The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries and have been prepared in accordance with generally accepted accounting principles in the U.S. ("U.S. GAAP") and the accounting disclosure rules and regulations of the SEC regarding interim financial reporting. Certain information and note disclosures normally included in the annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the 2025 Annual Report on Form 10-K. All intercompany balances and transactions are eliminated upon consolidation.

The condensed consolidated balance sheet as of December 31, 2025, included herein, was derived from the audited consolidated financial statements as of that date but does not include all disclosures, including certain notes, required by U.S. GAAP for annual reporting.

In the opinion of management, the accompanying condensed consolidated financial statements reflect all normal and recurring adjustments necessary to present fairly the financial position, results of operations, and cash flows for the interim periods. The results for the three and six months ended June 30, 2026 are not necessarily indicative of the results to be expected for any subsequent quarter, the year ending December 31, 2026, or any other period.

The Company makes estimates and assumptions about future events that affect the amounts reported in its condensed consolidated financial statements and accompanying notes. Future events and their effects cannot be determined with certainty. On an ongoing basis, management evaluates these estimates and assumptions.

The Company bases these estimates on historical and anticipated results and trends and on various other assumptions that the Company believes are reasonable under the circumstances, including assumptions about future events. Changes in estimates are recorded in the period in which they become known. Actual results could differ from those estimates, and any such differences may be material to the Company’s condensed consolidated financial statements.

The Company revised its estimated liabilities for loss contingencies and recognized an insurance recovery asset during the three and six months ended June 30, 2026. For the three months ended June 30, 2026, the increase in the Company's estimated liabilities for loss contingencies was equal to the increase in the Company's insurance recovery asset, resulting in no net change to the Company's condensed consolidated statements of operations and comprehensive loss for the

corresponding period. The following table summarizes the effects of the Company's revised estimates on captions in the condensed consolidated statements of operations and comprehensive loss (in thousands, except per-share amounts):


	Three months ended June 30, 2026		Six months ended June 30, 2026
Loss from operations	$	—	$	2,750
Net loss and comprehensive loss	$	—	$	2,750
Net loss per common share attributable to Class A and B common stockholders, basic and diluted	$	—	$	0.01

See Note 12 "Commitments and Contingencies" for additional information on the losses and loss recovery related to these estimated liabilities and insurance recovery asset, respectively. There have been no other material changes to the Company’s use of estimates as described in the consolidated financial statements for the year ended December 31, 2025.

Financial instruments that potentially subject the Company to concentration of credit risk consist principally of cash and cash equivalents and accounts receivable. As of June 30, 2026, substantially all of the Company’s cash and cash equivalents were invested in money market accounts with one financial institution. The Company also maintains balances in various operating accounts above federally insured limits. The Company has not experienced any significant losses on such accounts and does not believe it is exposed to any significant credit risk on its cash and cash equivalents.

As of June 30, 2026 and December 31, 2025, no customers accounted for more than 10% of the Company’s accounts receivable. For the three and six months ended June 30, 2026, one customer accounted for more than 10% of the Company’s total revenue. For the three and six months ended June 30, 2025, no customers accounted for more than 10% of the Company’s total revenue.

The Company has determined that it operates in one reportable segment, which includes all activities related to the development, manufacture, and sale of the Company's products, software, and other services. The Company’s chief operating decision maker ("CODM"), its Chief Executive Officer, regularly reviews the Company's consolidated net loss, which is reported as net loss and comprehensive loss on the condensed consolidated statements of operations and comprehensive loss, for purposes of evaluating the Company's financial performance, including reviewing budget versus actual results, and determining changes in the Company's allocation of resources across the Company's strategic initiatives. The Company's measure of segment assets is total assets, as reported on the condensed consolidated balance sheets, and substantially all of the Company’s long-lived assets are located in the United States.

In addition to the operating expenses presented on the condensed consolidated statements of operations and comprehensive loss, the CODM also reviews certain significant segment expenses. The following table summarizes the Company's segment revenue and significant segment expenses included in consolidated net loss (in thousands):


	Three months ended June 30,				Six months ended June 30,
	2026		2025		2026		2025
Revenue	$	32,612	$	23,383	$	59,142	$	44,608
Less:
Cost of revenue (excluding write-downs of inventories and vendor advances)	9,324		8,478		17,568		16,270
Write-downs of inventories and vendor advances	—		14		—		66
Payroll operating expenses	14,790		12,958		30,092		27,466
Stock-based compensation operating expenses	6,891		5,864		12,303		12,148
Non-payroll operating expenses	11,683		10,182		22,742		20,533
Other	3,588		1,987		3,973		2,691
Other segment items	(754)		(2,266)		(1,949)		(6,765)
Net loss	$	(12,910)	$	(13,834)	$	(25,587)	$	(27,801)

Because the Company operates in one reportable segment, other required segment disclosures are included on the Company's condensed consolidated financial statements. Interest income, interest expense, and the provision for income taxes are included on the condensed consolidated statements of operations and comprehensive loss. Depreciation, amortization, and impairments; write-down of inventories; and purchases of property, equipment, and intangible assets, including capitalized software, are included on the condensed consolidated statements of cash flows.


	Three months ended June 30,				Six months ended June 30,
	2026		2025		2026		2025
Balance, beginning of period	$	1,180	$	2,716	$	1,389	$	2,583
Provision for expected credit losses	702		121		826		368
Write-offs	(97)		(111)		(430)		(225)
Balance, end of period	$	1,785	$	2,726	$	1,785	$	2,726

The Company classifies certain operating expenses that are not representative of its ongoing operations as other on the condensed consolidated statements of operations and comprehensive loss. These include costs related to the Company’s reductions in force, litigation costs, loss contingencies related to ongoing litigation, and legal settlements.


	Three months ended June 30,				Six months ended June 30,
	2026		2025		2026		2025
Employment-related expenses	$	51	$	488	$	338	$	520
Legal-related expenses	3,537		1,499		3,635		2,171
Total other	$	3,588	$	1,987	$	3,973	$	2,691

The Company considers the applicability and impact of all Accounting Standards Updates ("ASUs") issued by the Financial Accounting Standards Board ("FASB"). ASUs not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on the Company’s consolidated financial statements.

In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which introduced new guidance on disclosures of specified information about certain costs and expenses included within expenses presented on the face of the income statements, such as purchases of inventory and employee compensation. This guidance is effective for the Company for annual reporting periods beginning January 1, 2027 and interim reporting periods beginning January 1, 2028. The Company is currently evaluating the impact that the adoption of this pronouncement will have on the Company's consolidated financial statements and disclosures.