Litigation

The Company is, from time to time, subject to claims and litigation arising in the ordinary course of business. We are not currently a party to any litigation or legal proceedings that, in the opinion of management, are likely to have a material adverse effect on the Company’s business. The Company intends to defend vigorously against any future claims and litigation.

Royalty Agreements

The Company is, at times, party to various royalty and license agreements that require the payment of royalty fees. Currently the Company records royalty expense of 3% on sales of Covered Products, under the ROKK, LLC Royalty Contract. Royalty expense amounted to approximately $0.3 million and $0.3 million for each of the three months ended June 30, 2026, and 2025. For each of the six months ended June 30, 2026 and 2025, royalty expense amounted to $0.5 million and $0.5 million respectively. Royalty expense is included in selling, general and administrative expenses in the condensed consolidated statements of operations and comprehensive loss.

401(k) Plan

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Employees are eligible to participate in the Company’s 401(k) plan on the first day of the calendar quarter following three full months of employment. Participants may defer up to 100% of their eligible compensation subject to certain Internal Revenue Code limitations. Matching contributions amounted to approximately $0.1 million for each of the three months ended June 30, 2026 and 2025. Matching contributions amounted to approximately $0.2 million for each of the six months ended June 30, 2026 and 2025.