NOTE 6. CHANGE IN REVENUE ESTIMATE ASSUMPTIONS

Brightline Interactive, Inc. (“BLI”) revenue recorded in the three and nine months ended March 31, 2026 primarily relates to one agreement with a DOW prime contractor. This revenue was recognized under the percentage of completion method.

Revenue collection for this agreement was dependent on full funding by the DOW. Through the six months ended December 31, 2025 it was estimated that full agreement funding was forthcoming and percentage of completion revenue was recognized based on this. However, as detailed in Note 5, full funding for this agreement is uncertain.

Accordingly, based on a revised funding estimate, revenue from this agreement was adjusted to reflect only funds already actually received from the customer. This results in a reduction of revenue and cost of goods sold of approximately $0.51 million and $0.29 million (reclassified as research and development expense), respectively, in the condensed statement of operation for the three and nine months ended March 31, 2026.