Note 2 - Going concern

The accompanying unaudited condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities during the normal course of business. At each reporting period, the Company evaluates whether there are conditions or events that raise substantial doubt about its ability to continue as a going concern within one year after the date that the financial statements are issued. The Company’s evaluation entails analyzing prospective operating budgets and forecasts for expectations of its cash needs and comparing those needs to the current cash, cash equivalents and marketable securities balances. The Company is required to make certain additional disclosures if it concludes substantial doubt exists and it is not alleviated by its plans or when its plans alleviate substantial doubt about its ability to continue as a going concern.

For the six months ended June 30, 2026 and 2025, the Company incurred a net loss of $34.5 34,527 million and $22.5 22,522 million, respectively. During the six months ended June 30, 2026 and 2025, the Company had negative cash flows from operations of $37.4 37,445 million and $25.0 25,040 million, respectively. As of June 30, 2026, the Company had working capital of $58.1 million and accumulated deficit of $436.7 436,743 million. The Company has $41.8 million of debt obligations coming due within the next twelve months.

Based on the Company’s cash, cash equivalents, and marketable securities as of June 30, 2026, and its expectation to generate operating losses and negative operating cash flows in the foreseeable future, as well as potential liquidity to become less than the $2.5 million required under its existing debt covenants during the next twelve months, there exists substantial doubt regarding the Company’s ability to continue as a going concern for a period of at least twelve months from the date of issuance of these unaudited condensed consolidated financial statements. The Company was in compliance with its debt covenant as of June 30, 2026. Upon the occurrence of a breach of debt covenants, Runway Growth Finance Corp may, at its option, declare all obligations immediately due and payable.

In an effort to alleviate these conditions, the Company will need to raise capital through the issuance of additional common stock or borrowings from financial institutions. The Company has received an irrevocable commitment to purchase 92,105,270 CDIs, representing 9,210,527 shares of common stock, at a purchase price of $0.38 Australian dollars (“A$”) per CDI (A$3.80 per share of common stock), from BCP3 Pty Ltd, a related party of Dr. Chris Nave, a non-executive director of the Company, subject to shareholder approval at the Special Meeting of Stockholders to be held on August 18, 2026. In addition, the Company expects to refinance its long-term debt obligations prior to scheduled maturity date. As the Company seeks additional sources of financing, no assurance can be given as to whether additional needed financing will be available on terms acceptable to the Company, or at all. The unaudited condensed consolidated financial statements of the Company do not include any adjustments that may result from the outcome of these aforementioned uncertainties. See Note 10 “Common stock” for additional information on the conditional placement of shares of common stock to BCP3 Pty Ltd.