ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
Mar. 31, 2026
Organization, Consolidation and Presentation of Financial Statements [Abstract]
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES This summary of accounting policies for Capstone Companies, Inc. (“CAPC”, “Company”, “we”, “our” or “us”), a Florida corporation and its wholly owned subsidiaries is presented to assist in understanding the Company’s consolidated financial statements. The accounting policies conform to accounting principles generally accepted in the United States of America (“U.S. GAAP”) and have been consistently applied in the preparation of the consolidated financial statements. Organization and Basis of Presentation The condensed consolidated financial statements contained in this report are unaudited. In the opinion of management, the condensed consolidated financial statements include all adjustments, which are of a normal recurring nature, necessary to present fairly the Company’s financial position as of March 31, 2026, and results of operations, changes in stockholders’ deficit and cash flows for the three months ended March 31, 2026 and 2025. All material intercompany accounts and transactions are eliminated in consolidation. These condensed consolidated financial statements and notes are presented in accordance with the rules and regulations of the SEC relating to interim financial statements and in conformity with U.S. GAAP. Certain information and note disclosures have been condensed or omitted in the condensed financial statements pursuant to SEC rules and regulations, although the Company believes that the disclosures made herein are adequate to make the information not misleading. The condensed unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and notes in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025 (collectively the “2025 Annual Report”) filed with the SEC on April 1, 2026. The operating results for any interim period are not necessarily indicative of the operating results to be expected for any other interim period or the full fiscal year. Liquidity and Going Concern The accompanying unaudited condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. As of March 31, 2026, the Company had negative working capital of $551,338, an accumulated deficit of $12,772,037, a cash balance of $257,040, and short- term notes payable of $819,378. Further, during the three months ended March 31, 2026, the Company incurred a net loss of $92,269 and used cash in operations of $77,082. These liquidity conditions raise substantial doubt about the Company’s ability to continue as a going concern. The Company is actively seeking alternative sources of liquidity, including but not limited to accessing the capital markets, strategic partnerships, or other alternative financing measures. However, instability in, or tightening of the capital markets, could adversely affect our ability to access the capital markets on terms acceptable to us. An economic recession or a slow recovery could adversely affect our business and liquidity. The lack of operating income from products and the financial condition of the Company are also hindering efforts to locate working capital funding. Unless the Company succeeds in raising additional capital or successfully increases cash generated from operations, management has concluded that there is substantial doubt about the Company’s ability to continue as a going concern for a period of one year after the date these financial statements are issued. The Company’s consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. Nature of Business The Company has its principal executive offices in Deerfield Beach, Florida. On March 3, 2026, the Company entered into a promissory note with eBliss Global, Inc. (“Note”), a private early-stage Delaware corporation engaged in the developing and production of e-mobility solutions (including and initially making e-bikes as transportation vehicles at a Utica, New York factory). The interest rate under the Note is seven percent simple annual interest. Principal and accrued interest are due in a single lump sum payment due on March 4, 2027. The Note is unsecured and does not provide for a conversion of debt-to-equity securities. The Loan is being made to supply working capital to the Company and as partial consideration for a 90-day ‘no shop’ provision in the e-Bliss Note. During the 90 days following the funding of the principal of the Note (“No Shop Period”), the Company will not entertain third party proposals for a merger, business combination, stock or asset acquisition, strategic alliance or joint venture for product development or similar transactions (collectively, “Transactions”) and will cease any third party discussions for any Transactions for the No Shop Period, except that the Company may entertain third party proposals during the last 30 days of the No Shop Period if the Company and eBliss have not signed a definitive agreement or letter of intent for a Transaction during the first 60 days of the No Shop Period and the third party proposal is deemed ‘superior’ to any existing proposal for a Transaction from eBliss, if any. The purpose of the ‘no shop’ provision is to afford the Company and eBliss an opportunity to discuss the possibility and feasibility of a mutually beneficial Transaction by eBliss and the Company and conduct any desired due diligence. Status of No Shop Period and Related Discussions. As of the date of the filing of this Form 10-Q, the Company and eBliss have not signed a letter of intent or other agreement for any Transactions and have not otherwise reached any mutual agreement on the terms and conditions of any Transactions. The Company and eBliss may fail to reach any agreement for a Transaction or to pursue or consummate any Transactions. As of the date of the filing of this Form 10-Q, the sixty day unconditional period of the No Shop Period has expired without the Company and eBliss agreeing to, or signing any agreement for, any Transaction, or otherwise reaching agreement or consent on terms and conditions of any Transactions. The No Shop Period will expire as of June 1, 2026. There can be no assurance that the Company and eBliss will sign any agreement for or pursue or consummate any Transactions. eBliss is not restricted from negotiating or entering into an agreement, or from consummating any transaction or series of transactions, for a merger, other business combination, debt or equity funding or a similar transaction with a third party. eBliss may elect to pursue other opportunities or offers for a merger, other business combination, debt or equity funding or a similar transaction with a third party instead of pursuing or entering into or consummating any Transactions with the Company. Company believes that eBliss is actively seeking funding for working capital and that search may result in eBliss seeking alternative transactions to a Transaction with the Company or delaying consideration of any Transactions with the Company. eBliss also has no obligation to disclose to the Company any negotiations or signing of any agreement or consummating any merger, other business combination, debt or equity funding or a similar transaction with the Company. Health, Fitness and Social Industries. During 2024, the Company commenced its business development efforts for a business line or possible software development project focused on year-round health, fitness and social activities (this business line being referred to as “HFS” or “HFS business”). The Company’s HFS business development efforts were suspended in March 2026 upon commencement of a 90-day no-shop period pursuant to the Company’s agreement with eBliss (the “No-Shop Period”), during which the Company is restricted from soliciting or entering into transactions with third parties with respect to the HFS business. The Company has funded its corporate overhead and HFS-related business development activities through debt financing; however, such funding has not been sufficient to fund the acquisition of, or launch of, a new business operation. The Company’s ability to continue operations is dependent upon its ability to obtain additional financing. There can be no assurance that such financing will be available on acceptable terms, or at all. The Company’s operations through March 31, 2026 consisted of only one reportable segment for financial reporting purposes, Corporate Business Development. Concentrations of Credit Risk Cash is deposited with major banks in the United States. From time to time, such deposits may be in excess of insured limit. Generally, the FDIC limit per bank is $250,000. Any loss incurred or a lack of access to such funds above the FDIC limit could have a significant adverse impact on the Company’s financial condition, results of operations and cash flows. Fair Value of Financial Instruments The carrying amounts of cash, prepaid expenses, accounts payable and accrued expenses, a approximate their fair value due to their short-term nature. The carrying amounts of the Company’s debt approximates fair value as the stated interest rates are consistent with current market rates for similar instruments. Earnings (Loss) Per Common Share Basic loss per common share is computed by dividing net loss attributable to common stockholders by the weighted-average number of common shares outstanding during the three months ended March 31, 2026 and 2025. Diluted loss per common share includes the effect of potentially dilutive securities only when their effect is dilutive. For the three months ended March 31, 2026 and 2025, the Company reported a net loss; therefore, all potentially dilutive common stock equivalents were excluded from diluted loss per common share because their effect would have been anti-dilutive. Accordingly, basic and diluted loss per common share were the same for each period presented. For the three months ended March 31, 2026, potentially dilutive securities excluded from diluted loss per common share consisted of 8,288 shares issuable upon exercise of stock options, 199,733 shares issuable upon exercise of warrants, and 50,999,900 shares issuable upon conversion of 765,075 shares of Series B-1 Convertible Preferred Stock. For the three months ended March 31, 2025, potentially dilutive securities excluded from diluted loss per common share consisted of 208,288 shares issuable upon exercise of stock options, 199,733 shares issuable upon exercise of warrants, and 50,999,900 shares issuable upon conversion of 765,075 shares of Series B-1 Convertible Preferred Stock. Reclassifications Company identified a historical misclassification within stockholders’ equity. Specifically, treasury stock repurchases had previously been presented as a reduction to additional paid-in capital (“APIC”) instead of being separately presented as treasury stock, at cost, within stockholders’ equity. Accordingly, the Company has reclassified these amounts to treasury stock within stockholders’ equity on the consolidated balance sheets and statements of stockholders’ equity for all periods presented. This reclassification resulted in a reduction of additional paid-in capital and a corresponding increase in treasury stock, with no impact on total stockholders’ equity, net loss, or cash flows for the periods ended March 31, 2026 and 2025. The reclassification has been applied retrospectively to the prior period to conform to the current period presentation. Comprehensive Loss The Company follows Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 220.10, “Reporting Comprehensive Income (Loss)”. Comprehensive loss is a more inclusive financial reporting methodology that includes disclosure of certain financial information that historically has not been recognized in the calculation of net loss. Since the Company has no items of other comprehensive loss, comprehensive loss is equal to net loss. Income Taxes The Company is subject to income taxes in the U.S. federal jurisdiction and the state of Florida. The Company accounts for income taxes under the provisions of Financial Accounting Standards Board (“FASB” Accounting Standards Codification (“ASC”) Topic 740 Income Taxes. ASC 740 requires recognition of deferred income tax assets and liabilities for the expected future income tax consequences, based on enacted tax laws, of temporary differences between the financial reporting and tax bases of assets and liabilities. The Company and its U.S. subsidiaries file consolidated income tax returns. Deferred tax assets are reduced by a valuation allowance when, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Due to the Company’s history of losses, the Company has recorded a valuation allowance against its net deferred tax assets. For the three months ended March 31, 2026 and 2025, the Company recorded no income tax benefit due to the full valuation allowance recorded against its net deferred tax assets. The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized upon settlement. The Company’s policy is to record interest and penalties associated with unrecognized tax benefits as additional income taxes in the statement of operations. As of January 1, 2026, the Company had no unrecognized tax benefits, or any tax related interest or penalties, and it does not expect significant changes in the amount of unrecognized tax benefits to occur within the next twelve months. There were no changes in the Company’s unrecognized tax benefits during the three months ended March 31, 2026. The Company did not recognize any interest or penalties during 2026 related to unrecognized tax benefits. Tax regulations within each jurisdiction are subject to the interpretation of the related tax laws and regulations and require significant judgement to apply. The Company is subject to U.S. federal, state and local tax examinations by tax authorities generally for a period of 3 years from the later of the due date of the related return or the date the return is filed. Stock Based Compensation The Company accounts for stock-based compensation in accordance with FASB ASC Topic 718, Compensation—Stock Compensation. ASC 718 requires the measurement and recognition of compensation expense for share-based payment awards, including stock options, based on the estimated grant-date fair value of the awards. The Company estimates the fair value of stock option awards on the date of grant using an option-pricing model. Compensation expense is recognized on a straight-line basis over the requisite service period of the awards. The Company accounts for forfeitures as they occur. Stock-based compensation expense recognized for the three months ended March 31, 2026 and 2025 was $0. Use of Estimates The preparation of unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures. Actual results could differ from those estimates. Recently Issued Accounting Pronouncements Not Yet Adopted In November 2024, the FASB issued Accounting Standards Update No. 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (“ASU 2024-03”), and in January 2025, the FASB issued Accounting Standards Update No. 2025-01, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date (“ASU 2025-01”). ASU 2024-03 requires additional disclosure of the nature of expenses included in the income statement as well as disclosures about specific types of expenses included in the expense captions presented in the income statement. ASU 2024-03, as clarified by ASU 2025-01, is effective for us for our annual reporting for fiscal 2028 and for interim period reporting beginning in fiscal 2029 on a prospective basis. Both early adoption and retrospective application are permitted. The Company is currently evaluating the impact that the adoption of these standards will have on its consolidated financial statements and disclosures. The Company continually assesses any new accounting pronouncements to determine their applicability to the Company. Where it is determined that a new accounting pronouncement affects the Company’s financial reporting, the Company undertakes a study to determine the consequence of the change to its financial statements and assures that there are proper controls in place to ascertain that the Company’s financials properly reflect the change.

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3 Months Ended

Mar. 31, 2026

Organization, Consolidation and Presentation of Financial Statements [Abstract]

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

This summary of accounting policies for Capstone Companies, Inc. (“CAPC”, “Company”, “we”, “our” or “us”), a Florida corporation and its wholly owned subsidiaries is presented to assist in understanding the Company’s consolidated financial statements. The accounting policies conform to accounting principles generally accepted in the United States of America (“U.S. GAAP”) and have been consistently applied in the preparation of the consolidated financial statements.

Organization and Basis of Presentation

The condensed consolidated financial statements contained in this report are unaudited. In the opinion of management, the condensed consolidated financial statements include all adjustments, which are of a normal recurring nature, necessary to present fairly the Company’s financial position as of March 31, 2026, and results of operations, changes in stockholders’ deficit and cash flows for the three months ended March 31, 2026 and 2025. All material intercompany accounts and transactions are eliminated in consolidation. These condensed consolidated financial statements and notes are presented in accordance with the rules and regulations of the SEC relating to interim financial statements and in conformity with U.S. GAAP. Certain information and note disclosures have been condensed or omitted in the condensed financial statements pursuant to SEC rules and regulations, although the Company believes that the disclosures made herein are adequate to make the information not misleading. The condensed unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and notes in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025 (collectively the “2025 Annual Report”) filed with the SEC on April 1, 2026.

The operating results for any interim period are not necessarily indicative of the operating results to be expected for any other interim period or the full fiscal year.

Liquidity and Going Concern

The accompanying unaudited condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business.

As of March 31, 2026, the Company had negative working capital of $551,338, an accumulated deficit of $12,772,037, a cash balance of $257,040, and short- term notes payable of $819,378. Further, during the three months ended March 31, 2026, the Company incurred a net loss of $92,269 and used cash in operations of $77,082.

These liquidity conditions raise substantial doubt about the Company’s ability to continue as a going concern. The Company is actively seeking alternative sources of liquidity, including but not limited to accessing the capital markets, strategic partnerships, or other alternative financing measures. However, instability in, or tightening of the capital markets, could adversely affect our ability to access the capital markets on terms acceptable to us. An economic recession or a slow recovery could adversely affect our business and liquidity. The lack of operating income from products and the financial condition of the Company are also hindering efforts to locate working capital funding.

Unless the Company succeeds in raising additional capital or successfully increases cash generated from operations, management has concluded that there is substantial doubt about the Company’s ability to continue as a going concern for a period of one year after the date these financial statements are issued. The Company’s consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

Nature of Business

The Company has its principal executive offices in Deerfield Beach, Florida.

On March 3, 2026, the Company entered into a promissory note with eBliss Global, Inc. (“Note”), a private early-stage Delaware corporation engaged in the developing and production of e-mobility solutions (including and initially making e-bikes as transportation vehicles at a Utica, New York factory). The interest rate under the Note is seven percent simple annual interest. Principal and accrued interest are due in a single lump sum payment due on March 4, 2027. The Note is unsecured and does not provide for a conversion of debt-to-equity securities. The Loan is being made to supply working capital to the Company and as partial consideration for a 90-day ‘no shop’ provision in the e-Bliss Note. During the 90 days following the funding of the principal of the Note (“No Shop Period”), the Company will not entertain third party proposals for a merger, business combination, stock or asset acquisition, strategic alliance or joint venture for product development or similar transactions (collectively, “Transactions”) and will cease any third party discussions for any Transactions for the No Shop Period, except that the Company may entertain third party proposals during the last 30 days of the No Shop Period if the Company and eBliss have not signed a definitive agreement or letter of intent for a Transaction during the first 60 days of the No Shop Period and the third party proposal is deemed ‘superior’ to any existing proposal for a Transaction from eBliss, if any. The purpose of the ‘no shop’ provision is to afford the Company and eBliss an opportunity to discuss the possibility and feasibility of a mutually beneficial Transaction by eBliss and the Company and conduct any desired due diligence.

Status of No Shop Period and Related Discussions. As of the date of the filing of this Form 10-Q, the Company and eBliss have not signed a letter of intent or other agreement for any Transactions and have not otherwise reached any mutual agreement on the terms and conditions of any Transactions. The Company and eBliss may fail to reach any agreement for a Transaction or to pursue or consummate any Transactions. As of the date of the filing of this Form 10-Q, the sixty day unconditional period of the No Shop Period has expired without the Company and eBliss agreeing to, or signing any agreement for, any Transaction, or otherwise reaching agreement or consent on terms and conditions of any Transactions. The No Shop Period will expire as of June 1, 2026.

There can be no assurance that the Company and eBliss will sign any agreement for or pursue or consummate any Transactions. eBliss is not restricted from negotiating or entering into an agreement, or from consummating any transaction or series of transactions, for a merger, other business combination, debt or equity funding or a similar transaction with a third party. eBliss may elect to pursue other opportunities or offers for a merger, other business combination, debt or equity funding or a similar transaction with a third party instead of pursuing or entering into or consummating any Transactions with the Company. Company believes that eBliss is actively seeking funding for working capital and that search may result in eBliss seeking alternative transactions to a Transaction with the Company or delaying consideration of any Transactions with the Company.

eBliss also has no obligation to disclose to the Company any negotiations or signing of any agreement or consummating any merger, other business combination, debt or equity funding or a similar transaction with the Company.

Health, Fitness and Social Industries. During 2024, the Company commenced its business development efforts for a business line or possible software development project focused on year-round health, fitness and social activities (this business line being referred to as “HFS” or “HFS business”).

The Company’s HFS business development efforts were suspended in March 2026 upon commencement of a 90-day no-shop period pursuant to the Company’s agreement with eBliss (the “No-Shop Period”), during which the Company is restricted from soliciting or entering into transactions with third parties with respect to the HFS business.

The Company has funded its corporate overhead and HFS-related business development activities through debt financing; however, such funding has not been sufficient to fund the acquisition of, or launch of, a new business operation. The Company’s ability to continue operations is dependent upon its ability to obtain additional financing. There can be no assurance that such financing will be available on acceptable terms, or at all.

The Company’s operations through March 31, 2026 consisted of only one reportable segment for financial reporting purposes, Corporate Business Development.

Concentrations of Credit Risk

Cash is deposited with major banks in the United States. From time to time, such deposits may be in excess of insured limit. Generally, the FDIC limit per bank is $250,000. Any loss incurred or a lack of access to such funds above the FDIC limit could have a significant adverse impact on the Company’s financial condition, results of operations and cash flows.

Fair Value of Financial Instruments

The carrying amounts of cash, prepaid expenses, accounts payable and accrued expenses, a approximate their fair value due to their short-term nature.

The carrying amounts of the Company’s debt approximates fair value as the stated interest rates are consistent with current market rates for similar instruments.

Earnings (Loss) Per Common Share

Basic loss per common share is computed by dividing net loss attributable to common stockholders by the weighted-average number of common shares outstanding during the three months ended March 31, 2026 and 2025. Diluted loss per common share includes the effect of potentially dilutive securities only when their effect is dilutive. For the three months ended March 31, 2026 and 2025, the Company reported a net loss; therefore, all potentially dilutive common stock equivalents were excluded from diluted loss per common share because their effect would have been anti-dilutive. Accordingly, basic and diluted loss per common share were the same for each period presented.

For the three months ended March 31, 2026, potentially dilutive securities excluded from diluted loss per common share consisted of 8,288 shares issuable upon exercise of stock options, 199,733 shares issuable upon exercise of warrants, and 50,999,900 shares issuable upon conversion of 765,075 shares of Series B-1 Convertible Preferred Stock. For the three months ended March 31, 2025, potentially dilutive securities excluded from diluted loss per common share consisted of 208,288 shares issuable upon exercise of stock options, 199,733 shares issuable upon exercise of warrants, and 50,999,900 shares issuable upon conversion of 765,075 shares of Series B-1 Convertible Preferred Stock.

Reclassifications

Company identified a historical misclassification within stockholders’ equity. Specifically, treasury stock repurchases had previously been presented as a reduction to additional paid-in capital (“APIC”) instead of being separately presented as treasury stock, at cost, within stockholders’ equity. Accordingly, the Company has reclassified these amounts to treasury stock within stockholders’ equity on the consolidated balance sheets and statements of stockholders’ equity for all periods presented. This reclassification resulted in a reduction of additional paid-in capital and a corresponding increase in treasury stock, with no impact on total stockholders’ equity, net loss, or cash flows for the periods ended March 31, 2026 and 2025.

The reclassification has been applied retrospectively to the prior period to conform to the current period presentation.

Comprehensive Loss

The Company follows Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 220.10, “Reporting Comprehensive Income (Loss)”. Comprehensive loss is a more inclusive financial reporting methodology that includes disclosure of certain financial information that historically has not been recognized in the calculation of net loss. Since the Company has no items of other comprehensive loss, comprehensive loss is equal to net loss.

Income Taxes

The Company is subject to income taxes in the U.S. federal jurisdiction and the state of Florida.

The Company accounts for income taxes under the provisions of Financial Accounting Standards Board (“FASB” Accounting Standards Codification (“ASC”) Topic 740 Income Taxes. ASC 740 requires recognition of deferred income tax assets and liabilities for the expected future income tax consequences, based on enacted tax laws, of temporary differences between the financial reporting and tax bases of assets and liabilities. The Company and its U.S. subsidiaries file consolidated income tax returns.

Deferred tax assets are reduced by a valuation allowance when, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Due to the Company’s history of losses, the Company has recorded a valuation allowance against its net deferred tax assets. For the three months ended March 31, 2026 and 2025, the Company recorded no income tax benefit due to the full valuation allowance recorded against its net deferred tax assets.

The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized upon settlement.

The Company’s policy is to record interest and penalties associated with unrecognized tax benefits as additional income taxes in the statement of operations. As of January 1, 2026, the Company had no unrecognized tax benefits, or any tax related interest or penalties, and it does not expect significant changes in the amount of unrecognized tax benefits to occur within the next twelve months. There were no changes in the Company’s unrecognized tax benefits during the three months ended March 31, 2026. The Company did not recognize any interest or penalties during 2026 related to unrecognized tax benefits.

Tax regulations within each jurisdiction are subject to the interpretation of the related tax laws and regulations and require significant judgement to apply. The Company is subject to U.S. federal, state and local tax examinations by tax authorities generally for a period of 3 years from the later of the due date of the related return or the date the return is filed.

Stock Based Compensation

The Company accounts for stock-based compensation in accordance with FASB ASC Topic 718, Compensation—Stock Compensation. ASC 718 requires the measurement and recognition of compensation expense for share-based payment awards, including stock options, based on the estimated grant-date fair value of the awards.

The Company estimates the fair value of stock option awards on the date of grant using an option-pricing model. Compensation expense is recognized on a straight-line basis over the requisite service period of the awards. The Company accounts for forfeitures as they occur.

Stock-based compensation expense recognized for the three months ended March 31, 2026 and 2025 was $0.

Use of Estimates

The preparation of unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures. Actual results could differ from those estimates.

Recently Issued Accounting Pronouncements Not Yet Adopted

In November 2024, the FASB issued Accounting Standards Update No. 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (“ASU 2024-03”), and in January 2025, the FASB issued Accounting Standards Update No. 2025-01, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date (“ASU 2025-01”). ASU 2024-03 requires additional disclosure of the nature of expenses included in the income statement as well as disclosures about specific types of expenses included in the expense captions presented in the income statement. ASU 2024-03, as clarified by ASU 2025-01, is effective for us for our annual reporting for fiscal 2028 and for interim period reporting beginning in fiscal 2029 on a prospective basis. Both early adoption and retrospective application are permitted. The Company is currently evaluating the impact that the adoption of these standards will have on its consolidated financial statements and disclosures.

The Company continually assesses any new accounting pronouncements to determine their applicability to the Company. Where it is determined that a new accounting pronouncement affects the Company’s financial reporting, the Company undertakes a study to determine the consequence of the change to its financial statements and assures that there are proper controls in place to ascertain that the Company’s financials properly reflect the change.