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(together with its consolidated subsidiaries, the “Company,” “Intrusion,” “Intrusion Inc.,” “we,” “us,” “our,” or similar terms) was organized in Texas in September 1983 and reincorporated in Delaware in October 1995. Our principal executive offices are located at 101 East Park Boulevard, Suite 1200, Plano, Texas 75074, and our telephone number is (888) 637-7770. Our website URL is www.intrusion.com.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.45in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.45in">The Company develops, sells, and supports products that protect any-sized company or government organization by fusing advanced threat intelligence with real-time mitigation to kill cyberattacks as they occur – including Zero-Days. The Company markets and distributes the Company’s solutions through value-added resellers, managed service providers and a direct sales force. The Company’s end-user customers include United States (“U.S.”) federal government entities, state and local government entities, and companies ranging in size from mid-market to large enterprises.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.45in"><b><i>TraceCop (“TraceCop™”)</i></b> and <b><i>Savant</i></b> (<b><i>“Savant™</i></b>”) are registered trademarks of Intrusion Inc. The Company has applied for trademark protection for the Company’s new <b>INTRUSION <i>Shield</i></b> cybersecurity solution.</p> <p id="xdx_801_eus-gaap--BasisOfPresentationAndSignificantAccountingPoliciesTextBlock_zq2Lzd6orbbf" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 43px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>2.</b></span></td> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="xdx_828_zBofYYmTXYT9">Basis of Presentation</span></b></span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.45in">The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with Generally Accepted Accounting Principles in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Item 10-01 of Regulation S-X. Accordingly, they do not include all the information and disclosures required by GAAP for complete financial statements. All adjustments that, in the opinion of management, are necessary for a fair presentation of the results of operations for the interim periods have been made and are of a recurring nature unless otherwise disclosed herein. The results of operations for such interim periods are not necessarily indicative of the results of operations for a full year. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the U.S. Securities and Exchange Commission (the “SEC”) on March 25, 2026 (the “2025 Annual Report”). All significant intercompany balances and transactions have been eliminated in consolidation.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.45in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.45in">The Company calculates the fair value of its assets and liabilities which qualify as financial instruments and includes this additional information in the notes to unaudited condensed consolidated financial statements when the fair value is different from the carrying value of these financial instruments. The estimated fair value of accounts receivable, accounts payable and accrued expenses approximate their carrying amounts due to the relatively short maturity of these instruments. Notes payable and financing and operating leases approximate fair value as they bear market rates of interest. None of these instruments are held for trading purposes.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company’s similar product and service offerings are not viewed as individual segments, as the Company’s management analyzes the business as a whole and expenses are not allocated to each product offering. The Company’s CEO is the Chief Operating Decision Maker (“CODM”). The CODM utilizes both Operating Loss and Net Loss from the Consolidated Statement of Operations to assess performance of the <span id="xdx_904_eus-gaap--NumberOfReportableSegments_dxL_uInteger_c20260101__20260630_zbRxok3Kukf8" title="Number of reportable segment::XDX::1"><span style="-sec-ix-hidden: xdx2ixbrl0753">single</span></span> segment. There are no other significant segment expenses or other segment items that would require disclosure.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As of June 30, 2026, we had cash and cash equivalents totaling $<span id="xdx_908_eus-gaap--CashAndCashEquivalentsAtCarryingValue_iI_pn3n3_dxL_c20260630_zDbPqhi8gaBg" title="Cash and cash equivalents::XDX::182"><span style="-sec-ix-hidden: xdx2ixbrl0755">0.2</span></span> million. The accompanying financial statements have been prepared assuming that the entity will continue as a going concern. The Company continues to incur losses from operations, negative cash flows from operations, as well as having a continued dependence on equity and debt financing. These conditions raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date of these financial statements. The Company plans to finance operations by raising additional funds through public or private financings, including the utilization of the ATM program. The Company can provide no assurances that additional funds will be raised or that the terms of those financings, if available at all, will be on favorable terms or will not result in dilution to stockholders. If the Company is not able to obtain additional debt or equity financing, the Company may be unable to implement the Company’s business plan, fund its liquidity needs, or even continue operations. The financial statements do not include any adjustments relating to recoverability and classifications of assets and liabilities that may be necessary if the Company is unable to continue as a going concern.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p id="xdx_801_eus-gaap--BusinessCombinationDisclosureTextBlock_zDOoLJ312Cx2" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 43px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>3.</b></span></td> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="xdx_820_zAVndZAfxE0i">Acquisition</span></b></span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On June 29, 2026, the Company entered into a Membership Interest Purchase Agreement (the “Agreement”) to acquire <span id="xdx_907_eus-gaap--BusinessAcquisitionPercentageOfVotingInterestsAcquired_iI_pip0_dp_c20260629__us-gaap--BusinessAcquisitionAxis__custom--VigilAigentLLCMember_zESNQZvpADC5" title="Acquisition percentage">100</span>% of the membership interests of OW Cyber, LLC, d/b/a VigilAigent, LLC (the “VigilAigent”) over two distinct closings. At the first closing, effective June 29, 2026, the Company acquired 60% of VigilAigent’s membership interests for a purchase price of $<span id="xdx_904_eus-gaap--BusinessCombinationConsiderationTransferred1_pn3n3_dxL_c20260628__20260629__us-gaap--BusinessAcquisitionAxis__custom--VigilAigentLLCMember_zoPDKFHpTVi8" title="Consideration transferred for acquisition::XDX::1950"><span style="-sec-ix-hidden: xdx2ixbrl0762">2</span></span>.0 million, paid through $<span id="xdx_907_eus-gaap--PaymentsToAcquireBusinessesGross_pn3n3_dxL_c20260628__20260629__us-gaap--BusinessAcquisitionAxis__custom--VigilAigentLLCMember_zIY0jQYsS7hg" title="Payment to acquire business::XDX::360"><span style="-sec-ix-hidden: xdx2ixbrl0764">0.4</span></span> million of cash and the issuance of $<span id="xdx_902_eus-gaap--StockIssuedDuringPeriodValueAcquisitions_pn5n6_c20260628__20260629__us-gaap--BusinessAcquisitionAxis__custom--VigilAigentLLCMember_zJ7fYQrgq9p1" title="Shares issued for acquisition, value">1.6</span> million of unregistered shares of the Company’s common stock, par value $0.01 per share, at a contractually defined share price of $0.67 per share. At the second closing, subject to specified closing conditions, including obtaining required Company stockholder and Nasdaq Stock Market or other regulatory approvals, the Company agreed to acquire the remaining 40% of VigilAigent’s membership interests for a cash payment of $<span id="xdx_90F_eus-gaap--PaymentsToAcquireBusinessesGross_pn5n6_c20260701__20260805__us-gaap--BusinessAcquisitionAxis__custom--VigilAigentLLCMember__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember_zw8osGObpje9">1.3</span> million. The obligations of the parties to consummate the second closing are subject to satisfaction, or waiver, on or before August 30, 2026 or such later date as may be agreed upon by the Seller and Company, of the identified closing conditions.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Following the second closing, the seller may be eligible to receive up to an additional $6.9 million in contingent consideration, payable via the issuance of unregistered shares of the Company’s common stock upon the achievement of the following specific financial milestones:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top"> <td style="width: 0.5in"></td><td style="width: 0.25in"><span style="font-family: Symbol">·</span></td><td style="text-align: justify">Milestone 1: If, as of March 31, 2027, VigilAigent’s annual recurring revenue (“ARR”) run rate is equal to $6.0 million or more and VigilAigent’s adjusted operating cash flow is greater than or equal to $0, the applicable portion of the earn-out consideration payable with respect thereto will be $2.7 million.</td></tr> <tr style="vertical-align: top"> <td style="width: 0.5in"></td><td style="width: 0.25in"><span style="font-family: Symbol">·</span></td><td style="text-align: justify">Milestone 2: If, as of September 30, 2027, VigilAigent’s ARR run rate is equal to $7.5 million or more and VigilAigent’s adjusted operating cash flow is greater than or equal to $0.8 million, the applicable portion of the earn-out consideration payable with respect thereto will be $2.7 million.</td></tr> <tr style="vertical-align: top"> <td style="width: 0.5in"></td><td style="width: 0.25in"><span style="font-family: Symbol">·</span></td><td style="text-align: justify">Milestone 3: If, as of March 31, 2028, the ARR run rate is equal to $8.6 million or more, the applicable portion of the earnout consideration payable with respect thereto will be $1.5 million.</td></tr></table> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">This earn-out consideration only takes effect upon the second closing, so no liability has been recorded as of the six months ended June 30, 2026.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Acquisition-related transaction costs for the acquisition of VigilAigent totaled $24 thousand for the six months ended June 30, 2026. These costs are expensed as incurred and recorded within general and administrative expenses in the consolidated statements of operations. </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">VigilAigent is a managed security services provider that delivers subscription-based cybersecurity monitoring, threat detection, incident response, and managed detection and response services to approximately 1,000 customers through a network of more than 80 reseller partners. Its operations combine human cybersecurity specialists with proprietary agentic-AI technology, including its Oracle platform, which continuously analyzes and correlates large volumes of security-event data to identify, investigate, and respond to potential threats. Through this technology-enabled service model, VigilAigent helps managed service providers and enterprise customers protect networks and endpoints, improve threat visibility, accelerate response times, and strengthen their overall cybersecurity posture under primarily recurring, multiyear customer contracts. The acquisition allows the Company to expand its client base and product offerings and the assets acquired were considered to be a business.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The acquisition was accounted for as a business combination under ASC 805, <i>Business Combinations</i>. The purchase accounting for this acquisition has not been completed as the Company is in the process of finalizing the working capital adjustments with the seller, as well as the valuation of the acquired intangible assets and other long-lived assets. The following table summarizes the preliminary estimated fair values of the assets acquired and liabilities assumed at the date of the acquisition (in thousands):</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <table cellpadding="0" cellspacing="0" id="xdx_880_eus-gaap--ScheduleOfNoncashOrPartNoncashAcquisitionsTextBlock_zoxmfhAwHhT7" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Acquisition (Details - Consideration paid)"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: justify"><span id="xdx_8B0_zRhMy4OuxBy2">Consideration Paid</span></td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Amount</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 83%; text-align: justify">Cash</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98B_eus-gaap--PaymentsToAcquireBusinessesGross_pn3n3_c20260628__20260629__us-gaap--BusinessAcquisitionAxis__custom--VigilAigentLLCMember_zW9ArwqyjwJ2" style="width: 13%; text-align: right" title="Cash paid for acquisition">360</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1pt">Common stock issued at fair value</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_982_eus-gaap--BusinessCombinationConsiderationTransferredEquityInterestsIssuedAndIssuable_pn3n3_c20260628__20260629__us-gaap--BusinessAcquisitionAxis__custom--VigilAigentLLCMember_zPS7RNWxM5ib" style="border-bottom: Black 1pt solid; text-align: right" title="Common stock issued at fair value">1,590</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; text-align: justify; padding-bottom: 2.5pt">Total consideration paid</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_98A_eus-gaap--BusinessCombinationConsiderationTransferred1_pn3n3_c20260628__20260629__us-gaap--BusinessAcquisitionAxis__custom--VigilAigentLLCMember_zKeR6WWkDAYg" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Total consideration paid for acquisition">1,950</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <table cellpadding="0" cellspacing="0" id="xdx_882_eus-gaap--ScheduleOfRecognizedIdentifiedAssetsAcquiredAndLiabilitiesAssumedTableTextBlock_zIndZzgu0VYf" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse" summary="xdx: Disclosure - Acquisition (Details - Assets and liabilities acquired)"> <tr style="vertical-align: bottom"> <td style="border-bottom: black 1pt solid; text-align: justify"><span style="font-size: 10pt"><b>Recognized amounts of identifiable assets acquired and liabilities assumed</b></span></td> <td> </td> <td colspan="2" id="xdx_492_20260629__us-gaap--BusinessAcquisitionAxis__custom--VigilAigentLLCMember_z8gAf2EibjRk" style="border-bottom: black 1pt solid; text-align: center"><span style="font-size: 10pt"><b>Amount</b></span></td> <td> </td></tr> <tr id="xdx_40E_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCashAndEquivalents_iI_pn3n3_z7qZSyXqDwhe" style="vertical-align: bottom; background-color: #EEEEEE"> <td style="width: 84%; text-align: justify"><span style="font-size: 10pt">Cash</span></td> <td style="width: 1%"> </td> <td style="width: 1%"><span style="font-size: 10pt">$</span></td> <td style="width: 13%; text-align: right"><span style="font-size: 10pt">4</span></td> <td style="width: 1%"> </td></tr> <tr id="xdx_40F_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentAssetsReceivables_iI_pn3n3_zZZuzW9UkH67" style="vertical-align: bottom; background-color: white"> <td style="text-align: justify"><span style="font-size: 10pt">Accounts receivable</span></td> <td> </td> <td> </td> <td style="text-align: right"><span style="font-size: 10pt">410</span></td> <td> </td></tr> <tr id="xdx_401_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentAssetsPrepaidExpenseAndOtherAssets_iI_pn3n3_z8lZPN8c36Q7" style="vertical-align: bottom; background-color: #EEEEEE"> <td style="text-align: justify"><span style="font-size: 10pt">Prepaid expenses and other assets</span></td> <td> </td> <td> </td> <td style="text-align: right"><span style="font-size: 10pt">81</span></td> <td> </td></tr> <tr id="xdx_407_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedPropertyPlantAndEquipment_iI_pn3n3_zbxJRt80Bydi" style="vertical-align: bottom; background-color: white"> <td style="text-align: justify"><span style="font-size: 10pt">Equipment</span></td> <td> </td> <td> </td> <td style="text-align: right"><span style="font-size: 10pt">12</span></td> <td> </td></tr> <tr id="xdx_405_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentLiabilities_iNI_pn3n3_di_z2GmzqC15rtg" style="vertical-align: bottom; background-color: #EEEEEE"> <td style="text-align: justify"><span style="font-size: 10pt">Current liabilities</span></td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right"><span style="font-size: 10pt">(1,556</span></td> <td><span style="font-size: 10pt">)</span></td></tr> <tr id="xdx_405_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedNet_iI_pn3n3_zwYQEzmUk73c" style="vertical-align: bottom; background-color: white"> <td style="text-align: justify"><span style="font-size: 10pt"><b>Identifiable net liabilities assumed</b></span></td> <td> </td> <td> </td> <td style="text-align: right"><span style="font-size: 10pt"><b>(1,049</b></span></td> <td><span style="font-size: 10pt"><b>)</b></span></td></tr> <tr id="xdx_40C_eus-gaap--Goodwill_iI_pn3n3_zk6YmSxaKdE5" style="vertical-align: bottom; background-color: #EEEEEE"> <td style="text-align: justify"><span style="font-size: 10pt">Goodwill</span></td> <td> </td> <td> </td> <td style="text-align: right"><span style="font-size: 10pt">4,299</span></td> <td> </td></tr> <tr id="xdx_409_eus-gaap--BusinessCombinationAcquisitionOfLessThan100PercentNoncontrollingInterestFairValue_iNI_pn3n3_di_zpl4YIDj71C2" style="vertical-align: bottom; background-color: white"> <td style="text-align: justify"><span style="font-size: 10pt">Noncontrolling interest</span></td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right"><span style="font-size: 10pt">(1,300</span></td> <td><span style="font-size: 10pt">)</span></td></tr> <tr id="xdx_40C_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredGoodwillAndLiabilitiesAssumedLessNoncontrollingInterest_iI_pn3n3_z4c1H5wQIoq9" style="vertical-align: bottom; background-color: #EEEEEE"> <td style="text-align: justify"><span style="font-size: 10pt"><b>Total</b></span></td> <td> </td> <td style="border-bottom: black 2.25pt double"><span style="font-size: 10pt"><b>$</b></span></td> <td style="border-bottom: black 2.25pt double; text-align: right"><span style="font-size: 10pt"><b>1,950</b></span></td> <td> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">For the three and six months ended June 30, 2026, VigilAigent contributed revenue of $<span id="xdx_90B_eus-gaap--Revenues_dm_c20260101__20260630__us-gaap--BusinessAcquisitionAxis__custom--VigilAigentLLCMember_zQJE6vDkZCkk" title="Revenues">17 thousand</span> and a net loss of $<span id="xdx_90F_eus-gaap--NetIncomeLoss_iN_dmi_c20260101__20260630__us-gaap--BusinessAcquisitionAxis__custom--VigilAigentLLCMember_z21VbvoslIY4" title="Net loss">14 thousand</span> to the consolidated operating results of the Company.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p> 1 1600000 1300000 <table cellpadding="0" cellspacing="0" id="xdx_880_eus-gaap--ScheduleOfNoncashOrPartNoncashAcquisitionsTextBlock_zoxmfhAwHhT7" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Acquisition (Details - Consideration paid)"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: justify"><span id="xdx_8B0_zRhMy4OuxBy2">Consideration Paid</span></td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Amount</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 83%; text-align: justify">Cash</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98B_eus-gaap--PaymentsToAcquireBusinessesGross_pn3n3_c20260628__20260629__us-gaap--BusinessAcquisitionAxis__custom--VigilAigentLLCMember_zW9ArwqyjwJ2" style="width: 13%; text-align: right" title="Cash paid for acquisition">360</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1pt">Common stock issued at fair value</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_982_eus-gaap--BusinessCombinationConsiderationTransferredEquityInterestsIssuedAndIssuable_pn3n3_c20260628__20260629__us-gaap--BusinessAcquisitionAxis__custom--VigilAigentLLCMember_zPS7RNWxM5ib" style="border-bottom: Black 1pt solid; text-align: right" title="Common stock issued at fair value">1,590</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="font-weight: bold; text-align: justify; padding-bottom: 2.5pt">Total consideration paid</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_98A_eus-gaap--BusinessCombinationConsiderationTransferred1_pn3n3_c20260628__20260629__us-gaap--BusinessAcquisitionAxis__custom--VigilAigentLLCMember_zKeR6WWkDAYg" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Total consideration paid for acquisition">1,950</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table> 360000 1590000 1950000 <table cellpadding="0" cellspacing="0" id="xdx_882_eus-gaap--ScheduleOfRecognizedIdentifiedAssetsAcquiredAndLiabilitiesAssumedTableTextBlock_zIndZzgu0VYf" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse" summary="xdx: Disclosure - Acquisition (Details - Assets and liabilities acquired)"> <tr style="vertical-align: bottom"> <td style="border-bottom: black 1pt solid; text-align: justify"><span style="font-size: 10pt"><b>Recognized amounts of identifiable assets acquired and liabilities assumed</b></span></td> <td> </td> <td colspan="2" id="xdx_492_20260629__us-gaap--BusinessAcquisitionAxis__custom--VigilAigentLLCMember_z8gAf2EibjRk" style="border-bottom: black 1pt solid; text-align: center"><span style="font-size: 10pt"><b>Amount</b></span></td> <td> </td></tr> <tr id="xdx_40E_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCashAndEquivalents_iI_pn3n3_z7qZSyXqDwhe" style="vertical-align: bottom; background-color: #EEEEEE"> <td style="width: 84%; text-align: justify"><span style="font-size: 10pt">Cash</span></td> <td style="width: 1%"> </td> <td style="width: 1%"><span style="font-size: 10pt">$</span></td> <td style="width: 13%; text-align: right"><span style="font-size: 10pt">4</span></td> <td style="width: 1%"> </td></tr> <tr id="xdx_40F_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentAssetsReceivables_iI_pn3n3_zZZuzW9UkH67" style="vertical-align: bottom; background-color: white"> <td style="text-align: justify"><span style="font-size: 10pt">Accounts receivable</span></td> <td> </td> <td> </td> <td style="text-align: right"><span style="font-size: 10pt">410</span></td> <td> </td></tr> <tr id="xdx_401_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentAssetsPrepaidExpenseAndOtherAssets_iI_pn3n3_z8lZPN8c36Q7" style="vertical-align: bottom; background-color: #EEEEEE"> <td style="text-align: justify"><span style="font-size: 10pt">Prepaid expenses and other assets</span></td> <td> </td> <td> </td> <td style="text-align: right"><span style="font-size: 10pt">81</span></td> <td> </td></tr> <tr id="xdx_407_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedPropertyPlantAndEquipment_iI_pn3n3_zbxJRt80Bydi" style="vertical-align: bottom; background-color: white"> <td style="text-align: justify"><span style="font-size: 10pt">Equipment</span></td> <td> </td> <td> </td> <td style="text-align: right"><span style="font-size: 10pt">12</span></td> <td> </td></tr> <tr id="xdx_405_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentLiabilities_iNI_pn3n3_di_z2GmzqC15rtg" style="vertical-align: bottom; background-color: #EEEEEE"> <td style="text-align: justify"><span style="font-size: 10pt">Current liabilities</span></td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right"><span style="font-size: 10pt">(1,556</span></td> <td><span style="font-size: 10pt">)</span></td></tr> <tr id="xdx_405_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedNet_iI_pn3n3_zwYQEzmUk73c" style="vertical-align: bottom; background-color: white"> <td style="text-align: justify"><span style="font-size: 10pt"><b>Identifiable net liabilities assumed</b></span></td> <td> </td> <td> </td> <td style="text-align: right"><span style="font-size: 10pt"><b>(1,049</b></span></td> <td><span style="font-size: 10pt"><b>)</b></span></td></tr> <tr id="xdx_40C_eus-gaap--Goodwill_iI_pn3n3_zk6YmSxaKdE5" style="vertical-align: bottom; background-color: #EEEEEE"> <td style="text-align: justify"><span style="font-size: 10pt">Goodwill</span></td> <td> </td> <td> </td> <td style="text-align: right"><span style="font-size: 10pt">4,299</span></td> <td> </td></tr> <tr id="xdx_409_eus-gaap--BusinessCombinationAcquisitionOfLessThan100PercentNoncontrollingInterestFairValue_iNI_pn3n3_di_zpl4YIDj71C2" style="vertical-align: bottom; background-color: white"> <td style="text-align: justify"><span style="font-size: 10pt">Noncontrolling interest</span></td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right"><span style="font-size: 10pt">(1,300</span></td> <td><span style="font-size: 10pt">)</span></td></tr> <tr id="xdx_40C_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredGoodwillAndLiabilitiesAssumedLessNoncontrollingInterest_iI_pn3n3_z4c1H5wQIoq9" style="vertical-align: bottom; background-color: #EEEEEE"> <td style="text-align: justify"><span style="font-size: 10pt"><b>Total</b></span></td> <td> </td> <td style="border-bottom: black 2.25pt double"><span style="font-size: 10pt"><b>$</b></span></td> <td style="border-bottom: black 2.25pt double; text-align: right"><span style="font-size: 10pt"><b>1,950</b></span></td> <td> </td></tr> </table> 4000 410000 81000 12000 1556000 -1049000 4299000 1300000 1950000 17000 -14000 <p id="xdx_805_eus-gaap--LesseeOperatingLeasesTextBlock_zWHWCnXjxNn1" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 43px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>4.</b></span></td> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="xdx_824_zCtYXsj0U75h">ROU Assets and Leasing Liabilities</span></b></span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.45in">The Company has operating and finance leases where it records the ROU assets, and a related lease liability as required under the Financial Accounting Standard Board’s (“FASB”) Accounting Standards Codification (“ASC”) 842. The lease liabilities are determined by the net present value of total lease payments and amortized over the life of the lease. The Company’s leases are for the following types of assets:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.45in"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 43px"> </td> <td style="width: 19px"><span style="font-family: Symbol; font-size: 10pt">·</span></td> <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Computer hardware and copy machines- The Company’s finance lease ROU assets consist of computer hardware and copy machines. These leases have two and three year lives and are in various stages of completion.</span></td></tr> <tr style="vertical-align: top"> <td> </td> <td> </td> <td style="text-align: justify"> </td></tr> <tr style="vertical-align: top"> <td> </td> <td><span style="font-family: Symbol; font-size: 10pt">·</span></td> <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Office space - The Company’s operating lease ROU assets include its rental agreements for its offices in Plano, Texas, and a data service center in Allen, Texas. The Plano offices operating lease expires on April 30, 2035. The data service center operating lease expires in October 2026. </span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.45in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.45in">In accordance with ASC 842, the Company has elected practical expedients to combine lease and non-lease components, which consist principally of common area maintenance charges, for all classes of underlying assets and to exclude leases with an initial term of 12 months or less.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.45in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.45in">As the implicit rate is not readily determinable for the Company’s lease agreements, the Company uses an estimated incremental borrowing rate to determine the initial present value of lease payments.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.45in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.45in">For the three and six months ended June 30, 2026, the Company made operating lease payments of $<span id="xdx_90A_eus-gaap--OperatingLeasePayments_pn5n6_c20260401__20260630_zaXaaVQviyJa" title="Operating lease payments">0.1</span> million and $<span id="xdx_902_eus-gaap--OperatingLeasePayments_pn5n6_c20260101__20260630_zAUQk1G72F5a" title="Operating lease payments">0.2</span> million, respectively, compared to $<span id="xdx_905_eus-gaap--OperatingLeasePayments_pn5n6_c20250401__20250630_zakQaAgkDNni" title="Operating lease payments">0.1</span> million and $<span id="xdx_909_eus-gaap--OperatingLeasePayments_pn5n6_c20250101__20250630_zeSpOWLStjrj" title="Operating lease payments">0.2</span> million for the same periods in 2025. Finance lease payments were $<span id="xdx_90C_eus-gaap--FinanceLeasePrincipalPayments_pn3n3_c20260401__20260630_zIdG9qS4So5a" title="Finance lease payments">29</span> thousand and $<span id="xdx_906_eus-gaap--FinanceLeasePrincipalPayments_pn3n3_c20260101__20260630_zTBOouZLocAj" title="Finance lease payments">69</span> thousand for the three and six months ended June 30, 2026, respectively, compared to $<span id="xdx_906_eus-gaap--FinanceLeasePrincipalPayments_pn5n6_c20250401__20250630_zNkeFoWnzmpb" title="Finance lease payments">0.1</span> million and $<span id="xdx_904_eus-gaap--FinanceLeasePrincipalPayments_pn5n6_c20250101__20250630_zVZIriqe68X7" title="Finance lease payments">0.2</span> million in 2025, respectively.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.45in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Schedule of Items Appearing on the Unaudited Condensed Consolidated Statements of Operations (in thousands):</b></p> <table cellpadding="0" cellspacing="0" id="xdx_89D_eus-gaap--LeaseCostTableTextBlock_pn3n3_zy5rvLEjxLMj" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - ROU Assets and Leasing Liabilities (Details - Income Statement)"> <tr style="vertical-align: bottom"> <td><span id="xdx_8B4_z4wVuBqScAhh" style="display: none">Schedule of lease cost</span></td><td> </td> <td colspan="2" id="xdx_497_20260401__20260630_znrM8oKL0B2i" style="text-align: center"> </td><td> </td><td> </td> <td colspan="2" id="xdx_49D_20250401__20250630_zNzDEiboBm23" style="text-align: center"> </td><td> </td><td> </td> <td colspan="2" id="xdx_49A_20260101__20260630_zt6eelOYJAkg" style="text-align: center"> </td><td> </td><td> </td> <td colspan="2" id="xdx_49A_20250101__20250630_zVlIALPB6Aj2" style="text-align: center"> </td><td> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Three Months Ended June 30,</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Six Months Ended June 30,</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_40A_eus-gaap--OperatingExpensesAbstract_iB" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left">Operating expense:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--FinanceLeaseRightOfUseAssetAmortization_i_pn3n3" style="vertical-align: bottom; background-color: White"> <td style="width: 32%; text-align: left; text-indent: -10pt; padding-left: 20pt">Amortization expense – Finance ROU</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">29</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">22</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">58</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">194</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--OperatingLeaseExpense_i_pn3n3" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; text-indent: -10pt; padding-left: 20pt">Lease expense – Operating ROU</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">103</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">98</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">207</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">109</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--OtherExpensesAbstract_iB" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Other expense:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--FinanceLeaseInterestExpense_d0_zNqlXYWgrMV7" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-bottom: 1pt; text-indent: -10pt; padding-left: 20pt">Interest expense – Finance ROU</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">11</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">17</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">23</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">37</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--LeaseCost_z4wJp6d10yj4" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Total lease expense</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">143</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">137</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">288</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">340</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p id="xdx_8A0_zCFYxlyBGJsh" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Future minimum lease obligations consisted of the following as of June 30, 2026 (in thousands):</b></p> <table cellpadding="0" cellspacing="0" id="xdx_895_eus-gaap--LesseeOperatingLeaseLiabilityMaturityTableTextBlock_pn3n3_zJkPWKLiZ0t3" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - ROU Assets and Leasing Liabilities (Details - Minimum obligation)"> <tr style="vertical-align: bottom"> <td style="text-align: left"><span id="xdx_8B2_zC5d5ANRAm8c" style="display: none">Schedule of future minimum lease obligations</span></td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center">Operating</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center">Finance</td><td style="font-weight: bold"> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; text-align: left; font-weight: bold">Year ending December 31,</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">ROU Leases</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">ROU Leases</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Total</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; width: 49%">Remaining 2026</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_985_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsRemainderOfFiscalYear_iI_pn3n3_c20260630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OperatingRouLeasesMember_zhZ4EyZVCdMa" style="width: 13%; text-align: right" title="Remaining 2026">159</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98C_eus-gaap--FinanceLeaseLiabilityPaymentsRemainderOfFiscalYear_iI_pn3n3_c20260630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--FinanceRouLeasesMember_zbGoVpGrxwjc" style="width: 13%; text-align: right" title="Remaining 2026">109</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_988_ecustom--LesseeOperatingAndFinanceLeaseLiabilityPaymentsRemainderOfFiscalYear_iI_pn3n3_c20260630_znGpgvubOua3" style="width: 13%; text-align: right" title="Remaining 2026">268</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">2027</td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths_iI_pn3n3_c20260630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OperatingRouLeasesMember_zXvXo22HGqo7" style="text-align: right" title="2027">146</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--FinanceLeaseLiabilityPaymentsDueNextTwelveMonths_iI_pn3n3_c20260630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--FinanceRouLeasesMember_zmz6NuUqwUCe" style="text-align: right" title="2027">4</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_ecustom--LesseeOperatingAndFinanceLeaseLiabilityPaymentsDueNextTwelveMonths_iI_pn3n3_c20260630_z3e37MeLM8Cf" style="text-align: right" title="2027">150</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left">2028</td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearTwo_iI_pn3n3_c20260630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OperatingRouLeasesMember_zLAUQkd0PfXd" style="text-align: right" title="2028">223</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--FinanceLeaseLiabilityPaymentsDueYearTwo_iI_pn3n3_c20260630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--FinanceRouLeasesMember_z3KQtb6Mm5Kb" style="text-align: right" title="2028">3</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_ecustom--LesseeOperatingAndFinanceLeaseLiabilityPaymentsDueYearTwo_iI_pn3n3_c20260630_z6a6SxKSlLDa" style="text-align: right" title="2028">226</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">2029</td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearThree_iI_pn3n3_c20260630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OperatingRouLeasesMember_zFEz5Yw3vske" style="text-align: right" title="2029">228</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--FinanceLeaseLiabilityPaymentsDueYearThree_iI_pn3n3_d0_c20260630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--FinanceRouLeasesMember_zJDLZoke7h1h" style="text-align: right" title="2029">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_ecustom--LesseeOperatingAndFinanceLeaseLiabilityPaymentsDueYearThree_iI_pn3n3_c20260630_zjYta2pC3Jyg" style="text-align: right" title="2029">228</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left">2030</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearFour_iI_pn3n3_c20260630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OperatingRouLeasesMember_zGFSovwFEky" style="text-align: right" title="2030">234</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--FinanceLeaseLiabilityPaymentsDueYearFour_iI_pn3n3_d0_c20260630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--FinanceRouLeasesMember_zbNBaOtw5w61" style="text-align: right" title="2030">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_ecustom--LesseeOperatingAndFinanceLeaseLiabilityPaymentsDueYearFour_iI_pn3n3_c20260630_z0Az7D1w727a" style="text-align: right" title="2030">234</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Thereafter</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98B_ecustom--LesseeOperatingLeaseLiabilityPaymentsDueAfterYearFour_iI_pn3n3_c20260630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OperatingRouLeasesMember_zW4rSDpXjp49" style="border-bottom: Black 1pt solid; text-align: right" title="Thereafter">1,074</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_985_ecustom--FinanceLeaseLiabilityPaymentsDueAfterYearFour_iI_pn3n3_d0_c20260630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--FinanceRouLeasesMember_zx7wS6YpDGRk" style="border-bottom: Black 1pt solid; text-align: right" title="Thereafter">–</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_981_ecustom--LesseeOperatingAndFinanceLeaseLiabilityPaymentsDueAfterYearFour_iI_pn3n3_c20260630_zW9MXVeYIci3" style="border-bottom: Black 1pt solid; text-align: right" title="Thereafter">1,074</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left">$</td><td id="xdx_98B_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDue_iI_pn3n3_c20260630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OperatingRouLeasesMember_z6gYUz9vcey3" style="padding-bottom: 2.5pt; text-align: right" title="Lease liability payments due">2,064</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left">$</td><td id="xdx_987_eus-gaap--FinanceLeaseLiabilityPaymentsDue_pn3n3_c20260630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--FinanceRouLeasesMember_zwLOOORrHES8" style="padding-bottom: 2.5pt; text-align: right" title="Lease liability payments due">116</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_988_ecustom--LesseeOperatingAndFinanceLeaseLiabilityPaymentsDue_iI_pn3n3_c20260630_zsHbNokPvYa" style="border-bottom: Black 2.5pt double; text-align: right" title="Lease liability payments due">2,180</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Less Interest*</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_981_eus-gaap--LesseeOperatingLeaseLiabilityUndiscountedExcessAmount_iNI_pn3n3_di_c20260630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OperatingRouLeasesMember_fKg_____zlJiYTWnluFj" style="border-bottom: Black 1pt solid; text-align: right" title="Less Interest">(645</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98B_eus-gaap--FinanceLeaseLiabilityUndiscountedExcessAmount_iNI_pn3n3_di_c20260630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--FinanceRouLeasesMember_fKg_____zmRbIbvYfdBb" style="border-bottom: Black 1pt solid; text-align: right" title="Less Interest">(12</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98A_eus-gaap--OperatingLeaseLiability_iI_pn3n3_c20260630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OperatingRouLeasesMember_zcQiKm2lfYD5" style="border-bottom: Black 2.5pt double; text-align: right" title="Lease liability">1,419</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98E_eus-gaap--FinanceLeaseLiability_pn3n3_c20260630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--FinanceRouLeasesMember_zcKOpnWPQzSa" style="border-bottom: Black 2.5pt double; text-align: right" title="Lease liability">104</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 1%; text-align: justify"><span id="xdx_F00_z4MxTC7Pgq3e" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</span></td> <td style="width: 99%; text-align: justify"><span id="xdx_F16_zEYRJV52NFFi" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Interest is imputed for operating ROU leases and classified as lease expense and is included in operating expenses in the accompanying unaudited condensed consolidated statements of operations.</span></td></tr> </table> <p id="xdx_8A9_zl5z3Tz5vrza" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> 100000 200000 100000 200000 29000 69000 100000 200000 <table cellpadding="0" cellspacing="0" id="xdx_89D_eus-gaap--LeaseCostTableTextBlock_pn3n3_zy5rvLEjxLMj" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - ROU Assets and Leasing Liabilities (Details - Income Statement)"> <tr style="vertical-align: bottom"> <td><span id="xdx_8B4_z4wVuBqScAhh" style="display: none">Schedule of lease cost</span></td><td> </td> <td colspan="2" id="xdx_497_20260401__20260630_znrM8oKL0B2i" style="text-align: center"> </td><td> </td><td> </td> <td colspan="2" id="xdx_49D_20250401__20250630_zNzDEiboBm23" style="text-align: center"> </td><td> </td><td> </td> <td colspan="2" id="xdx_49A_20260101__20260630_zt6eelOYJAkg" style="text-align: center"> </td><td> </td><td> </td> <td colspan="2" id="xdx_49A_20250101__20250630_zVlIALPB6Aj2" style="text-align: center"> </td><td> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Three Months Ended June 30,</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Six Months Ended June 30,</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_40A_eus-gaap--OperatingExpensesAbstract_iB" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left">Operating expense:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--FinanceLeaseRightOfUseAssetAmortization_i_pn3n3" style="vertical-align: bottom; background-color: White"> <td style="width: 32%; text-align: left; text-indent: -10pt; padding-left: 20pt">Amortization expense – Finance ROU</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">29</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">22</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">58</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">194</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--OperatingLeaseExpense_i_pn3n3" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; text-indent: -10pt; padding-left: 20pt">Lease expense – Operating ROU</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">103</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">98</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">207</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">109</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--OtherExpensesAbstract_iB" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Other expense:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--FinanceLeaseInterestExpense_d0_zNqlXYWgrMV7" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-bottom: 1pt; text-indent: -10pt; padding-left: 20pt">Interest expense – Finance ROU</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">11</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">17</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">23</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">37</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--LeaseCost_z4wJp6d10yj4" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Total lease expense</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">143</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">137</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">288</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">340</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> 29 22 58 194 103 98 207 109 11 17 23 37 143 137 288 340 <table cellpadding="0" cellspacing="0" id="xdx_895_eus-gaap--LesseeOperatingLeaseLiabilityMaturityTableTextBlock_pn3n3_zJkPWKLiZ0t3" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - ROU Assets and Leasing Liabilities (Details - Minimum obligation)"> <tr style="vertical-align: bottom"> <td style="text-align: left"><span id="xdx_8B2_zC5d5ANRAm8c" style="display: none">Schedule of future minimum lease obligations</span></td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center">Operating</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center">Finance</td><td style="font-weight: bold"> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; text-align: left; font-weight: bold">Year ending December 31,</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">ROU Leases</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">ROU Leases</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Total</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; width: 49%">Remaining 2026</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_985_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsRemainderOfFiscalYear_iI_pn3n3_c20260630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OperatingRouLeasesMember_zhZ4EyZVCdMa" style="width: 13%; text-align: right" title="Remaining 2026">159</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98C_eus-gaap--FinanceLeaseLiabilityPaymentsRemainderOfFiscalYear_iI_pn3n3_c20260630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--FinanceRouLeasesMember_zbGoVpGrxwjc" style="width: 13%; text-align: right" title="Remaining 2026">109</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_988_ecustom--LesseeOperatingAndFinanceLeaseLiabilityPaymentsRemainderOfFiscalYear_iI_pn3n3_c20260630_znGpgvubOua3" style="width: 13%; text-align: right" title="Remaining 2026">268</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">2027</td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths_iI_pn3n3_c20260630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OperatingRouLeasesMember_zXvXo22HGqo7" style="text-align: right" title="2027">146</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--FinanceLeaseLiabilityPaymentsDueNextTwelveMonths_iI_pn3n3_c20260630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--FinanceRouLeasesMember_zmz6NuUqwUCe" style="text-align: right" title="2027">4</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_ecustom--LesseeOperatingAndFinanceLeaseLiabilityPaymentsDueNextTwelveMonths_iI_pn3n3_c20260630_z3e37MeLM8Cf" style="text-align: right" title="2027">150</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left">2028</td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearTwo_iI_pn3n3_c20260630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OperatingRouLeasesMember_zLAUQkd0PfXd" style="text-align: right" title="2028">223</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--FinanceLeaseLiabilityPaymentsDueYearTwo_iI_pn3n3_c20260630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--FinanceRouLeasesMember_z3KQtb6Mm5Kb" style="text-align: right" title="2028">3</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_ecustom--LesseeOperatingAndFinanceLeaseLiabilityPaymentsDueYearTwo_iI_pn3n3_c20260630_z6a6SxKSlLDa" style="text-align: right" title="2028">226</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">2029</td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearThree_iI_pn3n3_c20260630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OperatingRouLeasesMember_zFEz5Yw3vske" style="text-align: right" title="2029">228</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--FinanceLeaseLiabilityPaymentsDueYearThree_iI_pn3n3_d0_c20260630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--FinanceRouLeasesMember_zJDLZoke7h1h" style="text-align: right" title="2029">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_ecustom--LesseeOperatingAndFinanceLeaseLiabilityPaymentsDueYearThree_iI_pn3n3_c20260630_zjYta2pC3Jyg" style="text-align: right" title="2029">228</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left">2030</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearFour_iI_pn3n3_c20260630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OperatingRouLeasesMember_zGFSovwFEky" style="text-align: right" title="2030">234</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--FinanceLeaseLiabilityPaymentsDueYearFour_iI_pn3n3_d0_c20260630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--FinanceRouLeasesMember_zbNBaOtw5w61" style="text-align: right" title="2030">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_ecustom--LesseeOperatingAndFinanceLeaseLiabilityPaymentsDueYearFour_iI_pn3n3_c20260630_z0Az7D1w727a" style="text-align: right" title="2030">234</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Thereafter</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98B_ecustom--LesseeOperatingLeaseLiabilityPaymentsDueAfterYearFour_iI_pn3n3_c20260630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OperatingRouLeasesMember_zW4rSDpXjp49" style="border-bottom: Black 1pt solid; text-align: right" title="Thereafter">1,074</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_985_ecustom--FinanceLeaseLiabilityPaymentsDueAfterYearFour_iI_pn3n3_d0_c20260630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--FinanceRouLeasesMember_zx7wS6YpDGRk" style="border-bottom: Black 1pt solid; text-align: right" title="Thereafter">–</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_981_ecustom--LesseeOperatingAndFinanceLeaseLiabilityPaymentsDueAfterYearFour_iI_pn3n3_c20260630_zW9MXVeYIci3" style="border-bottom: Black 1pt solid; text-align: right" title="Thereafter">1,074</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left">$</td><td id="xdx_98B_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDue_iI_pn3n3_c20260630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OperatingRouLeasesMember_z6gYUz9vcey3" style="padding-bottom: 2.5pt; text-align: right" title="Lease liability payments due">2,064</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left">$</td><td id="xdx_987_eus-gaap--FinanceLeaseLiabilityPaymentsDue_pn3n3_c20260630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--FinanceRouLeasesMember_zwLOOORrHES8" style="padding-bottom: 2.5pt; text-align: right" title="Lease liability payments due">116</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_988_ecustom--LesseeOperatingAndFinanceLeaseLiabilityPaymentsDue_iI_pn3n3_c20260630_zsHbNokPvYa" style="border-bottom: Black 2.5pt double; text-align: right" title="Lease liability payments due">2,180</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Less Interest*</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_981_eus-gaap--LesseeOperatingLeaseLiabilityUndiscountedExcessAmount_iNI_pn3n3_di_c20260630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OperatingRouLeasesMember_fKg_____zlJiYTWnluFj" style="border-bottom: Black 1pt solid; text-align: right" title="Less Interest">(645</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98B_eus-gaap--FinanceLeaseLiabilityUndiscountedExcessAmount_iNI_pn3n3_di_c20260630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--FinanceRouLeasesMember_fKg_____zmRbIbvYfdBb" style="border-bottom: Black 1pt solid; text-align: right" title="Less Interest">(12</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98A_eus-gaap--OperatingLeaseLiability_iI_pn3n3_c20260630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OperatingRouLeasesMember_zcQiKm2lfYD5" style="border-bottom: Black 2.5pt double; text-align: right" title="Lease liability">1,419</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98E_eus-gaap--FinanceLeaseLiability_pn3n3_c20260630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--FinanceRouLeasesMember_zcKOpnWPQzSa" style="border-bottom: Black 2.5pt double; text-align: right" title="Lease liability">104</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 1%; text-align: justify"><span id="xdx_F00_z4MxTC7Pgq3e" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</span></td> <td style="width: 99%; text-align: justify"><span id="xdx_F16_zEYRJV52NFFi" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Interest is imputed for operating ROU leases and classified as lease expense and is included in operating expenses in the accompanying unaudited condensed consolidated statements of operations.</span></td></tr> </table> 159000 109000 268000 146000 4000 150000 223000 3000 226000 228000 0 228000 234000 0 234000 1074000 0 1074000 2064000 116000 2180000 645000 12000 1419000 104000 <p id="xdx_808_eus-gaap--DebtDisclosureTextBlock_ziniKgqp53r2" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 43px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>5.</b></span></td> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="xdx_821_zt4611lIPWvc">Notes Payable</span> </b></span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="text-decoration: underline">Security Purchase Agreement</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.45in">On March 10, 2022, the Company issued a promissory note (“Note 1”) to Streeterville Capital, LLC with an initial principal balance of $<span id="xdx_90E_eus-gaap--DebtInstrumentFaceAmount_iI_pn5n6_c20220310__us-gaap--DebtInstrumentAxis__custom--StreetervilleCapitalMember_ze4wW6X9kku1" title="Debt instrument, face amount">5.4</span> million and a stated interest rate of 7%. In January 2023, the Company amended Note 1 to waive the noteholder’s redemption rights through March 31, 2023 in exchange for a 3.75% fee on the outstanding principal, which was recorded as additional debt issuance costs and increased the total indebtedness. In August 2023, the Company entered into a Forbearance Agreement, as amended, which extended the maturity date of Note 1 to September 10, 2024 and granted Streeterville a first-priority security interest in substantially all of the Company’s assets.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.45in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.45in">During 2024, the Company reduced the outstanding principal of Note 1 through debt-to-equity exchanges to $<span id="xdx_907_eus-gaap--DebtConversionOriginalDebtAmount1_pn5n6_c20240101__20241231__us-gaap--DebtInstrumentAxis__custom--StreetervilleCapitalMember_z0Vws7lALxz8" title="Principal balance">0.5</span> million and recorded the reversal of previously recognized interest accretion and the write-off of unamortized debt issuance costs. Although Note 1 matured on September 10, 2024, repayment was restricted while Series A preferred stock was outstanding, which was fully redeemed on January 3, 2025. In March 2025, the Company exchanged the remaining $<span id="xdx_909_eus-gaap--DebtConversionOriginalDebtAmount1_pn5n6_c20250101__20250630__us-gaap--DebtInstrumentAxis__custom--StreetervilleCapitalMember_zaEnEfVtubM" title="Principal balance">0.5</span> million principal balance for shares of common stock, resulting in full extinguishment of Note 1. The Company recognized approximately $<span id="xdx_90D_eus-gaap--InterestExpenseDebt_pn3n3_c20250401__20250630__us-gaap--DebtInstrumentAxis__custom--StreetervilleCapitalMember_zTGcxak8zXa8" title="Interest expense"><span id="xdx_909_eus-gaap--InterestExpenseDebt_pn3n3_c20250101__20250630__us-gaap--DebtInstrumentAxis__custom--StreetervilleCapitalMember_zwKphPVTGEv" title="Interest expense">8</span></span> thousand of interest expense for the three and six months ended June 30, 2025.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.45in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-decoration: underline">Note Purchase Agreement</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.45in">On April 6, 2026, the Company entered into a Note Purchase Agreement (the “Purchase Agreement”) with Streeterville Capital, LLC (the “Investor”). Pursuant to the Purchase Agreement, the Company issued and sold to the Investor a Secured Promissory Note (the “Note”) in the original principal amount of $<span id="xdx_902_eus-gaap--DebtInstrumentFaceAmount_iI_pn5n6_c20260406__us-gaap--DebtInstrumentAxis__custom--NotePurchaseAgreementMember_zWy9lRyKyvkd" title="Debt face amount">3.2</span> million for cash proceeds of $<span id="xdx_907_eus-gaap--ProceedsFromIssuanceOfDebt_pn6n6_c20260405__20260406__us-gaap--DebtInstrumentAxis__custom--NotePurchaseAgreementMember_zgWK7MrXRzT4" title="Cash proceeds">3</span>.0 million (reflecting an original issue discount and legal fees of $<span id="xdx_901_eus-gaap--DebtInstrumentUnamortizedDiscount_iI_pn5n6_c20260406__us-gaap--DebtInstrumentAxis__custom--NotePurchaseAgreementMember_zFyyHEjVjJMb" title="Original issue discount">0.2</span> million). The Company also paid transaction costs associated with this Note of $<span id="xdx_906_eus-gaap--PaymentsOfDebtIssuanceCosts_pn5n6_c20260405__20260406__us-gaap--DebtInstrumentAxis__custom--NotePurchaseAgreementMember_z3LYX53Rhm4h" title="Payment of debt issuance costs">0.2</span> million. Beginning six months after funding, the Investor may require cash redemptions of up to $0.3 million per calendar month and may require additional limited redemptions if the Company’s common stock trades at a price that is at least 10% greater than the Nasdaq minimum price up to amount equal to 5% of the cumulative daily dollar trading volume.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.45in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.45in">The Note contains a most favored nation provision pursuant to which, so long as the Note remains outstanding, if the Company issues debt securities containing economic terms that are more favorable than those provided under the Note, the holder may elect to have such more favorable terms incorporated into the Note. The Company is also required to notify the holder of any such issuance.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.45in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.45in">The Note further provides the holder with a participation right, exercisable until the Note has been repaid in full, to purchase up to 10% of the securities issued in future debt or equity financings on substantially the same terms and conditions offered to other investors. If the Company fails to comply with the participation right, the holder's sole remedy is liquidated damages equal to 20% of the amount the holder would have been entitled to invest pursuant to the participation right. A breach of the participation right does not constitute an event of default under the Note.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.45in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.45in">The Note bears interest at <span id="xdx_905_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pip0_dp_c20260406__us-gaap--DebtInstrumentAxis__custom--NotePurchaseAgreementMember_z9313vtryWp7">7</span>% per annum, compounded daily, matures 24 months after issuance, and includes a monitoring fee provision after 90 days (automatically increases the Outstanding Balance by approximately 17.65%) which is expected to be recorded Q3’26. The agreement includes certain customary and noncustomary trigger events and defaults which, if triggered, could result in an additional 5% or 15% added to the principal balance. The Note is secured by a first-priority security interest in all of the Company’s assets and intellectual property pursuant to a Security Agreement and an Intellectual Property Security Agreement, each dated as of April 6, 2026. The Company recognized $<span id="xdx_902_eus-gaap--InterestExpense_pn3n3_c20260401__20260630__us-gaap--DebtInstrumentAxis__custom--NotePurchaseAgreementMember_zOL42IwGhW3e">99</span> thousand of interest expense for the three months ended June 30, 2026.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-decoration: underline">Short-Term Note Purchase Agreement</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On June 25, 2026, the Company issued and sold to the Investor a note payable with a stated principal amount of $<span id="xdx_901_eus-gaap--DebtInstrumentFaceAmount_iI_pn5n6_c20260625__us-gaap--DebtInstrumentAxis__custom--ShortTermNotePurchaseAgreementMember_zHKlOQXiR2cf" title="Debt face amount">0.4</span> million and received net cash proceeds of $<span id="xdx_90F_eus-gaap--ProceedsFromIssuanceOfDebt_pn5n6_c20260624__20260625__us-gaap--DebtInstrumentAxis__custom--ShortTermNotePurchaseAgreementMember_zgKnR1Gxj0If" title="Proceeds from issuance of debt">0.3</span> million, reflecting an original issue discount and transaction costs of $<span id="xdx_90D_eus-gaap--DebtInstrumentUnamortizedDiscount_iI_pn3n3_c20260625__us-gaap--DebtInstrumentAxis__custom--ShortTermNotePurchaseAgreementMember_zigRb5PbeyJ2" title="Unamortized discount">36</span> thousand, which are presented as deductions from the note and amortized to interest expense using the effective-interest method. The note is non-interest bearing and matures on <span id="xdx_90B_eus-gaap--DebtInstrumentMaturityDate_dd_c20260624__20260625__us-gaap--DebtInstrumentAxis__custom--ShortTermNotePurchaseAgreementMember_zYxlNETSo8oh" title="Maturity date">August 27, 2026</span>. The Company is required to make <span id="xdx_902_eus-gaap--DebtInstrumentFrequencyOfPeriodicPayment_c20260624__20260625__us-gaap--DebtInstrumentAxis__custom--ShortTermNotePurchaseAgreementMember_zqbB6tG5jEUl" title="Frequency of debt periodic payment">weekly</span> payments of $<span id="xdx_908_eus-gaap--DebtInstrumentPeriodicPayment_pn3n3_c20260624__20260625__us-gaap--DebtInstrumentAxis__custom--ShortTermNotePurchaseAgreementMember_zniGvBJyqUH5" title="Debt periodic payment">8</span> thousand and remit accounts-receivable collections to the lender within three trading days. The note is secured by the Company's accounts receivable and related proceeds. The Company recognized <span id="xdx_902_eus-gaap--InterestExpense_do_c20260401__20260630__us-gaap--DebtInstrumentAxis__custom--ShortTermNotePurchaseAgreementMember_zeT45YftIOB7" title="Interest expense">no</span> interest expense associated with this note for the three months ended June 30, 2026.</p> 5400000 500000 500000 8000 8000 3200000 3000000 200000 200000 0.07 99000 400000 300000 36000 2026-08-27 weekly 8000 0 <p id="xdx_80E_eus-gaap--CommitmentsAndContingenciesDisclosureTextBlock_zYySmniGJaHe" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 43px; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>6.</b></span></td> <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="xdx_828_zmFfz0Vu2Ksh">Commitments and Contingencies</span></b></span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 14.55pt; text-align: justify; text-indent: -14.6pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.45in">The Company is periodically involved in various litigation claims asserted in the normal course of its business. The Company believes these actions are routine and incidental to the business. While the outcome of these actions cannot be predicted with certainty, the Company does not believe that any will have a material adverse impact on the Company’s business.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p id="xdx_80F_eus-gaap--StockholdersEquityNoteDisclosureTextBlock_zJRaMNjVZOpa" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 43px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>7.</b></span></td> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="xdx_826_z2c4GqtXcfO7">Stockholders’ Equity</span></b></span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>ATM Offering</i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i> </i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.45in">On June 11, 2025, the Company terminated its At Market Sales Agreement with B. Riley Securities, Inc. On June 12, 2025, the Company entered into a new At The Market Offering Agreement with H.C. Wainwright &amp; Co., LLC to potentially sell up to $<span id="xdx_90B_eus-gaap--LineOfCreditFacilityMaximumBorrowingCapacity_iI_pn6n6_c20250611__us-gaap--FinancialInstrumentAxis__custom--WainwrightATMAgreementMember_zPw6oO92TuFl" title="Maximum borrowing capacity">50</span>.0 million of the Company’s common stock using a shelf registration statement on Form S-3/A (File No. 333-281565) which was filed on January 31, 2025 and became effective on February 10, 2025. For the three and six month periods ended June 30, 2026 and 2025, <span id="xdx_906_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_do_c20250101__20250630__us-gaap--FinancialInstrumentAxis__custom--WainwrightATMAgreementMember_z2W2tWSaCrM1" title="Stock issued new, shares"><span id="xdx_903_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_do_c20260101__20260630__us-gaap--FinancialInstrumentAxis__custom--WainwrightATMAgreementMember_zqRIjmmh2t8l" title="Stock issued new, shares">no</span></span> sales of common stock were made under the ATM utilizing the shelf registration.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i> </i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Standby Equity Purchase Agreement</i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On July 3, 2024, the Company entered into a $<span id="xdx_90C_ecustom--StandbyEquityPurchaseAgreementValue_iI_pn6n6_c20240703__srt--CounterpartyNameAxis__custom--StreetervilleMember__us-gaap--TypeOfArrangementAxis__custom--StandbyEquityPurchaseAgreementMember_zAfNcUl7YKg8" title="Standby equity purchase">10</span> million Standby Equity Purchase Agreement (“SEPA”) with Streeterville pursuant to which the Company has the right to direct Streeterville during the 24 month term of the agreement to purchase common stock subject to certain limitations and conditions set forth in the SEPA. During the year ended December 31, 2024, <span id="xdx_901_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_pn5n6_c20240101__20241231__srt--CounterpartyNameAxis__custom--StreetervilleMember__us-gaap--TypeOfArrangementAxis__custom--StandbyEquityPurchaseAgreementMember_zjjsFu00W8M5" title="Stock issued new, shares">1.2</span> million shares of common stock were purchased pursuant to the SEPA resulting in aggregate net proceeds of $<span id="xdx_90A_eus-gaap--ProceedsFromIssuanceOrSaleOfEquity_pn5n6_c20240101__20241231__srt--CounterpartyNameAxis__custom--StreetervilleMember__us-gaap--TypeOfArrangementAxis__custom--StandbyEquityPurchaseAgreementMember_zTRverCkDcBb" title="Proceeds from sale of equity">1.8</span> million of which $<span id="xdx_90C_eus-gaap--ProceedsFromIssuanceOrSaleOfEquity_pn5n6_c20240101__20241231__srt--CounterpartyNameAxis__custom--StreetervilleMember__us-gaap--TypeOfArrangementAxis__custom--StandbyEquityPurchaseAgreementMember__us-gaap--TransactionTypeAxis__custom--ReceivedIn2024Member_zcFkim3IUAq4" title="Proceeds from sale of equity">0.1</span> million was received in 2024. The remaining proceeds due were recorded as a Stock Subscription Receivable in the consolidated balance sheet on December 31, 2024, and received in January 2025. During the six months ended June 30, 2026 and 2025, <span id="xdx_902_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_do_c20260101__20260630__srt--CounterpartyNameAxis__custom--StreetervilleMember__us-gaap--TypeOfArrangementAxis__custom--StandbyEquityPurchaseAgreementMember_zxh5z41MwJB" title="Stock issued new, shares"><span id="xdx_906_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_do_c20250101__20250630__srt--CounterpartyNameAxis__custom--StreetervilleMember__us-gaap--TypeOfArrangementAxis__custom--StandbyEquityPurchaseAgreementMember_zXKUeGd9EYP9" title="Stock issued new, shares">no</span></span> purchases were made pursuant to the SEPA.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Series A Preferred Stock</i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On March 15, 2024, the Company filed the Amended and Restated Certificate of Incorporation (the “A&amp;R Certificate”) to eliminate the Series 1, Series 2, and Series 3 preferred shares and filed a Certificate of Designations creating a new Series A preferred stock, $<span id="xdx_90E_eus-gaap--PreferredStockParOrStatedValuePerShare_iI_pip0_c20240315__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_zdekwlDk7rBl" title="Preferred stock par value">0.01</span> par value per share (the “Series A preferred stock”). Pursuant to the terms of the Series A Certificate, <span id="xdx_908_eus-gaap--PreferredStockSharesAuthorized_iI_pn3n3_c20240315__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_zQfP99RiytEd" title="Preferred stock shares authorized">20</span> thousand shares of Series A preferred stock are authorized, and each share of Series A preferred stock has a stated value of $1,100, accrues a rate of return on the stated value of 10% per year, is compounded annually and is payable quarterly in cash or additional shares of Series A preferred stock.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On March 15, 2024, the Company entered into an Exchange Agreement with Streeterville Capital that exchanged $<span id="xdx_90C_eus-gaap--DebtConversionConvertedInstrumentAmount1_pn5n6_c20240314__20240315__srt--CounterpartyNameAxis__custom--StreetervilleCapitalMember__us-gaap--TransactionTypeAxis__custom--ExchangeAgreementMember_zh9SHXaDDE36" title="Debt converted, amount converted">9.3</span> million in debt for <span id="xdx_90D_eus-gaap--DebtConversionConvertedInstrumentSharesIssued1_pip0_c20240314__20240315__srt--CounterpartyNameAxis__custom--StreetervilleCapitalMember__us-gaap--TransactionTypeAxis__custom--ExchangeAgreementMember__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_z9Ji1Lj81aqj" title="Debt converted, shares issued">9,275</span> shares of Series A preferred stock.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Through the remainder of 2024, the Company reduced the outstanding number of Series A preferred stock outstanding through redemptions and exchanges to common stock to <span id="xdx_908_eus-gaap--PreferredStockSharesOutstanding_iI_pn3n3_c20241231__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_zAPAtDU6cUyc">3,587</span> shares. In January 2025, all remaining preferred shares were exchanged or redeemed and there have been <span id="xdx_901_eus-gaap--PreferredStockSharesOutstanding_iI_pn3n3_dn_c20250131__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_zMk1m0dyiwwc">none</span> outstanding since January 2025.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Registered Direct Offering</i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On January 6, 2025, the Company sold to a single institutional investor <span id="xdx_909_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_pn3n3_c20250105__20250106__us-gaap--SubsidiarySaleOfStockAxis__custom--RegisteredDirectOfferingMember__us-gaap--StatementClassOfStockAxis__us-gaap--CommonStockMember_zIzzSzQEeOB1" title="Stock issued new, shares">653</span> thousand shares of the Company’s common stock at a purchase price of $3.05 per share and <span id="xdx_90F_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_pn3n3_c20250105__20250106__us-gaap--SubsidiarySaleOfStockAxis__custom--RegisteredDirectOfferingMember__us-gaap--StatementClassOfStockAxis__custom--PreFundedWarrantsMember_zomjuo6NQm0c" title="Stock issued new, shares">1,806</span> thousand prefunded warrants to purchase up to 1,806 thousand shares of common stock at a purchase price of $3.0499 for aggregate gross proceeds of $<span id="xdx_903_eus-gaap--ProceedsFromIssuanceOrSaleOfEquity_pn5n6_c20250105__20250106__us-gaap--SubsidiarySaleOfStockAxis__custom--RegisteredDirectOfferingMember_z48rGfSKLWK8" title="Proceeds from sale of equity">7.5</span> million. The prefunded warrants were exercisable immediately at an exercise price of $.0001 per share subject to the Purchaser not being deemed a beneficial owner of greater than 4.99%. As of March 31, 2025, all the pre-funded warrants had been exercised.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Common Stock Warrants</i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On June 30, 2026, the Company had <span id="xdx_908_eus-gaap--ClassOfWarrantOrRightOutstanding_iI_pip0_c20260630__us-gaap--StatementClassOfStockAxis__custom--CommonStockWarrantsMember_zMdfygaZ4a86" title="Warrants outstanding">3,198,085</span> warrants to purchase one share of common stock at an average exercise price of $<span id="xdx_90F_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_pip0_c20260630__us-gaap--StatementClassOfStockAxis__custom--CommonStockWarrantsMember_zZ2ZOR5CVlsj" title="Weighted average exercise price">3.26</span> per share and average remaining term of <span id="xdx_90E_ecustom--WarrantsAverageRemainingTerm_dtY_c20260101__20260630__us-gaap--StatementClassOfStockAxis__custom--CommonStockWarrantsMember_zeKwSbBHIKsl" title="Warrants average remaining term">2.85</span> years.</p> 50000000 0 0 10000000 1200000 1800000 100000 0 0 0.01 20000 9300000 9275 3587000 0 653000 1806000 7500000 3198085 3.26 P2Y10M6D <p id="xdx_808_eus-gaap--DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock_zWPmqw5v4jI" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 43px; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>8.</b></span></td> <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="xdx_82A_zzhAi7e1fnp8">Stock-Based Compensation</span></b></span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 14.55pt; text-align: justify; text-indent: -14.6pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company accounts for stock-based compensation in accordance with ASC 718, Compensation – Stock Compensation, which requires that compensation related to all stock-based awards be recognized in the condensed consolidated financial statements. Stock-based compensation cost is valued at fair value at the date of grant, and the grant date fair value is recognized as expense over each award’s requisite service period with a corresponding increase to equity or liability based on the terms of each award and the appropriate accounting treatment under ASC 718.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company had three stock-based compensation plans as of June 30, 2026 and December 31, 2025: The 2023 ESPP, 2021 Omnibus Incentive Plan and the 2015 Stock Incentive Plan. These plans provide a means through which the Company may attract and retain key personnel and to provide a means whereby directors, officers, employees, consultants and advisors of the Company can acquire and maintain an equity interest in the Company, or be paid incentive compensation, including incentive compensation measured by reference to the value of common stock, thereby strengthening their commitment to the welfare of the Company and aligning their interests with those of the Company’s stockholders. These plans are discussed in detail in the Company’s Annual Report for the year ended December 31, 2025, filed with the SEC.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company grants stock from the 2021 Omnibus Incentive Plan. Grants can no longer be made from the 2015 Stock Incentive Plan.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">During the six months ended June 30, 2026 and 2025, the Company granted <span id="xdx_90A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_pn3n3_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zVNAN65ZMAzb" title="Restricted stock granted during period, shares">690</span> thousand and <span id="xdx_90B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_pn3n3_c20250101__20250630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zasjGA6je528" title="Restricted stock granted during period, shares">384</span> thousand restricted stock units (“RSUs”), respectively. No other grants were made during either period.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company recognized compensation expense of $<span id="xdx_90C_eus-gaap--EmployeeBenefitsAndShareBasedCompensation_pn5n6_c20260401__20260630_zcnZxquRjww7" title="Compensation expense">0.1</span> million and $<span id="xdx_902_eus-gaap--EmployeeBenefitsAndShareBasedCompensation_pn5n6_c20260101__20260630_zjqy2fJi6vx5" title="Compensation expense">0.2</span> million for the three and six months ended June 30, 2026, compared to $<span id="xdx_907_eus-gaap--EmployeeBenefitsAndShareBasedCompensation_pn5n6_c20250401__20250630_zR0WgJFDRnib" title="Compensation expense">0.3</span> million and $<span id="xdx_908_eus-gaap--EmployeeBenefitsAndShareBasedCompensation_pn5n6_c20250101__20250630_znTUGYj9tEw3" title="Compensation expense">0.5</span> million for the three and six months ended June 30, 2025.</p> 690000 384000 100000 200000 300000 500000 <p id="xdx_808_eus-gaap--RevenueFromContractWithCustomerTextBlock_z2vEG3AuBgx8" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 43px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>9.</b></span></td> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="xdx_827_zgyNTcGP4ql2">Revenue Recognition</span></b></span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.45in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.45in">The Company recognizes product revenue upon shipment or after meeting certain performance obligations. These products can include hardware, software subscriptions and consulting services. The Company also offers software on a subscription basis subject to software as a service (“SaaS”). Warranty costs have not been material.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.45in">The Company recognizes sales of the Company’s datasets in accordance with FASB ASC Topic 606 whereby revenue from contracts with customers are recognized once the criteria under the five steps below have been met:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr> <td style="width: 43px"> </td> <td style="vertical-align: top; width: 48px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(i)</span></td> <td style="vertical-align: top"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">identification of the contract with a customer;</span></td></tr> <tr> <td> </td> <td style="vertical-align: top"> </td> <td style="vertical-align: top"> </td></tr> <tr> <td> </td> <td style="vertical-align: top"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(ii)</span></td> <td style="vertical-align: top"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">identification of the performance obligations in the contract;</span></td></tr> <tr> <td> </td> <td style="vertical-align: top"> </td> <td style="vertical-align: top"> </td></tr> <tr> <td style="width: 43px"> </td> <td style="vertical-align: top; width: 48px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(iii)</span></td> <td style="vertical-align: top"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">determination of the transaction price;</span></td></tr> </table> <p style="margin: 0"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr> <td style="width: 43px"> </td> <td style="vertical-align: top; width: 48px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(iv)</span></td> <td style="vertical-align: top"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">allocation of the transaction price to the separate performance obligations; and</span></td></tr> <tr> <td> </td> <td style="vertical-align: top"> </td> <td style="vertical-align: top"> </td></tr> <tr style="vertical-align: top"> <td> </td> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(v)</span></td> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">recognize revenue upon satisfaction of a performance obligation.</span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.45in">Consulting services include reporting and are typically done monthly based on deliverables and/or actual labor hours performed under the contract, and revenue is matched accordingly.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.45in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.45in">Normal payment terms offered to customers, distributors and resellers are net 30 days domestically. The Company does not offer payment terms that extend beyond one year and rarely does it extend payment terms beyond its normal terms. If certain customers do not meet the Company’s credit standards, the Company typically requires payment in advance to limit its credit exposure.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.45in">With the Company’s newest product, <b>INTRUSION <i>Shield,</i></b> the Company began offering software on a subscription basis. <b>INTRUSION <i>Shield</i></b> is a hosted arrangement subject to SaaS guidance under ASC 606. SaaS arrangements are accounted for as subscription services, not arrangements that transfer a license of intellectual property.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.45in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.45in">The Company utilizes the five-step process mentioned above, per FASB ASC Topic 606 to recognize sales and will follow that directive, also, to define revenue items as individual and distinct. <b>INTRUSION <i>Shield</i></b> services provided to its customers for a fixed monthly subscription fee include:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 43px"> </td> <td style="width: 19px; text-align: justify"><span style="font-family: Symbol; font-size: 10pt">·</span></td> <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">access to Intrusion’s proprietary software and database to detect and prevent unauthorized access to its clients’ information networks;</span></td></tr> <tr style="vertical-align: top"> <td> </td> <td style="text-align: justify"><span style="font-family: Symbol; font-size: 10pt">·</span></td> <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">use of all software, associated media, printed materials, data, files, online documentation, and any equipment that Intrusion provides for customers to access the <b>INTRUSION <i>Shield</i></b>; and</span></td></tr> <tr style="vertical-align: top"> <td> </td> <td style="text-align: justify"><span style="font-family: Symbol; font-size: 10pt">·</span></td> <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">tech support, post contract customer support (PCS) includes daily program releases or corrections provided by Intrusion without additional charge.</span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.45in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.45in"><b>INTRUSION <i>Shield</i></b> contracts provide no other services, and the Company’s customers have no rebates or return rights, nor are any such rights anticipated to be offered as part of this service.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.45in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.45in">The Company satisfies its performance obligation when the <b>INTRUSION <i>Shield</i></b> solution is available to detect and prevent unauthorized access to a client’s information networks. Revenue is recognized monthly over the term of the contract. The Company’s standard initial contract terms automatically renew unless notice is given 30 days before renewal. Upfront payment of fees is deferred and amortized into income over the period covered by the contract.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.45in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.45in">For the three and six months ended June 30, 2026, revenues to various U.S. government entities totaled $<span id="xdx_904_eus-gaap--Revenues_pn5n6_c20260401__20260630__srt--MajorCustomersAxis__custom--FourGovernmentCustomersMember_zst0TaR78Uhi" title="Revenues">1.3</span> million and $<span id="xdx_900_eus-gaap--Revenues_pn5n6_c20260101__20260630__srt--MajorCustomersAxis__custom--FourGovernmentCustomersMember_zDvIbdrbVpg5" title="Revenues">2.1</span> million from four government customers, representing <span id="xdx_906_eus-gaap--ConcentrationRiskPercentage1_dp_c20260401__20260630__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--FourGovernmentCustomersMember_zgkMPftYG6p9" title="Concentration risk, percentage">93.5</span>% and <span id="xdx_90F_eus-gaap--ConcentrationRiskPercentage1_dp_c20260101__20260630__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--FourGovernmentCustomersMember_zI6ngZa5N0al" title="Concentration risk, percentage">91.3</span>% of total revenues, respectively. In comparison, for the same period in 2025, revenues totaled $<span id="xdx_903_eus-gaap--Revenues_pn5n6_c20250401__20250630__srt--MajorCustomersAxis__custom--FourGovernmentCustomersMember_zXXTaZ4seFo4" title="Revenues">1.8</span> million and $<span id="xdx_90D_eus-gaap--Revenues_pn5n6_c20250101__20250630__srt--MajorCustomersAxis__custom--FourGovernmentCustomersMember_zWYavia2dN27" title="Revenues">3.4</span> million from four government customers, representing <span id="xdx_906_eus-gaap--ConcentrationRiskPercentage1_dp_c20250401__20250630__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--FourGovernmentCustomersMember_zYwYHHJWtoY4" title="Concentration risk, percentage">95.5</span>% and <span id="xdx_906_eus-gaap--ConcentrationRiskPercentage1_dp_c20250101__20250630__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--FourGovernmentCustomersMember_zEGIq7b9Okkl" title="Concentration risk, percentage">93.6</span>% of total revenues, respectively.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.45in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.45in">The Company’s accounts receivable represents unconditional contract billings for sales per contracts with customers and are classified as current assets. As of June 30, 2026 and December 31, 2025, the Company had accounts receivable balances of $<span id="xdx_904_eus-gaap--AccountsReceivableGrossCurrent_iI_pn5n6_c20260630_zriiWJ85QJp4" title="Accounts receivable">1.5</span> million and $<span id="xdx_905_eus-gaap--AccountsReceivableGrossCurrent_iI_pn5n6_c20251231_z7e0vdALf9Ek" title="Accounts receivable">0.1</span> million, respectively. At June 30, 2026 and December 31, 2025, the Company had an allowance for credit losses of $<span id="xdx_907_eus-gaap--AllowanceForDoubtfulAccountsReceivable_iI_pn5n6_c20260630_zIGphWYZtnaa" title="Allowance for credit losses"><span id="xdx_90D_eus-gaap--AllowanceForDoubtfulAccountsReceivable_iI_pn5n6_c20251231_z2MBlqZlAs0f" title="Allowance for credit losses">0.1</span></span> million.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.45in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.45in">Contract assets are recognized when the Company has transferred services to a customer earning the right to consideration.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.45in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.45in">Contract liabilities consist of cash payments in advance of the Company satisfying performance obligations and recognizing revenue. The Company currently classifies deferred revenue as a contract liability.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.45in">The following table presents changes in the Company’s contract liabilities during the six months ended June 30, 2026, and the year ended December 31, 2025 (in thousands):</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Contract Liabilities</b></p> <table cellpadding="0" cellspacing="0" id="xdx_88E_eus-gaap--ContractWithCustomerAssetAndLiabilityTableTextBlock_z9TpkFQyvwa" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Revenue Recognition (Details - Contract liabilities)"> <tr style="vertical-align: bottom"> <td> <span id="xdx_8B1_zzRUfrlA8mB1" style="display: none">Schedule of contract liabilities</span></td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">June 30,<br/> 2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31,<br/> 2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 66%">Balance at beginning of period</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_985_eus-gaap--ContractWithCustomerLiability_iS_pn3n3_c20260101__20260630_zncdvtupYEA2" style="width: 13%; text-align: right" title="Contract liabilities, beginning balance">503</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98A_eus-gaap--ContractWithCustomerLiability_iS_pn3n3_c20250101__20251231_zQsvaPpevAel" style="width: 13%; text-align: right" title="Contract liabilities, beginning balance">730</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Additions</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--IncreaseDecreaseInContractWithCustomerLiability_pn3n3_c20260101__20260630_zau4P9KaeOFc" style="text-align: right" title="Contract liabilities additions">2,032</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_ecustom--ContractWithCustomerLiabilityAdditions_pn3n3_c20250101__20251231_zqJCwtdZcy32" style="text-align: right" title="Contract liabilities additions">160</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-bottom: 1pt">Revenue recognized</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98F_eus-gaap--ContractWithCustomerLiabilityRevenueRecognized_pn3n3_c20260101__20260630_zlBj8gMHZbUh" style="border-bottom: Black 1pt solid; text-align: right" title="Contract liabilities revenue recognized">(1,741</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_981_ecustom--ContractWithCustomerLiabilityRevenueRecognizedIncludingOpeningBalance_pn3n3_c20250101__20251231_zuOclcxlBEL3" style="border-bottom: Black 1pt solid; text-align: right" title="Contract liabilities revenue recognized">(387</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt">Balance at end of period</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_983_eus-gaap--ContractWithCustomerLiability_iE_pn3n3_c20260101__20260630_zkBAZXv0ZUZ6" style="border-bottom: Black 2.5pt double; text-align: right" title="Contract liabilities, ending balance">794</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_988_eus-gaap--ContractWithCustomerLiability_iE_pn3n3_c20250101__20251231_zYVb9tP0FaAb" style="border-bottom: Black 2.5pt double; text-align: right" title="Contract liabilities, ending balance">503</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> 1300000 2100000 0.935 0.913 1800000 3400000 0.955 0.936 1500000 100000 100000 100000 <table cellpadding="0" cellspacing="0" id="xdx_88E_eus-gaap--ContractWithCustomerAssetAndLiabilityTableTextBlock_z9TpkFQyvwa" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Revenue Recognition (Details - Contract liabilities)"> <tr style="vertical-align: bottom"> <td> <span id="xdx_8B1_zzRUfrlA8mB1" style="display: none">Schedule of contract liabilities</span></td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">June 30,<br/> 2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31,<br/> 2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 66%">Balance at beginning of period</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_985_eus-gaap--ContractWithCustomerLiability_iS_pn3n3_c20260101__20260630_zncdvtupYEA2" style="width: 13%; text-align: right" title="Contract liabilities, beginning balance">503</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98A_eus-gaap--ContractWithCustomerLiability_iS_pn3n3_c20250101__20251231_zQsvaPpevAel" style="width: 13%; text-align: right" title="Contract liabilities, beginning balance">730</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Additions</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--IncreaseDecreaseInContractWithCustomerLiability_pn3n3_c20260101__20260630_zau4P9KaeOFc" style="text-align: right" title="Contract liabilities additions">2,032</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_ecustom--ContractWithCustomerLiabilityAdditions_pn3n3_c20250101__20251231_zqJCwtdZcy32" style="text-align: right" title="Contract liabilities additions">160</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-bottom: 1pt">Revenue recognized</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98F_eus-gaap--ContractWithCustomerLiabilityRevenueRecognized_pn3n3_c20260101__20260630_zlBj8gMHZbUh" style="border-bottom: Black 1pt solid; text-align: right" title="Contract liabilities revenue recognized">(1,741</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_981_ecustom--ContractWithCustomerLiabilityRevenueRecognizedIncludingOpeningBalance_pn3n3_c20250101__20251231_zuOclcxlBEL3" style="border-bottom: Black 1pt solid; text-align: right" title="Contract liabilities revenue recognized">(387</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt">Balance at end of period</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_983_eus-gaap--ContractWithCustomerLiability_iE_pn3n3_c20260101__20260630_zkBAZXv0ZUZ6" style="border-bottom: Black 2.5pt double; text-align: right" title="Contract liabilities, ending balance">794</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_988_eus-gaap--ContractWithCustomerLiability_iE_pn3n3_c20250101__20251231_zYVb9tP0FaAb" style="border-bottom: Black 2.5pt double; text-align: right" title="Contract liabilities, ending balance">503</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> 503000 730000 2032000 160000 -1741000 -387000 794000 503000 <p id="xdx_809_eus-gaap--CapitalizedCostsRelatingToOilAndGasProducingActivitiesDisclosureTextBlock_zsze9rtPJMEk" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 43px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>10.</b></span></td> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="xdx_821_zCYyi1Gs5Kyl">Capitalized Software Development</span></b></span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.45in">The Company capitalizes internally developed software using the Agile software development methodology which allows the Company to accurately track and record costs associated with new software development and enhancements.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.45in">Pursuant to ASC Topic 350-40 Internal Use Software Accounting Capitalization, certain development costs related to the Company’s products during the application development stage are capitalized as part of property and equipment. Costs incurred in the preliminary stages of development are expensed as incurred. The preliminary stage includes activities such as conceptual formulation of alternatives, evaluation of alternatives, determination of existence of needed technology, and the final selection of alternatives. Once the application development stage is reached, internal and external costs are capitalized until the software is complete and ready for its intended use. Capitalized internal use software is amortized on a straight-line basis over its estimated useful life, which is generally three years.</p> <p id="xdx_804_eus-gaap--EarningsPerShareTextBlock_zxTTCn92D8W9" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.45in"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 43px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>11. </b></span></td> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="xdx_82F_zQXw3ztwxoHi">Net Loss Per Share</span> </b></span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.45in">The Company reports two separate net loss per share numbers, basic and diluted. Basic net loss attributable to common stockholders per share is computed by dividing net loss attributable to common stockholders for the period by the weighted average number of common shares outstanding for the period. Diluted net loss attributable to common stockholders per share is computed by dividing the net loss attributable to common stockholders for the period by the weighted average number of common shares and dilutive common stock equivalents outstanding for the period. The common stock equivalents include all common stock issuable upon exercise of outstanding warrants, options and vesting of restricted stock awards. The aggregate number of common stock equivalents excluded from the diluted loss per share calculation for the three months and six months ended June 30, 2026, and 2025 totaled <span id="xdx_905_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pn5n6_c20260401__20260630_z9YrxPyja5C3" title="Antidilutive shares"><span id="xdx_90D_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pn5n6_c20260101__20260630_zQcaOsEInLhf" title="Antidilutive shares">3.5</span></span> million and <span id="xdx_900_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pn5n6_c20250401__20250630_zTCzFlZLw7J2" title="Antidilutive shares"><span id="xdx_90A_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pn5n6_c20250101__20250630_z65C6lA8m44e" title="Antidilutive shares">3.8</span></span> million shares, respectively. Since the Company is in a net loss position for the periods ended June 30, 2026, and 2025, basic and dilutive net loss per share is the same.</p> 3500000 3500000 3800000 3800000 <p id="xdx_80D_eus-gaap--RelatedPartyTransactionsDisclosureTextBlock_zM1KfFiq7zj6" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 43px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>12.</b></span></td> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="xdx_822_zWO4wpBlfGAe">Related Party Transactions</span> </b></span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company did <span id="xdx_903_eus-gaap--RelatedPartyTransactionAmountsOfTransaction_do_c20260401__20260630_zVPgbfbQ2rF2" title="Related party transactions"><span id="xdx_903_eus-gaap--RelatedPartyTransactionAmountsOfTransaction_do_c20260101__20260630_zKbSpcaKwbO5" title="Related party transactions"><span id="xdx_904_eus-gaap--RelatedPartyTransactionAmountsOfTransaction_do_c20250401__20250630_zsU0dHIxtbDj" title="Related party transactions"><span id="xdx_905_eus-gaap--RelatedPartyTransactionAmountsOfTransaction_do_c20250101__20250630_zf1H7evWrEPf" title="Related party transactions">no</span></span></span></span>t have any related party transactions during the three or six months ended June 30, 2026 or 2025.</p> 0 0 0 0 <p id="xdx_803_eus-gaap--SubsequentEventsTextBlock_zGcMT7YeV7qf" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 43px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>13.</b></span></td> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="xdx_821_zRRxUve0GbYa">Subsequent Events</span> </b></span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">None.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p> false false false false Interest is imputed for operating ROU leases and classified as lease expense and is included in operating expenses in the accompanying unaudited condensed consolidated statements of operations.