NOTE 13: WARRANTS

The Company had outstanding warrants classified as equity instruments in the Company’s condensed consolidated financial statements totaling 3,614,299 shares and 5,364,802 shares at June 30, 2026 and December 31, 2025, respectively, in each case excluding the Pre-Funded Warrants described below. The weighted average exercise price of the outstanding warrants was $4.02 and $4.66 at June 30, 2026 and December 31, 2025, respectively. The weighted average remaining contractual life of the outstanding warrants was 2.25 and 2.55 years at June 30, 2026 and December 31, 2025, respectively. The decrease in outstanding warrants during the six months ended June 30, 2026 is attributable to the repurchase and cancellation of the Warrant exercisable for 1,731,499 shares described below and the cashless exercises of 19,004 warrants (see Note 12).

On February 16, 2026, the Company entered into a Warrant Repurchase Agreement (the “Warrant Repurchase Agreement”) with Slipstream Communications, LLC (the “Warrant Holder”). Under the Warrant Repurchase Agreement, the Company agreed to repurchase from the Warrant Holder a warrant (the “Warrant”) to purchase shares of the Company’s common stock, par value $0.01 per share (the “Common Stock”), for an aggregate repurchase price of $200. There was no repurchase feature in the Warrant that would have impacted the equity classification of the Warrant while outstanding. The repurchase was negotiated between the parties in a separate transaction. The Warrant was initially issued to the Warrant Holder pursuant to a Second Amended and Restated Loan and Security Agreement, dated as of February 17, 2022, by and among the Company, the Warrant Holder and the other signatories thereto and was subsequently amended and restated twice, as of June 30, 2022 and as of October 17, 2024, respectively. As amended and restated, the Warrant was exercisable for up to an aggregate of 1,731,499 shares of Common Stock (the “Warrant Shares”) at an exercise price per Warrant Share equal to $6.00. The closing of the Warrant Repurchase was completed on February 17, 2026. Upon settlement of the transaction, the Warrant was cancelled and is of no further force or effect.

Pre-Funded Warrants

On June 30, 2026, in connection with the public offering described in Note 12, the Company issued pre-funded warrants to purchase 900,000 shares of common stock (the “Pre-Funded Warrants”) at an exercise price of $0.01 per share. The Pre-Funded Warrants are exercisable immediately, have no expiration date, and may be exercised at the holder’s election on a cashless basis. Exercise of the Pre-Funded Warrants is subject to a 4.99% beneficial ownership limitation, which a holder may increase to 9.99% upon 61 days’ notice to the Company. The Pre-Funded Warrants do not contain any other provisions except for certain standard anti-dilution provisions subject to adjustments as a result of stock dividends, stock splits, stock combinations, or stock recapitalizations, and meet the criteria for equity classification. Accordingly, the Company recorded additional paid-in capital in an amount equal to net proceeds of $2,811, which was comprised of gross proceeds of $3,141 and issuance costs of $330, and is included in the total net proceeds from the offering of $10,784 disclosed in Note 12.

There were no exercises of the Pre-Funded Warrants from issuance through June 30, 2026, and 900,000 remained outstanding as of June 30, 2026.