During the year ended May 31, 2026, the Board of Directors of ChronoScale committed to a plan to divest its wholly owned subsidiary, Ekso Bionics, Inc., a Delaware corporation (“Ekso”) which had not previously been announced as being held for sale, and to focus ChronoScale's operations solely on its cloud services business. As such, legacy Ekso met the criteria to be classified as "held for sale" on the consolidated balance sheets. Therefore, upon consolidation, the Company reported Ekso's operations as discontinued operations in its consolidated statements of operations for the fiscal year ended May 31, 2026 in accordance with ASC 205-20, Discontinued Operations. ChronoScale expects to complete the divestiture of the Ekso business within 12 months from the date it met the held-for-sale criteria.

The financial results of Ekso are presented as net loss from discontinued operations on the consolidated statements of operations. The following table presents the major components of the financial results of Ekso for the periods presented (in thousands):


	Fiscal Year Ended
	May 31, 2026
Revenue	$	385
Cost of revenues	302
Selling, general and administrative	1,108

Operating loss from discontinued operations	(1,025)
Interest income	5
Net loss from discontinued operations before income tax expense	(1,020)
Income tax expense	—
Net loss from discontinued operations	$	(1,020)

As of May 31, 2026, the assets and liabilities of Ekso are classified as current in the consolidated balance sheets, as it is probable that the sale will occur within one year. The following table represents the aggregated carrying amounts of classes of assets and liabilities that are classified as held for sale on the consolidated balance sheets for the periods presented (in thousands):


	Fiscal Year Ended
	May 31, 2026
Assets:
Cash and cash equivalents	$	2
Accounts receivable	3,914
Prepaid expenses and other current assets	5,604
Property and equipment, net	1,084
Operating lease right of use asset, net	284
Intangible assets	10,950
Other assets	368
Less: Impairment on assets held for sale	$	(2,365)
Total current assets held for sale	$	19,841

Liabilities:
Accounts payable	263
Accrued liabilities	4,205
Current portion of operating lease liability	290
Current deferred revenue	1,334
Long-term deferred revenue	1,229
Long-term portion of operating lease liability	105
Total current liabilities held for sale	$	7,426


	Fiscal Year Ended
	May 31, 2026
Net cash used in operating activities - discontinued operations	$	(1,705)
Net cash used in investing activities - discontinued operations	$	—