2. Discontinued Operations and Assets Held for Sale

On October 24, 2025, the Company completed the sale of substantially all of its operating assets and intellectual property related to its product business to Biamp Systems, LLC (the “Asset Sale”). The transaction represented a strategic shift that had (and continues to have) a major effect on the Company’s operations and financial results. Accordingly, the results of the disposed component are presented as discontinued operations in the accompanying condensed consolidated statements of operations and cash flows for all periods presented, in accordance with ASC 205-20.

The disposal group was sold prior to December 31, 2025. As a result, the carrying value of the remaining disposal group was $0 at both December 31, 2025 and March 31, 2026. The Company continues to fulfill limited warranty and technical support obligations for legacy products sold prior to the Asset Sale. These activities are reflected in continuing operations, along with residual collections. Liability settlements are reflected within discontinued operations.

For a full description of the Asset Sale, including the Strategic Plan approved by the Board in September 2025, the mandatory redemption of the Class A Redeemable Preferred Stock (classified as a current liability — see Note 3), and the classification of assets and liabilities as held for sale, see Note 2 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.

Major line items of results of discontinued operations (unaudited):

		Three months ended March 31,
		2026			2025
Revenue	$	—		$	2,313
Cost of goods sold		88			2,165
Gross profit (loss)		(88	)		148
Operating expenses		264			2,168
Other expenses		78			—
Loss from discontinued operations before income taxes		(430	)		(2,020	)
Benefit for income taxes		793			—
Income (Loss) from discontinued operations, net of tax	$	363		$	(2,020	)

The following table disaggregates the Company’s revenue into primary product groups:

	Three months ended March 31,
	2026		2025
Audio conferencing	$	—	$	953
Microphones		—		1,118
Video products		—		242
	$	—	$	2,313

The following table disaggregates the Company’s revenue into major regions:

	Three months ended March 31,
	2026		2025
North and South America	$	—	$	960
Asia Pacific (includes Middle East, India and Australia)		—		1,188
Europe and Africa		—		165
	$	—	$	2,313

Assets grouped into discontinued operations (unaudited):

		March 31, 2026		December 31, 2025
Accounts receivable, net	$	50	$	391
Inventories, net		—		—
Prepaids and other current assets		226		213
Property, plant and equipment, net		—		80
Other long-term assets		24		29
Total assets	$	300	$	713

Liabilities grouped into discontinued operations (unaudited):

		March 31, 2026		December 31, 2025
Accounts payable	$	3	$	63
Accrued liabilities, current		225		521
Other long-term liabilities		441		1,236
Total liabilities	$	669	$	1,820

Management concluded the disposal constitutes a component and a strategic shift since it eliminates significant revenue-generating activities. The Company will continue to provide product support and warranty services as it pursues a Strategic Transaction in fiscal 2026.