The following table sets forth a summary of activity regarding the Company’s liabilities due to the Sponsor resulting from the Merger, and the release of those activities during the quarter ended June 30, 2026:


(Amounts in thousands)
Activity recorded at the Merger:
Working capital loan - related party (1)	$	1,500
Advances from related party (2)	2,857
Accounts payable - related party (3)	180
Balance as of December 31, 2025	4,537
Activity during the period ended March 31, 2026	—
Balance as of March 31, 2026	4,537
Activity during the period ended June 30, 2026:
Cash payment to related party	(357)
Release of accounts payable - related party (4)	(180)
Release of related party liabilities	(4,000)
Balance as of June 30, 2026	$	—

(1) Simultaneous with the Merger, the Company issued an unsecured promissory note (the “working capital loan”) to the Sponsor, regarding a borrowing for general corporate purposes.

(2) Simultaneous with the Merger, the Sponsor provided the Company with certain working capital advances (the “advances from related party”), which were non-interest bearing and payable on demand.

(3) The Company recorded the management fees due to the Sponsor as an assumed liability at the Merger of “accounts payable - related party”.

(4) The release of “accounts payable - related party” was recorded as an addition to “additional paid-in capital” on the Company’s condensed consolidated balance sheet as of June 30, 2026.

The following table sets forth a summary of activity regarding the Company’s receivables from the Sponsor resulting from the Merger, and the net release of the shareholder note receivable during the quarter ended June 30, 2026:


(Amounts in thousands)
Activity recorded during the year ended December 31, 2025:
Shareholder note receivable from Sponsor recorded at the Merger	$	8,753
Payment made by Sponsor	(200)
Payment made by Company to third party for Merger transaction costs (1)	(3,000)
Balance as of December 31, 2025	5,553
Activity during the period ended March 31, 2026	—
Balance as of March 31, 2026	5,553
Activity during the period ended June 30, 2026:
Payment made by Company to third party for Merger transaction costs (1)	(1,000)
Release of shareholder note receivable (2)	(4,553)
Balance as of June 30, 2026	$	—

(1) Payments made by the Company to third parties were recorded as reductions of cash with an offsetting charge to the income statement on the Company’s condensed consolidated statements of operations and comprehensive loss in the periods in which the payments were made, and did not offset the shareholder note receivable, as the payments were made by the Company and not the Sponsor.

(2) The release of the shareholder note receivable resulted in a transfer between “additional paid-in capital” accounts within the Company’s subledger of additional paid-in capital accounts.

Transactions with other related parties for marketing services and a related party employed by the Company are set forth in the table below:


	Three Months Ended June 30,				Six Months Ended June 30,
(Amounts in thousands)	2026		2025		2026		2025
Expenses incurred with other related parties:

Marketing services (1)	$	—	$	—	$	—	$	205
Compensation received by related party employee (2)	34		27		71		62
Total expenses incurred with related parties (3)	$	34	$	27	$	71	$	267

(1) A company owned by a direct family member of Mr. Lane M. Bess, chair of the Company’s Board, provided marketing services to the Company.

(3) Included in “selling, general and administrative - related party” expense on the Company’s condensed consolidated statements of operations.