilities consist of the following:</p> <p id="xdx_89C_eus-gaap--ScheduleOfAccruedLiabilitiesTableTextBlock_zB4sb8F3WHQ6-0" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr style="height: 0px; font-size: 0px;"><td></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td></tr><tr><td> </td><td> </td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 7 Accounts Payable and Accrued Liabilities - C4"> </td><td style="font-weight: bold; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); text-align: center; width: 9%;">March 31, 2026</td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 7 Accounts Payable and Accrued Liabilities - C4"> </td><td> </td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 7 Accounts Payable and Accrued Liabilities - E4"> </td><td style="font-weight: bold; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); text-align: center; width: 9%;">December 31, 2025</td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 7 Accounts Payable and Accrued Liabilities - E4"> </td></tr><tr><td> </td><td> </td><td style="width: 1%;" title="FN 7 Accounts Payable and Accrued Liabilities - C5"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="FN 7 Accounts Payable and Accrued Liabilities - C5"> </td><td> </td><td style="width: 1%;" title="FN 7 Accounts Payable and Accrued Liabilities - E5"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="FN 7 Accounts Payable and Accrued Liabilities - E5"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Patent and legal costs</td><td> </td><td style="width: 1%; text-align: left;" title="FN 7 Accounts Payable and Accrued Liabilities - C6">$</td><td style="width: 9%; text-align: right;">134</td><td style="width: 1%; text-align: left;" title="FN 7 Accounts Payable and Accrued Liabilities - C6"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN 7 Accounts Payable and Accrued Liabilities - E6">$</td><td style="width: 9%; text-align: right;">111</td><td style="width: 1%; text-align: left;" title="FN 7 Accounts Payable and Accrued Liabilities - E6"> </td></tr><tr><td>Accrued compensation</td><td> </td><td style="width: 1%; text-align: left;" title="FN 7 Accounts Payable and Accrued Liabilities - C7"> </td><td style="width: 9%; text-align: right;">147</td><td style="width: 1%; text-align: left;" title="FN 7 Accounts Payable and Accrued Liabilities - C7"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN 7 Accounts Payable and Accrued Liabilities - E7"> </td><td style="width: 9%; text-align: right;">2</td><td style="width: 1%; text-align: left;" title="FN 7 Accounts Payable and Accrued Liabilities - E7"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Warranty costs</td><td> </td><td style="width: 1%; text-align: left;" title="FN 7 Accounts Payable and Accrued Liabilities - C8"> </td><td style="width: 9%; text-align: right;">32</td><td style="width: 1%; text-align: left;" title="FN 7 Accounts Payable and Accrued Liabilities - C8"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN 7 Accounts Payable and Accrued Liabilities - E8"> </td><td style="width: 9%; text-align: right;">30</td><td style="width: 1%; text-align: left;" title="FN 7 Accounts Payable and Accrued Liabilities - E8"> </td></tr><tr><td>Royalty </td><td> </td><td style="width: 1%; text-align: left;" title="FN 7 Accounts Payable and Accrued Liabilities - C9"> </td><td style="width: 9%; text-align: right;">99</td><td style="width: 1%; text-align: left;" title="FN 7 Accounts Payable and Accrued Liabilities - C9"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN 7 Accounts Payable and Accrued Liabilities - E9"> </td><td style="width: 9%; text-align: right;">99</td><td style="width: 1%; text-align: left;" title="FN 7 Accounts Payable and Accrued Liabilities - E9"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Accrued purchases</td><td> </td><td style="width: 1%; text-align: left;" title="FN 7 Accounts Payable and Accrued Liabilities - C10"> </td><td style="width: 9%; text-align: right;">-</td><td style="width: 1%; text-align: left;" title="FN 7 Accounts Payable and Accrued Liabilities - C10"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN 7 Accounts Payable and Accrued Liabilities - E10"> </td><td style="width: 9%; text-align: right;">6</td><td style="width: 1%; text-align: left;" title="FN 7 Accounts Payable and Accrued Liabilities - E10"> </td></tr><tr><td>Taxes and other</td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 7 Accounts Payable and Accrued Liabilities - C11"> </td><td style="width: 9%; text-align: right; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">119</td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 7 Accounts Payable and Accrued Liabilities - C11"> </td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 7 Accounts Payable and Accrued Liabilities - E11"> </td><td style="width: 9%; text-align: right; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">159</td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 7 Accounts Payable and Accrued Liabilities - E11"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Total accrued liabilities</td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 7 Accounts Payable and Accrued Liabilities - C12">$</td><td style="width: 9%; text-align: right; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">531</td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 7 Accounts Payable and Accrued Liabilities - C12"> </td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 7 Accounts Payable and Accrued Liabilities - E12">$</td><td style="width: 9%; text-align: right; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">407</td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 7 Accounts Payable and Accrued Liabilities - E12"> </td></tr></table> <p id="xdx_8AA_z3biZYskGHw1" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p><p id="xdx_891_eus-gaap--ScheduleOfProductWarrantyLiabilityTableTextBlock_zsYADeXySEVl" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">Changes in our estimated product warranty costs were as follows:</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr style="height: 0px; font-size: 0px;"><td></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td></tr><tr><td> </td><td> </td><td colspan="7" style="text-align: center; font-weight: bold; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">Three Months Ended March 31,</td></tr><tr><td> </td><td> </td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 7 Accounts Payable and Accrued Liabilities - C17"> </td><td style="text-align: center; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); font-weight: bold; width: 9%;">2026</td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 7 Accounts Payable and Accrued Liabilities - C17"> </td><td> </td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 7 Accounts Payable and Accrued Liabilities - E17"> </td><td style="text-align: center; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); font-weight: bold; width: 9%;">2025</td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 7 Accounts Payable and Accrued Liabilities - E17"> </td></tr><tr><td> </td><td> </td><td style="width: 1%;" title="FN 7 Accounts Payable and Accrued Liabilities - C18"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="FN 7 Accounts Payable and Accrued Liabilities - C18"> </td><td> </td><td style="width: 1%;" title="FN 7 Accounts Payable and Accrued Liabilities - E18"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="FN 7 Accounts Payable and Accrued Liabilities - E18"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Balance, beginning of period</td><td> </td><td style="width: 1%; text-align: left;" title="FN 7 Accounts Payable and Accrued Liabilities - C19">$</td><td style="width: 9%; text-align: right;">30</td><td style="width: 1%; text-align: left;" title="FN 7 Accounts Payable and Accrued Liabilities - C19"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN 7 Accounts Payable and Accrued Liabilities - E19">$</td><td style="width: 9%; text-align: right;">83</td><td style="width: 1%; text-align: left;" title="FN 7 Accounts Payable and Accrued Liabilities - E19"> </td></tr><tr><td>Warranty settlements</td><td> </td><td style="width: 1%; text-align: left;" title="FN 7 Accounts Payable and Accrued Liabilities - C20"> </td><td style="width: 9%; text-align: right;">(2</td><td style="width: 1%; text-align: left;" title="FN 7 Accounts Payable and Accrued Liabilities - C20">) </td><td> </td><td style="width: 1%; text-align: left;" title="FN 7 Accounts Payable and Accrued Liabilities - E20"> </td><td style="width: 9%; text-align: right;">(7</td><td style="width: 1%; text-align: left;" title="FN 7 Accounts Payable and Accrued Liabilities - E20">) </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Warranty provision</td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 7 Accounts Payable and Accrued Liabilities - C21"> </td><td style="width: 9%; text-align: right; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">4</td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 7 Accounts Payable and Accrued Liabilities - C21"> </td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 7 Accounts Payable and Accrued Liabilities - E21"> </td><td style="width: 9%; text-align: right; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">2</td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 7 Accounts Payable and Accrued Liabilities - E21"> </td></tr><tr><td>Balance, end of period</td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 7 Accounts Payable and Accrued Liabilities - C22">$</td><td style="width: 9%; text-align: right; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">32</td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 7 Accounts Payable and Accrued Liabilities - C22"> </td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 7 Accounts Payable and Accrued Liabilities - E22">$</td><td style="width: 9%; text-align: right; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">78</td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 7 Accounts Payable and Accrued Liabilities - E22"> </td></tr></table><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><span id="xdx_8B3_zrytWJQdisca" style="display: none">SCHEDULE OF PRODUCT WARRANTY LIABILITY</span>  </p></div> <p id="xdx_89C_eus-gaap--ScheduleOfAccruedLiabilitiesTableTextBlock_zB4sb8F3WHQ6" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">Accrued liabilities consist of the following:</p> <p id="xdx_89C_eus-gaap--ScheduleOfAccruedLiabilitiesTableTextBlock_zB4sb8F3WHQ6-0" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr style="height: 0px; font-size: 0px;"><td></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td></tr><tr><td> </td><td> </td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 7 Accounts Payable and Accrued Liabilities - C4"> </td><td style="font-weight: bold; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); text-align: center; width: 9%;">March 31, 2026</td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 7 Accounts Payable and Accrued Liabilities - C4"> </td><td> </td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 7 Accounts Payable and Accrued Liabilities - E4"> </td><td style="font-weight: bold; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); text-align: center; width: 9%;">December 31, 2025</td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 7 Accounts Payable and Accrued Liabilities - E4"> </td></tr><tr><td> </td><td> </td><td style="width: 1%;" title="FN 7 Accounts Payable and Accrued Liabilities - C5"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="FN 7 Accounts Payable and Accrued Liabilities - C5"> </td><td> </td><td style="width: 1%;" title="FN 7 Accounts Payable and Accrued Liabilities - E5"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="FN 7 Accounts Payable and Accrued Liabilities - E5"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Patent and legal costs</td><td> </td><td style="width: 1%; text-align: left;" title="FN 7 Accounts Payable and Accrued Liabilities - C6">$</td><td style="width: 9%; text-align: right;">134</td><td style="width: 1%; text-align: left;" title="FN 7 Accounts Payable and Accrued Liabilities - C6"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN 7 Accounts Payable and Accrued Liabilities - E6">$</td><td style="width: 9%; text-align: right;">111</td><td style="width: 1%; text-align: left;" title="FN 7 Accounts Payable and Accrued Liabilities - E6"> </td></tr><tr><td>Accrued compensation</td><td> </td><td style="width: 1%; text-align: left;" title="FN 7 Accounts Payable and Accrued Liabilities - C7"> </td><td style="width: 9%; text-align: right;">147</td><td style="width: 1%; text-align: left;" title="FN 7 Accounts Payable and Accrued Liabilities - C7"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN 7 Accounts Payable and Accrued Liabilities - E7"> </td><td style="width: 9%; text-align: right;">2</td><td style="width: 1%; text-align: left;" title="FN 7 Accounts Payable and Accrued Liabilities - E7"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Warranty costs</td><td> </td><td style="width: 1%; text-align: left;" title="FN 7 Accounts Payable and Accrued Liabilities - C8"> </td><td style="width: 9%; text-align: right;">32</td><td style="width: 1%; text-align: left;" title="FN 7 Accounts Payable and Accrued Liabilities - C8"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN 7 Accounts Payable and Accrued Liabilities - E8"> </td><td style="width: 9%; text-align: right;">30</td><td style="width: 1%; text-align: left;" title="FN 7 Accounts Payable and Accrued Liabilities - E8"> </td></tr><tr><td>Royalty </td><td> </td><td style="width: 1%; text-align: left;" title="FN 7 Accounts Payable and Accrued Liabilities - C9"> </td><td style="width: 9%; text-align: right;">99</td><td style="width: 1%; text-align: left;" title="FN 7 Accounts Payable and Accrued Liabilities - C9"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN 7 Accounts Payable and Accrued Liabilities - E9"> </td><td style="width: 9%; text-align: right;">99</td><td style="width: 1%; text-align: left;" title="FN 7 Accounts Payable and Accrued Liabilities - E9"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Accrued purchases</td><td> </td><td style="width: 1%; text-align: left;" title="FN 7 Accounts Payable and Accrued Liabilities - C10"> </td><td style="width: 9%; text-align: right;">-</td><td style="width: 1%; text-align: left;" title="FN 7 Accounts Payable and Accrued Liabilities - C10"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN 7 Accounts Payable and Accrued Liabilities - E10"> </td><td style="width: 9%; text-align: right;">6</td><td style="width: 1%; text-align: left;" title="FN 7 Accounts Payable and Accrued Liabilities - E10"> </td></tr><tr><td>Taxes and other</td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 7 Accounts Payable and Accrued Liabilities - C11"> </td><td style="width: 9%; text-align: right; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">119</td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 7 Accounts Payable and Accrued Liabilities - C11"> </td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 7 Accounts Payable and Accrued Liabilities - E11"> </td><td style="width: 9%; text-align: right; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">159</td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 7 Accounts Payable and Accrued Liabilities - E11"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Total accrued liabilities</td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 7 Accounts Payable and Accrued Liabilities - C12">$</td><td style="width: 9%; text-align: right; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">531</td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 7 Accounts Payable and Accrued Liabilities - C12"> </td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 7 Accounts Payable and Accrued Liabilities - E12">$</td><td style="width: 9%; text-align: right; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">407</td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 7 Accounts Payable and Accrued Liabilities - E12"> </td></tr></table> 134000 111000 147000 2000 32000 30000 99000 99000 0 6000 119000 159000 531000 407000 <p id="xdx_891_eus-gaap--ScheduleOfProductWarrantyLiabilityTableTextBlock_zsYADeXySEVl" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">Changes in our estimated product warranty costs were as follows:</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr style="height: 0px; font-size: 0px;"><td></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td></tr><tr><td> </td><td> </td><td colspan="7" style="text-align: center; font-weight: bold; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">Three Months Ended March 31,</td></tr><tr><td> </td><td> </td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 7 Accounts Payable and Accrued Liabilities - C17"> </td><td style="text-align: center; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); font-weight: bold; width: 9%;">2026</td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 7 Accounts Payable and Accrued Liabilities - C17"> </td><td> </td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 7 Accounts Payable and Accrued Liabilities - E17"> </td><td style="text-align: center; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); font-weight: bold; width: 9%;">2025</td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 7 Accounts Payable and Accrued Liabilities - E17"> </td></tr><tr><td> </td><td> </td><td style="width: 1%;" title="FN 7 Accounts Payable and Accrued Liabilities - C18"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="FN 7 Accounts Payable and Accrued Liabilities - C18"> </td><td> </td><td style="width: 1%;" title="FN 7 Accounts Payable and Accrued Liabilities - E18"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="FN 7 Accounts Payable and Accrued Liabilities - E18"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Balance, beginning of period</td><td> </td><td style="width: 1%; text-align: left;" title="FN 7 Accounts Payable and Accrued Liabilities - C19">$</td><td style="width: 9%; text-align: right;">30</td><td style="width: 1%; text-align: left;" title="FN 7 Accounts Payable and Accrued Liabilities - C19"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN 7 Accounts Payable and Accrued Liabilities - E19">$</td><td style="width: 9%; text-align: right;">83</td><td style="width: 1%; text-align: left;" title="FN 7 Accounts Payable and Accrued Liabilities - E19"> </td></tr><tr><td>Warranty settlements</td><td> </td><td style="width: 1%; text-align: left;" title="FN 7 Accounts Payable and Accrued Liabilities - C20"> </td><td style="width: 9%; text-align: right;">(2</td><td style="width: 1%; text-align: left;" title="FN 7 Accounts Payable and Accrued Liabilities - C20">) </td><td> </td><td style="width: 1%; text-align: left;" title="FN 7 Accounts Payable and Accrued Liabilities - E20"> </td><td style="width: 9%; text-align: right;">(7</td><td style="width: 1%; text-align: left;" title="FN 7 Accounts Payable and Accrued Liabilities - E20">) </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Warranty provision</td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 7 Accounts Payable and Accrued Liabilities - C21"> </td><td style="width: 9%; text-align: right; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">4</td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 7 Accounts Payable and Accrued Liabilities - C21"> </td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 7 Accounts Payable and Accrued Liabilities - E21"> </td><td style="width: 9%; text-align: right; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">2</td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 7 Accounts Payable and Accrued Liabilities - E21"> </td></tr><tr><td>Balance, end of period</td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 7 Accounts Payable and Accrued Liabilities - C22">$</td><td style="width: 9%; text-align: right; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">32</td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 7 Accounts Payable and Accrued Liabilities - C22"> </td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 7 Accounts Payable and Accrued Liabilities - E22">$</td><td style="width: 9%; text-align: right; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">78</td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 7 Accounts Payable and Accrued Liabilities - E22"> </td></tr></table> 30000 83000 2000 7000 4000 2000 32000 78000 <div> <p id="xdx_80F_ecustom--WarrantsTextBlock_zBHPmjEyGt28" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><b>8. <span id="xdx_820_zXFhFI4K2Bma">WARRANTS</span></b></p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-size-adjust: none; font-language-override: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-variant-emoji: normal; font-stretch: normal; line-height: normal; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">All outstanding warrants are classified within permanent equity as of March 31, 2026 and December 31, 2025. </p><p style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-size-adjust: none; font-language-override: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-variant-emoji: normal; font-stretch: normal; line-height: normal; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p><p style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-size-adjust: none; font-language-override: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-variant-emoji: normal; font-stretch: normal; line-height: normal; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">The following summarizes the Company's outstanding warrants: </p><p style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-size-adjust: none; font-language-override: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-variant-emoji: normal; font-stretch: normal; line-height: normal; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p><p style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-size-adjust: none; font-language-override: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-variant-emoji: normal; font-stretch: normal; line-height: normal; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><i>Series A Warrants</i> — On June 29, 2023, the Company issued warrants (the "Series A Warrants") to purchase up to 6,896,553 shares of Common Stock at an exercise price of $1.45 per share in connection with the Series A Preferred Stock offering. On June 30, 2025, the Company entered into an amendment agreement (the "Series A Warrant Amendment") with the Required Holders (as defined in the Series A Warrants), which resulted in reclassification of the Series A Warrants from warrant liabilities to additional paid-in capital under ASC 815-40. The amended warrants expire on January 3, 2030 (<span style="-sec-ix-hidden: hidden-fact-4">six and one-half years</span> from original issuance). </p><p style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-size-adjust: none; font-language-override: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-variant-emoji: normal; font-stretch: normal; line-height: normal; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p><p style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-size-adjust: none; font-language-override: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-variant-emoji: normal; font-stretch: normal; line-height: normal; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><i>PIPE Warrants</i> — On February 24, 2025, the Company issued warrants (the "PIPE Warrants") to purchase up to 3,216,666 shares of Common Stock at an exercise price of $1.80 per share in connection with a private placement. On June 30, 2025, the Company entered into an amendment agreement (the "2025 Warrant Amendment") with the PIPE holders, resulting in reclassification from warrant liabilities to additional paid-in capital under ASC 815-40. The amended PIPE Warrants expire <span style="-sec-ix-hidden: hidden-fact-5">five and one-half years</span> from the original issuance date. </p><p style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-size-adjust: none; font-language-override: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-variant-emoji: normal; font-stretch: normal; line-height: normal; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p></div><div><p style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-size-adjust: none; font-language-override: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-variant-emoji: normal; font-stretch: normal; line-height: normal; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><i>Series B Warrants</i> — On August 18, 2025, the Company issued warrants (the "Series B Warrants") to purchase up to 3,000,000 shares of Common Stock at an exercise price of $1.50 per share in connection with the Series B Convertible Preferred Stock, par value $0.0001 per share (the "Series B Preferred Stock") private placement. The Series B Warrants became exercisable on December 12, 2025, the date stockholder approval was obtained, and expire on December 12, 2030. The Series B Warrants are classified within permanent equity.</p><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-size-adjust: none; font-language-override: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-variant-emoji: normal; font-stretch: normal; line-height: normal; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><span style="background-color: rgb(255, 255, 255);"><i>February 2026 Warrants <span style="font-style: normal; letter-spacing: normal; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">—</span></i> On February 3, 2026, the Company issued pre-funded warrants (the "Pre-Funded Warrants") to purchase up to 800,000 shares of Common Stock at an exercise price of $0.0001 per share and common warrants (the "February 2026 Common Warrants") to purchase up to 2,500,000 shares of Common Stock at an exercise price of $2.30 per share in connection with a private placement. The Pre-Funded Warrants and the February 2026 Common Warrants were classified as equity within additional paid-in capital under ASC 815-40 upon issuance. The Pre-Funded Warrants expire when exercised in full, and the February 2026 Common Warrants expire on February 3, 2031, five years from the date of issuance.</span></p></div> 6896553 1.45 2030-01-03 3216666 1.8 3000000 1.5 0.0001 2030-12-12 800000 0.0001 2500000 2.3 P5Y <div> <p id="xdx_80E_eus-gaap--LesseeOperatingLeasesTextBlock_z9ZzlBuT1Bk6" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><b>9. <span id="xdx_82E_zTvE6DD3mySk">LEASES</span></b></p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">The Company determines if an arrangement is a lease at inception. The guidance in FASB ASC Topic 842, Leases defines a lease as a contract, or part of a contract, that conveys the right to control the use of identified property, plant, or equipment (an identified asset) for a period of time in exchange for consideration. Operating lease right of use (“ROU”) assets and lease liabilities are recognized based on the present value of future minimum lease payments over the lease term at commencement date. The Company’s leases do not provide an implicit rate. Due to a lack of financing history or ability, the Company uses an estimate of low-grade debt rate published by the Federal Reserve Bank as its incremental borrowing rate based on the information available at the commencement date in determining the present value of future payments. The ROU asset includes any lease payments made and excludes lease incentives and initial direct costs incurred.</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p></div><div> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">Amortization expense was $54 and $74 for the three months ended March 31, 2026 and 2025 respectively. Operating lease expense for capitalized operating leases included in operating activities was $112 and $156 for the three months ended March 31, 2026 and 2025, respectively.</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p id="xdx_89F_ecustom--LesseeOperatingLeaseDisclosureTableTextBlock_zqRLSAAb8ma5" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">Operating lease obligations recorded on the balance sheet at March 31, 2026 are:</p> <p id="xdx_89F_ecustom--LesseeOperatingLeaseDisclosureTableTextBlock_zqRLSAAb8ma5-0" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p><p id="xdx_89F_ecustom--LesseeOperatingLeaseDisclosureTableTextBlock_zqRLSAAb8ma5-1" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr style="height: 0px; font-size: 0px;"><td></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td></tr><tr><td> </td><td> </td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 9 Lease Reconciliation with life - C4"> </td><td style="font-weight: bold; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); text-align: center; width: 9%;">March 31, 2026</td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 9 Lease Reconciliation with life - C4"> </td></tr><tr><td> </td><td> </td><td style="width: 1%;" title="FN 9 Lease Reconciliation with life - C5"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="FN 9 Lease Reconciliation with life - C5"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Operating lease liability — short term</td><td> </td><td style="width: 1%; text-align: left;" title="FN 9 Lease Reconciliation with life - C6">$</td><td style="width: 9%; text-align: right;">90</td><td style="width: 1%; text-align: left;" title="FN 9 Lease Reconciliation with life - C6"> </td></tr><tr><td>Operating lease liability — long term</td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 9 Lease Reconciliation with life - C7"> </td><td style="width: 9%; text-align: right; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">369</td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 9 Lease Reconciliation with life - C7"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Total operating lease liability</td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 9 Lease Reconciliation with life - C8">$</td><td style="width: 9%; text-align: right; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">459</td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 9 Lease Reconciliation with life - C8"> </td></tr></table><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"> <span id="xdx_8B8_zsredrK4Lttl" style="display: none">SCHEDULE OF OPERATING LEASE OBLIGATIONS</span> </p> <p id="xdx_890_eus-gaap--LesseeOperatingLeaseLiabilityMaturityTableTextBlock_zn2DEV9Gp6vi" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">Future lease payments included in the measurement of lease liabilities on the balance sheet at March 31, 2026 for future periods are as follows:</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr style="background-color: rgb(204, 238, 255);"><td>2026 (9 months)</td><td> </td><td style="width: 1%; text-align: left;" title="FN 9 Lease Reconciliation with life - C11">$</td><td style="width: 9%; text-align: right;">90</td><td style="width: 1%; text-align: left;" title="FN 9 Lease Reconciliation with life - C11"> </td></tr><tr><td>2027</td><td> </td><td style="width: 1%; text-align: left;" title="FN 9 Lease Reconciliation with life - C12"> </td><td style="width: 9%; text-align: right;">120</td><td style="width: 1%; text-align: left;" title="FN 9 Lease Reconciliation with life - C12"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>2028</td><td> </td><td style="width: 1%; text-align: left;" title="FN 9 Lease Reconciliation with life - C13"> </td><td style="width: 9%; text-align: right;">120</td><td style="width: 1%; text-align: left;" title="FN 9 Lease Reconciliation with life - C13"> </td></tr><tr><td>2029</td><td> </td><td style="width: 1%; text-align: left;" title="FN 9 Lease Reconciliation with life - C14"> </td><td style="width: 9%; text-align: right;">120</td><td style="width: 1%; text-align: left;" title="FN 9 Lease Reconciliation with life - C14"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>2030</td><td> </td><td style="width: 1%; text-align: left;" title="FN 9 Lease Reconciliation with life - C15"> </td><td style="width: 9%; text-align: right;">90</td><td style="width: 1%; text-align: left;" title="FN 9 Lease Reconciliation with life - C15"> </td></tr><tr><td>Thereafter</td><td> </td><td style="width: 1%; text-align: left;" title="FN 9 Lease Reconciliation with life - C16"> </td><td style="width: 9%; text-align: right;">-</td><td style="width: 1%; text-align: left;" title="FN 9 Lease Reconciliation with life - C16"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Total future minimum lease payments</td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 9 Lease Reconciliation with life - C17"> </td><td style="width: 9%; text-align: right; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">540</td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 9 Lease Reconciliation with life - C17"> </td></tr><tr><td>Less imputed interest</td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 9 Lease Reconciliation with life - C18"> </td><td style="width: 9%; text-align: right; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">(81</td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 9 Lease Reconciliation with life - C18">) </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Total</td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 9 Lease Reconciliation with life - C19">$</td><td style="width: 9%; text-align: right; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">459</td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 9 Lease Reconciliation with life - C19"> </td></tr></table><p id="xdx_8AD_zNrL2X5DtjEf" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">The weighted average remaining lease term is <span id="xdx_900_eus-gaap--OperatingLeaseWeightedAverageRemainingLeaseTerm1_iI_dtY_c20250630_zYg38xPGnKbf" title="Operating lease, weighted average remaining lease term">4.5</span> years, and the weighted average discount rate is <span id="xdx_901_eus-gaap--OperatingLeaseWeightedAverageDiscountRatePercent_iI_pid_dp_uPure_c20250630_z7orZm2zTRZ6" title="Operating lease, weighted average discount rate, percent">7.5</span>%<b>.</b></p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">Certain leases contain provisions for payment of real estate taxes, insurance and maintenance costs by the Company. These expenses are treated as variable lease payments and recognized in the period in which the obligation for those payments was incurred. The Company had $0 and $23 variable lease expenses for the three months ended March 31, 2026 and 2025, respectively.</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p></div><div> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">The Company had no short-term lease expenses for the three months ended March 31, 2026 and 2025 respectively. The Company does not have any finance leases.</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p><p style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-size-adjust: none; font-language-override: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-variant-emoji: normal; font-stretch: normal; line-height: normal; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">On February 13, 2026, the Company entered into a Termination and Mutual Release Agreement with the landlord of the Company's office space located at 3480 Main Highway, Suite 202, Miami, Florida 33133. Pursuant to the agreement, the office lease dated September 20, 2023 was terminated effective as of February 13, 2026, and the Company surrendered possession of the premises. The landlord agreed to refund the prorated portion of February 2026 rent attributable to the period following the termination date and to return the security deposit in accordance with the terms of the original lease. The parties exchanged mutual releases of all claims arising out of or relating to the lease, except for obligations expressly set forth in the termination agreement and any obligations that by their terms survive termination. In March 2026, the Company entered into a month-to-month service agreement for a business address located at 3350 Virginia Street, Miami, Florida 33133.</p><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">    </p></div> 54000 74000 112000 156000 <p id="xdx_89F_ecustom--LesseeOperatingLeaseDisclosureTableTextBlock_zqRLSAAb8ma5" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">Operating lease obligations recorded on the balance sheet at March 31, 2026 are:</p> <p id="xdx_89F_ecustom--LesseeOperatingLeaseDisclosureTableTextBlock_zqRLSAAb8ma5-0" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p><p id="xdx_89F_ecustom--LesseeOperatingLeaseDisclosureTableTextBlock_zqRLSAAb8ma5-1" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr style="height: 0px; font-size: 0px;"><td></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td></tr><tr><td> </td><td> </td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 9 Lease Reconciliation with life - C4"> </td><td style="font-weight: bold; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); text-align: center; width: 9%;">March 31, 2026</td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 9 Lease Reconciliation with life - C4"> </td></tr><tr><td> </td><td> </td><td style="width: 1%;" title="FN 9 Lease Reconciliation with life - C5"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="FN 9 Lease Reconciliation with life - C5"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Operating lease liability — short term</td><td> </td><td style="width: 1%; text-align: left;" title="FN 9 Lease Reconciliation with life - C6">$</td><td style="width: 9%; text-align: right;">90</td><td style="width: 1%; text-align: left;" title="FN 9 Lease Reconciliation with life - C6"> </td></tr><tr><td>Operating lease liability — long term</td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 9 Lease Reconciliation with life - C7"> </td><td style="width: 9%; text-align: right; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">369</td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 9 Lease Reconciliation with life - C7"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Total operating lease liability</td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 9 Lease Reconciliation with life - C8">$</td><td style="width: 9%; text-align: right; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">459</td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 9 Lease Reconciliation with life - C8"> </td></tr></table> 90000 369000 459000 <p id="xdx_890_eus-gaap--LesseeOperatingLeaseLiabilityMaturityTableTextBlock_zn2DEV9Gp6vi" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">Future lease payments included in the measurement of lease liabilities on the balance sheet at March 31, 2026 for future periods are as follows:</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr style="background-color: rgb(204, 238, 255);"><td>2026 (9 months)</td><td> </td><td style="width: 1%; text-align: left;" title="FN 9 Lease Reconciliation with life - C11">$</td><td style="width: 9%; text-align: right;">90</td><td style="width: 1%; text-align: left;" title="FN 9 Lease Reconciliation with life - C11"> </td></tr><tr><td>2027</td><td> </td><td style="width: 1%; text-align: left;" title="FN 9 Lease Reconciliation with life - C12"> </td><td style="width: 9%; text-align: right;">120</td><td style="width: 1%; text-align: left;" title="FN 9 Lease Reconciliation with life - C12"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>2028</td><td> </td><td style="width: 1%; text-align: left;" title="FN 9 Lease Reconciliation with life - C13"> </td><td style="width: 9%; text-align: right;">120</td><td style="width: 1%; text-align: left;" title="FN 9 Lease Reconciliation with life - C13"> </td></tr><tr><td>2029</td><td> </td><td style="width: 1%; text-align: left;" title="FN 9 Lease Reconciliation with life - C14"> </td><td style="width: 9%; text-align: right;">120</td><td style="width: 1%; text-align: left;" title="FN 9 Lease Reconciliation with life - C14"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>2030</td><td> </td><td style="width: 1%; text-align: left;" title="FN 9 Lease Reconciliation with life - C15"> </td><td style="width: 9%; text-align: right;">90</td><td style="width: 1%; text-align: left;" title="FN 9 Lease Reconciliation with life - C15"> </td></tr><tr><td>Thereafter</td><td> </td><td style="width: 1%; text-align: left;" title="FN 9 Lease Reconciliation with life - C16"> </td><td style="width: 9%; text-align: right;">-</td><td style="width: 1%; text-align: left;" title="FN 9 Lease Reconciliation with life - C16"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Total future minimum lease payments</td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 9 Lease Reconciliation with life - C17"> </td><td style="width: 9%; text-align: right; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">540</td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 9 Lease Reconciliation with life - C17"> </td></tr><tr><td>Less imputed interest</td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 9 Lease Reconciliation with life - C18"> </td><td style="width: 9%; text-align: right; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">(81</td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 9 Lease Reconciliation with life - C18">) </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Total</td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 9 Lease Reconciliation with life - C19">$</td><td style="width: 9%; text-align: right; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">459</td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 9 Lease Reconciliation with life - C19"> </td></tr></table> 90000 120000 120000 120000 90000 0 540000 81000 459000 P4Y6M 0.075 0 23000 0 0 <div> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"> </p> <p id="xdx_80A_eus-gaap--StockholdersEquityNoteDisclosureTextBlock_zIqtcRNg1kO7" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><b>10. <span id="xdx_827_zr8JJlKe54Vb">STOCKHOLDERS’ EQUITY</span></b></p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-size-adjust: none; font-language-override: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-variant-emoji: normal; font-stretch: normal; line-height: normal; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">The Company's authorized capital consists of 200,000,000 shares of Common Stock and 5,000,000 shares of preferred stock, par value $0.0001 per share, of which 10,000 shares are designated as Series A Convertible Preferred Stock and 4,500 shares are designated as Series B Convertible Preferred Stock. </p><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: italic 10pt &quot;Times New Roman&quot;; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-decoration: underline;">Series A Preferred Stock</p><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-size-adjust: none; font-language-override: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-variant-emoji: normal; font-stretch: normal; line-height: normal; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">On July 3, 2023, the Company designated and issued 10,000 shares of Series A Preferred Stock (stated value $1,000 per share) convertible into shares of Common Stock at an initial conversion price of $1.45 per share. As of March 31, 2026 and December 31, 2025, there were 8,107 and 8,207 shares outstanding, respectively. Holders are entitled to dividends of 8% per annum, payable in cash or shares of Common Stock at the Company's election. For the three months ended March 31, 2026 and 2025, the Company paid dividends of $249 and $164, respectively, in shares of Common Stock. </p><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> </div><div> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><span id="xdx_903_eus-gaap--PreferredStockRedemptionTerms_c20240819__20240819__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_zYZXGx1UXpj8-1" title="Preferred stock, redemption price description"> </span> </p> </div><div><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><i><span style="text-decoration:underline">Series B Preferred Stock</span></i></p><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"> </p><p style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-size-adjust: none; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-variant-emoji: normal; font-stretch: normal; line-height: normal; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">On August 18, 2025, the Company issued 4,500 shares of Series B Preferred Stock (stated value $1,000 per share) convertible up to 3,000,000 shares of Common Stock at an initial conversion price of $1.50 per share. As of March 31, 2026 and December 31, 2025, there were 3,600 and 4,500 shares outstanding, respectively. Holders are entitled to dividends when and as declared by the Board, payable in cash or shares of the Company's securities.<span style="background-color: rgb(255, 255, 255);"> No dividends were declared or paid during the three months ended March 31, 2026. </span></p></div> 200000000 5000000 0.0001 10000 4500 10000 10000 1000 1.45 8107 8207 0.08 249000 164000 4500 4500 1000 3000000 1.5 3600 4500 0 <div> <p id="xdx_808_eus-gaap--DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock_zz2cii5QLn5a" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><b>11. <span id="xdx_825_z6m0XaeclZqe">SHARE-BASED COMPENSATION</span></b></p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-size-adjust: none; font-language-override: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-variant-emoji: normal; font-stretch: normal; line-height: normal; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">The Company maintains the Wrap Technologies, Inc. 2017 Equity Incentive Plan (the "2017 Plan"), which was most recently amended on December 12, 2025 to authorize up to 20,500,000 shares of Common Stock for issuance as equity awards under the 2017 Plan.</p><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"> </p></div><div> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">As of March 31, 2026, there were 4,033,073 shares of Common Stock remaining available for grant under the 2017 Plan.</p><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><span style="text-decoration: underline">Stock Options</span></p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p id="xdx_899_eus-gaap--ScheduleOfShareBasedCompensationStockOptionsActivityTableTextBlock_zQKS9NuvgsVk" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">The following table summarizes stock option activity for the three months ended March 31, 2026:</p> <p id="xdx_899_eus-gaap--ScheduleOfShareBasedCompensationStockOptionsActivityTableTextBlock_zQKS9NuvgsVk-0" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr style="height: 0px; font-size: 0px;"><td> </td><td style="width: 1%;"> </td><td style="width: 9%;"> </td><td style="width: 1%;"> </td><td style="width: 1%;"> </td><td style="width: 9%;"> </td><td style="width: 1%;"> </td><td style="width: 1%;"> </td><td style="width: 9%;"> </td><td style="width: 1%;"> </td><td style="width: 1%;"> </td><td style="width: 9%;"> </td><td style="width: 1%;"> </td></tr><tr style="height: 0px; font-size: 0px;"><td> </td><td style="width: 1%;"> </td><td style="width: 9%;"> </td><td style="width: 1%;"> </td><td style="width: 1%;"> </td><td style="width: 9%;"> </td><td style="width: 1%;"> </td><td style="width: 1%;"> </td><td style="width: 9%;"> </td><td style="width: 1%;"> </td><td style="width: 1%;"> </td><td style="width: 9%;"> </td><td style="width: 1%;"> </td></tr><tr><td> </td><td style="width: 1%;"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="New N11 - C4"> </td><td style="border-width: medium; border-style: none; border-color: currentcolor; width: 1%;"> </td><td colspan="4" style="text-align: center; font-weight: bold; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%;">Weighted Average </td><td style="text-align: center; font-weight: bold; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 1%;" title="FN11 Share-Based Compensation - E4"> </td><td style="border-width: medium; border-style: none; border-color: currentcolor; width: 1%;"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="New N11 - I4"> </td></tr><tr><td> </td><td style="width: 1%;"> </td><td style="text-align: center; font-weight: bold; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%;">Options on Common Shares</td><td style="border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 1%;" title="New N11 - C5"> </td><td style="width: 1%;"> </td><td style="text-align: center; font-weight: bold; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%;">Exercise Price</td><td style="border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 1%;" title="New N11 - E5"> </td><td style="width: 1%;"> </td><td style="text-align: center; font-weight: bold; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%;">Remaining Contractual Terms</td><td style="border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 1%;" title="New N11 - G5"> </td><td style="width: 1%;"> </td><td style="text-align: center; font-weight: bold; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%;">Aggregate Intrinsic Value</td><td style="border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 1%;" title="New N11 - I5"> </td></tr><tr><td> </td><td style="width: 1%;"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="New N11 - C6"> </td><td style="width: 1%;"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="New N11 - E6"> </td><td style="width: 1%;"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="New N11 - G6"> </td><td style="width: 1%;"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="New N11 - I6"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Outstanding December 31, 2025</td><td style="width: 1%; text-align: left;"></td><td style="width: 9%; text-align: right;">6,449,534</td><td style="width: 1%; text-align: left;" title="New N11 - C7"></td><td style="width: 1%; text-align: left;"></td><td style="width: 9%; text-align: right;">2.05</td><td style="width: 1%; text-align: left;" title="New N11 - E7"></td><td style="width: 1%; text-align: left;"></td><td style="width: 9%; text-align: right;">8.56</td><td style="width: 1%; text-align: left;" title="New N11 - G7"></td><td style="width: 1%; text-align: left;"></td><td style="width: 9%; text-align: right;">3,706</td><td style="width: 1%; text-align: left;" title="New N11 - I7"></td></tr><tr><td>Granted</td><td style="width: 1%; text-align: left;"></td><td style="width: 9%; text-align: right;">4,197,500</td><td style="width: 1%; text-align: left;" title="New N11 - C8"></td><td style="width: 1%; text-align: left;"></td><td style="width: 9%; text-align: right;">2.21</td><td style="width: 1%; text-align: left;" title="New N11 - E8"></td><td style="width: 1%; text-align: left;"></td><td style="width: 9%; text-align: right;">-</td><td style="width: 1%; text-align: left;" title="New N11 - G8"></td><td style="width: 1%; text-align: left;"></td><td style="width: 9%; text-align: right;">-</td><td style="width: 1%; text-align: left;" title="New N11 - I8"></td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Exercised</td><td style="width: 1%; text-align: left;"></td><td style="width: 9%; text-align: right;">-</td><td style="width: 1%; text-align: left;" title="New N11 - C9"></td><td style="width: 1%; text-align: left;"></td><td style="width: 9%; text-align: right;">-</td><td style="width: 1%; text-align: left;" title="New N11 - E9"></td><td style="width: 1%; text-align: left;"></td><td style="width: 9%; text-align: right;">-</td><td style="width: 1%; text-align: left;" title="New N11 - G9"></td><td style="width: 1%; text-align: left;"></td><td style="width: 9%; text-align: right;">-</td><td style="width: 1%; text-align: left;" title="New N11 - I9"></td></tr><tr><td>Forfeited, cancelled, expired</td><td style="width: 1%; text-align: left;"></td><td style="width: 9%; text-align: right; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">(300,000</td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="New N11 - C10">)</td><td style="width: 1%; text-align: left;"></td><td style="width: 9%; text-align: right;">2.45</td><td style="width: 1%; text-align: left;" title="New N11 - E10"></td><td style="width: 1%; text-align: left;"></td><td style="width: 9%; text-align: right;">-</td><td style="width: 1%; text-align: left;" title="New N11 - G10"></td><td style="width: 1%; text-align: left;"></td><td style="width: 9%; text-align: right;">-</td><td style="width: 1%; text-align: left;" title="New N11 - I10"></td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Outstanding March 31, 2026</td><td style="width: 1%; text-align: left;"></td><td style="width: 9%; text-align: right; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">10,347,034</td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="New N11 - C11"></td><td style="width: 1%; text-align: left;"></td><td style="width: 9%; text-align: right;">2.10</td><td style="width: 1%; text-align: left;" title="New N11 - E11"></td><td style="width: 1%; text-align: left;"></td><td style="width: 9%; text-align: right;">8.75</td><td style="width: 1%; text-align: left;" title="New N11 - G11"></td><td style="width: 1%; text-align: left;"></td><td style="width: 9%; text-align: right;">402</td><td style="width: 1%; text-align: left;" title="New N11 - I11"></td></tr><tr><td>Exercisable March 31, 2026</td><td style="width: 1%; text-align: left;"></td><td style="width: 9%; text-align: right; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">3,072,524</td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="New N11 - C12"></td><td style="width: 1%; text-align: left;"></td><td style="width: 9%; text-align: right;">2.31</td><td style="width: 1%; text-align: left;" title="New N11 - E12"></td><td style="width: 1%; text-align: left;"></td><td style="width: 9%; text-align: right;">7.79</td><td style="width: 1%; text-align: left;" title="New N11 - G12"></td><td style="width: 1%; text-align: left;"></td><td style="width: 9%; text-align: right;">141</td><td style="width: 1%; text-align: left;" title="New N11 - I12"></td></tr></table><p id="xdx_899_eus-gaap--ScheduleOfShareBasedCompensationStockOptionsActivityTableTextBlock_zQKS9NuvgsVk-1" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> </div><div> <p style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-size-adjust: none; font-language-override: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-variant-emoji: normal; font-stretch: normal; line-height: normal; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">As of March 31, 2026 there were 8,981,868 service-based stock options outstanding, and <span id="xdx_90F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iI_pid_c20250630__us-gaap--AwardTypeAxis__custom--PerformanceBasedOptionsMember__us-gaap--PlanNameAxis__custom--TwoThousandSeventeenStockIncentivePlanMember_zoD6nF4hS9hb" title="Number of stock options">1,365,166</span> performance-based stock options outstanding. For the performance-based options, 1,290,166 were granted in October 2023 to the Company's current Chief Executive Officer, subject to vesting based on future market capitalization targets, and 75,000 were granted to a consultant, subject to vesting upon the Company's execution of a specified customer contract.</p><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p id="xdx_89C_eus-gaap--ScheduleOfShareBasedPaymentAwardStockOptionsValuationAssumptionsTableTextBlock_zoa74hkT8rkk" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">The Company uses the Black-Scholes option pricing model to determine the fair value of the service-based options that have been granted. The following table summarizes the assumptions used to compute the fair value of options granted to employees and non-employees:</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><span id="xdx_8B2_zmFsQMJ3Zfhc" style="display: none">SCHEDULE OF STOCK OPTION ACTIVITY, FAIR VALUE OF ASSUMPTIONS</span></p><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr style="height: 0px; font-size: 0px;"><td></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td></tr><tr><td> </td><td> </td><td colspan="7" style="font-weight: bold; text-align: center; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">Three Months Ended March 31,</td></tr><tr><td> </td><td> </td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="New N11 - C17"> </td><td style="font-weight: bold; text-align: center; width: 9%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">2026</td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="New N11 - C17"> </td><td> </td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="New N11 - E17"> </td><td style="text-align: center; font-weight: bold; width: 9%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">2025</td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="New N11 - E17"> </td></tr><tr><td> </td><td> </td><td style="width: 1%;" title="New N11 - C18"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="New N11 - C18"> </td><td> </td><td style="width: 1%;" title="New N11 - E18"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="New N11 - E18"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Expected stock price volatility</td><td> </td><td style="width: 1%; text-align: left;" title="New N11 - C19"> </td><td style="width: 9%; text-align: right;">76</td><td style="width: 1%; text-align: left;" title="New N11 - C19">%</td><td> </td><td style="width: 1%; text-align: left;" title="New N11 - E19"> </td><td style="width: 9%; text-align: right;">76</td><td style="width: 1%; text-align: left;" title="New N11 - E19">%</td></tr><tr><td>Risk-free interest rate</td><td> </td><td style="width: 1%; text-align: left;" title="New N11 - C20"> </td><td style="width: 9%; text-align: right;">3.87</td><td style="width: 1%; text-align: left;" title="New N11 - C20">%</td><td> </td><td style="width: 1%; text-align: left;" title="New N11 - E20"> </td><td style="width: 9%; text-align: right;">4.28</td><td style="width: 1%; text-align: left;" title="New N11 - E20">%</td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Expected dividend yield</td><td> </td><td style="width: 1%; text-align: left;" title="New N11 - C21"> </td><td style="width: 9%; text-align: right;">0</td><td style="width: 1%; text-align: left;" title="New N11 - C21">%</td><td> </td><td style="width: 1%; text-align: left;" title="New N11 - E21"> </td><td style="width: 9%; text-align: right;">0</td><td style="width: 1%; text-align: left;" title="New N11 - E21">%</td></tr><tr><td>Expected life of options</td><td> </td><td style="width: 1%; text-align: left;" title="New N11 - C22"> </td><td style="width: 9%; text-align: right;">6</td><td style="width: 1%; text-align: left;" title="New N11 - C22"> </td><td> </td><td style="width: 1%; text-align: left;" title="New N11 - E22"> </td><td style="width: 9%; text-align: right;">6</td><td style="width: 1%; text-align: left;" title="New N11 - E22"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Weighted-average fair value of options granted</td><td> </td><td style="width: 1%; text-align: left;" title="New N11 - C23">$</td><td style="width: 9%; text-align: right;">1.55</td><td style="width: 1%; text-align: left;" title="New N11 - C23"> </td><td> </td><td style="width: 1%; text-align: left;" title="New N11 - E23">$</td><td style="width: 9%; text-align: right;">1.47</td><td style="width: 1%; text-align: left;" title="New N11 - E23"> </td></tr></table><p id="xdx_8A8_zHpBN7ai0JF6" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">Estimated volatility is a measure of the amount by which the Company’s stock price is expected to fluctuate each year during the expected life of awards. The Company’s estimated volatility was based on an average of the historical volatility of peer entities whose stock prices were publicly available. The Company’s calculation of estimated volatility is based on the historical stock prices of these peer entities over a period equal to the expected life of the awards. The Company uses the historical volatility of peer entities due to the lack of sufficient historical data of its stock price. The Company records forfeitures as they are incurred.</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">The risk-free interest rate assumption is based upon observed interest rates on zero coupon U.S. Treasury bonds whose maturity period is appropriate for the term of the options. The dividend yield of 0% is based on the fact that the Company has never paid cash dividends and has no present intention of paying cash dividends. The Company calculates the expected life of the options using the Simplified Method for the employee stock options as the Company does not have sufficient historical exercise data.</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">Stock option expense was $2,033 and $387 for the three months ended March 31, 2026 and 2025, respectively. </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p></div><div> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><span style="text-decoration: underline">Restricted Stock Units</span></p><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p id="xdx_89C_eus-gaap--ScheduleOfNonvestedRestrictedStockUnitsActivityTableTextBlock_zwq1l13Jxyef" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">The 2017 Plan provides for the grant of restricted stock units (“RSUs”). RSUs are settled in shares of the Company’s Common Stock as the RSUs vest. The following table summarizes RSU activity for the three months ended March 31, 2026:</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr style="height: 0px; font-size: 0px;"><td></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td></tr><tr><td> </td><td> </td><td style="width: 1%;" title="New N11 - C28"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="New N11 - C28"> </td><td> </td><td colspan="7" style="font-weight: bold; text-align: center; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">Weighted Average</td></tr><tr><td> </td><td> </td><td style="width: 1%;" title="New N11 - C29"> </td><td style="font-weight: bold; text-align: center; width: 9%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">Service-Based RSUs</td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="New N11 - C29"> </td><td> </td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="New N11 - E29"> </td><td style="font-weight: bold; text-align: center; width: 9%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">Grant Date Fair Value</td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="New N11 - E29"> </td><td> </td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="New N11 - G29"> </td><td style="font-weight: bold; text-align: center; width: 9%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">Vesting Period (Years)</td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="New N11 - G29"> </td></tr><tr><td> </td><td> </td><td style="width: 1%;" title="New N11 - C30"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="New N11 - C30"> </td><td> </td><td style="width: 1%;" title="New N11 - E30"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="New N11 - E30"> </td><td> </td><td style="width: 1%;" title="New N11 - G30"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="New N11 - G30"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Unvested at December 31, 2025</td><td> </td><td style="width: 1%; text-align: left;" title="New N11 - C31"> </td><td style="width: 9%; text-align: right;">1,014,563</td><td style="width: 1%; text-align: left;" title="New N11 - C31"> </td><td> </td><td style="width: 1%; text-align: left;" title="New N11 - E31">$</td><td style="width: 9%; text-align: right;">2.23</td><td style="width: 1%; text-align: left;" title="New N11 - E31"> </td><td> </td><td style="width: 1%; text-align: left;" title="New N11 - G31"> </td><td style="width: 9%; text-align: right;">3.62</td><td style="width: 1%; text-align: left;" title="New N11 - G31"> </td></tr><tr><td>Granted service based</td><td> </td><td style="width: 1%; text-align: left;" title="New N11 - C32"> </td><td style="width: 9%; text-align: right;">81,052</td><td style="width: 1%; text-align: left;" title="New N11 - C32"> </td><td> </td><td style="width: 1%; text-align: left;" title="New N11 - E32"> </td><td style="width: 9%; text-align: right;">2.46</td><td style="width: 1%; text-align: left;" title="New N11 - E32"> </td><td> </td><td style="width: 1%; text-align: left;" title="New N11 - G32"> </td><td style="width: 9%; text-align: right;">-</td><td style="width: 1%; text-align: left;" title="New N11 - G32"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Vested</td><td> </td><td style="width: 1%; text-align: left; border-width: medium; border-style: none; border-color: currentcolor; border-image: initial;" title="New N11 - C33"> </td><td style="width: 9%; text-align: right; border-width: medium; border-style: none; border-color: currentcolor; border-image: initial;">(72,888</td><td style="width: 1%; text-align: left; border-width: medium; border-style: none; border-color: currentcolor; border-image: initial;" title="New N11 - C33">) </td><td> </td><td style="width: 1%; text-align: left;" title="New N11 - E33"> </td><td style="width: 9%; text-align: right;">2.26</td><td style="width: 1%; text-align: left;" title="New N11 - E33"> </td><td> </td><td style="width: 1%; text-align: left;" title="New N11 - G33"> </td><td style="width: 9%; text-align: right;">-</td><td style="width: 1%; text-align: left;" title="New N11 - G33"> </td></tr><tr><td>Forfeited and cancelled</td><td> </td><td style="width: 1%; text-align: left; border-width: medium; border-style: none; border-color: currentcolor;" title="New N11 - C34"> </td><td style="width: 9%; text-align: right; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">-</td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="New N11 - C34"> </td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="New N11 - E34"> </td><td style="width: 9%; text-align: right; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">-</td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="New N11 - E34"> </td><td> </td><td style="width: 1%; text-align: left; border-width: medium; border-style: none; border-color: currentcolor;" title="New N11 - G34"> </td><td style="width: 9%; text-align: right; border-width: medium; border-style: none; border-color: currentcolor;">-</td><td style="width: 1%; text-align: left; border-width: medium; border-style: none; border-color: currentcolor;" title="New N11 - G34"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Unvested at March 31, 2026</td><td> </td><td style="width: 1%; text-align: left; border-width: medium; border-style: none; border-color: currentcolor; border-image: initial;" title="New N11 - C35"> </td><td style="width: 9%; text-align: right; border-width: medium; border-style: none; border-color: currentcolor; border-image: initial;">1,022,727</td><td style="width: 1%; text-align: left; border-width: medium; border-style: none; border-color: currentcolor; border-image: initial;" title="New N11 - C35"> </td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="New N11 - E35">$</td><td style="width: 9%; text-align: right; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">2.25</td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="New N11 - E35"> </td><td> </td><td style="width: 1%; text-align: left; border-width: medium; border-style: none; border-color: currentcolor;" title="New N11 - G35"> </td><td style="width: 9%; text-align: right; border-width: medium; border-style: none; border-color: currentcolor;">3.69</td><td style="width: 1%; text-align: left; border-width: medium; border-style: none; border-color: currentcolor;" title="New N11 - G35"> </td></tr></table><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><span id="xdx_8B7_zlICt5T0wdJ2" style="display: none">SCHEDULE OF RESTRICTED STOCK UNITS ACTIVITY</span> </p><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">The Company used the Monte Carlo Simulation Model to value at the grant date the aggregate of <span id="xdx_903_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_pid_c20240101__20240131__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zWVzk82yGqgc" title="Restricted stock units, granted">632,911</span> market condition performance RSUs granted in January 2024 to the Company’s Chief Executive Officer. The assumptions used in the Monte Carlo Simulation were stock price on the date of grant equal to $<span id="xdx_909_eus-gaap--SharePrice_iI_pid_c20250630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_z5SEzm2kQYT4" title="Stock price">3.40</span>, a contract term of <span id="xdx_90D_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20250101__20250630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zsqF91PeAw0e" title="Contract term">10</span> years, expected volatility of <span id="xdx_90A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_pid_dp_uPure_c20250101__20250630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_z3ghMbQNJTp2" title="Expected volatility">78</span>% and risk-free interest rate of <span id="xdx_90A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_pid_dp_uPure_c20250101__20250630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zaw20qoz2Rwk" title="Risk-free interest rate">4.10</span>%. Vesting is based on sustained market capitalization of $<span id="xdx_906_ecustom--MarketCapital_iI_pn9n9_c20250630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zgIMg1YItXQ8" title="Market capital">1</span> billion, and the derived service period is <span id="xdx_905_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardAwardVestingPeriod_dtY_c20250101__20250630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zbiWexZHXWl7" title="Service period">4.3</span> years.</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">RSU expense was $351 and $1,278 for the three months ended March 31, 2026 and 2025, respectively. </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p></div><div> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><span style="text-decoration: underline">Share-Based Compensation Expense</span></p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p id="xdx_89D_eus-gaap--DisclosureOfShareBasedCompensationArrangementsByShareBasedPaymentAwardTextBlock_zLdpUzSeoP56" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">The Company recorded share-based compensation for options and RSUs in its statements of operations for the relevant periods as follows:</p> <p id="xdx_89D_eus-gaap--DisclosureOfShareBasedCompensationArrangementsByShareBasedPaymentAwardTextBlock_zLdpUzSeoP56-0" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr style="height: 0px; font-size: 0px;"><td></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td></tr><tr><td> </td><td> </td><td colspan="7" style="font-weight: bold; text-align: center; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">Three Months Ended March 31,</td></tr><tr><td> </td><td> </td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="New N11 - C40"> </td><td style="font-weight: bold; text-align: center; width: 9%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">2026</td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="New N11 - C40"> </td><td> </td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="New N11 - E40"> </td><td style="font-weight: bold; text-align: center; width: 9%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">2025</td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="New N11 - E40"> </td></tr><tr><td> </td><td> </td><td style="width: 1%;" title="New N11 - C41"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="New N11 - C41"> </td><td> </td><td style="width: 1%;" title="New N11 - E41"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="New N11 - E41"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Selling, general and administrative</td><td> </td><td style="width: 1%; text-align: left;" title="New N11 - C42">$</td><td style="width: 9%; text-align: right;">2,384</td><td style="width: 1%; text-align: left;" title="New N11 - C42"> </td><td> </td><td style="width: 1%; text-align: left;" title="New N11 - E42">$</td><td style="width: 9%; text-align: right;">1,603</td><td style="width: 1%; text-align: left;" title="New N11 - E42"> </td></tr><tr><td>Research and development</td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="New N11 - C43"> </td><td style="width: 9%; text-align: right; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">-</td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="New N11 - C43"> </td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="New N11 - E43"> </td><td style="width: 9%; text-align: right; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">62</td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="New N11 - E43"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Total share-based expense</td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="New N11 - C44">$</td><td style="width: 9%; text-align: right; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">2,384</td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="New N11 - C44"> </td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="New N11 - E44">$</td><td style="width: 9%; text-align: right; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">1,665</td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="New N11 - E44"> </td></tr></table><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> <span id="xdx_8BC_zyaVeOEOBwu4" style="display: none">SCHEDULE OF SHARE-BASED COMPENSATION FOR OPTIONS AND RESTRICTED STOCK UNITS</span></p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">As of March 31, 2026, total estimated compensation cost of stock options granted and outstanding but not yet vested was $8,707 which is expected to be recognized over the weighted average period of 2.94 years.</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">As of March 31, 2026, total estimated compensation cost of RSUs granted and outstanding but not yet vested was $<span id="xdx_908_eus-gaap--EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognizedStockOptions_iI_pn3n3_c20250630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zbusYqrmhGkb" title="Unrecognized stock-based compensation">1,004</span>, which is expected to be recognized over the weighted average period of 1.88<span id="xdx_901_eus-gaap--EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognizedPeriodForRecognition1_dtY_c20250101__20250630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zJ2zOZKvPuK6" title="Weighted average period"></span> years.</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p></div> 20500000 4033073 <p id="xdx_899_eus-gaap--ScheduleOfShareBasedCompensationStockOptionsActivityTableTextBlock_zQKS9NuvgsVk" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">The following table summarizes stock option activity for the three months ended March 31, 2026:</p> <p id="xdx_899_eus-gaap--ScheduleOfShareBasedCompensationStockOptionsActivityTableTextBlock_zQKS9NuvgsVk-0" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr style="height: 0px; font-size: 0px;"><td> </td><td style="width: 1%;"> </td><td style="width: 9%;"> </td><td style="width: 1%;"> </td><td style="width: 1%;"> </td><td style="width: 9%;"> </td><td style="width: 1%;"> </td><td style="width: 1%;"> </td><td style="width: 9%;"> </td><td style="width: 1%;"> </td><td style="width: 1%;"> </td><td style="width: 9%;"> </td><td style="width: 1%;"> </td></tr><tr style="height: 0px; font-size: 0px;"><td> </td><td style="width: 1%;"> </td><td style="width: 9%;"> </td><td style="width: 1%;"> </td><td style="width: 1%;"> </td><td style="width: 9%;"> </td><td style="width: 1%;"> </td><td style="width: 1%;"> </td><td style="width: 9%;"> </td><td style="width: 1%;"> </td><td style="width: 1%;"> </td><td style="width: 9%;"> </td><td style="width: 1%;"> </td></tr><tr><td> </td><td style="width: 1%;"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="New N11 - C4"> </td><td style="border-width: medium; border-style: none; border-color: currentcolor; width: 1%;"> </td><td colspan="4" style="text-align: center; font-weight: bold; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%;">Weighted Average </td><td style="text-align: center; font-weight: bold; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 1%;" title="FN11 Share-Based Compensation - E4"> </td><td style="border-width: medium; border-style: none; border-color: currentcolor; width: 1%;"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="New N11 - I4"> </td></tr><tr><td> </td><td style="width: 1%;"> </td><td style="text-align: center; font-weight: bold; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%;">Options on Common Shares</td><td style="border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 1%;" title="New N11 - C5"> </td><td style="width: 1%;"> </td><td style="text-align: center; font-weight: bold; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%;">Exercise Price</td><td style="border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 1%;" title="New N11 - E5"> </td><td style="width: 1%;"> </td><td style="text-align: center; font-weight: bold; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%;">Remaining Contractual Terms</td><td style="border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 1%;" title="New N11 - G5"> </td><td style="width: 1%;"> </td><td style="text-align: center; font-weight: bold; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%;">Aggregate Intrinsic Value</td><td style="border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 1%;" title="New N11 - I5"> </td></tr><tr><td> </td><td style="width: 1%;"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="New N11 - C6"> </td><td style="width: 1%;"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="New N11 - E6"> </td><td style="width: 1%;"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="New N11 - G6"> </td><td style="width: 1%;"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="New N11 - I6"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Outstanding December 31, 2025</td><td style="width: 1%; text-align: left;"></td><td style="width: 9%; text-align: right;">6,449,534</td><td style="width: 1%; text-align: left;" title="New N11 - C7"></td><td style="width: 1%; text-align: left;"></td><td style="width: 9%; text-align: right;">2.05</td><td style="width: 1%; text-align: left;" title="New N11 - E7"></td><td style="width: 1%; text-align: left;"></td><td style="width: 9%; text-align: right;">8.56</td><td style="width: 1%; text-align: left;" title="New N11 - G7"></td><td style="width: 1%; text-align: left;"></td><td style="width: 9%; text-align: right;">3,706</td><td style="width: 1%; text-align: left;" title="New N11 - I7"></td></tr><tr><td>Granted</td><td style="width: 1%; text-align: left;"></td><td style="width: 9%; text-align: right;">4,197,500</td><td style="width: 1%; text-align: left;" title="New N11 - C8"></td><td style="width: 1%; text-align: left;"></td><td style="width: 9%; text-align: right;">2.21</td><td style="width: 1%; text-align: left;" title="New N11 - E8"></td><td style="width: 1%; text-align: left;"></td><td style="width: 9%; text-align: right;">-</td><td style="width: 1%; text-align: left;" title="New N11 - G8"></td><td style="width: 1%; text-align: left;"></td><td style="width: 9%; text-align: right;">-</td><td style="width: 1%; text-align: left;" title="New N11 - I8"></td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Exercised</td><td style="width: 1%; text-align: left;"></td><td style="width: 9%; text-align: right;">-</td><td style="width: 1%; text-align: left;" title="New N11 - C9"></td><td style="width: 1%; text-align: left;"></td><td style="width: 9%; text-align: right;">-</td><td style="width: 1%; text-align: left;" title="New N11 - E9"></td><td style="width: 1%; text-align: left;"></td><td style="width: 9%; text-align: right;">-</td><td style="width: 1%; text-align: left;" title="New N11 - G9"></td><td style="width: 1%; text-align: left;"></td><td style="width: 9%; text-align: right;">-</td><td style="width: 1%; text-align: left;" title="New N11 - I9"></td></tr><tr><td>Forfeited, cancelled, expired</td><td style="width: 1%; text-align: left;"></td><td style="width: 9%; text-align: right; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">(300,000</td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="New N11 - C10">)</td><td style="width: 1%; text-align: left;"></td><td style="width: 9%; text-align: right;">2.45</td><td style="width: 1%; text-align: left;" title="New N11 - E10"></td><td style="width: 1%; text-align: left;"></td><td style="width: 9%; text-align: right;">-</td><td style="width: 1%; text-align: left;" title="New N11 - G10"></td><td style="width: 1%; text-align: left;"></td><td style="width: 9%; text-align: right;">-</td><td style="width: 1%; text-align: left;" title="New N11 - I10"></td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Outstanding March 31, 2026</td><td style="width: 1%; text-align: left;"></td><td style="width: 9%; text-align: right; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">10,347,034</td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="New N11 - C11"></td><td style="width: 1%; text-align: left;"></td><td style="width: 9%; text-align: right;">2.10</td><td style="width: 1%; text-align: left;" title="New N11 - E11"></td><td style="width: 1%; text-align: left;"></td><td style="width: 9%; text-align: right;">8.75</td><td style="width: 1%; text-align: left;" title="New N11 - G11"></td><td style="width: 1%; text-align: left;"></td><td style="width: 9%; text-align: right;">402</td><td style="width: 1%; text-align: left;" title="New N11 - I11"></td></tr><tr><td>Exercisable March 31, 2026</td><td style="width: 1%; text-align: left;"></td><td style="width: 9%; text-align: right; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">3,072,524</td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="New N11 - C12"></td><td style="width: 1%; text-align: left;"></td><td style="width: 9%; text-align: right;">2.31</td><td style="width: 1%; text-align: left;" title="New N11 - E12"></td><td style="width: 1%; text-align: left;"></td><td style="width: 9%; text-align: right;">7.79</td><td style="width: 1%; text-align: left;" title="New N11 - G12"></td><td style="width: 1%; text-align: left;"></td><td style="width: 9%; text-align: right;">141</td><td style="width: 1%; text-align: left;" title="New N11 - I12"></td></tr></table> 6449534 2.05 P8Y6M21D 3706000 4197500 2.21 0 0 300000 2.45 10347034 2.1 P8Y9M 402000 3072524 2.31 P7Y9M14D 141000 8981868 1365166 1290166 75000 <p id="xdx_89C_eus-gaap--ScheduleOfShareBasedPaymentAwardStockOptionsValuationAssumptionsTableTextBlock_zoa74hkT8rkk" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">The Company uses the Black-Scholes option pricing model to determine the fair value of the service-based options that have been granted. The following table summarizes the assumptions used to compute the fair value of options granted to employees and non-employees:</p><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr style="height: 0px; font-size: 0px;"><td></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td></tr><tr><td> </td><td> </td><td colspan="7" style="font-weight: bold; text-align: center; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">Three Months Ended March 31,</td></tr><tr><td> </td><td> </td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="New N11 - C17"> </td><td style="font-weight: bold; text-align: center; width: 9%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">2026</td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="New N11 - C17"> </td><td> </td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="New N11 - E17"> </td><td style="text-align: center; font-weight: bold; width: 9%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">2025</td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="New N11 - E17"> </td></tr><tr><td> </td><td> </td><td style="width: 1%;" title="New N11 - C18"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="New N11 - C18"> </td><td> </td><td style="width: 1%;" title="New N11 - E18"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="New N11 - E18"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Expected stock price volatility</td><td> </td><td style="width: 1%; text-align: left;" title="New N11 - C19"> </td><td style="width: 9%; text-align: right;">76</td><td style="width: 1%; text-align: left;" title="New N11 - C19">%</td><td> </td><td style="width: 1%; text-align: left;" title="New N11 - E19"> </td><td style="width: 9%; text-align: right;">76</td><td style="width: 1%; text-align: left;" title="New N11 - E19">%</td></tr><tr><td>Risk-free interest rate</td><td> </td><td style="width: 1%; text-align: left;" title="New N11 - C20"> </td><td style="width: 9%; text-align: right;">3.87</td><td style="width: 1%; text-align: left;" title="New N11 - C20">%</td><td> </td><td style="width: 1%; text-align: left;" title="New N11 - E20"> </td><td style="width: 9%; text-align: right;">4.28</td><td style="width: 1%; text-align: left;" title="New N11 - E20">%</td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Expected dividend yield</td><td> </td><td style="width: 1%; text-align: left;" title="New N11 - C21"> </td><td style="width: 9%; text-align: right;">0</td><td style="width: 1%; text-align: left;" title="New N11 - C21">%</td><td> </td><td style="width: 1%; text-align: left;" title="New N11 - E21"> </td><td style="width: 9%; text-align: right;">0</td><td style="width: 1%; text-align: left;" title="New N11 - E21">%</td></tr><tr><td>Expected life of options</td><td> </td><td style="width: 1%; text-align: left;" title="New N11 - C22"> </td><td style="width: 9%; text-align: right;">6</td><td style="width: 1%; text-align: left;" title="New N11 - C22"> </td><td> </td><td style="width: 1%; text-align: left;" title="New N11 - E22"> </td><td style="width: 9%; text-align: right;">6</td><td style="width: 1%; text-align: left;" title="New N11 - E22"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Weighted-average fair value of options granted</td><td> </td><td style="width: 1%; text-align: left;" title="New N11 - C23">$</td><td style="width: 9%; text-align: right;">1.55</td><td style="width: 1%; text-align: left;" title="New N11 - C23"> </td><td> </td><td style="width: 1%; text-align: left;" title="New N11 - E23">$</td><td style="width: 9%; text-align: right;">1.47</td><td style="width: 1%; text-align: left;" title="New N11 - E23"> </td></tr></table> 0.76 0.76 0.0387 0.0428 0 0 P6Y P6Y 1.55 1.47 0 2033000 387000 <p id="xdx_89C_eus-gaap--ScheduleOfNonvestedRestrictedStockUnitsActivityTableTextBlock_zwq1l13Jxyef" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">The 2017 Plan provides for the grant of restricted stock units (“RSUs”). RSUs are settled in shares of the Company’s Common Stock as the RSUs vest. The following table summarizes RSU activity for the three months ended March 31, 2026:</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr style="height: 0px; font-size: 0px;"><td></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td></tr><tr><td> </td><td> </td><td style="width: 1%;" title="New N11 - C28"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="New N11 - C28"> </td><td> </td><td colspan="7" style="font-weight: bold; text-align: center; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">Weighted Average</td></tr><tr><td> </td><td> </td><td style="width: 1%;" title="New N11 - C29"> </td><td style="font-weight: bold; text-align: center; width: 9%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">Service-Based RSUs</td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="New N11 - C29"> </td><td> </td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="New N11 - E29"> </td><td style="font-weight: bold; text-align: center; width: 9%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">Grant Date Fair Value</td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="New N11 - E29"> </td><td> </td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="New N11 - G29"> </td><td style="font-weight: bold; text-align: center; width: 9%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">Vesting Period (Years)</td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="New N11 - G29"> </td></tr><tr><td> </td><td> </td><td style="width: 1%;" title="New N11 - C30"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="New N11 - C30"> </td><td> </td><td style="width: 1%;" title="New N11 - E30"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="New N11 - E30"> </td><td> </td><td style="width: 1%;" title="New N11 - G30"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="New N11 - G30"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Unvested at December 31, 2025</td><td> </td><td style="width: 1%; text-align: left;" title="New N11 - C31"> </td><td style="width: 9%; text-align: right;">1,014,563</td><td style="width: 1%; text-align: left;" title="New N11 - C31"> </td><td> </td><td style="width: 1%; text-align: left;" title="New N11 - E31">$</td><td style="width: 9%; text-align: right;">2.23</td><td style="width: 1%; text-align: left;" title="New N11 - E31"> </td><td> </td><td style="width: 1%; text-align: left;" title="New N11 - G31"> </td><td style="width: 9%; text-align: right;">3.62</td><td style="width: 1%; text-align: left;" title="New N11 - G31"> </td></tr><tr><td>Granted service based</td><td> </td><td style="width: 1%; text-align: left;" title="New N11 - C32"> </td><td style="width: 9%; text-align: right;">81,052</td><td style="width: 1%; text-align: left;" title="New N11 - C32"> </td><td> </td><td style="width: 1%; text-align: left;" title="New N11 - E32"> </td><td style="width: 9%; text-align: right;">2.46</td><td style="width: 1%; text-align: left;" title="New N11 - E32"> </td><td> </td><td style="width: 1%; text-align: left;" title="New N11 - G32"> </td><td style="width: 9%; text-align: right;">-</td><td style="width: 1%; text-align: left;" title="New N11 - G32"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Vested</td><td> </td><td style="width: 1%; text-align: left; border-width: medium; border-style: none; border-color: currentcolor; border-image: initial;" title="New N11 - C33"> </td><td style="width: 9%; text-align: right; border-width: medium; border-style: none; border-color: currentcolor; border-image: initial;">(72,888</td><td style="width: 1%; text-align: left; border-width: medium; border-style: none; border-color: currentcolor; border-image: initial;" title="New N11 - C33">) </td><td> </td><td style="width: 1%; text-align: left;" title="New N11 - E33"> </td><td style="width: 9%; text-align: right;">2.26</td><td style="width: 1%; text-align: left;" title="New N11 - E33"> </td><td> </td><td style="width: 1%; text-align: left;" title="New N11 - G33"> </td><td style="width: 9%; text-align: right;">-</td><td style="width: 1%; text-align: left;" title="New N11 - G33"> </td></tr><tr><td>Forfeited and cancelled</td><td> </td><td style="width: 1%; text-align: left; border-width: medium; border-style: none; border-color: currentcolor;" title="New N11 - C34"> </td><td style="width: 9%; text-align: right; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">-</td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="New N11 - C34"> </td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="New N11 - E34"> </td><td style="width: 9%; text-align: right; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">-</td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="New N11 - E34"> </td><td> </td><td style="width: 1%; text-align: left; border-width: medium; border-style: none; border-color: currentcolor;" title="New N11 - G34"> </td><td style="width: 9%; text-align: right; border-width: medium; border-style: none; border-color: currentcolor;">-</td><td style="width: 1%; text-align: left; border-width: medium; border-style: none; border-color: currentcolor;" title="New N11 - G34"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Unvested at March 31, 2026</td><td> </td><td style="width: 1%; text-align: left; border-width: medium; border-style: none; border-color: currentcolor; border-image: initial;" title="New N11 - C35"> </td><td style="width: 9%; text-align: right; border-width: medium; border-style: none; border-color: currentcolor; border-image: initial;">1,022,727</td><td style="width: 1%; text-align: left; border-width: medium; border-style: none; border-color: currentcolor; border-image: initial;" title="New N11 - C35"> </td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="New N11 - E35">$</td><td style="width: 9%; text-align: right; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">2.25</td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="New N11 - E35"> </td><td> </td><td style="width: 1%; text-align: left; border-width: medium; border-style: none; border-color: currentcolor;" title="New N11 - G35"> </td><td style="width: 9%; text-align: right; border-width: medium; border-style: none; border-color: currentcolor;">3.69</td><td style="width: 1%; text-align: left; border-width: medium; border-style: none; border-color: currentcolor;" title="New N11 - G35"> </td></tr></table> 1014563 2.23 P3Y7M13D 81052 2.46 72888 2.26 0 0 1022727 2.25 P3Y8M8D 632911 3.4 P10Y 0.78 0.041 1000000000 P4Y3M18D 351000 1278000 <p id="xdx_89D_eus-gaap--DisclosureOfShareBasedCompensationArrangementsByShareBasedPaymentAwardTextBlock_zLdpUzSeoP56" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">The Company recorded share-based compensation for options and RSUs in its statements of operations for the relevant periods as follows:</p> <p id="xdx_89D_eus-gaap--DisclosureOfShareBasedCompensationArrangementsByShareBasedPaymentAwardTextBlock_zLdpUzSeoP56-0" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr style="height: 0px; font-size: 0px;"><td></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td></tr><tr><td> </td><td> </td><td colspan="7" style="font-weight: bold; text-align: center; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">Three Months Ended March 31,</td></tr><tr><td> </td><td> </td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="New N11 - C40"> </td><td style="font-weight: bold; text-align: center; width: 9%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">2026</td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="New N11 - C40"> </td><td> </td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="New N11 - E40"> </td><td style="font-weight: bold; text-align: center; width: 9%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">2025</td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="New N11 - E40"> </td></tr><tr><td> </td><td> </td><td style="width: 1%;" title="New N11 - C41"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="New N11 - C41"> </td><td> </td><td style="width: 1%;" title="New N11 - E41"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="New N11 - E41"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Selling, general and administrative</td><td> </td><td style="width: 1%; text-align: left;" title="New N11 - C42">$</td><td style="width: 9%; text-align: right;">2,384</td><td style="width: 1%; text-align: left;" title="New N11 - C42"> </td><td> </td><td style="width: 1%; text-align: left;" title="New N11 - E42">$</td><td style="width: 9%; text-align: right;">1,603</td><td style="width: 1%; text-align: left;" title="New N11 - E42"> </td></tr><tr><td>Research and development</td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="New N11 - C43"> </td><td style="width: 9%; text-align: right; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">-</td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="New N11 - C43"> </td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="New N11 - E43"> </td><td style="width: 9%; text-align: right; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">62</td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="New N11 - E43"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Total share-based expense</td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="New N11 - C44">$</td><td style="width: 9%; text-align: right; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">2,384</td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="New N11 - C44"> </td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="New N11 - E44">$</td><td style="width: 9%; text-align: right; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">1,665</td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="New N11 - E44"> </td></tr></table> 2384000 1603000 0 62000 2384000 1665000 8707000 P2Y11M8D 1004000 P1Y10M17D <div> <p id="xdx_802_eus-gaap--DefinedContributionPlanTextBlock_zbJLduuLI7W1" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><b>12. <span id="xdx_82B_z4WSwaEGOQ56">DEFINED CONTRIBUTION PLAN</span></b></p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">The Company has a defined contribution savings plan for all eligible U.S. employees established under the provisions of Section 401(k) of the Internal Revenue Code. This plan was formed on January 1, 2022. Eligible employees may contribute a percentage of their salary subject to certain limitations. The Company’s matching contributions were $13 and $0 for the three months ended March 31, 2026 and 2025, respectively.</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> </div> 13000 0 <div> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p id="xdx_809_eus-gaap--CommitmentsAndContingenciesDisclosureTextBlock_zSp6Ma869093" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><b>13. <span id="xdx_82C_zRShBvGxVuzd">COMMITMENTS AND CONTINGENCIES</span></b></p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><span style="text-decoration: underline">Purchase Commitments</span></p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">As of March 31, 2026, the Company was committed for approximately $541 for future component deliveries that are generally subject to modification or rescheduling in the normal course of business.</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><span style="text-decoration: underline">Indemnifications and Guarantees</span></p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">Our officers and directors are indemnified as to personal liability as provided by Delaware law and the Company’s certificate of incorporation and bylaws. The Company may also undertake indemnification obligations in the ordinary course of business related to its operations. The Company is unable to estimate with any reasonable accuracy the liability that may be incurred pursuant to any such indemnification obligations now or in the future. Because of the uncertainty surrounding these circumstances, the Company’s current or future indemnification obligations could range from immaterial to having a material adverse impact on its financial position and its ability to continue in the ordinary course of business. The Company has no liabilities recorded for such indemnities.</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><span style="text-decoration: underline">Litigation</span></p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">The Company is subject to litigation and other claims in the ordinary course of business. The Company records a provision for a liability relating to legal matters when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These provisions are reviewed and adjusted to include the impacts of negotiations, estimated settlements, legal rulings, advice of legal counsel, and other information and events pertaining to a particular matter. As of March 31, 2026, the Company had no provision for liability under existing litigation.</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> </div> 541000 <div> <p id="xdx_806_eus-gaap--RelatedPartyTransactionsDisclosureTextBlock_zthdmYfmVT7g" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><b>14. <span id="xdx_823_z9i1UXXIJW2a">RELATED PARTY TRANSACTIONS</span></b></p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><i>Series A Preferred Stock</i></p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-size-adjust: none; font-language-override: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-variant-emoji: normal; font-stretch: normal; line-height: normal; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">Scot Cohen, the Company's Executive Chairman and Chief Executive Officer, holds directly and through V4 Global LLC ("V4"), an entity he controls, shares of Series A Preferred Stock and related warrants. For the three months ended March 31, 2026, Mr. Cohen earned dividends totaling<span style="background-color: rgb(255, 255, 255);"> $91 o</span>n his Series A Preferred Stock.</p><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p></div><div> <p style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-size-adjust: none; font-language-override: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-variant-emoji: normal; font-stretch: normal; line-height: normal; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><i>Series B Preferred Stock </i></p><p style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-size-adjust: none; font-language-override: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-variant-emoji: normal; font-stretch: normal; line-height: normal; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p><p style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-size-adjust: none; font-language-override: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-variant-emoji: normal; font-stretch: normal; line-height: normal; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> In the private placement of Series B Preferred Stock completed August 18, 2025, V4 purchased 1,000 shares of Series B Preferred Stock and 666,667 Series B Warrants for gross proceeds of $1,000. </p><p style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-size-adjust: none; font-language-override: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-variant-emoji: normal; font-stretch: normal; line-height: normal; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p><p style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-size-adjust: none; font-language-override: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-variant-emoji: normal; font-stretch: normal; line-height: normal; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><i>PIPE Warrants </i></p><p style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-size-adjust: none; font-language-override: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-variant-emoji: normal; font-stretch: normal; line-height: normal; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p><p style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-size-adjust: none; font-language-override: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-variant-emoji: normal; font-stretch: normal; line-height: normal; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">In the February 2025 private placement, V4 purchased 1,100,000 shares of Common Stock and 1,100,000 PIPE Warrants for gross proceeds of $1,980; Continuum Ventures, LLC (controlled by Jared Novick, President and Chief Operating Officer) purchased 275,000 shares of Common Stock and 275,000 PIPE Warrants for gross proceeds of $495; and Savbo Investments LLC (controlled by Marc Savas, a Board member) purchased 50,000 shares of Common Stock and 50,000 PIPE Warrants for gross proceeds of $90. In the February 2026 private placement, V4 purchased 475,000 shares of Common Stock and 475,000 February 2026 Common Warrants for gross proceeds of $950; Savbo Investments LLC purchased 25,000 shares of Common Stock and 25,000 February 2026 Common Warrants for gross proceeds of $50; and Juggernaut Management, LLC (controlled by John Shulman, a Board member) purchased 250,000 shares of Common Stock and 250,000 February 2026 Common Warrants for gross proceeds of $500.</p><p style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-size-adjust: none; font-language-override: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-variant-emoji: normal; font-stretch: normal; line-height: normal; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p><p style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-size-adjust: none; font-language-override: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-variant-emoji: normal; font-stretch: normal; line-height: normal; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><i>License Agreement </i></p><p style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-size-adjust: none; font-language-override: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-variant-emoji: normal; font-stretch: normal; line-height: normal; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p><p style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-size-adjust: none; font-language-override: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-variant-emoji: normal; font-stretch: normal; line-height: normal; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">The Company is party to a royalty license with Syzygy, a company owned by Elwood G. Norris, a 5% or greater stockholder, and James A. Barnes, a stockholder. </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> </div> 91000 1000 666667 1000000 1100000 1100000 1980000 275000 275000 495000 50000 50000 90000 475000 475000 950 25000 25000 50 250000 250000 500 0.05 <div> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p id="xdx_80E_eus-gaap--ConcentrationRiskDisclosureTextBlock_z1iApJrr8ya4" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><b>15. <span id="xdx_827_znMAnP8Whfr6">MAJOR CUSTOMERS AND RELATED INFORMATION</span></b></p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-size-adjust: none; font-language-override: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-variant-emoji: normal; font-stretch: normal; line-height: normal; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">For the three months ended March 31, 2026, revenue from one customer accounted for approximatel<span style="background-color: rgb(255, 255, 255);">y 40% </span>of revenue, with no other single customer accounting for more than 10% of total revenue. For the three months ended March 31, 2025, revenue from three customers accounted for approximately 13%, 13% and 11% of revenue, respectively.</p><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p><p style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-size-adjust: none; font-language-override: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-variant-emoji: normal; font-stretch: normal; line-height: normal; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">At March 31, 2026, accounts receivable from three distributors accounted for 29%, 24%, and 14% of net accounts receivable and contract assets with no other single customer accounting for more than 10% of the accounts receivable and contract assets balance. At December 31, 2025, accounts receivable from two distributors accounted for 71% and 10%, respectively of net accounts receivable and contract assets, with no other single customer accounting for more than 10% of the accounts receivable and contract assets balance.</p><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">  </p> <p id="xdx_898_eus-gaap--DisaggregationOfRevenueTableTextBlock_zZz1oTZikLX7" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">The following table summarizes revenue by geographic region. Revenue is attributed to countries based on customer’s delivery location:</p> <p id="xdx_898_eus-gaap--DisaggregationOfRevenueTableTextBlock_zZz1oTZikLX7-0" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr style="height: 0px; font-size: 0px;"><td></td><td></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td></tr><tr><td> </td><td> </td><td colspan="7" style="font-weight: bold; text-align: center; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">Three Months Ended March 31,</td></tr><tr><td> </td><td> </td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 15 Revenue by shipped to country - C5"> </td><td style="font-weight: bold; text-align: center; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%;">2026</td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 15 Revenue by shipped to country - C5"> </td><td> </td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 15 Revenue by shipped to country - E5"> </td><td style="font-weight: bold; text-align: center; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%;">2025</td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 15 Revenue by shipped to country - E5"> </td></tr><tr><td> </td><td> </td><td style="width: 1%;" title="FN 15 Revenue by shipped to country - C6"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="FN 15 Revenue by shipped to country - C6"> </td><td> </td><td style="width: 1%;" title="FN 15 Revenue by shipped to country - E6"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="FN 15 Revenue by shipped to country - E6"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Americas</td><td> </td><td style="width: 1%; text-align: left;" title="FN 15 Revenue by shipped to country - C7">$</td><td style="width: 9%; text-align: right;">645</td><td style="width: 1%; text-align: left;" title="FN 15 Revenue by shipped to country - C7"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN 15 Revenue by shipped to country - E7">$</td><td style="width: 9%; text-align: right;">651</td><td style="width: 1%; text-align: left;" title="FN 15 Revenue by shipped to country - E7"> </td></tr><tr><td>Europe, Middle East and Africa</td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 15 Revenue by shipped to country - C8"> </td><td style="width: 9%; text-align: right; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">466</td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 15 Revenue by shipped to country - C8"> </td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 15 Revenue by shipped to country - E8"> </td><td style="width: 9%; text-align: right; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">114</td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 15 Revenue by shipped to country - E8"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Total revenues</td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 15 Revenue by shipped to country - C10">$</td><td style="width: 9%; text-align: right; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">1,111</td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 15 Revenue by shipped to country - C10"> </td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 15 Revenue by shipped to country - E10">$</td><td style="width: 9%; text-align: right; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">765</td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 15 Revenue by shipped to country - E10"> </td></tr></table><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><span id="xdx_8BA_zptgPt2cQGr9" style="display: none">SCHEDULE OF DISAGGREGATION OF REVENUE</span></p> <p id="xdx_8AA_z4WZjPjqyYH2" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p></div> 1 0.40 3 0.13 0.13 0.11 3 0.29 0.24 0.14 2 0.71 0.10 <p id="xdx_898_eus-gaap--DisaggregationOfRevenueTableTextBlock_zZz1oTZikLX7" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">The following table summarizes revenue by geographic region. Revenue is attributed to countries based on customer’s delivery location:</p> <p id="xdx_898_eus-gaap--DisaggregationOfRevenueTableTextBlock_zZz1oTZikLX7-0" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr style="height: 0px; font-size: 0px;"><td></td><td></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td></tr><tr><td> </td><td> </td><td colspan="7" style="font-weight: bold; text-align: center; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">Three Months Ended March 31,</td></tr><tr><td> </td><td> </td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 15 Revenue by shipped to country - C5"> </td><td style="font-weight: bold; text-align: center; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%;">2026</td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 15 Revenue by shipped to country - C5"> </td><td> </td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 15 Revenue by shipped to country - E5"> </td><td style="font-weight: bold; text-align: center; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%;">2025</td><td style="width: 1%; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 15 Revenue by shipped to country - E5"> </td></tr><tr><td> </td><td> </td><td style="width: 1%;" title="FN 15 Revenue by shipped to country - C6"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="FN 15 Revenue by shipped to country - C6"> </td><td> </td><td style="width: 1%;" title="FN 15 Revenue by shipped to country - E6"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="FN 15 Revenue by shipped to country - E6"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Americas</td><td> </td><td style="width: 1%; text-align: left;" title="FN 15 Revenue by shipped to country - C7">$</td><td style="width: 9%; text-align: right;">645</td><td style="width: 1%; text-align: left;" title="FN 15 Revenue by shipped to country - C7"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN 15 Revenue by shipped to country - E7">$</td><td style="width: 9%; text-align: right;">651</td><td style="width: 1%; text-align: left;" title="FN 15 Revenue by shipped to country - E7"> </td></tr><tr><td>Europe, Middle East and Africa</td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 15 Revenue by shipped to country - C8"> </td><td style="width: 9%; text-align: right; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">466</td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 15 Revenue by shipped to country - C8"> </td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 15 Revenue by shipped to country - E8"> </td><td style="width: 9%; text-align: right; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);">114</td><td style="width: 1%; text-align: left; border-width: medium medium 1px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 15 Revenue by shipped to country - E8"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Total revenues</td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 15 Revenue by shipped to country - C10">$</td><td style="width: 9%; text-align: right; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">1,111</td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 15 Revenue by shipped to country - C10"> </td><td> </td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 15 Revenue by shipped to country - E10">$</td><td style="width: 9%; text-align: right; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);">765</td><td style="width: 1%; text-align: left; border-width: medium medium 3px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" title="FN 15 Revenue by shipped to country - E10"> </td></tr></table> 645000 651000 466000 114000 1111000 765000 <div> <p id="xdx_807_eus-gaap--SubsequentEventsTextBlock_zKDTImdBX7md" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><b>16. <span id="xdx_821_zhUbD62Wx2D8">SUBSEQUENT EVENTS</span></b></p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-size-adjust: none; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-variant-emoji: normal; font-stretch: normal; line-height: normal; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">The Company has reviewed activities through May 13, 2026, the date on which this Quarterly Report on Form 10-Q was filed with the Securities and Exchange Commission, and has determined there are no subsequent events requiring disclosure in accordance with ASC 855-10-25-1.</p><p style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-size-adjust: none; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-variant-emoji: normal; font-stretch: normal; line-height: normal; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p><p style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-size-adjust: none; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-variant-emoji: normal; font-stretch: normal; line-height: normal; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p></div> false false false false 1 1 P6Y6M P5Y6M 0001702924 false Q1 --12-31