13. GOVERNMENT AGREEMENTS	3 Months Ended
Jun. 30, 2026
GOVERNMENT AGREEMENTS
NOTE 13 - GOVERNMENT AGREEMENTS	NOTE 13—GOVERNMENT AGREEMENTS In June 2023, the Company entered into a prototype agreement with the Space Development Agency for the development of a Next-Generation Associative Processing Unit-2 for Enhanced Space-Based Capabilities (“Prototype Agreement”). Under the Prototype Agreement, the Company will receive an award funded by the Small Business Innovation Research program. Pursuant to an agreed-upon schedule, the Company will receive milestone payments which total an estimated $1.3 million upon successful completion of each milestone. All of the original milestones were completed as of March 31, 2026. In September 2025, the Prototype Agreement was amended to increase the total award amount to $2.0 million by adding milestones related to determining the radiation hardened capability of the Next-Generation Compute-In-Memory Associative Processing Unit (“APU2”) device. The Company received milestone payments of $178,000 during the quarter ended June 30, 2026. In November 2023, the Company entered into a second prototype agreement with the U.S. Air Force Research Laboratory (“AFRL”) for the development of specialized algorithms for APU2 to Enable High-Performance Computing in Space. Pursuant to an agreed-upon schedule, the Company will receive milestone payments which total an estimated $1.1 million upon successful completion of each milestone. All of the milestones were completed as of March 31, 2026. In October 2024, the Company was selected by the U.S. Army for a contract award of up to $250,000 under the DoD Small Business Innovation Research (SBIR) program to develop advanced, Army-specific edge computing AI solutions using its groundbreaking Gemini-II technology. All of the milestones were completed as of March 31, 2026. In April 2026, the Company announced that it was awarded a Phase II award under the U.S. Army’s xTech SBIR program to develop a ruggedized edge AI platform using the Gemini-II APU for the tactical edge. Pursuant to an agreed-upon schedule, the Company will receive milestone payments which total an estimated $2.0 million upon successful completion of each milestone. These funds will offset the cost of designing and developing a ruggedized edge-processing platform based on the Gemini-II APU, with testing in representative operational environments intended to validate performance across real-time AI workloads, such as sensor data processing, object detection, and command-and-control analytics. No milestone payments for the SBIR have been received as of June 30, 2026. The prototype agreements are unrelated to the Company’s ordinary business activities. The Company has discretion in managing the activities under the prototype agreements and retains all developed intellectual property. The Company applies IAS 20, by analogy, and recognizes the award as a reduction of research and development expenses based on a cost incurred method. During the three months ended June 30, 2026 and 2025, the Company recognized $336,000 and $543,000, respectively, as a reduction to research and development expense in the Condensed Consolidated Statements of Operations. During the three months ended June 30, 2026 and 2025, the Company received total milestone payments of $178,000 and $594,000, respectively.

13. GOVERNMENT AGREEMENTS

3 Months Ended

Jun. 30, 2026

NOTE 13—GOVERNMENT AGREEMENTS

In June 2023, the Company entered into a prototype agreement with the Space Development Agency for the development of a Next-Generation Associative Processing Unit-2 for Enhanced Space-Based Capabilities (“Prototype Agreement”). Under the Prototype Agreement, the Company will receive an award funded by the Small Business Innovation Research program.

Pursuant to an agreed-upon schedule, the Company will receive milestone payments which total an estimated $1.3 million upon successful completion of each milestone. All of the original milestones were completed as of March 31, 2026.

In September 2025, the Prototype Agreement was amended to increase the total award amount to $2.0 million by adding milestones related to determining the radiation hardened capability of the Next-Generation Compute-In-Memory Associative Processing Unit (“APU2”) device. The Company received milestone payments of $178,000 during the quarter ended June 30, 2026.

In November 2023, the Company entered into a second prototype agreement with the U.S. Air Force Research Laboratory (“AFRL”) for the development of specialized algorithms for APU2 to Enable High-Performance Computing in Space. Pursuant to an agreed-upon schedule, the Company will receive milestone payments which total an estimated $1.1 million upon successful completion of each milestone. All of the milestones were completed as of March 31, 2026.

In October 2024, the Company was selected by the U.S. Army for a contract award of up to $250,000 under the DoD Small Business Innovation Research (SBIR) program to develop advanced, Army-specific edge computing AI solutions using its groundbreaking Gemini-II technology. All of the milestones were completed as of March 31, 2026.

In April 2026, the Company announced that it was awarded a Phase II award under the U.S. Army’s xTech SBIR program to develop a ruggedized edge AI platform using the Gemini-II APU for the tactical edge. Pursuant to an agreed-upon schedule, the Company will receive milestone payments which total an estimated $2.0 million upon successful completion of each milestone. These funds will offset the cost of designing and developing a ruggedized edge-processing platform based on the Gemini-II APU, with testing in representative operational environments intended to validate performance across real-time AI workloads, such as sensor data processing, object detection, and command-and-control analytics. No milestone payments for the SBIR have been received as of June 30, 2026.

The prototype agreements are unrelated to the Company’s ordinary business activities. The Company has discretion in managing the activities under the prototype agreements and retains all developed intellectual property. The Company applies IAS 20, by analogy, and recognizes the award as a reduction of research and development expenses based on a cost incurred method.

During the three months ended June 30, 2026 and 2025, the Company recognized $336,000 and $543,000, respectively, as a reduction to research and development expense in the Condensed Consolidated Statements of Operations. During the three months ended June 30, 2026 and 2025, the Company received total milestone payments of $178,000 and $594,000, respectively.