boxl-20260630

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


			x			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2026


			o			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ______________ to ______________

Commission File Number 001-37564

BOXLIGHT CORPORATION

(Exact name of registrant as specified in its charter)


Nevada						36-4794936
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification Number)

2750 Premiere Parkway, Suite 900

Duluth, Georgia 30097

(Address of principal executive offices) (Zip Code)

(678) 367-0809

(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Class A Common Stock, par value $0.0001 per share

BOXL

The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x

The number of shares outstanding of the registrant’s Class A common stock on August 11, 2026 was 667,393.

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BOXLIGHT CORPORATION

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		Page No.

	PART I. Financial Information

Item 1.	Unaudited Condensed Consolidated Financial Statements	3

	Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) for the three and six months ended June 30, 2026 and 2025	3

	Unaudited Condensed Consolidated Balance Sheets as of June 30, 2026 and December 31, 2025	4

	Unaudited Condensed Consolidated Statements of Changes in Stockholders’ (Deficit) Equity for the three and six months ended June 30, 2026 and 2025	5

	Unaudited Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2026 and 2025	9

	Notes to Unaudited Condensed Consolidated Financial Statements	10

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	37

Item 3.	Quantitative and Qualitative Disclosure About Market Risk	50

Item 4.	Controls and Procedures	50

	PART II. Other Information

Item 1.	Legal Proceedings	51

Item 1A.	Risk Factors	51

Item 2.	Unregistered Sale of Equity Securities, Use of Proceeds and Issuer Purchase of Equity Securities	53

Item 3.	Defaults Upon Senior Securities	53

Item 4.	Mine Safety Disclosures	53

Item 5.	Other Information	53

Item 6.	Exhibits	54

	Signatures	56

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PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

Boxlight Corporation

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)

For the three and six months ended June 30, 2026 and 2025

(Unaudited)

(in thousands, except per share amounts)


	Three Months Ended June 30,			Six Months Ended June 30,
		2026		2025		2026		2025
Revenues, net		$	25,918	$	30,852	$	48,360	$	53,275
Cost of revenues		13,004		20,062		28,507		34,442
Gross profit		12,914		10,790		19,853		18,833

Operating expense:
General and administrative		8,358		10,983		16,709		18,559
Depreciation and amortization		2,577		2,591		5,133		5,054
Research and development		942		1,128		1,878		2,040

Total operating expense		11,877		14,702		23,720		25,653

Income (loss) from operations		1,037		(3,912)		(3,867)		(6,820)

Other (expense) income:
Interest expense, net		(1,060)		(2,571)		(2,334)		(5,058)
Other income (expense), net		391		2,331		(309)		2,984
Loss on warrant issuance		—		—		—		(578)
Change in fair value of derivative liabilities		(122)		(42)		(154)		(51)
Change in fair value of common warrants		—		(251)		—		1,685
Total other expense		(791)		(533)		(2,797)		(1,018)
Income (loss) before income taxes		$	246	$	(4,445)	$	(6,664)	$	(7,838)
Income tax benefit (expense)		263		(274)		648		(124)
Net income (loss)		$	509	$	(4,719)	$	(6,016)	$	(7,962)
Fixed dividends - Series B Preferred		(318)		(317)		(635)		(634)
Net income (loss) attributable to common stockholders		$	191	$	(5,036)	$	(6,651)	$	(8,596)

Comprehensive income (loss):
Net income (loss)		$	509	$	(4,719)	$	(6,016)	$	(7,962)
Other comprehensive income (loss):
Foreign currency translation adjustment		(163)		152		(301)		722
Total comprehensive income (loss)		$	346	$	(4,567)	$	(6,317)	$	(7,240)

Net income (loss) per share of Class A common stock – basic and diluted		$	0.34	$	(55.00)	$	(11.39)	$	(106.15)



Weighted average number of shares of Class A common stock outstanding – basic and diluted		566,951		91,564		583,810		80,979

See accompanying notes to unaudited condensed consolidated financial statements.

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Boxlight Corporation

Condensed Consolidated Balance Sheets

As of June 30, 2026 and December 31, 2025

(in thousands, except share amounts)


	June 30, 2026		December 31, 2025
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	4,302	$	9,370
Accounts receivable – trade, net of allowances for credit losses of $1,051 and $1,055	15,574		15,358
Inventories, net of reserves	33,014		38,126
Prepaid expenses and other current assets	9,777		6,624
Total current assets	62,667		69,478

Property and equipment, net of accumulated depreciation	1,612		1,770
Operating lease right of use asset	6,305		7,009
Intangible assets, net of accumulated amortization	12,078		17,080
Deferred tax assets, net	793		1,472
Other assets	895		734
Total assets	$	84,350	$	97,543

LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY

Current liabilities:
Accounts payable and accrued expenses	$	14,284	$	22,786
Accounts payable and accrued expenses - related party	2,567		3,699
Short-term debt	34,129		1,274
Operating lease liabilities, current	1,492		1,741
Deferred revenues, current	8,834		9,273
Derivative liabilities	—		5
Derivative liabilities - related party	634		476
Other short-term liabilities	4,767		3,598
Total current liabilities	66,707		42,852

Deferred revenues, non-current	13,876		14,849

Long-term debt	—		32,877
Operating lease liabilities, non-current	5,150		5,650
Other long-term liabilities	40		60
Total liabilities	85,773		96,288

Stockholders’ (deficit) equity:
Preferred Series A stock, $0.0001 par value, 250,000 shares authorized; 167,972 shares issued and outstanding, at June 30, 2026 and December 31, 2025	—		—
Preferred Series B stock, $0.0001 par value, 1,586,620 shares authorized; 1,586,620 shares issued and outstanding, at June 30, 2026 and December 31, 2025	—		—
Common stock, $0.0001 par value, 694,445 shares authorized; 667,348 and 228,335 Class A shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively	—		—
Additional paid-in capital	158,762		155,123
Accumulated deficit	(162,436)		(156,420)
Accumulated other comprehensive income	2,251		2,552
Total stockholders’ (deficit) equity	(1,423)		1,255

Total liabilities and stockholders’ (deficit) equity	$	84,350	$	97,543

See accompanying notes to unaudited condensed consolidated financial statements.

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Boxlight Corporation

Condensed Consolidated Statements of Changes in Stockholders’ Equity (Deficit)

For the three months ended June 30, 2026

(Unaudited)

(in thousands, except share amounts)


	Series A Preferred Stock			Series B Preferred Stock			Class A Common Stock			Additional Paid-in Capital		Accumulated Other Comprehensive Income		Accumulated Deficit		Total
	Shares	Amount		Shares	Amount		Shares	Amount

Balance as of March 31, 2026	167,972	$	—	1,586,620	$	—	566,951	$	—	$	158,520	$	2,414	$	(162,945)	$	(2,011)

Shares issued for:

Vesting of restricted share units	—	—		—	—		105	—		—		—		—		—

Reverse stock split fractional adjustment	—	—		—	—		292	—		—		—		—		—

Conversion of related-party debt to common stock	—	—		—	—		100,000	—		556						556

Stock compensation	—	—		—	—		—	—		4		—		—		4

Foreign currency translation	—	—		—	—		—	—		—		(163)		—		(163)

Fixed dividends Preferred Series B	—	—		—	—		—	—		(318)		—		—		(318)

Net income	—	—		—	—		—	—		—		—		509		509

Balance as of June 30, 2026	167,972	$	—	1,586,620	$	—	667,348	$	—	$	158,762	$	2,251	$	(162,436)	$	(1,423)

See accompanying notes to unaudited condensed consolidated financial statements.

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Boxlight Corporation

Condensed Consolidated Statements of Changes in Stockholders’ Equity (Deficit)

For the six months ended June 30, 2026

(Unaudited)

(in thousands, except share amounts)


	Series A Preferred Stock			Series B Preferred Stock			Class A Common Stock			Additional Paid-in Capital		Accumulated Other Comprehensive Income (loss)			Accumulated Deficit		Total
	Shares	Amount		Shares	Amount		Shares	Amount

Balance as of December 31, 2025	167,972	$	—	1,586,620	$	—	228,335	$	—	$	155,123	$	2,552	—	$	(156,420)	$	1,255

Shares issued for:

Vesting of restricted share units	—	—		—	—		105	—		—		—			—		—

Reverse stock split fractional adjustment	—	—		—	—		292	—									—

ATM Program	—	—		—	—		338,616	—		3,682		—			—		3,682

Conversion of related-party debt to common stock	—	—		—	—		100,000	—		556							556

Stock compensation	—	—		—	—		—	—		36		—			—		36

Foreign currency translation	—	—		—	—		—	—		—		(301)			—		(301)

Fixed dividends Preferred Series B	—	—		—	—		—	—		(635)		—			—		(635)

Net loss	—	—		—	—		—	—		—		—			(6,016)		(6,016)

Balance as of June 30, 2026	167,972	$	—	1,586,620	$	—	667,348	$	—	$	158,762	$	2,251		$	(162,436)	$	(1,423)

See accompanying notes to unaudited condensed consolidated financial statements.

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Boxlight Corporation

Condensed Consolidated Statements of Changes in Stockholders’ Equity (Deficit)

For the three months ended June 30, 2025

(Unaudited)

(in thousands, except share amounts)


	Series A Preferred Stock			Series B Preferred Stock			Class A Common Stock			Additional Paid-in Capital		Accumulated Other Comprehensive Income		Accumulated Deficit		Total
	Shares	Amount		Shares	Amount		Shares	Amount

Balance as of March 31, 2025	167,972	$	—	—	$	—	61,955	$	—	$	119,241	$	797	$	(135,853)	$	(15,815)

Shares issued for:

Warrants exercised	—	—		—	—		11,542	—		—		—		—		—

Vesting of restricted share units	—	—		—	—		52	—		(2)		—		—		(2)

Stock compensation	—	—		—	—		—	—		72		—		—		72

Foreign currency translation	—	—		—	—		—	—		—		152		—		152

Fixed dividends Preferred Series B	—	—		—	—		—	—		(317)		—		—		(317)

Net loss	—	—		—	—		—	—		—		—		(4,719)		(4,719)

Balance as of June 30, 2025	167,972	$	—	—	$	—	73,549	$	—	$	118,994	$	949	$	(140,572)	$	(20,629)

See accompanying notes to unaudited condensed consolidated financial statements.

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Boxlight Corporation

Condensed Consolidated Statements of Changes in Stockholders’ Equity (Deficit)

For the six months ended June 30, 2025

(Unaudited)

(in thousands, except share amounts)


	Series A Preferred Stock			Series B Preferred Stock			Class A Common Stock			Additional Paid-in Capital		Accumulated Other Comprehensive Income (loss)		Accumulated Deficit		Total
	Shares	Amount		Shares	Amount		Shares	Amount

Balance, December 31, 2024	167,972	$	—	—	$	—	54,739	$	—	$	119,487	$	227	$	(132,610)	$	(12,896)

Adjustment to beginning balance	—	—		—	—		(61)	—		—		—		—		—

Balance as of December 31, 2024 - as adjusted	167,972	$	—	—	$	—	54,678	$	—	$	119,487	$	227	$	(132,610)	$	(12,896)

Shares issued for:

Warrants exercised	—	—		—	—		11,542	—		—		—		—		—

Vesting of restricted share units	—	—		—	—		106	—		(3)		—		—		(3)

Reverse stock split fractional adjustment	—	—		—	—		1	—		—		—		—		—

February 2025 private placement	—	—		—	—		7,222	—		—		—		—		—

Stock compensation	—	—		—	—		—	—		144		—		—		144

Foreign currency translation	—	—		—	—		—	—		—		722		—		722

Fixed dividends Preferred Series B	—	—		—	—		—	—		(634)		—		—		(634)

Net loss	—	—		—	—		—	—		—		—		(7,962)		(7,962)

Balance as of June 30, 2025	167,972	$	—	—	$	—	73,549	$	—	$	118,994	$	949	$	(140,572)	$	(20,629)

See accompanying notes to unaudited condensed consolidated financial statements.

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Boxlight Corporation

Condensed Consolidated Statements of Cash Flows

For the six months ended June 30, 2026 and 2025

(Unaudited)

(in thousands)


	Six Months Ended
	June 30, 2026		June 30, 2025 (as revised)
Cash flows from operating activities:
Net loss	$	(6,016)	$	(7,962)
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization of debt premium, discount and issuance cost	(22)		1,246
Provision for credit losses	(2)		(122)
Paid-in-kind accrual on short-term debt	—		150
Changes in deferred tax assets and liabilities	679		(31)
Change in allowance for sales returns and volume rebates	58		(837)
Change in fair value of common warrants	—		(1,685)
Change in inventory reserve	95		(686)
Change in fair value of derivative liabilities	154		51
Stock compensation expense	212		348
Depreciation and amortization	5,133		5,054
Loss on warrant issuance	—		578
Change in right of use assets and lease liabilities	(325)		(197)
Changes in operating assets and liabilities:
Accounts receivable – trade	(405)		(2,311)
Inventories	4,727		14,712
Prepaid expenses and other current assets	(2,099)		(41)
Other assets	(164)		55
Accounts payable and accrued expenses	(8,616)		(13,452)
Other short-term liabilities	251		(134)
Other liabilities	49		165
Deferred revenues	(1,181)		(748)
Net cash used in operating activities	$	(7,472)	$	(5,847)

Cash flows from investing activities:

Purchases of furniture and fixtures, net	(75)		(159)
Net cash used in investing activities	$	(75)	$	(159)

Cash flows from financing activities:
Proceeds from short-term debt	—		2,500

Principal payments on short-term debt	—		(2,010)
Net change in related party accounts payable-inventory financing	(577)		2,747
Proceeds from issuance of common stock and pre-funded warrants	3,682		2,818

Net cash provided by financing activities	$	3,105	$	6,055

Effect of foreign currency exchange rates	(626)		(448)

Net decrease in cash and cash equivalents	(5,068)		(399)

Cash and cash equivalents, beginning of the period	9,370		8,007

Cash and cash equivalents, end of the period	$	4,302	$	7,608

Supplemental cash flow disclosures:
Cash paid for income taxes	$	79	$	706
Cash paid for interest	$	1,743	$	3,431
Non-cash investing and financing transactions:
Addition of operating lease liabilities	$	186	$	—
Cash dividends accrued for Series B Preferred stockholders	$	634	$	634
Conversion of convertible related-party debt to common stock	$	556	$	—

See accompanying notes to unaudited condensed consolidated financial statements.

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Boxlight Corporation

Notes to the Unaudited Condensed Consolidated Financial Statements

NOTE 1 – ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

NATURE OF OPERATIONS

Boxlight Corporation, a Nevada Corporation (“Boxlight”), designs, produces and distributes interactive technology solutions for the education, corporate and government markets under its Clevertouch and Mimio brands. Boxlight’s solutions include interactive displays, audio and other accessory products, software, and professional services.

BASIS OF PRESENTATION AND PRINCIPLES OF CONSOLIDATION

The accompanying unaudited condensed consolidated financial statements include the accounts of Boxlight and its direct and indirect wholly owned subsidiaries (collectively, the “Company”, “we”, “us”, and “our”). All significant intercompany balances and transactions have been eliminated in consolidation.

The accompanying unaudited condensed consolidated financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim unaudited condensed consolidated financial information and interim financial reporting guidelines and rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and notes required by GAAP for complete condensed consolidated financial statements. The unaudited condensed consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments) which are, in the opinion of management, necessary for a fair statement of the results for the interim periods presented. Interim results are not necessarily indicative of the results for the full year. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements of the Company for the year ended December 31, 2025 and notes thereto contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025 (the “2025 Annual Report”). Certain information and note disclosures normally included in consolidated financial statements have been condensed. The December 31, 2025 balance sheet included herein was derived from the Company’s audited consolidated financial statements, but does not include all disclosures, including notes, required by GAAP for complete financial statements.

ESTIMATES AND ASSUMPTIONS

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of certain assets and liabilities, disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Note 1 in the Notes to the Consolidated Financial Statements for 2025 contained in the 2025 Annual Report filed with the SEC on April 15, 2026, describes the significant accounting policies that the Company used in preparing its condensed consolidated financial statements. On an ongoing basis, the Company evaluates its estimates, including, but not limited to, those related to reserves for inventory obsolescence; the recoverability of deferred tax assets; the fair value and recoverability of intangible assets; the fair value of warrants, the relative stand-alone selling prices of goods and services; variable consideration; and long-term incentive plans. The Company bases estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ materially from these estimates under different assumptions or conditions.

REVERSE STOCK SPLIT

In order to maintain compliance with NASDAQ Listing Rule 5550(a)(2) (the “Bid Price Rule”) and to manage its continued listing on Nasdaq, on June 17, 2026, the Company filed a Certificate of Change with the Nevada Secretary of State to effect a 1-for-6 reverse stock split of its Class A common stock, which became effective on June 22, 2026. Following the June 2026 1-for-6 reverse stock split, the authorized shares of Class A common stock were adjusted to 694,445 shares, while the authorized shares of Class B common stock and Preferred Stock remained unchanged. The par value of the common stock was not adjusted. Following the reverse split, all Class A common share and per share amounts for all periods presented in the consolidated financial statements and the notes to the consolidated financial statements have been retrospectively adjusted to give effect to the reverse stock split. The quantity of Class A common stock equivalents

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and the conversion and exercise ratios were adjusted for the effect of the reverse stock split for warrants, stock compensation arrangements, and the conversion features on preferred shares.

GOING CONCERN

The Company’s financial statements are prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of obligations in the normal course of business.

Historically, the Company has funded its operations through cash flows from operations, debt financing, and equity financing. As of June 30, 2026, the Company had cash and cash equivalents of $4.3 million and negative working capital of $4.0 million. The Company has incurred operating losses in recent periods, and as of June 30, 2026, had an accumulated deficit of $162.4 million.

The Company’s management has concluded as of June 30, 2026 that, due to uncertainties surrounding the Company’s ability to amend or refinance its current debt agreements and the uncertainty as to whether it will have sufficient liquidity to fund its business activities, substantial doubt exists as to its ability to continue as a going concern. The Company’s plans to alleviate the substantial doubt about its ability to continue as a going concern may not be successful, and it may be forced to limit its business activities or be unable to continue as a going concern, which would have a material adverse effect on its results of operations and financial condition.

The consolidated financial statements included herein have been prepared assuming that the Company will continue as a going concern and contemplating the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. The Company’s ability to continue as a going concern is dependent on generating profitable operating results, having sufficient liquidity, and maintaining compliance with the covenants and other requirements under the Whitehawk Capital Partners Credit Agreement (the “Whitehawk Capital Partners Credit Agreement”). The current Whitehawk Capital Partners Credit Agreement maturity date is April 1, 2027, as modified by the Eleventh Amendment to the Credit Agreement.

Based on the Company’s current forecasts, without additional financing, the Company anticipates that it will not have sufficient cash and cash equivalents to repay amounts due under the Whitehawk Capital Partners Credit Agreement at maturity on April 1, 2027. Management plans to seek additional liquidity from other lenders and capital markets. There can be no assurance that the Company’s management will be able to affect financing on acceptable terms or repay this outstanding indebtedness, when required, or if at all. The consolidated financial statements included in this Form 10-Q do not include any adjustments that might result from the outcome of the Company’s efforts to address these issues.

Furthermore, if the Company cannot raise capital on acceptable terms, it may not, among other things, be able to:

•Continue to expand the Company’s research and product investments and sales and marketing organization;

•Continue to respond to competitive pressures or address unanticipated working capital requirements.

REVISIONS OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS

The Company determined that its arrangement with J.J. Astor is accounted for as a product financing arrangement under ASC 470-40. The Company recognizes a Related Party Account Payable and the corresponding inventory on the balance sheet. Accordingly, the Company revised certain amounts previously reported in the consolidated statement of cash flows included in its Annual Report on Form 10-K for the year ended December 31, 2025, and in the condensed consolidated statements of cash flows included in its Quarterly Reports on Form 10-Q for the periods ended June 30, 2025, to conform to the current period presentation. The revisions reflect the presentation of cash flows associated with the J.J. Astor inventory financing arrangement within financing activities rather than operating activities.

The Company has evaluated these revisions in accordance with Accounting Standards Codification (“ASC”) Topic 250, Accounting Changes and Error Corrections, Financial Accounting Standards Board (“FASB”) Concepts Statement No. 2, Qualitative Characteristics of Accounting Information, and SAB No. 99- Materiality and determined it was not necessary to amend its previously issued fiscal year condensed consolidated financial statements upon overall considerations of both quantitative and qualitative factors. The revisions had no impact on the Balance Sheets, the Statement of Operations and Comprehensive Loss, or Statement of Changes in Stockholders’ (Deficit) Equity for the prior year ended December 31, 2025, or for the six months ended June 30, 2025.

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The following tables summarize the revisions made to the Company’s previously issued consolidated statements of cash flows for the periods presented below (in thousands):


	For the Six Months Ended June 30, 2025
	As Reported		Adjustment		As Revised
Cash flows from operating activities
Inventories	$	17,459	$	(2,747)	$	14,712

Cash flows from financing activities:
Net change in related party accounts payable-inventory financing	$	—	$	2,747	$	2,747


	For the year ended December 31, 2025
	As Reported		Adjustment		As Revised
Cash flows from operating activities
Accounts payable and accrued expenses - related party	$	3,699	$	(3,699)	$	—

Cash flows from financing activities:
Net change in related party accounts payable-inventory financing	$	—	$	3,699	$	3,699

Additionally, as previously disclosed in its Quarterly Report on Form 10-Q for the three months ended June 30, 2025, the Company reported that it recognized $1.8 million and $3.7 million of revenue during the three and six months ended June 30, 2025, respectively, that was included in the deferred revenue balance as of December 31, 2024. The Company has determined that these amounts were understated due to an error in the roll forward calculation supporting this disclosure. The corrected amounts are $2.3 million and $4.7 million for the three and six months ended June 30, 2025, respectively, representing an understatement of approximately $0.5 million and $1.0 million, respectively, with no effect on the Company’s actual deferred revenue balances, total revenue, or any other amounts presented in its financial statements. The following table summarizes the amount of revenue recognized during the three and six months ended June 30, 2025 that was included in the deferred revenue balance at the beginning of the respective periods, as reported, as revised, and the adjustment (in thousands):


Recognized revenue that was included in the deferred revenue balance as of December 31, 2024	As Reported	Adjustment	As Revised

Three Months Ended June 30, 2025	$1,829	$486	$2,315
Six Months Ended June 30, 2025	$3,734	$972	$4,706

Further, as previously reported in its Quarterly Report on Form 10-Q for the quarter ended June 30, 2025, the Company reported Product Revenue of $27.8 million and Service Revenue of $3.0 million for the three months ended June 30, 2025, and Product Revenue of $49.5 million and Service Revenue of $3.8 million for the six months ended June 30, 2025. In the current period, the Company identified an error in the allocation of revenue between product revenue and service revenue, and has determined that the correct amounts were Product Revenue of $28.3 million and Service Revenue of $2.6 million for the three months ended June 30, 2025, and Product Revenue of $48.3 million and Service Revenue of $5.0 million for the six months ended June 30, 2025. Total revenue reported for each period was not affected by this error. The error giving rise to this correction affected the allocation between product revenue and service revenue and did not affect total revenue for any period. The Company evaluated the error in accordance with ASC 250, Accounting Changes and Error Corrections, and SAB No. 99 Materiality, and determined that, after considering both quantitative and qualitative factors, and the error was not material to the previously issued interim or annual financial statements. The following table

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summarizes disaggregated revenue for the three and six months ended June 30, 2025, as reported, as revised, and the resulting difference (in thousands):


	Three Months Ended June 30, 2025			Six Months Ended June 30, 2025
	(in thousands)			(in thousands)
	As Reported	Adjustment	As Revised	As Reported	Adjustment	As Revised
Product revenue	$27,822	$459	$28,281	$49,465	$(1,165)	$48,300
Service revenue	3,030	(459)	2,571	3,810	1,165	4,975
Total revenues, net	$30,852	$—	$30,852	$53,275	$—	$53,275

FAIR VALUE OF FINANCIAL INSTRUMENTS

The Company’s financial instruments primarily include cash, accounts receivable, derivative liabilities, accounts payable and debt. Due to the short-term nature of cash, accounts receivable and accounts payable, the carrying amounts of these assets and liabilities approximate their fair value.

The Company has determined that the estimated fair value of debt is approximately $28.0 million while the carrying value, excluding premiums, discounts, and issuance costs, is approximately $32.2 million. The fair value of debt was estimated using market rates the Company believes would be available for similar types of financial instruments and represents a Level 2 measurement.

Derivative liabilities are recorded at fair value on a recurring basis. Fair value is defined as the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants. A fair value hierarchy has been established for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows:

•Level 1 Inputs - Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date.

•Level 2 Inputs - Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, volatilities, prepayment speeds, credit risks, etc.) or inputs that are derived principally from or corroborated by market data by correlation or other means.

•Level 3 Inputs - Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity).

Financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of the fair value of assets and liabilities and their placement within the fair value hierarchy levels.

There were no transfers into or out of Level 3 measurements in the first half of 2026. Transfers into Level 3 measurements during the six months ended June 30, 2025 of approximately $1.5 million were related to the 2025 Common Warrants.

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The following table sets forth, by level within the fair value hierarchy, the Company’s financial liabilities that were accounted for at fair value on a recurring basis as of June 30, 2026 and December 31, 2025 (in thousands):


Description	Markets for Identical Assets (Level 1)		Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Carrying Value as of June 30, 2026
Common Warrants Liabilities	$	—	$	—	$	2,002	$	2,002
Derivative liabilities - related party	—		—		634		634
Long-term incentive plan	$	—	$	—	$	101	$	101


Description	Markets for Identical Assets (Level 1)		Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Carrying Value as of December 31, 2025
Common Warrants Liabilities	$	—	$	—	$	2,002	$	2,002
Derivative liabilities - warrant instruments	—		—		5		5
Derivative liabilities - related party	—		—		476		476
Long-term incentive plan	$	—	$	—	$	205	$	205

The following tables reconcile the beginning and ending balances of the warrant instruments and long-term incentive plan within Level 3 of the fair value hierarchy, respectively:


	Common Warrants Liabilities (in thousands)		Derivative Liabilities (in thousands)		Related Party Derivative Liabilities (in thousands)		Long-term incentive plan (in thousands)
Balance, December 31, 2025	$	2,002	$	5	$	476	$	205
Issuance during period	—		—		—		163
Amount paid in period	—		—		—		(123)
Change in fair value	—		(5)		158		(144)
Balance, June 30, 2026	$	2,002	$	—	$	634	$	101

	Common Warrants Liabilities (in thousands)		Derivative Liabilities (in thousands)		Related Party Derivative Liabilities (in thousands)		Long-term incentive plan (in thousands)
Balance, December 31, 2024	$	—	$	1	$	—	$	358
Common warrants issuance on February 21, 2025	3,396		—		—		—
Reclass to accrued expenses	—		—		—		(225)
Change in fair value	(1,685)		51		—		(62)
Balance, June 30, 2025	$	1,711	$	52	$	—	$	71

See Note 9 and Note 12 for discussion of the valuation techniques and inputs and reconciliation of the opening and closing balances of the fair value of warrants and long-term incentive plan, respectively.

INCOME (LOSS) PER SHARE OF COMMON STOCK

Basic net income (loss) per share is computed by dividing net income (loss) attributable to Class A common stockholders by the weighted-average number of shares of Class A common stock outstanding during the period. For purposes of this calculation, options to purchase Class A common stock, restricted stock units subject to vesting, and pre-funded warrants to purchase Class A common stock were considered to be Class A common stock equivalents. Diluted net income (loss) per share of Class A common stock is determined using the weighted-average number of shares of Class A common stock outstanding during the period, adjusted for the dilutive effect of Class A common stock equivalents. The dilutive effect of convertible instruments is determined using the if-converted method, presuming share settlement. Under

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the if-converted method, securities are assumed to be converted at the beginning of the period, and the resulting shares of Class A common stock are included in the denominator of the diluted calculation for the entire period being presented. In periods when losses are reported, the weighted-average number of shares of Class A common stock outstanding excludes Class A common stock equivalents, because their inclusion would be anti-dilutive.

For the three and six months ended June 30, 2026, potentially dilutive securities excluded in the diluted per share calculation because they would be anti-dilutive comprise no shares from options to purchase shares of common stock, no unvested restricted shares, and 13.8 thousand shares issuable upon exercise of warrants. For the three and six months ended June 30, 2025, potentially dilutive securities excluded in the diluted per share calculation because they would be anti-dilutive comprise no shares from options to purchase shares of common stock, and 61.1 thousand shares of Class A common stock issuable upon exercise of warrants. Additionally, potentially dilutive securities of 11.1 thousand from the assumed conversion of preferred stock are excluded from the denominator because they would be anti-dilutive.

REVENUE RECOGNITION

The Company recognizes revenue at the amount to which it expects to be entitled when control of the products or services is transferred to its customers. Control is generally transferred when the Company has a present right to payment and the title, and the significant risks and rewards of ownership of the products or services, have been transferred to its customers. Product revenue is derived from the sale of interactive devices and related software and accessories to distributors, resellers and end users. Service revenue is derived from hardware maintenance services, product installation, training, software maintenance and subscription services.

Nature of Products and Services and Related Contractual Provisions

The Company’s sales of interactive devices, including panels, whiteboards, and other interactive devices generally include hardware maintenance services, a license to use software, and the provision of related software maintenance. We also distribute science, technology, engineering, and math (or “STEM”) products, including a robotics and coding system, 3D printing solution and portable science lab. In most cases, interactive devices are sold with hardware maintenance services with terms of approximately 30-60 months. Software maintenance includes technical support, product updates performed on a when and if available basis, and error correction services. At times, non-interactive projectors are also sold with hardware maintenance services with terms of approximately 60 months. The Company also licenses software independently of its interactive devices, in which case it is bundled with software maintenance, and in some cases, subscription services that include access to online content and cloud-based applications. The Company’s software subscription services provide access to content and software applications on an as needed basis over the Internet, but do not provide the right to take delivery of the software applications.

The Company’s product sales, including those with software and related services, generally include a single payment up front for the products and services, and revenue is recorded net of estimated sales returns and rebates based on the Company’s expectations and historical experience. For most of the Company’s product sales, control transfers and, therefore, revenue is recognized when products are shipped at the point of origin. When the Company transfers control of its products to the customer prior to the related shipping and handling activities, the Company has adopted a policy of accounting for shipping and handling activities as a fulfillment cost rather than a performance obligation. For many of the Company’s software product sales, control is transferred when shipped at the point of origin since the software is installed on the interactive hardware device in advance of shipping. For software product sales, control is transferred when the customer receives the related interactive hardware since the customer’s connection to the interactive hardware activates the software license, at which time the software is made available to the customer. For the Company’s software maintenance, hardware maintenance and subscription services, revenue is recognized ratably over time as the services are provided since time is the best output measure of how those services are transferred to the customer.

The Company excludes all taxes assessed by a governmental agency that are both imposed on and concurrent with the specific revenue-producing transaction from revenue (for example, sales and use taxes). In essence, the Company is reporting these amounts collected on behalf of the applicable government agency on a net basis as though they are acting as an agent. The taxes collected and not yet remitted to the governmental agency are included in accounts payable and accrued expenses in the accompanying consolidated balance sheets.

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Significant Judgments

For contracts with multiple performance obligations, each of which represent promises within a contract that are distinct, the Company allocates revenue to all distinct performance obligations based on their relative stand-alone selling prices (“SSPs”). The Company’s products and services included in its contracts with multiple performance obligations generally are not sold separately and there are no observable prices available to determine the SSP for those products and services. Since observable prices are not available, SSPs are established that reflect the Company’s best estimates of what the selling prices of the performance obligations would be if they were sold regularly on a stand-alone basis. The Company’s process for estimating SSPs without observable prices considers multiple factors that may vary depending upon the unique facts and circumstances related to each performance obligation including, when applicable, the estimated cost to provide the performance obligation, market trends in the pricing for similar offerings, product-specific business objectives, and competitor or other relevant market pricing and margins. Because observable prices are generally not available for the Company’s performance obligations that are sold in bundled arrangements, the Company does not apply the residual approach to determining SSP.

The Company has applied the portfolio approach to its allocation of the transaction price for certain portfolios of contracts that are executed in the same manner, contain the same performance obligations, and are priced in a consistent manner. The Company believes that the application of the portfolio approach produces the same result as if they were applied at the contract level.

Contract Balances

The timing of invoicing to customers often differs from the timing of revenue recognition and these timing differences can result in receivables, contract assets, or contract liabilities (deferred revenue) on the Company’s consolidated balance sheets. Fees for the Company’s product and most service contracts are fixed, except as adjusted for rebate programs when applicable, and are generally due within 30-60 days of contract execution. Fees for installation, training and professional development services are fixed and generally become due as the services are performed. The Company has an established history of collecting under the terms of its contracts without providing refunds or concessions to its customers. The Company’s contractual payment terms do not vary when products are bundled with services that are provided over multiple years. In these contracts where services are expected to be transferred on an ongoing basis for several years after the related payment, the Company has determined that the contracts generally do not include a significant financing component. The upfront invoicing terms are designed (1) to provide customers with a predictable way to purchase products and services where the payment is due in the same timeframe as when the products, which constitute the predominant portion of the contractual value, are transferred, and (2) to ensure that the customer continues to use the related services; so that the customer can receive the optimal benefit from the products during the course of such product’s lifetime. Additionally, the Company has elected the practical expedient to exclude any financing component from consideration for contracts where, at contract inception, the period between the transfer of services and the timing of the related payment is not expected to exceed one year.

The Company has an unconditional right to consideration for all products and services transferred to the customer. That unconditional right to consideration is reflected in accounts receivable in the accompanying condensed consolidated balance sheets in accordance with Topic 606. Contract liabilities are reflected in deferred revenue in the accompanying condensed consolidated balance sheets and reflect amounts allocated to performance obligations that have not yet been transferred to the customer related to software maintenance, hardware maintenance, and subscription services. The Company had no material contract assets as of June 30, 2026 or December 31, 2025. During the three months ended June 30, 2026 and June 30, 2025, respectively, the Company recognized $3.4 million and $1.8 million of revenue that was included in the deferred revenue balance as of December 31, 2025 and December 31, 2024, respectively. During the six months ended June 30, 2026 and June 30, 2025, respectively, the Company recognized $4.9 million and $3.7 million of revenue that was included in the deferred revenue balance as of December 31, 2025 and December 31, 2024, respectively.

Variable Consideration

The Company’s otherwise fixed consideration may vary when refunds or credits are provided for sales returns, stock rotation rights, price protection provisions, or in connection with certain other rebate provisions. The Company generally does not allow product returns other than under assurance warranties or hardware maintenance contracts. However, the Company, on a case-by-case basis, will grant exceptions, mostly for “buyer’s remorse” where the distributor or reseller’s end customer either did not understand what they were ordering or otherwise determined that the product did not meet their needs. An allowance for sales returns is estimated based on an analysis of historical trends. In very limited

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situations, a customer may return previous purchases held in inventory for a specified period of time in exchange for credits toward additional purchases. The Company provides rebates to certain customers based on the achievement of certain sales targets. The provision for rebates is estimated based on customers’ contracted rebate programs and our historical experience of rebates paid. The Company includes variable consideration in its transaction price when there is a basis to reasonably estimate the amount of the fee and it is probable there will not be a significant reversal. These estimates are generally made using the most likely method based on historical experience and are measured at each reporting date. There was no material revenue recognized in the three and six months ended June 30, 2026 related to changes in estimated variable consideration that existed at December 31, 2025.

Remaining Performance Obligations

A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of accounting within the contract. The transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied by transferring the promised good or service to the customer. The Company identifies performance obligations at contract inception so that it can monitor and account for the obligations over the life of the contract. Remaining performance obligations represent the portion of the transaction price in a contract allocated to products and services not yet transferred to the customer. As of June 30, 2026 and December 31, 2025, the aggregate amount of the contractual transaction prices allocated to remaining performance obligations was $22.7 million and $24.1 million, respectively. The Company expects to recognize revenue on approximately 39% of the remaining performance obligations during the next 12 months, 28% in the following 12 months, 19% in the 12 months ended June 30, 2029, 11% in the 12 months ended June 30, 2030, with the remaining 3% recognized thereafter.

In accordance with Topic 606, the Company has elected not to disclose the value of remaining performance obligations for contracts for which the Company recognizes revenue at the amount to which it has the right to invoice for services performed (for example, a time-and-materials professional services contracts). In addition, the Company has elected not to disclose the value of remaining performance obligations for contracts with performance obligations that are expected, at contract inception, to be satisfied over a period that does not exceed one year.

Disaggregated Revenue

The Company disaggregates revenue based upon the nature of its products and services and the timing and in the manner which it is transferred to the customer. Although all products are transferred to the customer at a point in time, hardware and some software which comes pre-installed on an interactive device is transferred at the point of shipment, while some software is transferred to the customer at the time the hardware is received by the customer or when software product keys are delivered electronically to the customer. All service revenue is transferred over time to the customer; however, professional services are generally transferred to the customer within a year from the contract date as measured based upon hours or time incurred while software maintenance, hardware maintenance, and subscription services are generally transferred over three to five years from the contract execution date as measured based upon the passage of time.


	Three Months Ended June 30,		Six Months Ended June 30,
	(in thousands)		(in thousands)
	2026	2025 (as revised)	2026	2025 (as revised)
Product revenue	$23,368	$28,281	$43,298	$48,300


Service revenue	2,550	2,571	5,062	4,975


Total revenues, net	$25,918	$30,852	$48,360	$53,275

Contract Costs

The Company capitalizes incremental costs to obtain a contract with a customer if the Company expects to recover those costs. The incremental costs to obtain a contract are those that the Company incurs to obtain a contract with a customer that it would not have otherwise incurred if the contract were not obtained (e.g., a sales commission). The Company capitalizes the costs incurred to fulfill a contract only if those costs meet all the following criteria:

•The costs relate directly to a contract or to an anticipated contract that the Company can specifically identify;

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•The costs generate or enhance resources of the Company that will be used in satisfying (or in continuing to satisfy) performance obligations in the future; and

•The costs are expected to be recovered.

Certain sales commissions incurred by the Company are determined to be incremental costs to obtain the related contracts, which are deferred and amortized ratably over the estimated economic benefit period. For these sales commissions that are incremental costs to obtain where the period of amortization would be recognized over a period that is one year or less, the Company has elected the practical expedient to expense those costs as incurred. Commission costs that are deferred are classified as current or non-current assets based on the timing of when the Company expects to recognize the expense and are included in prepaid and other current assets and other assets, respectively, in the accompanying condensed consolidated balance sheets. Total deferred commissions, net of accumulated amortization, as of June 30, 2026 and December 31, 2025 were both less than $0.5 million, respectively.

The Company has not historically incurred any material fulfillment cost that meet the criteria for capitalization.

SEGMENT REPORTING

ASC 280, Segment Reporting, establishes standards for reporting information about operating segments. Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker (CODM) in deciding how to allocate resources and in assessing performance. Our CODM is our Executive Committee.

The Company’s operations are organized, managed and classified into three reportable segments – Europe, Middle East, and Africa (“EMEA”), North and Central America (the “Americas”) and all other geographic regions (“Rest of World”). Our EMEA segment consists of the operations of Sahara Holding Limited and its subsidiaries (the “Sahara Entities”). Our Americas segment consists primarily of the operations of Boxlight, Inc. and its subsidiaries, and the Rest of World segment consists primarily of the operations of Boxlight Australia, PTY LTD (“Boxlight Australia”).

Each of our operating segments are primarily engaged in the sale of education technology products and services in the education market but which are also sold into the health, government and corporate sectors and derive a majority of their revenues from the sale of flat-panel displays, audio and other hardware accessory products, software solutions and professional services. Generally, our displays produce higher net operating revenues but lower gross profit margins than our accessory solutions and professional services. The Americas operating segment includes salaries and overhead for corporate functions that are not allocated to the Company’s individual reporting segments. Transfers between segments are generally valued at market and are eliminated in consolidation.

The CODM evaluates the performance of each segment based on revenues, gross profit, and operating income, with operating income being the primary GAAP measure. Gross margin can influence key decisions as margins can be indicative of the level of saturation in the market with existing products or can be indicative of changes in manufacturing or shipping costs. If trends are sustained, the CODM may seek to adjust operations to more favorable markets or may evaluate whether the Company should introduce new products in a given area. Operating income provides the CODM with an overview of the profitability of a given segment and whether resources should be allocated or removed to ensure sustained profitability for both the segment and the consolidated entity. Since the Company’s operating segments are organized by geography, this structure allows the CODM to be responsive to needs of customers and can execute strategic plans and initiatives accordingly.

RESEARCH AND DEVELOPMENT EXPENSES

Research and development costs are expensed as incurred and consist primarily of personnel related costs, prototype and sample costs, design costs, and global product certifications mostly for wireless certifications.

ACCOUNTING STANDARDS PENDING ADOPTION

In November 2024, the FASB issued ASU 2024-03, Income Statement-reporting Comprehensive Income- Expense Disaggregation Disclosures (Subtopic 220-40), which improves the disclosures about a public business entity’s expenses and address requests from investors for more detailed information about the types of expenses (including purchases of inventory, employee compensation, depreciation, amortization, and depletion) in commonly presented

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expense captions (such as cost of sales, SG&A, and research and development). This change is effective for annual periods beginning after December 15, 2026, and interim periods beginning after December 15, 2027. This change will apply on a prospective basis to annual financial statements for periods beginning after the effective date. However, retrospective application in all prior periods presented is permitted. The Company is currently evaluating the impact of this ASU on its financial statements.

In November 2024, the FASB issued ASU 2024-04, Debt-Debt with Conversion and Other Options (Subtopic 470-20): Induced Conversions of Convertible Debt Instruments, to improve the relevance and consistency in application of the induced conversion guidance in Subtopic 470-20, Debt-Debt with Conversion and Other Options. The Company adopted ASU 2024-04 effective January 1, 2026. The adoption of this standard did not have a material impact on the Company’s condensed consolidated financial statements.

In January 2025, the FASB ASU 2025-01—Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date. The Board is issuing this Update to clarify the effective date of Accounting Standards Update No. 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. The change is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the impact of this ASU on its financial statements.

NOTE 2 – ACCOUNTS RECEIVABLE - TRADE

Accounts receivable consisted of the following as of June 30, 2026 and December 31, 2025 (in thousands):


	2026		2025

Accounts receivable – trade	$	16,625	$	16,413
Allowance for credit losses	(1,051)		(1,055)

Accounts receivable - trade, net of allowances	$	15,574	$	15,358

NOTE 3 – INVENTORIES

Inventories consisted of the following as of June 30, 2026 and December 31, 2025 (in thousands):


	2026		2025

Finished goods	$	34,932	$	40,103
Spare parts	571		571
Reserve for inventory obsolescence	(2,489)		(2,548)

Inventories, net	$	33,014	$	38,126

NOTE 4 – PREPAID EXPENSES AND OTHER CURRENT ASSETS

Prepaid expenses and other current assets consisted of the following at June 30, 2026 and December 31, 2025 (in thousands):


	2026		2025

Prepayments to vendors	$	3,179	$	625
Prepaid licenses and other	6,598		5,999
Prepaid expenses and other current assets	$	9,777	$	6,624

Prepaid expenses and other current assets as of June 30, 2026 and December 31, 2025 are net of reserves of $1.4 million related to vendor receivables.

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NOTE 5 – INTANGIBLE ASSETS

Intangible Assets

Intangible assets consisted of the following as of June 30, 2026 and December 31, 2025 (in thousands):


	Useful lives	2026		2025
INTANGIBLE ASSETS
Patents	4-10 years	$	100	$	100
Customer relationships	8-15 years	50,302		50,973
Technology	3-5 years	8,558		8,615

Non-compete	3 years	391		391
Tradenames	2-10 years	12,567		12,659
Intangible assets, at cost		71,918		72,738
Accumulated amortization		(59,840)		(55,658)
Intangible assets, net of accumulated amortization		$	12,078	$	17,080

For the three months ended June 30, 2026 and 2025, the Company recorded amortization expense of $2.4 million and $2.5 million, respectively. For the six months ended June 30, 2026 and 2025, the Company recorded amortization expense of $4.9 million and $4.8 million, respectively. No changes in the gross carrying amount of recognized intangible assets were due to translation adjustments as of June 30, 2026, or December 31, 2025. As of December 31, 2025, the Company’s patent and non-compete intangible assets were fully amortized.

NOTE 6 – LEASES

The Company has entered into various operating leases for certain offices, support locations and vehicles with terms extending through December 2038. Generally, these leases have initial lease terms of five years or less.

As of June 30, 2026, the Company had no leases classified as finance leases. The Company is currently not a lessor in any lease arrangement.

Operating lease expense was $499 thousand and $604 thousand for the three months ended June 30, 2026 and 2025, respectively and $1.0 million and $1.2 million for each of the six months ended June 30, 2026 and 2025. Variable and short-term lease cost was $405 thousand and $413 thousand for the three months ended June 30, 2026 and 2025, respectively and $809 thousand and $736 thousand for the six months ended June 30, 2026 and 2025, respectively. Cash paid for amounts included in the measurement of lease liabilities was $483 thousand and $619 thousand for the three months ended June 30, 2026 and 2025, respectively and $1.0 million and $1.2 million or the six months ended June 30, 2026 and 2025, respectively.

Future maturities of the Company’s operating lease liabilities are summarized as follows (in thousands):

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Fiscal year ended,	(in thousands)
2026	$	1,271
2027	1,368
2028	1,036
2029	900
2030	826
Thereafter	5,285
Total lease liabilities	10,686
Less: Imputed interest	(4,044)
Present value of lease liabilities	$	6,642

The following is supplemental lease information as of June 30, 2026 and December 31, 2025:


	2026		2025
Weighted-average remaining lease term (years)	9.9		9.9
Weighted-average discount rate	9.3	%	9.5	%

NOTE 7 – ACCOUNTS PAYABLE AND ACCRUED EXPENSES

Accounts payable and accrued expenses consisted of the following as of June 30, 2026 and December 31, 2025 (in thousands):


	2026		2025
Accounts payable	$	9,010	$	17,108
Accounts payable - related party	2,567		3,699
Accrued expenses and other	5,262		5,454
Other	12		224
Accounts payable and accrued expenses	$	16,851	$	26,485

NOTE 8 – DEBT

The following is a summary of the Company’s debt as of June 30, 2026 and December 31, 2025 (in thousands):


	2026		2025
Debt – Third Parties
Note payable - Whitehawk	32,243		32,243
Total debt	32,243		32,243
Less: Premium, discount and issuance costs	(1,886)		(1,908)
Current portion of debt	34,129		1,274

Long-term debt	$	—	$	32,877
Total debt (net of premium, discount and issuance costs)	$	34,129	$	34,151

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Interest expense, net was $1.1 million and $2.6 million for three months ended June 30, 2026 and 2025, respectively and $2.3 million and $5.1 million for each of the six months ended June 30, 2026 and 2025.

Whitehawk Finance LLC

On March 24, 2025, the Company entered into an eighth amendment to the Credit Agreement with the Collateral Agent and Lender (the “Eighth Amendment”) to (i) provide the Company with an additional $2.5 million working capital bridge loan and (ii) waive any events of default that may have arisen as a result of the Company’s failure to (A) maintain the required ratio of indebtedness to adjusted EBITDA (defined more specifically as the “Senior Leverage Ratio” in the Credit Agreement) for the periods ended December 31, 2024 and March 31, 2025 and (B) maintain a value of specified assets in excess of certain borrowings (defined more specifically as a “Borrowing Base” in the Credit Agreement) for the months ended December 31, 2024, January 31, 2025 and February 28, 2025. In addition, no payments were required to be made by the Company to pay down the borrowing base defaults for December 2024, January 2025, and February 2025. The Company is required to pay a fee equal to 6% of the working capital bridge loan under the Eighth Amendment. The bridge loan, including the related fee, is due and payable in full on August 31, 2025, and is not subject to prepayment penalties.

On August 13, 2025, the Company entered into a forbearance agreement and ninth amendment and waiver to the Credit Agreement with the Collateral Agent and Lender (the “Ninth Amendment”) to waive any events of default that may have arisen directly as a result of (1) the Financial Covenant Event of Default (as defined in the Ninth Amendment) for the period ended June 30, 2025, (2) the Borrowing Base defaults described in the Ninth Amendment for the months ended April 30, 2024, May 31, 2025, June 30, 2025, and July 31, 2025, and (3) the failure to comply with the Recapitalization Requirement. Pursuant to the Ninth Amendment, the Company agreed to increase its quarterly principal payment due on September 30, 2025 from the scheduled $0.7 million to $1.0 million and to change interest payments from being due quarterly to being due monthly beginning in August 2025.

On December 2, 2025, the Company entered into the tenth amendment to Credit Agreement with the Collateral Agent and Lender (the “Tenth Amendment”). The Tenth Amendment does not modify the maturity date. Pursuant to the Tenth Amendment, the Lenders agreed to waive certain “Specified Events of Default” that had occurred or were anticipated to occur under the Credit Agreement. These Specified Events of Default included:

•Failure to maintain the required Senior Leverage Ratio of 1.75:1.00 for the period ended September 30, 2025; and

•Borrowing base non-compliance for the months ending July 31 through November 30, 2025.

•The Lenders waived the right to receive the post-default interest rate with respect to these Specified Events of Default through December 31, 2025, provided the Company complies with the terms of the Tenth Amendment. Although the Company obtained waivers with respect to the foregoing past instances of Credit Agreement noncompliance, in view of the Company’s history of noncompliance and its current situation, there can be no guarantee that the Company will not breach provisions of the Credit Agreement in the future, which could lead to declared events of default, acceleration of obligations and other material negative consequences.

The Tenth Amendment required the company to pay a voluntary prepayment of the loans in the amount of not less than $3.0 million, for which no prepayment premium is required. From December 2 through December 31, 2025, the “Applicable Margin” is set at 6.50% for Secured Overnight Financing Rate (SOFR) loans and 5.50% for reference rate loans. The definition of “Floor” was amended to 4.25% per annum, and the “Reference Rate” was amended to 5.25% per annum. Additionally, the borrowing base allowance for the value of the Company’s intellectual property was reduced from a maximum of $11.2 million to $8.0 million. Also set forth in the Tenth Amendment, 100% of net cash proceeds from any equity issuances be applied first to reduce any existing indebtedness in excess of the Borrowing Base, with the remainder applied to prepay the loans.

On December 18, 2025, the Company entered into the Eleventh Amendment to Credit Agreement with the Collateral Agent and Lender (the “Eleventh Amendment”). Pursuant to the Eleventh Amendment, the Lender agreed to extend the final maturity date of the loans under the Credit Agreement from December 31, 2025 to April 1, 2027. Mandatory quarterly amortization payments on the initial term loan are suspended for the period commencing on the Eleventh Amendment’s effective date through, and including, June 30, 2026, with the first amortization payment thereafter due on September 30, 2026. The “Applicable Margin” is set at 6.50% for Secured Overnight Financing Rate (SOFR) loans and 5.50% for reference rate loans, the same as in the Tenth Amendment. Additionally, the definition of the “Reference Rate” was amended to 5.50% per annum from the previous 5.25% per annum. In conjunction with obtaining the waiver, the Company was also required to comply with the following covenants:

•The Company must maintain qualified cash at all times of at least (i) $1.0 million from and after January 1, 2025 until the Eleventh Amendment, and (ii) $1.5 million from and after the Eleventh Amendment effective date.

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•Pursuant to the amendment, the financial covenant requiring compliance with the Senior Leverage Ratio was removed and the Company is subject to a Minimum Consolidated Adjusted EBITDA covenant commencing with the period ending March 31, 2026 (set at $1.9 million for such period), and varying thereafter as set forth in the Eleventh Amendment.

•Certain covenants related to business, management, and governance oversight were added.

In addition, the Eleventh Amendment modifies the mandatory prepayment provisions regarding net cash proceeds from equity offerings and certain permitted additional indebtedness, requiring 50% (or 100% if an event of default exists) of such proceeds to be applied to prepay Credit Agreement loans, provided that the loan parties may retain up to $5.0 million of such proceeds for working capital and general corporate purposes. The Eleventh Amendment permits Credit Agreement indebtedness in excess of maximum amounts in an aggregate amount not to exceed for the months ending December 31, 2025, $4.0 million; January 31, 2026, $4.5 million; February 28, 2026, $5.5 million and from and after March 31, 2026 (and each month thereafter), $4.0 million.

Covenant Compliance and Liquidity Considerations

The Company’s Credit Agreement, as amended to date, requires compliance with certain covenants, which include provisions regarding over advance limitations based upon a borrowing base, a minimum consolidated adjusted EBITDA covenant, a minimum liquidity requirement, and previously a Senior Leverage Ratio.

The Company was not in compliance with the Senior Leverage Ratio covenant at December 31, 2024, and was not in compliance with the borrowing base covenant for the months ended December 31, 2024, January 31, 2025, and February 28, 2025. On March 24, 2025, the Company entered into an eighth amendment to the Credit Agreement with the Collateral Agent and Lender (the “Eighth Amendment”) to (i) provide the Company with an additional $2.5 million working capital bridge loan in March 2025 and (ii) waive any events of default that may have arisen directly as a result of (1) the Financial Covenant Event of Default (as defined in the Eighth Amendment) for the periods ended December 31, 2024 and March 31, 2025 and (2) the Borrowing Base defaults described in the Eighth Amendment for the months ended December 31, 2024, January 31, 2025 and February 28, 2025. In addition, no payments were required to be made by the Company to pay down the borrowing base defaults for December 2024, January 2025, and February 2025. The Company is required to pay a fee equal to 6% of the working capital bridge loan under the Eighth Amendment. The bridge loan, including the related fee, was due and payable in full on August 31, 2025. In conjunction with obtaining the Eighth Amendment, the Company also was required to comply with the following covenants:

•Initiate recapitalization efforts and/or other financing arrangements with target completion milestones starting on March 21, 2025 through an expected completion of the recapitalization and/or repayment of the debt by June 16, 2025 (the “Recapitalization Requirement”). Not meeting these dates was an event of default under the credit facility. The Company did not meet this requirement.

•Provide budgets to the Lender with variances in excess of specified thresholds resulting in an event of default at the discretion of the Lender. The Company is also required to meet with a financial advisor, as designated by the Lender, if requested.

The Company’s noncompliance with its financial covenant related to the borrowing base under the Credit Agreement at March 31, 2025 was cured by the payment of approximately $1.3 million under the Credit Agreement in April and May 2025. The Company applied these payments to the bridge loan and related fee. In addition, the Eighth Amendment prohibits the Company from paying dividends or distributions to the Preferred Stockholders and reduces the borrowing base calculations by reducing the value assigned to its intellectual property to $11.2 million.

The Company was not in compliance with the Senior Leverage Ratio covenant as of September 30, 2025 and was not in compliance with the borrowing base covenant for the months ended August 31, 2025 through November 30, 2025.

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•Failure to maintain the required Senior Leverage Ratio of 1.75:1.00 for the period ended September 30, 2025; and

•Borrowing base non-compliance for the months ending July 31 through November 30, 2025.

On December 18, 2025, the Company entered into a forbearance agreement and eleventh amendment and waiver to the Credit Agreement with the Collateral Agent and Lender (the “Eleventh Amendment”). The Eleventh Amendment extended the final maturity date of the loans from December 31, 2025 to April 1, 2027, and suspended mandatory quarterly amortization payments on the initial term loan through June 30, 2026, with the first payment thereafter due September 30, 2026. The Applicable Margin remains at 6.50% for SOFR loans and 5.50% for reference rate loans, and the Reference Rate was amended to 5.50% per annum from the prior 5.25% per annum. In conjunction with the Eleventh Amendment, the Senior Leverage Ratio covenant was replaced with a Minimum Consolidated Adjusted EBITDA covenant commencing with the period ending March 31, 2026 (set at $1.9 million), the Company is required to maintain a minimum qualified cash of $1.5 million, and certain business, management, and governance covenants were added. The Eleventh Amendment also requires that 50% (or 100% if an event of default exists) of net cash proceeds from equity offerings and certain permitted additional indebtedness be applied to prepay Credit Agreement loans, with the loan parties permitted to retain up to $5.0 million for working capital and general corporate purposes, and permits borrowing base indebtedness in excess of maximum amounts not to exceed $4.0 million at December 31, 2025, $4.5 million at January 31, 2026, $5.5 million at February 28, 2026, and $4.0 million from and after March 31, 2026. The Company was in compliance with the borrowing base covenant and the minimum qualified cash balance requirement under the Credit Agreement for the period ended December 31, 2025. Pursuant to the Eleventh Amendment, the Senior Leverage Ratio covenant was replaced with a minimum consolidated adjusted EBITDA covenant commencing with the period ending March 31, 2026.

Pursuant to the March 2026 Forbearance Agreement, the Lenders waived the underlying borrowing base defaults for January and February 2026. Pursuant to the May 2026 Forbearance Agreement, the Lenders granted a limited waiver of the borrowing base and Minimum Consolidated Adjusted EBITDA defaults for the periods ended March 31, 2026 and April 30, 2026. Pursuant to the August 2026 Forbearance Agreement, the Lenders granted a limited waiver of the borrowing base and Minimum Consolidated Adjusted EBITDA defaults for the periods ended May 31, 2026, June 30, 2026, and July 31, 2026. As of June 30, 2026, the debt outstanding from Boxlight to Whitehawk is classified as short-term debt.

Pursuant to the August 2026 Forbearance Agreement, the mandatory quarterly amortization payments on the initial term loan remain suspended through September 30, 2026, with the first payment due on December 31, 2026. In addition, the August 2026 Forbearance Agreement amended the Credit Agreement’s mandatory prepayment provisions to require that 50% (or 100% if an Event of Default exists) of net cash proceeds from subordinated indebtedness in addition to equity issuances be applied to prepay the Credit Agreement loan, with any retained proceeds restricted from being used to make payments on equity interests, redeemable preferred stock, or subordinated indebtedness.

In August 2026, the Company completed an equity raise, the proceeds of which were required to be applied to repay a portion of the outstanding Whitehawk Credit Agreement loan, resulting in a principal repayment of approximately $2.25 million and a prepayment penalty of $0.14 million.

Although the Company has obtained waivers and amendments with respect to each of the foregoing instances of non-compliance, there can be no guarantee that the Company will not breach provisions of the Credit Agreement in the future. Any such breach could result in declared events of default, acceleration of obligations, and other material adverse consequences to the Company.

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Issuance Cost and Warrants

In conjunction with its receipt of the Initial Loan, the Company issued to the Lender (i) 367 shares of Class A common stock (the “Shares”), which Shares were registered pursuant to its existing shelf registration statement and were delivered to the Lender in January 2022, (ii) a warrant to purchase 1,419 shares of Class A common stock (subject to increase to the extent that 3% of any Series B and Series C convertible Preferred Stock converted into Class A common stock), exercisable at $2880.00 per share (the “Warrant”), which Warrant was subject to repricing on March 31, 2022 based on the arithmetic volume weighted average prices for the 30 trading days prior to September 30, 2022, in the event the Company’s stock is then trading below $2880.00 per share, (iii) a 3% fee of $1,800,000, and (iv) a $500,000 original issue discount. In addition, the Company agreed to register for resale the shares issuable upon exercise of the Warrant. The Company also incurred agency fees, legal fees, and other costs in connection with the execution of the Credit Agreement totaling approximately $1.7 million. Under the terms of the warrant issued to Whitehawk on December 31, 2021, the exercise price of the warrants would reprice if the stock price on March 31, 2022 was less than the original exercise price, at which time the number of warrants would also be increased proportionately, so that after such adjustment the aggregate exercise price payable for the increased number of warrant shares would be the same as the aggregate exercise price previously in effect. The warrants repriced on March 31, 2022 to $1713.60 per share and the shares increased to 2,385.

On July 22, 2022, the Company entered into a securities purchase agreement (the “Purchase Agreement”) with an accredited institutional investor. According to the terms of the Credit Agreement, as amended, the Purchase Agreement triggered a reduction of the exercise price of the warrants and a revaluation of the derivative liability. The Whitehawk warrants were repriced to $1584.00, and shares increased to 2,580.

On February 19, 2025, the Company entered into a Securities Purchase Agreement (the “2025 Purchase Agreement”) with certain institutional accredited investors (the “2025 Investors”). According to the terms of the Credit Agreement, as amended, the Purchase Agreement triggered a reduction of the exercise price of the warrants and a revaluation of the derivative liability. The Whitehawk warrants were repriced to $698.04, and shares increased to 5,854.

On September 23, 2025, the Company entered into a Securities Purchase Agreement with certain institutional accredited investors. The Whitehawk warrants were repriced to $543.96 per share, and the number of shares issuable upon exercise increased to 7,513 shares.

On April 1, 2026, the Company entered into an amendment to its inventory finance agreement with J.J. Astor & Co., a related party, converting $556,200 of outstanding debt into 100,000 shares of Class A common stock at $5.562 per share. This conversion triggered a reduction of the exercise price of the Whitehawk warrants and a revaluation of the derivative liability. The Whitehawk warrants were repriced to $468.29 per share, and the number of shares issuable upon exercise increased to 8,727.

NOTE 9 – DERIVATIVE LIABILITIES

The Company determined that certain warrants to purchase common stock do not satisfy the criteria for classification as equity instruments due to the existence of certain net cash and non-fixed settlement provisions that are not within the sole control of the Company. Conversion and exercise prices may be lowered if the Company issues securities at lower prices in the future. Such warrants are measured at fair value at each reporting date, and the changes in fair value are included in determining net income (loss) for the period. The Company used a Model Monte Carlo Simulation model to determine the fair value of the derivative liabilities.


	June 30, 2026
Common stock issuable upon exercise of warrants	8,727
Market value of common stock on measurement date	$	4.71
Exercise price	$	468.29
Risk free interest rate (1)	3.85		%
Expected life in years	1 year
Expected volatility (2)	111.0		%
Expected dividend yields (3)	—		%

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	December 31, 2025
Common stock issuable upon exercise of warrants	7,513
Market value of common stock on measurement date	$	10.20
Exercise price	$	543.96
Risk free interest rate (1)	3.42		%
Expected life in years	1 year
Expected volatility (2)	187.0		%
Expected dividend yields (3)	—		%

(1)The risk-free interest rate was determined using the applicable (six month)Treasury Bill as of the measurement date.

(2)The historical trading volatility was based on historical fluctuations in stock price for Boxlight.

(3)The Company does not expect to pay a dividend in the foreseeable future.

NOTE 10 – INCOME TAXES

Pretax (loss) resulting from domestic and foreign operations is as follows (in thousands):


	Three Months Ended June 30,		Three Months Ended June 30,		Six Months Ended June 30,		Six Months Ended June 30,
	2026		2025		2026		2025
United States	$	1,725	$	(5,863)	$	(3,300)	$	(8,095)
Foreign	(1,479)		1,418		(3,364)		257
Total pretax book income (loss)	$	246	$	(4,445)	$	(6,664)	$	(7,838)

The Company recorded income tax benefit of $263 thousand and income tax expense of $274 thousand for the three months ended June 30, 2026 and 2025, respectively, and income tax benefit of $648 thousand and income tax expense of $124 thousand for the six months ended June 30, 2026 and 2025, respectively. The effective tax rate was 9.7% and (1.6)% for the six months ended June 30, 2026 and 2025 due to various permanent differences for Boxlight and a change in valuation allowance for certain deferred assets.

On July 4, 2025, the President signed H.R. 1 (commonly known as the One Big Beautiful Bill Act) into law. The law introduces many significant federal income tax changes with various effective dates. ASC 740 requires that the effects of a change in tax laws or rates should be recorded in the interim period that includes the enactment date. The company does not expect a material impact on the effective tax rate, but does expect a current tax benefit from utilizing the tax law changes under OBBBA related to expensing of prior year unamortized Domestic IRC Sec. 174 costs, 100% bonus depreciation on personal property, and interest deferred rule changes under IRC Sec. 163J.

The Company operates in the United States, United Kingdom, and other jurisdictions. Income taxes have been provided based upon the tax laws and rates of the countries in which operations are conducted and income is earned.

The legacy Boxlight entities are in a net deferred tax asset position in the United States and other jurisdictions, primarily driven by the aforementioned net operating losses. The recoverability of these deferred tax assets depends on the Company’s ability to generate taxable income in the jurisdiction to which the carryforward applies. It also depends on specific tax provisions in each jurisdiction that could impact utilization. For example, in the United States, a change in ownership, as defined by federal income tax regulations, could significantly limit the Company’s ability to utilize its U.S. net operating loss carryforwards. Additionally, because U.S. tax laws limit the time during which the net operating losses generated prior to 2018 may be applied against future taxes, if the Company fails to generate U.S. taxable income prior to the expiration dates, the Company may not be able to fully utilize the net operating loss carryforwards to reduce future income taxes. The Company has evaluated both positive and negative evidence as to the ability of its legacy entities in each jurisdiction to generate future taxable income. Based on its long history of cumulative losses in those jurisdictions, it believes it is appropriate to maintain a full valuation allowance on its net deferred tax asset at June 30, 2026 and December 31, 2025.

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The tax years from 2009 to 2026 remain open to examination in the U.S. federal jurisdiction. The tax years from 2021 to 2026 remain open to examination in the U.K. Statutes of limitations vary in other immaterial jurisdictions.

NOTE 11 – EQUITY

Preferred Stock

The Company’s articles of incorporation, as amended, provide that the Company is authorized to issue 50,000,000 shares of Preferred Stock, with such Preferred Stock consisting of: (1) 250,000 shares of non-voting Series A Preferred Stock, with a par value of $0.0001 per share; (2) 1,586,620 shares of voting Series B Preferred Stock, with a par value of $0.0001 per share; (3) 0 shares of voting Series C Preferred Stock; and (4) remaining shares of “blank check” Preferred Stock to be designated by the Company’s Board of directors. Each authorized series of Preferred Stock is described below.

Issuance of Preferred Stock

Series A Preferred Stock

At the time of the Company’s initial public offering, the Company issued 250,000 shares of the Company’s non-voting convertible Series A Preferred Stock to Vert Capital for the acquisition of Genesis Collaboration LLC. As of June 30, 2026, a total of 167,972 shares of Series A Preferred Stock remained outstanding which can be converted into 6,693 shares of Class A common stock, at the discretion of the Series A stockholder.

Series B Preferred Stock and Series C Preferred Stock

On September 25, 2020, in connection with the acquisition of Sahara Holding Limited (“Sahara”), the Company issued 1,586,620 shares of Series B Preferred Stock and 1,320,850 shares of Series C Preferred Stock. The Series B Preferred Stock has a stated and liquidation value of $10.00 per share and pays a dividend out of the earnings and profits of the Company at the rate of 8% per annum, payable quarterly. The Series B Preferred Stock is convertible into the Company’s Class A common stock at a conversion price of $66.40 per share which was the closing price of BOXL’s Class A common stock on the Nasdaq Stock Market on September 25, 2020 (the “Conversion Price”) either (i) at the option of the holder at any time after January 1, 2024 or (ii) automatically upon the Company’s Class A common stock trading at 200% of the Conversion Price for 20 consecutive trading days (based on a volume weighted average price). The Series C Preferred Stock has a stated and liquidation value of $10.00 per share and is convertible into the Company’s Class A common stock at the Conversion Price either (i) at the option of the holder at any time after January 1, 2026, or (ii) automatically upon the Company’s Class A common stock trading at 200% of the Conversion Price for 20 consecutive trading days (based on a volume weighted average price).

On October 1, 2025, the Company converted all outstanding Series C preferred stock into common stock and amended the Series B preferred stock to eliminate redemption and conversion features, reducing potential future cash obligations.

Pursuant to the Agreement, the holders converted all outstanding shares of Series C Stock—constituting a total of 1,320,850 shares - into a total of 33,153 shares of Class A Common Stock, par value $0.0001 per share (“Common Stock”).

In addition, the holders agreed with the Company to amend the terms of the Series B Stock. Specifically, the right of the holders to convert their Series B Stock into Common Stock at their option, and a provision that provided for automatic conversion if the price of the Common Stock on the Nasdaq Capital Market reached a certain level, were eliminated. The right of the holders to cause the Company to redeem their Series B Stock at their option was also eliminated.

The dividend provisions of the Series B Stock were amended to provide that the current 8% per annum dividend, currently accruing on a non-compounding cumulative basis, would begin accruing at 9% per annum on October 2, 2027, 10% on October 2, 2028, 11% on October 2, 2029 and 12% on October 2, 2030 and thereafter. The cumulative dividends are payable only when and if declared, or in the event of a liquidation of the Company. No dividends can be declared or paid on junior classes of capital stock, including the Common Stock, unless unpaid cumulative dividends on the Series B Stock are first paid. Although the dividends are payable only when and if declared or upon a liquidation, dividends that do

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become payable but remain unpaid will accrue interest at a fixed rate of 12% until such dividend and interest shall be paid in full.

In the Agreement, the Company agreed to apply up to 20% of the net proceeds of future primary equity securities offerings undertaken by the Company for capital-raising purposes to redeem or repurchase the Series B Stock at a redemption price per share of $10.00 until all such shares are redeemed and repurchased. The obligation to repurchase or redeem the Series B Stock is subject to possible limitations based on legal or stock market listing standard considerations.

Common Stock

On February 17, 2026, Dale Strang stepped down as Chief Executive Officer and member of the Board of Directors as part of a planned leadership transition. Mr. Strang’s resignation from the Board of Directors restored the Company’s compliance with the Nasdaq listing rule requiring that a majority of the Board of Directors consist of independent directors.

Following the Company’s 1-for-6 reverse stock split in June 2026, the Company’s common stock consists of 694,445 shares of Class A voting common stock and 50,000,000 shares of Class B non-voting common stock. Class A and Class B common stock have the same rights except that Class A common stock is entitled to one vote per share while Class B common stock has no voting rights. Upon any public or private sale or disposition by any holder of Class B common stock, such shares of Class B common stock shall automatically convert into shares of Class A common stock. As of June 30, 2026 and December 31, 2025, the Company had 667,348 and 228,335 shares of Class A common stock issued and outstanding, respectively. No Class B shares were outstanding as of June 30, 2026 or December 31, 2025.

On April 20, 2026, the Company received a notice from Nasdaq indicating that, based on the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, it no longer complied with the minimum stockholders’ equity requirement under Nasdaq Listing Rule 5550(b)(1), because the Company reported stockholders’ equity of approximately $1.255 million, which is below the $2.5 million minimum required for continued listing on the Nasdaq Capital Market.

On July 1, 2026, the Company received a determination letter from the Listing Qualifications Staff of The Nasdaq that it is not in compliance with the $2.5 million stockholders’ equity requirement for continued listing on Nasdaq under Nasdaq Listing Rule 5550(b). As a result, the Company’s securities are subject to suspension and delisting unless it timely requests a hearing before the Nasdaq Hearings Panel (the “Panel”). The Company requested a hearing before the Panel, which was held on August 13, 2026. The Company believes it has since regained compliance with the applicable listing standard and presented its position to the Panel at the hearing. As of the date of this Quarterly Report, the Company has not been delisted from Nasdaq and continues to await a formal written decision from the Panel, which is expected within approximately three weeks of the hearing date. There can be no assurance that the Panel will grant continued listing, and the Company’s common stock remains subject to potential delisting pending the Panel’s determination.

On July 23, 2026, at the Company’s reconvened Annual Meeting of Shareholders, shareholders approved an amendment to the Company’s Articles of Incorporation to increase the number of authorized shares of Class A common stock from 694,445 shares to 55,000,000 shares. The amendment provides the Company with additional flexibility for future corporate purposes, subject to applicable law, Nasdaq listing requirements, and Board approval.

February 2025 Private Placement

On February 19, 2025, the Company entered into a Securities Purchase Agreement (the “2025 Purchase Agreement”) with certain institutional accredited investors, pursuant to which the Company agreed to issue and sell, in a private placement priced at-the-market under the rules of The Nasdaq Stock Market (the “2025 Private Placement”), an aggregate of (i) 7,222 shares (the “2025 Shares”) of the Company’s Class A common stock, (ii) prefunded warrants (the “2025 Prefunded Warrants”) to purchase up to an aggregate of 29,528 shares of Class A Common Stock (the “2025 Prefunded Warrant Shares”), and (iii) warrants (the “2025 Common Warrants” and, together with the 2025 Prefunded Warrants, the “2025 Warrants”) to purchase up to an aggregate of 36,750 shares of Class A Common Stock (the “2025 Common Warrant Shares” and, together with the 2025 prefunded warrant shares, the “2025 Warrant Shares”). The purchase price of each 2025 share and accompanying 2025 common warrant was $76.68, and the purchase price of each 2025 prefunded warrant and accompanying 2025 common warrant was $76.68. The 2025 Private Placement closed on February 21, 2025, and the Company issued the 2025 shares and executed and delivered the 2025 warrants. The gross proceeds from the 2025 Private Placement were approximately $2.8 million, before deducting placement agent fees and other private placement expenses. Each 2025 prefunded warrant has an initial exercise price of $0.0036 per share (subject

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to adjustments as set forth therein), is immediately exercisable upon issuance and will expire when exercised in full. Each 2025 common warrant has an initial exercise price of $76.68 per share (subject to adjustments as set forth therein), is exercisable six months following the date of issuance and will expire five and a half years from the date of issuance. Pursuant to the Purchase Agreement, the Company filed a registration statement on Form S-3 (the “Registration Statement”) with the Securities and Exchange Commission (“SEC”) on April 7, 2025 to register the resale of the 2025 Shares and the 2025 prefunded warrant shares. The Registration Statement was declared effective by the SEC on April 24, 2025. Through December 31, 2025, the holders exercised all of the prefunded warrants.

September 2025 Registered Direct Offering

On September 23, 2025, the Company entered into a placement agency agreement with a placement agent and a securities purchase agreement with certain purchasers, pursuant to which the Company issued and sold, in a registered direct offering, an aggregate of 37,037 shares of the Company’s Class A common stock at a price of $108.00 per share. The offering closed on September 24, 2025. The gross proceeds to the Company were approximately $4.0 million, before deducting the Placement Agent’s fees and other offering expenses payable by the Company.

At-the-Market Offering (“ATM Program”)

On October 16, 2025, the Company entered into a sales agreement with A.G.P./Alliance Global Partners, pursuant to which the Company could offer and sell shares of its Class A common stock, par value $0.0001 per share, having an aggregate offering price of up to $4.8 million, through an “at the market” offering program (“ATM Program”) in accordance with Rule 415(a)(4) under the Securities Act of 1933, as amended.

During the year ended December 31, 2025, the Company sold 69,659 shares of its Class A Common Stock under the ATM Program for gross proceeds of approximately $1.06 million. The Company paid the sales agent commissions of 3.0% of the gross proceeds, totaling approximately $0.03 million. In addition, the Company incurred professional and other offering expenses of approximately $0.37 million related to the ATM Program. After deducting commissions and offering expenses, the Company received net proceeds of approximately $0.66 million. As of January 21, 2026, the Company sold the remaining shares available under the “at the market offering” program (“ATM Program”). In total, the Company sold 408,276 shares of Class A Common Stock under the program for aggregate proceeds of approximately $4.6 million, after deducting sales agent commissions of $0.14 million but before offering expenses, thereby fully exhausting the capacity of the program.

Warrants

The Company had equity warrants outstanding of 13,847 and 24,883 as of June 30, 2026 and December 31, 2025, respectively.

NOTE 12 – STOCK COMPENSATION

The Company has issued grants under two equity incentive plans, both of which have been approved by the Company’s shareholders: (i) the 2014 Equity Incentive Plan, as amended (the “2014 Plan”), pursuant to which a total of 4,438 shares of the Company’s Class A common stock have been approved for issuance, and (ii) the 2021 Equity Incentive Plan (the “2021 Plan”), pursuant to which a total of 3,472 shares of the Company’s Class A common stock have been approved for issuance. Upon approval of the 2021 Plan in September 2021, any shares remaining available for issuance under the 2014 Plan were cancelled, and all future grants were issued under the 2021 Plan. The 2021 Plan allows for issuance of shares of our Class A common stock, whether through restricted stock, restricted stock units, options, stock appreciation rights or otherwise, to the Company’s officers, directors, employees, and consultants. Prior to the second quarter of 2023, the Company had issued 4,305 shares under the 2021 Plan such that the Company was over the authorized share number.

Stock Options

Under our Equity Incentive Plans, an employee may receive an award of stock option grants that provides the opportunity in the future to purchase the Company’s shares at the market price of our stock on the date the award is granted (strike price). The options become exercisable over a range of immediately vested to four-year vesting periods and expire five years from the grant date, unless stated differently in the option agreements, if they are not exercised. We record compensation expense based on the estimated fair value of the awards which is amortized as compensation expense on a

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straight-line basis over the vesting period. Accordingly, total expense related to the award is reduced by the fair value of options that are forfeited by employees that leave the Company prior to vesting as they occur.

There was no stock option activity during the six months ended June 30, 2026. As of June 30, 2026, 22 stock options were outstanding and exercisable.

Restricted Stock Units

Under our Equity Incentive Plans, the Company may grant restricted stock units (“RSUs”) to certain employees, contractors, and non-employee directors. Upon granting the RSUs, the Company recognizes a fixed compensation expense equal to the fair market value of the underlying shares of RSUs granted on a straight-line basis over the requisite service period for the RSUs. Compensation expense related to the RSUs is reduced by the fair value of units that are forfeited by employees that leave the Company prior to vesting as they occur. The RSUs vest over a range of immediately vested to four-year vesting periods in accordance with the terms of the applicable RSU grant agreement.

The following is a summary of the RSU activities during the six months ended June 30, 2026:


			Number of Units
Outstanding, December 31, 2025			117
Granted			—
Vested			(52)
Forfeited			(5)
Outstanding, June 30, 2026			60

Warrants

The following is a summary of the warrant activities for warrants to purchase Class A common stock during the six months ended June 30, 2026:


			Number of Units
Outstanding, December 31, 2025			24,883
Granted			0
Exercised			(12,250)
Increase in warrant shares from anti-dilution adjustment			1,214
Outstanding, June 30, 2026			13,847
Exercisable, June 30, 2026			13,847

Stock Compensation Expense

Long-term incentive plan

On August 15, 2024, the Company granted a long-term incentive plan (LTIP) cash award pursuant to its 2021 Equity Incentive Plan to members of the Company’s Board of Directors and senior management. The amount of each award earned will depend on the performance of the Company relative to certain performance targets related to share price appreciation of the Company’s Class A common stock during the respective performance cycles. The LTIP awarded to the Company’s Board of Directors have a performance period ended on March 31, 2026, whereas the LTIP awarded to senior management have three consecutive 12-month performance periods ending June 30, 2025, June 30, 2026, and June 30, 2027. The target payout under the LTIP awarded to the Board of Directors and senior management is $0.4 million and $0.1 million, respectively. If the Company’s performance relative to the performance goal during the performance cycle is not equal to the performance target, the target Cash LTIP Award will be adjusted based on actual performance. Consequently, the actual payout under the LTIP awarded to the Board was $86 thousand for the performance period ended on March 31, 2026, due to the change in stock price. At no time during the performance cycle shall the payout be less than 1/3 or exceed 3 times the target cash LTIP Award, unless a change in control has occurred. Cash payments are subject to the Company’s compliance with all covenants contained in the Company’s credit facilities in effect at the conclusion of each performance cycle. $50 thousand of the LTIP payout in the six months ended June 30, 2026 was attributable to

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executive departures. An additional $86 thousand of the LTIP payout in the six months ended June 30, 2026 was attributable to the LTIP awarded to the Board for the performance period ended March 31, 2026. As amounts earned for the awards are based on changes in the Company’s stock price, the Company will recognize a liability for compensation cost each reporting period based on the fair value as of each reporting date proportionally with the elapsed time at each reporting period. The liability is recognized in other short-term liabilities in the consolidated balance sheets. The Company used a Model Monte Carlo Simulation model to determine the fair value of the LTIP as of June 30, 2026 to be $101 thousand. Key inputs to the valuation of the awards include the stock price as of the award effective date and the valuation date, the discount rate, and historical volatility in the Company’s stock price.


	June 30, 2026
Market value of common stock on measurement date	$	4.71
Risk free interest rate (1)	3.85		%
Expected life in years	1.00
Expected volatility (2)	111		%

(1)The risk-free interest rate was determined using the applicable (six month) Treasury Bill as of the measurement date.

(2)The historical trading volatility was based on historical fluctuations in stock price for Boxlight.

For the three and six months ended June 30, 2026 and 2025, the Company recorded the following stock compensation in general and administrative expense (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Stock options	$	—	$	5	$	—	$	12
Restricted stock units	4		67		36		133
Equity based warrants	—		—		—		30
Long-term incentive plan	45		107		176		173
Total stock compensation expense	$	49	$	179	$	212	$	348

As of June 30, 2026, there was approximately $0.14 million of unrecognized compensation expense related to unvested options and RSUs, which will be amortized over the remaining vesting period.

NOTE 13 – RELATED PARTY TRANSACTIONS

Management Agreement

On November 1, 2022, the Company entered into a consulting agreement with Mark Elliott, former Chief Executive Officer of Boxlight and a current member of the Board of Directors. Under the terms of the agreement, Mr. Elliott is to provide sales, marketing, management and related consulting services to assist the Company in sourcing and entering into agreements with one or more customers to provide products and services for specified school districts. The Company will pay Mr. Elliott a fixed payment of $4 thousand per month and commissions equal to 15% of gross profit derived by the Company based on total purchase order revenue. The agreement, unless cancelled, will automatically renew on December 31, 2026. For the three months ended June 30, 2026 and 2025, the Company paid $81 thousand and $3 thousand under the agreement, respectively. For the six months ended June 30, 2026 and 2025, the Company paid $127 thousand and $39 thousand under the agreement, respectively.

On January 31, 2018, the Company entered into a management agreement (the “Management Agreement”) with an entity owned and controlled by our former Chief Executive Officer and Chairman, Michael Pope. The Management Agreement is separate and apart from Mr. Pope’s employment agreement with the Company. The Management Agreement became effective as of the first day of the same month that Mr. Pope’s employment with the Company terminated, and will be in effect for a period of 13 months, in which Mr. Pope will provide consulting services to the Company including sourcing and analyzing strategic acquisitions, assisting with financing activities, and other services. As consideration for the services provided, the Company will pay Mr. Pope a management fee equal to 0.375% of the consolidated net revenues

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of the Company, payable in monthly installments, not to exceed $250,000 in any calendar year. At his option, Mr. Pope may defer payment until the end of each year and/or receive payment in the form of shares of Class A common stock of the Company.

On January 4, 2024, Mr. Pope’s employment with the Company terminated. In accordance with the Management Agreement, Mr. Pope is expected to continue providing consulting services to the Company for the subsequent 13 months. For the six months ended June 30, 2025, the Company paid $43 thousand under the agreement. Mr. Pope currently serves as the Executive Chairman of the Company.

Inventory Finance Agreement

On May 27, 2025, the Company entered into an Inventory Finance Agreement with J.J. Astor & CO., a Utah corporation (“J.J Astor”). Michael Pope is the chief executive officer of J.J Astor, which is beneficially owned, directly or indirectly, by a private investment fund managed by Mr. Pope.

Under the Agreement, the Company may finance the purchase of certain finished goods inventory from one of the Company’s manufacturers and suppliers of such inventory up to an aggregate outstanding amount of $6 million. The term of the Agreement is one year. Each advance under the Agreement is payable by the Company within 90 days at a rate of 5.35% of the amount advanced by J.J Astor. Title to the product remains with J.J. Astor until payment is made by the Company. Any failure by the Company to make a payment in full when due under the Agreement constitutes an event of default. In the event of such default by the Company, the aggregate outstanding balance owing to J.J Astor is automatically increased by 10% and begins to accrue interest at the rate of 19% per annum, compounded daily.

On November 3, 2025, the Company and J.J. Astor entered into an amendment and restatement of the Agreement (the “Restated Agreement”). Under the Restated Agreement, the Company may finance 80% of the purchase of certain finished goods inventory from one of the Company’s manufacturers and suppliers of such inventory up to an aggregate outstanding amount of $9 million, a $3 million increase from the maximum amount under the original Agreement. Each advance under the Restated Agreement remains payable by the Company within 90 days at a rate of $1.0535 per $0.80 advanced. The term of the Restated Agreement is until November 3, 2026, unless mutually extended or earlier terminated by J.J. Astor.

Under the Restated Agreement, J.J. Astor may elect from time to time to convert all or a portion of the amounts owed by the Company into shares of the Company’s common stock, par value $0.0001 per share. J.J. Astor can require the Company to register any such shares for public resale with the Securities & Exchange Commission.

On April 1, 2026, we entered into an amendment to the inventory finance agreement, pursuant to which $556,200 of the outstanding balance was converted into 100,000 shares of common stock (the “Conversion Shares”) at a conversion price of $5.562 per share. The amendment also increased the aggregate Maximum Inventory Purchase Amount available under the agreement from $9.0 million to $10.0 million. Further, the parties agreed that, if the aggregate proceeds from the sale of the Conversion Shares are less than $556,200, the Company shall pay the shortfall in cash within five trading days. Michael Pope, Chairman of the Company’s Board of Directors, and its former president and chief executive officer, is the chief executive officer of J.J. Astor. J.J. Astor is beneficially owned, directly or indirectly, by a private investment fund managed by Mr. Pope.

NOTE 14 – COMMITMENTS AND CONTINGENCIES

Contingencies

The Company assesses its exposure related to legal matters and other items that arise in the regular course of its business. If the Company determines that it is probable a loss has been incurred, the amount of the loss, or an amount within the range of loss, that can be reasonably estimated is recorded. The Company has not identified any legal matters that could have a material adverse effect on our consolidated results of operations, financial position or cash flows.

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Purchase Commitments

The Company is legally obligated to fulfill certain purchase commitments made to vendors that supply materials used in the Company’s products. As of June 30, 2026, the total amount of such open inventory purchase orders was $18.7 million.

Inventory Financing Arrangement

On November 3, 2025, we entered into an amended and restated inventory finance agreement with J.J. Astor & Co. (the “Inventory Purchaser”), pursuant to which the Inventory Purchaser may, from time to time, finance up to $9.0 million of our finished goods inventory purchases from our contract manufacturers. Under this arrangement, we are required to pay a deposit equal to 20% of the purchase price of the applicable inventory, and the Inventory Purchaser funds the remaining balance directly to the supplier and takes title to the inventory.

We have determined that this arrangement results in the recognition of the financed inventory and a corresponding financing obligation on our consolidated balance sheets, as the risks and rewards of ownership are substantially retained by us during the financing period. Accordingly, financed inventory is included within inventories, net of reserves, and the related payment obligations are presented as related party accounts payable on our consolidated balance sheets.

For each inventory purchase financed under the agreement, we are obligated to pay the Inventory Purchaser an amount equal to the funded purchase amount plus a contractual premium within 90 days of the funding date. The agreement also requires us to pay monthly monitoring fees and provides for additional fees based on unused financing availability. In the event we fail to satisfy our payment obligations when due, the Inventory Purchaser may accelerate amounts owed, impose default interest and penalties, and sell the inventory collateral. We would remain liable for any deficiency resulting from such sale.

The agreement further provides the Inventory Purchaser with the right, at its election, to convert certain outstanding payment obligations into shares of our Class A common stock, subject to ownership limitations and other contractual restrictions.

As of June 30, 2026 and December 31, 2025, the aggregate outstanding obligation under this arrangement was $2.6 million and $3.7 million, respectively, recorded as related party accounts payable on our consolidated balance sheet. This arrangement represents a form of short-term inventory financing and exposes us to material liquidity, cash flow, and operational risks.

NOTE 15 – CUSTOMER AND SUPPLIER CONCENTRATION

There was no customer that accounted for greater than 10% of the Company’s consolidated revenues for the six months ended June 30, 2026 and 2025.

For the six months ended June 30, 2026 and 2025, the Company’s purchases were concentrated primarily with two vendors. Details are as follows:


Vendor	Total purchases from the vendor as a percentage of total cost of revenues for the six months ended June 30, 2026		Accounts payable to the vendor as of June 30, 2026 (in thousands)		Total purchases from the vendor as a percentage of total cost of revenues for the six months ended June 30, 2025		Accounts payable to the vendor as of June 30, 2025 (in thousands)
1	34.0	%	$	4,268	13.1	%	$	3,498
2	10.0	%	$	3,683	—	%	$	—

The Company believes that alternative suppliers are available if the referenced vendors become unavailable or no longer competitive.

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NOTE 16 – SEGMENTS

Information about our Company’s operations by operating segment is shown in the following tables (in thousands):


	For the three months ended June 30, 2026
	Americas		EMEA		Rest of World		Eliminations and Adjustments		Total

Revenues, net	$	13,288	$	12,982	$	363	$	(715)	$	25,918
less (2)
Cost of sales	5,148		8,251		179		(574)		13,004
Segment gross profit	8,140		4,731		184		(141)		12,914

less (2)
General and administrative expenses	3,852		4,385		121		—		8,358
Depreciation and amortization	640		1,937		—		—		2,577
Research and development expenses	882		208		—		(148)		942
Interest expense	1,060		—		—		—		1,060
Income tax benefit (expense)	(417)		154		—		—		(263)
Other segment items (3)	(36)		(5)		(10)		(218)		(269)
Net Income (Loss)	$	2,159	$	(1,948)	$	73	$	225	$	509


	For the six months ended June 30, 2026
	Americas		EMEA		Rest of World		Eliminations and Adjustments		Total

Revenues, net	$	20,812	$	28,143	$	605	$	(1,200)	$	48,360
less (2)
Cost of sales	11,078		18,058		292		(921)		28,507
Segment gross profit	9,734		10,085		313		(279)		19,853

less (2)
General and administrative expenses	7,734		8,764		211		—		16,709
Depreciation and amortization	1,275		3,858		—		—		5,133
Research and development expenses	1,766		417		—		(305)		1,878
Interest expense	2,334		—		—		—		2,334
Income tax benefit (expense)	(1,065)		417		—		—		(648)
Other segment items (3)	(14)		593		(10)		(106)		463
Net Income (Loss)	$	(2,296)	$	(3,964)	$	112	$	132	$	(6,016)

(1) Eliminations and adjustments represent net sales between the Americas, EMEA and Rest of World segments. Sales between these segments are generally valued at market.

(2) The significant expense categories and amounts align with the segment-level information that is regularly provided to the Chief Operating Decision Maker.

(3) Other Segment items for each reportable segment includes:

Research and development - consists primarily of personnel related costs, prototype and sample costs, design costs, and global product certifications mostly for wireless certifications.

Other Expense - consists of interest expense associated with our debt financing arrangements, the effects of changes in the fair value of derivative liabilities and warrants.

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	For the three months ended June 30, 2025
	Americas		EMEA		Rest of World		Eliminations and Adjustments		Total

Revenues, net	$	15,785	$	15,378	$	275	$	(586)	$	30,852
less (2)
Cost of sales	10,008		10,406		114		(466)		20,062
Segment gross profit	5,777		4,972		161		(120)		10,790

less (2)
General and administrative expenses	7,083		3,798		102		—		10,983
Depreciation and amortization	658		1,933		—		—		2,591
Research and development expenses	1,100		202		—		(174)		1,128
Interest expense	2,473		98		—		—		2,571
Income tax expense	577		(303)		—		—		274
Other segment items (3)	301		(1,930)		3		(412)		(2,038)
Net Income (Loss)	$	(6,415)	$	1,174	$	56	$	466	$	(4,719)


	For the six months ended June 30, 2025
	Americas		EMEA		Rest of World		Eliminations and Adjustments		Total

Revenues, net	$	25,673	$	28,081	$	592	$	(1,071)	$	53,275
less (2)
Cost of sales	15,073		19,867		239		(737)		34,442
Segment gross profit	10,600		8,214		353		(334)		18,833

less (2)
General and administrative expenses	11,328		7,034		197		—		18,559
Depreciation and amortization	1,319		3,735		—		—		5,054
Research and development expenses	2,040		390		—		(390)		2,040
Interest expense	4,840		218		—		—		5,058
Income tax expense	564		(440)		—		—		124
Other segment items (3)	(1,045)		(2,623)		3		(375)		(4,040)
Net Income (Loss)	$	(8,446)	$	(100)	$	153	$	431	$	(7,962)

(1) Eliminations and adjustments represent net sales between the Americas, EMEA and Rest of World segments. Sales between these segments are generally valued at market.

(2) The significant expense categories and amounts align with the segment-level information that is regularly provided to the Chief Operating Decision Maker.

(3) Other Segment items for each reportable segment includes:

Research and development - consists primarily of personnel related costs, prototype and sample costs, design costs, and global product certifications mostly for wireless certifications.

Other Expense - consists of interest expense associated with our debt financing arrangements, (gains) or losses on settlements of debt, and the effects of changes in the fair value of derivative liabilities.

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	June 30, 2026		December 31, 2025
Identifiable Assets
Americas	$	40,301	$	40,329
EMEA	42,620		55,833
Rest of World	1,429		1,381
Total Identifiable Assets	$	84,350	$	97,543

NOTE 17 – SUBSEQUENT EVENTS

The Company has evaluated subsequent events from June 30, 2026, through August 14, 2026, the date the condensed consolidated financial statements were available to be issued.

Nasdaq Notice of Non-Compliance with Continued Listing Requirement

On July 1, 2026, the Company received written notice from the Listing Qualifications Staff of The Nasdaq Stock Market LLC that it is not in compliance with the $2.5 million stockholders’ equity requirement for continued listing on The Nasdaq Capital Market under Nasdaq Listing Rule 5550(b). As a result, the Company’s securities are subject to suspension and delisting unless it timely requests a hearing before the Nasdaq Hearings Panel (the “Panel”).

The Company requested a hearing before the Panel, which was held on August 13, 2026. The Company believes it has since regained compliance with the applicable listing standard and presented its position to the Panel at the hearing.

As of the date of this Quarterly Report, the Company has not been delisted from Nasdaq and continues to await a formal written decision from the Panel, which is expected within approximately three weeks of the hearing date. There can be no assurance that the Panel will grant continued listing, and the Company’s common stock remains subject to potential delisting pending the Panel’s determination.

CFO Transition

On July 30, 2026, Ryan Zeek notified the Board of Directors of his resignation as Chief Financial Officer of the Company, effective August 17, 2026. Mr. Zeek’s resignation was voluntary and was not the result of any disagreement with the Company on any matter relating to its operations, policies, or practices; he has agreed to provide limited transition support through September 30, 2026. In connection with his departure, the Board appointed Jennifer Grabow, the Company’s former Controller, as interim Chief Financial Officer, effective August 16, 2026, to serve until a permanent successor is appointed, pursuant to an interim appointment agreement dated August 3, 2026 providing for an annual base salary of $210,000 and eligibility for a quarterly performance based bonus. Ms. Grabow’s interim designation is subject to mutual review at the 90-day mark on November 16, 2026.

Series D Convertible Preferred Stock Financing

On August 5, 2026, the Company entered into a Securities Purchase Agreement (the “Securities Purchase Agreement”) with the purchasers (collectively, the “Purchasers”), pursuant to which the Company agreed to sell to the Purchasers an aggregate of 937,500 shares of the Company’s newly designated Series D Convertible Preferred Stock, par value $0.0001 per share (the “Preferred Stock”), at a purchase price of $8.00 per share, each share having a stated value of $10.00, reflecting a 20% original issue discount (“OID”). The Preferred Stock is convertible into shares of the Company’s Class A Common Stock, par value $0.0001 per share (the “Common Stock”), in accordance with the terms of the Certificate of Designation.

The Company agreed to issue and sell the Preferred Stock in two tranches: Tranche One, in the amount of $5,500,000 (687,500 shares of Preferred Stock), payable on or before the Closing Date; and Tranche Two, in the amount of

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$2,000,000 (the “Effectiveness Tranche Amount”) (250,000 shares of Preferred Stock), payable upon effectiveness of the resale registration statement, subject to a 60-calendar-day outside date and to the Company obtaining the Required Stockholder Approvals and remaining current in its SEC reporting obligations.

In connection with the closing of the transaction, the Company filed a Certificate of Designation of Preferences, Rights and Limitations of Series D Convertible Preferred Stock (the “Certificate of Designation”) with the Secretary of State of the State of Nevada pursuant to NRS 78.1955, establishing up to 937,500 shares of Series D Convertible Preferred Stock. The Preferred Stock ranks senior to the Company’s Class A Common Stock and Class B Common Stock with respect to liquidation distributions, does not accrue dividends in the ordinary course, and is convertible at any time after the Initial Issuance Date at a conversion price generally based on a discount to recent market prices, subject to an applicable floor price, a 4.99% beneficial ownership limitation, and (absent the Required Stockholder Approvals) a 19.99% exchange cap under Nasdaq Listing Rule 5635(d). Upon the occurrence of a Dividend Trigger Event, a cumulative Default Dividend at a rate of 20% per annum accrues on the stated value of the outstanding Preferred Stock, payable monthly solely in kind.

Equity Purchase Agreement (Equity Line of Credit)

Concurrently with the closing of the transaction, the Company entered into an Equity Purchase Agreement, dated August 5, 2026, with the Investor identified on the signature page thereto (the “Investor”), establishing an equity line facility under which the Company may sell to the Investor up to $15,000,000 (the “Maximum Commitment Amount”) of shares of the Company’s Class A Common Stock over a 36-month commitment period, at a purchase price equal to 95% of the applicable market price, subject to the Maximum Regular Put Amount and Maximum Intraday Put Amount and a 4.99% beneficial ownership limitation (subject to adjustment up to 9.99% upon 61 days’ prior notice).

In connection with the Equity Purchase Agreement, the Company approved a form of Pre-Funded Warrant to purchase shares of Class A Common Stock, which the Investor may elect to receive in lieu of Commitment Shares (including True-Up Commitment Shares). The Pre-Funded Warrants carry a nominal exercise price of $0.0001 per share, are exercisable at any time until exercised in full with no fixed expiration date, permit cashless exercise, and are subject to a 4.99% beneficial ownership limitation (subject to adjustment up to 9.99% upon 61 days’ prior notice).

Registration Rights Agreement; Lock-Up Agreements; Placement Agent Agreement

In connection with the Securities Purchase Agreement, the Company and the Purchasers entered into a Registration Rights Agreement, dated August 5, 2026, pursuant to which the Company agreed to file an initial resale registration statement within 30 calendar days of the Closing Date and to use its best efforts to have it declared effective within 60 calendar days of the Closing Date. The Company’s directors, executive officers, and certain stockholders entered into Lock-Up Agreements, dated August 5, 2026, restricting transfers of Common Stock for 180 calendar days following the Closing Date. The Company also entered into a Placement Agent Agreement, dated August 5, 2026, with RBW Capital Partners LLC and Dawson James Securities, Inc., pursuant to which the Company agreed to pay a cash fee equal to 7.0% of aggregate gross proceeds from the Placement and 2.0% of amounts drawn under the Equity Purchase Agreement.

Nasdaq Listing Compliance

In August 2026, the Company completed an equity raise of $4.8 million, net of fees, and used a portion of the proceeds to repay approximately $2.25 million of principal and $0.14 million of prepayment penalty under its WhiteHawk Credit Agreement. As a result, the Company regained compliance with Nasdaq’s $2.5 million Shareholders’ Equity Listing Requirement for continued listing on The Nasdaq Capital Market pursuant to Listing Rule 5550(b)(1) (the “Equity Rule”). The Company is awaiting Nasdaq’s formal determination that it has evidenced compliance with the Equity Rule.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following Management’s Discussion and Analysis (“MD&A”) should be read in conjunction with the financial statements and the related notes thereto included elsewhere herein. The MD&A contains forward-looking statements that involve risks and uncertainties, such as statements of the Company’s plans, objectives, expectations, and intentions. Any statements that are not statements of historical fact are forward-looking statements. When used, the words “believe,” “plan,” “intend,” “anticipate,” “target,” “estimate,” “expect,” and the like, and/or future-tense or conditional constructions (“will,” “may,” “could,” “should,” etc.), or similar expressions, identify certain of these forward-looking statements. These forward-looking statements are subject to risks and uncertainties that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements in this report. The actual

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results and the timing of events could differ materially from those anticipated in these forward-looking statements as a result of several factors.

Historical results may not be indicative of future performance. The Company’s forward-looking statements reflect its current views about future events, are based on assumptions and are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those contemplated by these statements. We undertake no obligation to publicly update or revise any forward-looking statements, including any changes that might result from any facts, events, or circumstances after the date hereof that may bear upon forward-looking statements. Furthermore, we cannot guarantee future results, events, levels of activity, performance, or achievements.

Unless the context otherwise requires, the terms “the Company,” “we,” “us,” and “our” in this Quarterly Report refer to Boxlight Corporation and its consolidated direct and indirect subsidiaries, and the term “Boxlight” refers to Boxlight Inc., a Washington corporation and a wholly owned subsidiary of Boxlight Corporation. The terms “quarter” and “year to date” refer to our quarter ending June 30th.

FORWARD LOOKING STATEMENTS

This Quarterly Report on Form 10-Q (including the section regarding Management’s Discussion and Analysis and Results of Operations, the “Quarterly Report”) contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” “continue” or the negative of these terms or other comparable terminology. These statements are only predictions, and are based on our management’s belief and assumptions and on information currently available to our management. Although we believe that the expectations reflected in these forward-looking statements are reasonable, these statements relate to future events or our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements.

Factors that may cause actual results to differ materially from current expectations include, among other things

•our ability to continue to operate as a going concern;

•our ability to comply with certain covenants, minimum liquidity, and borrowing base requirements under our existing credit agreement, or in the alternative, to continue to obtain forbearances or waivers from the lender thereunder with respect to defaults thereunder, including existing defaults;

•our history of operating losses;

•our ability to raise additional capital;

•our ability to maintain compliance with the Nasdaq Capital Market continued listing requirements and maintain a listing of our Class A common stock on the Nasdaq Capital Market;

•our substantial indebtedness, which matures April 1, 2027;

•changes in the sales of our display products;

•market adoption of our new Symphony product line;

•changes in U.S. administrative policy, including the imposition of or increases in tariffs, changes to existing trade agreements and any resulting changes in international trade relations, such as trade wars;

•changes in the spending policies or budget priorities for government funding of schools, colleges, universities, other education providers or government agencies;

•seasonal fluctuations in our business;

•changes in our working capital requirements and cash flow fluctuations;

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•competition in our industry;

•our ability to enhance our products and to develop, introduce and sell new technologies and products at competitive prices and in a timely manner;

•our reliance on resellers and distributors to promote and sell our products;

•the success of our strategy to increase sales in the business and government market;

•changes in market saturation for our products;

•challenges growing our sales in foreign markets;

•our dependency on third-party suppliers;

•our reliance on highly skilled personnel;

•our ability to enter into and maintain strategic alliances with third parties;

•unfavorable global economic or political conditions, including the ongoing conflict between Russia and Ukraine, and Israel and Hamas;

•war, terrorism, other acts of violence, or potential effects of future epidemics, pandemics, or other health crises;

•a breach in security of our electronic data or our information technology systems, including any cybersecurity attack;

•our ability to keep pace with developments in technology;

•consumer product and environmental laws;

•risks inherently related to our foreign operations;

•our compliance with the Foreign Corrupt Practices Act;

•income taxation for our worldwide operations;

•our ability to ship and transport components and final products efficiently and economically across long distances and borders;

•compliance with export control laws;

•fluctuations in foreign currencies;

•unstable market and economic conditions and potential disruptions in the credit markets;

•defects in our products and detection thereof;

•patents or other intellectual property rights necessary to protect our proprietary technology and business;

•assertions against us relating to intellectual property rights;

•our ability to anticipate consumer preferences and successfully develop attractive products;

•our ability to develop, implement and maintain an effective system of internal control over financial reporting;

•our possible or assumed future results of operations;

•our ability to attract and retain customers;

•our ability to sell additional products and services to customers;

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•our cash needs and financing plans;

•our potential growth opportunities;

•expected technological advances by us or by third parties and our ability to leverage them;

•the effects of future regulation;

•our ability to protect or monetize our intellectual property;

•and those other risks referenced herein, including those risks referred to in Part II, Item 1A–“Risk Factors” in this Quarterly Report and those risks discussed in our other filings with the Securities and Exchange Commission (“SEC”), including those risks discussed under the caption “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025, which discussion is incorporated herein by this reference.

Given these uncertainties, you should not place undue reliance on these forward-looking statements. You should read this Quarterly Report and the documents that we reference in this Quarterly Report and have filed as exhibits thereto completely and with the understanding that our actual future results may be materially different from what we expect. Also, forward-looking statements represent our management’s beliefs and assumptions only as of the date of this Quarterly Report. Except as required by law, we assume no obligation to update these forward-looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.

Overview

We are a technology company that is seeking to become a worldwide leading innovator and integrator of interactive products and software for schools, education, business, and government interactive spaces. We currently design, produce and distribute interactive displays, collaboration software, supporting accessories and professional services. We also distribute science, technology, engineering, and math (or “STEM”) products, including a robotics and coding system, 3D printing solution and portable science lab. The Company’s products are integrated into its software suite that provides tools for presentation creation and delivery, assessment, and collaboration.

Our operations are organized, managed, and classified into three reportable segments – Europe, Middle East, and Africa (“EMEA”), North and Central America (“Americas”), and all other geographic regions (“Rest of World”). Our EMEA segment consists of the operations of Sahara Holding Limited and its subsidiaries. Our Americas segment consists primarily of the operations of Boxlight, Inc. and its subsidiaries, and the Rest of World segment consists primarily of the operations of Boxlight Australia, PTY LTD (“Boxlight Australia”).

To date, we have generated substantially all of the Company’s revenue from the sale of hardware (primarily consisting of interactive displays and audio products) and software to the educational market in the United States and Europe.

We have also implemented a comprehensive plan to reach and maintain profitability from our core business operations. Highlights of the plan include:

•Integrating products of the acquired companies and cross training sales representatives to increase their offerings and productivity;

•Hiring new sales representatives with significant industry experience in their respective territories, and

•Expanding our reseller partner network both in key territories and in new markets, thereby increasing our penetration and reach.

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Components of our Results of Operations and Financial Condition

Revenues are comprised of hardware products, software services, and professional development revenues less sales discounts.

•Product revenue. Product revenue is derived from the sale of our hardware (interactive displays), peripherals, and accessories, along with other third-party products, directly to our customers, as well as through our network of domestic and international distributors.

•Professional service revenue. We receive revenue from providing professional development services through third parties and our network of distributors.

Cost of revenues

Our cost of revenues is comprised of the following:

•costs to purchase components and finished goods directly;

•third-party logistics costs;

•inbound and outbound freight costs, and customs and duties charges;

•costs associated with the repair of products under warranty;

•write-downs of inventory carrying value to adjust for excess and obsolete inventory and periodic physical inventory counts; and

•cost of professionals to deliver professional development training related to the use of our products.

We outsource some of our warehouse operations and order fulfillment and purchase products from related and third parties. Our product costs will vary directly with volume and the costs of underlying product components as well as the prices we are able to negotiate with our contract manufacturers. Shipping costs fluctuate with volume as well as with the method of shipping chosen in order to meet customer demand. As a global company with suppliers centered in Asia and customers located worldwide, we have used, and may in the future use, air shipping to deliver our products directly to our customers. Air shipping is more costly than sea or ground shipping or other delivery options. We primarily use air shipping to meet the demand for our products during peak seasons and new product launches.

Gross profit and gross profit margin

Gross profit and gross profit margin have been, and may in the future be, influenced by several factors including: competitive pricing within the industry, product, channel and geographical revenue mix; changes in product costs related to the release of projector models; and component, contract manufacturing and supplier pricing, freight, duties, and other shipping costs, and foreign currency exchange. As we primarily procure our product components and manufacture our products in Asia, our suppliers incur many costs, including labor costs, in other currencies. To the extent that exchange rates move unfavorably for our suppliers, they may seek to pass these additional costs on to us, which could have a material impact on future average selling prices and unit costs. Gross profit and gross profit margin may fluctuate over time based on the factors described above.

Operating expenses

We classify our operating expenses into three categories: general and administrative, depreciation and amortization, and research and development.

General and administrative. General and administrative expense consists of personnel related costs, which include salaries and stock-based compensation, as well as the costs of professional services, such as accounting and legal, facilities, information technology, depreciation and amortization and other administrative expenses. General and administrative expense may fluctuate as a percentage of revenue, notably in the second and third quarters of our fiscal year when we have historically experienced our highest levels of revenue.

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Depreciation and amortization. Depreciation and amortization expense consists of depreciation of property and equipment and amortization of capitalized intangible assets over their estimated useful lives.

Research and development. Research and development expense consists primarily of personnel related costs, prototype and sample costs, design costs and global product certifications mostly for wireless certifications.

Other (expense) income, net

Other (expense) income, net primarily consists of interest expense associated with our debt financing arrangements, the effects of changes in the fair value of derivative liabilities and changes in the fair value of warrants.

Income tax expense

We are subject to income taxes in the jurisdictions in which we do business, including the United States, Canada, United Kingdom, Mexico, Sweden, Finland, Holland, Australia, Denmark and Germany. The United Kingdom, Mexico, Sweden, Finland, Holland, Germany, Australia, Canada, and Denmark have a statutory tax rate different from that of the United States. Additionally, certain jurisdictions of the Company’s international earnings are also taxable in the United States. Accordingly, our effective tax rates will vary depending on the relative proportion of foreign to U.S. income, the absorption of foreign tax credits, changes in the valuation of our deferred tax assets and liabilities and changes in tax laws. We regularly assess the likelihood of adverse outcomes resulting from the examination of our tax returns by the U.S. Internal Revenue Service, or IRS, and other tax authorities to determine the adequacy of our income tax reserves and expense. Should actual events or results differ from our current expectations, charges or credits to our income tax expense may become necessary. Any such adjustments could have a significant impact on our results of operations.

Operating Results – Boxlight Corporation

For the three-month periods ended June 30, 2026 and 2025

Revenues. Total revenues for the three months ended June 30, 2026 were $25.9 million as compared to $30.9 million for the three months ended June 30, 2025, resulting in a 16.0% decrease. The decrease in revenues was driven by lower sales of audio units as we transition buyers to our recently launched and award winning Symphonic line of products. The slow down is expected to be temporary.

Cost of Revenues. Cost of revenues for the three months ended June 30, 2026 were $13.0 million as compared to $20.1 million for the three months ended June 30, 2025, resulting in a 35.2% decrease. The decrease in cost of revenues was attributable to the decrease in units sold and a $2.8 million tariff refund that offset cost of revenues.

Gross Profit. Gross profit for the three months ended June 30, 2026 was $12.9 million as compared to $10.8 million for the three months ended June 30, 2025, an increase of 19.7%. Gross profit margin was 49.8% for the three months ended June 30, 2026 and 35.0% for the three months ended June 30, 2025. The increase in gross profit margin was primarily driven by the $2.8 million in tariff refunds, which reduced current year quarter cost of revenues. Excluding the $2.8 million tariff refund, gross profit margin for the three months ended June 30, 2026 would have been approximately 38.9%, reflecting the non-recurring nature of the refund.

General and Administrative Expenses. General and administrative expenses for the three months ended June 30, 2026 were $8.4 million, representing 32.2% of revenue as compared to $11.0 million representing 35.6% of revenue for the three months ended June 30, 2025. The decrease in general and administrative expenses for the period ended June 30, 2026 was due to a decreases of $1.5 million in other expenses, a decrease of $0.4 million in professional fees, a decrease of $0.2 million in employee related expenses, a decrease of $0.2 million in sales and marketing expenses, a decrease of $0.2 million in contract and consulting expenses, and a $0.1 million decrease in occupancy expenses.

Depreciation and Amortization Expenses. Depreciation and amortization expenses for the three months ended June 30, 2026 were $2.6 million, representing 9.9% of revenue as compared to $2.6 million representing 8.4% of revenue for the three months ended June 30, 2025.

Research and Development Expenses. Research and development expenses for the three months ended June 30, 2026 and 2025 were $0.9 million and $1.1 million, respectively and represented 3.6% and 3.7% of revenue,

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respectively. Research and development expense primarily consists of costs associated with the development of proprietary technology. The decrease was attributable to the streamlining of research and development expenses.

Other Expense. Other expense, net for the three months ended June 30, 2026 was $0.8 million as compared to $0.5 million for the three months ended June 30, 2025, representing an increase of $0.3 million. The increase in other expense was primarily driven by a $2.0 million change in unrealized foreign exchange adjustment and a $0.1 million increase in losses from change in fair value of derivative liabilities, offset by a $1.5 million decrease in interest expense on our term loan and a $0.3 million decrease in losses from change in fair value of common warrants.

Net Income (Loss). Net income was approximately $0.5 million for the three months ended June 30, 2026, and the net loss was approximately $4.7 million for the three months ended June 30, 2025, respectively, and was a result of the changes noted above.

For the six-month periods ended June 30, 2026 and 2025

Revenues. Total revenues for the six months ended June 30, 2026 were $48.4 million as compared to $53.3 million for the six months ended June 30, 2025, resulting in a 9.2% decrease. The decrease in revenues was driven by lower sales volume in the audio segment.

Cost of Revenues. Cost of revenues for the six months ended June 30, 2026 were $28.5 million as compared to $34.4 million for the six months ended June 30, 2025, resulting in a 17.2% decrease. The decrease in cost of revenues was attributable to the decrease in units sold and a $2.8 million tariff refund that offset cost of revenues.

Gross Profit. Gross profit for the six months ended June 30, 2026 was $19.9 million as compared to $18.8 million for the six months ended June 30, 2025, a increase of 5.4%. Gross profit margin was 41.1% for the six months ended June 30, 2026 and 35.4% for the six months ended June 30, 2025. The increase in gross profit margin was primarily driven by the $2.8 million in tariff refunds, which reduced current year cost of revenues. Excluding the $2.8 million tariff refund, gross profit margin for the six months ended June 30, 2026 would have been approximately 35.2%, reflecting the non-recurring nature of the refund.

General and Administrative Expenses. General and administrative expenses for the six months ended June 30, 2026 were $16.7 million, representing 34.6% of revenue as compared to $18.6 million representing 34.8% of revenue for the six months ended June 30, 2025. The decrease in general and administrative expenses for the period ended June 30, 2026 was due to a decreases of $1.1 million in other expenses, a decrease of $0.4 million in contract and consulting expenses, a decrease of $0.2 million in employee related expenses, a decrease of $0.1 million in sales and marketing expenses, and a $0.1 million decrease in occupancy expenses.

Depreciation and Amortization Expenses. Depreciation and amortization expenses for the six months ended June 30, 2026 were $5.1 million, representing 10.6% of revenue as compared to $5.1 million representing 9.5% of revenue for the six months ended June 30, 2025.

Research and Development Expenses. Research and development expenses for the six months ended June 30, 2026 and 2025 were $1.9 million and $2.0 million, respectively and represented 3.9% and 3.8% of revenue, respectively. Research and development expense primarily consists of costs associated with the development of proprietary technology. The decrease was attributable to the streamlining of research and development expenses.

Other Expense. Other expense, net for the six months ended June 30, 2026 was $2.8 million as compared to $1.0 million for the six months ended June 30, 2025, representing an increase of $1.8 million. The increase in other expense was primarily driven by a $3.3 million change in unrealized foreign exchange adjustment, a $1.7 million decrease in gains from change in fair value of common warrants, and a $0.1 million increase in losses from change in fair value of derivative liabilities, offset by a $2.7 million decrease in interest expense on our term loan and a $0.6 million decrease in the loss on warrant issuance.

Net Loss. Net loss was approximately $6.0 million and $8.0 million for the six months ended June 30, 2026 and 2025, respectively, and was a result of the changes noted above.

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Use of Non-GAAP financial measures

To provide investors with additional insight and allow for a more comprehensive understanding of the information used by management in its financial and decision-making surrounding operations, we supplement our condensed consolidated financial statements which are prepared in accordance with GAAP with EBITDA and Adjusted EBITDA, both non-GAAP financial measures of earnings.

EBITDA represents net loss before income tax expense, interest income, interest expense, depreciation and amortization. Adjusted EBITDA represents EBITDA, plus stock compensation expense, the change in fair value of derivative liabilities, purchase accounting impact of fair valuing inventory and deferred revenue, change in fair value of warrants and severance charges. Management uses EBITDA and Adjusted EBITDA as financial measures to evaluate the profitability and efficiency of the Company’s business model, and to assess the strength of the underlying operations of our business. These adjustments, and the non-GAAP financial measure that is derived from them, provide supplemental information to analyze our operations between periods and over time. Investors should consider the Company’s non-GAAP financial measures in addition to, and not as a substitute for, financial measures prepared in accordance with GAAP.

The following table contains reconciliations of net income (loss) to EBITDA and adjusted EBITDA for the periods presented:


(in thousands)	Three Months Ended June 30, 2026		Three Months Ended June 30, 2025		Six Months Ended June 30, 2026		Six Months Ended June 30, 2025
Net Income (Loss)	$	509	$	(4,719)	$	(6,016)	$	(7,962)
Depreciation and amortization	2,577		2,591		5,133		5,054
Interest expense	1,060		2,571		2,334		5,058
Income tax (benefit)	(262)		274		(648)		124
EBITDA	$	3,884	$	717	$	803	$	2,274
Stock compensation expense	49		179		212		348
Change in fair value of derivative liabilities	122		42		154		51
Change in fair value of common warrants	—		251		—		(1,685)
Loss on warrant issuance	—		—		—		578
Purchase accounting impact of fair valuing deferred revenue	—		84		—		203
Severance charges	9		—		60		57
Adjusted EBITDA	$	4,064	$	1,273	$	1,229	$	1,826

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PART I. FINANCIAL INFORMATION

Discussion of Effect of Seasonality on Financial Condition

Certain accounts in our financial statements are subject to seasonal fluctuations. As our business and revenues grow, we expect these seasonal trends to be reduced. The bulk of our products are shipped to our educational customers prior to the beginning of the school year, usually in July, August or September. To prepare for each school year, we generally build up inventories during the second quarter of the year. As a result, inventories tend to be at their highest levels at that point in time. In the first quarter of the year, inventories tend to decline significantly as products are delivered to customers. Thereafter, during the first quarter, we do not generally need to restock inventories at the same inventory levels. Accounts receivable balances tend to be at the highest levels in the third quarter, at which point we record the highest level of sales.

Liquidity and Capital Resources

As of June 30, 2026, we had cash and cash equivalents of $4.3 million, a negative working capital balance of $4.0 million, and a current ratio of 0.94. As of June 30, 2025, we had $7.6 million of cash and cash equivalents, a negative working capital balance of $0.5 million, and a current ratio of 0.99. The change in net working capital was attributable to the reclassification of the our term loan from long-term to short-term debt, resulting from its maturity occurring within twelve months of June 30, 2026.

For the six months ended June 30, 2026 and 2025, we had net cash used in operating activities of $7.5 million and $5.8 million, respectively. Cash used in operating activities primarily relates to net loss for the six months ended June 30, 2026 as well as changes in working capital management. We had net cash used in investing activities of $75 thousand and $159 thousand for the six months ended June 30, 2026 and 2025, respectively. Cash used in investing activities is related to purchases of property and equipment. For the six months ended June 30, 2026 and 2025, we had net cash provided by financing activities of $3.1 million and $6.1 million, respectively. Cash provided by financing activities in the six months ended June 30, 2026 is primarily related to proceeds from the At-the-Market offering program of $3.7 million.

Our liquidity needs are funded by operating cash flows and available cash. Our cash requirements consist primarily of day-to-day operating expenses, capital expenditures and contractual obligations with respect to facility leases. We lease all of our office facilities. We expect to make future payments on existing leases from cash generated from operations. We have limited credit available from our major vendors and are required to prepay a percentage of our inventory purchases, which further constrains our cash liquidity. In addition, our industry is seasonal with many sales to educational customers occurring during the second and third quarters when schools make budget appropriations and classes are not in session limiting disruptions related to product installation. This seasonality makes our needs for cash vary significantly from quarter to quarter.

As of June 30, 2026, the Company had approximately $32.2 million of indebtedness outstanding under its Credit Agreement with Whitehawk Capital Partners, LP, as Collateral Agent, and Whitehawk Finance LLC, as Lender.

During the fiscal year ended December 31, 2025, the Company entered into the Eighth, Ninth, Tenth, and Eleventh Amendments to the Credit Agreement (collectively, the “2025 Amendments”) to address prior instances of non-compliance with certain financial covenants and to restructure key terms of the facility. In particular, the Company had not maintained compliance with the Senior Leverage Ratio and borrowing base covenants at various measurement dates during 2025. The Lender waived each of these events of default in connection with the respective amendments.

Most significantly, on December 18, 2025, the Company entered into the Eleventh Amendment. The Eleventh Amendment extended the final maturity date of the loans from December 31, 2025, to April 1, 2027, suspended mandatory quarterly amortization payments through June 30, 2026, and replaced the Senior Leverage Ratio financial covenant with a Minimum Consolidated Adjusted EBITDA covenant commencing with the quarter ending March 31, 2026. The Company is also required to maintain qualified cash of at least $1.5 million. The Company is also required to meet Borrowing Base covenants with allowed over advance for the month ending December 31, 2025, $4,000,000; for the month ending January 31, 2026, $4,500,000; for the month ending February 28, 2026, $5,500,000 and from and after the month ending March 31, 2026 (and each Fiscal Month thereafter), $4,000,000 (the “Permitted Over Advance”). The Eleventh Amendment includes revised mandatory prepayment provisions requiring 50% (or 100% if in default) of net cash proceeds from equity offerings and certain debt to be applied to loan prepayments, with up to $5.0 million allocable for working capital and general corporate purposes.

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Capital Raise

In September 2025, the Company completed a registered direct offering of 37,037 shares of Class A common stock at $108.00 per share, generating approximately $4.0 million in gross proceeds. Net proceeds were used for working capital and debt reduction pursuant to the Company’s agreement with its senior lender. This offering was conducted through the Company’s effective shelf registration statement on Form S-3.

In December 2025 and until exhaustion of the “at the market” equity offering program (“ATM Program”) in January 2026 the Company has shown the ability to raise capital to fund operations. Past success is not indicative of future results and the Company has evaluated the going concern consideration as such.

On August 5, 2026, the Company entered into a Securities Purchase Agreement with the purchasers identified therein (the "Purchasers"), pursuant to which the Company agreed to sell an aggregate of 937,500 shares of Series D Convertible Preferred Stock, par value $0.0001 per share (the "Preferred Stock"), at a purchase price of $8.00 per share, each share having a stated value of $10.00, reflecting a 20% original issue discount. The Preferred Stock was issued in two tranches: Tranche One, in the amount of $5,500,000 (687,500 shares), payable on or before the Closing Date; and Tranche Two, in the amount of $2,000,000 (250,000 shares), payable upon effectiveness of the resale registration statement, subject to a 60-calendar-day outside date and to the Company obtaining the Required Stockholder Approvals and remaining current in its SEC reporting obligations.

Concurrently, the Company entered into an Equity Purchase Agreement establishing an equity line facility under which the Company may sell to the Investor up to $15,000,000 of shares of Class A Common Stock over a 36-month commitment period, at a purchase price equal to 95% of the applicable market price.

Tariff Environment

On February 20, 2026, the Supreme Court of the United States ruled that the International Emergency Economic Powers Act (“IEEPA”) does not authorize the imposition of tariffs, effectively invalidating IEEPA-based tariffs that had been in effect since February 2025. The administration subsequently enacted new tariffs under alternative statutory authority. Accordingly, although the specific tariffs previously imposed under IEEPA have been invalidated, the overall tariff environment remains subject to ongoing change. Following the Supreme Court’s February 20, 2026 ruling and the subsequent March 4, 2026 order from the Court of International Trade directing U.S. Customs and Border Protection (CBP) to refund IEEPA amounts collected (with interest), the Company applied for and received approval from CBP for a $2.9 million refund related to IEEPA tariffs and interests as of June 30, 2026. This approved refund was recorded as a reduction to Cost of Sales for the quarter ended June 30, 2026. As of June 30, 2026, the Company had received $1.3 million in deposits related to IEEPA tariffs and recorded a non-trade receivable of $1.6 million for the remaining approved refund excluding interest. The Company received the full amount of the remaining approved refund into its bank account during the first week of July 2026.

The Company’s diversified supply chain and global revenue base have historically provided a degree of insulation from direct tariff impacts. The elimination of these tariffs is expected to reduce input cost pressures and improve the

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purchasing environment for the Company’s education and government customers. We will continue to monitor developments and update our disclosures as circumstances evolve.

Going Concern Assessment

The Company has evaluated conditions and events, in the aggregate, that may raise doubt about its ability to continue as a going concern within one year after the date these financial statements are issued, in accordance with ASC 205-40.

The Company acknowledges that it has a history of operating losses, has incurred recurring negative cash flows from operations, and has required multiple amendments and waivers under its Credit Agreement due to non-compliance with financial covenants in prior periods. The Company acknowledges it is a reasonable concern that compliance will be maintained at all future measurement dates.

Management believes that the following factors provide potential upside to help alleviate cash restrictions over the next year:

•The extension of the Credit Agreement maturity to April 1, 2027, pursuant to the Eleventh Amendment, eliminates the near-term risk of debt maturity acceleration and provides the Company with an extended runway within which to execute its operational and any recapitalization, if necessary, plans;

•The replacement of the Senior Leverage Ratio covenant with the Minimum Consolidated Adjusted EBITDA covenant establishes a financial compliance framework that management believes is more achievable based on the Company’s current and projected operating performance;

•The suspension of mandatory quarterly amortization payments through June 30, 2026, provides near-term cash flow relief;

•The September 2025 capital raise of approximately $4.0 million in gross proceeds demonstrated continued access to the equity capital markets and provided additional liquidity;

•The invalidation of IEEPA tariffs by the Supreme Court in February 2026 reduces supply chain cost pressures seen during 2025 and provides for a non-insignificant, cash injection into the Company in 2026; and

•Management’s continued focus on operational efficiency, expense reduction, and revenue diversification into the corporate and government markets as well expansion as with a new product offering coming to market in 2026.

Notwithstanding the foregoing, there is substantial doubt as to the Company’s ability to continue as a going concern as the Company is dependent upon its ability to maintain compliance with the financial covenants under the Credit Agreement as amended, achieve positive cash flow from operations, and, if necessary, access additional financing. There can be no assurance that the Company will be successful in maintaining compliance with its financial covenants, achieving profitability, or raising additional capital on acceptable terms or at all. The accompanying consolidated financial statements do not include any adjustments that might result from the outcome of these uncertainties.

To address our near-term liquidity needs, we are pursuing an equity line of credit (the “ELOC”) providing for a maximum aggregate commitment of up to $15 million over a period of up to 24 months. On June 2, 2026, at the Company’s 2026 Annual Meeting of Stockholders, stockholders approved the future issuance of Class A common stock (and/or convertible securities) equal to 20% or more of outstanding shares in a non-public transaction, in accordance with Nasdaq Listing Rule 5635(d), clearing the way for a planned equity line of credit (“ELOC”) of up to $15.0 million. On June 22, 2026, the Company effected a 1-for-6 reverse stock split of its Class A common stock, which proportionately reduced authorized shares of Class A common stock to 694,445. A related proposal to increase authorized Class A shares to 55,000,000 (on a post-split basis) did not receive the requisite approval at the Annual Meeting and was adjourned; at a reconvened meeting held July 23, 2026, stockholders approved the amendment, increasing authorized Class A shares from 694,445 to 55,000,000. We intend to use the proceeds for general working capital purposes, pay down outstanding debt to Whitehawk and to support the commercialization of our Symphony product line, expected to be available in the second half of 2026. We expect to execute the ELOC and file a registration statement on Form S-1 on or before September 30, 2026.

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There can be no assurance that we will execute the ELOC on the terms described or at all. If we are unable to obtain sufficient funding, we may need to reduce or cease operations or pursue other strategic options.

Preferred Stock and Capital Structure Considerations

On February 20, 2025, we filed with the Secretary of State of the State of Nevada (i) an Amendment to the Certificate of Designation of our Series B Preferred Stock (the “Series B Amendment”) and (ii) an Amendment to the Certificate of Designation of our Series C Preferred Stock (the “Series C Amendment” and, together with the Series B Amendment, the “Amendments”). Each Amendment was approved by the holders of a majority of the outstanding shares of Series B Preferred Stock or Series C Preferred Stock, as applicable, in accordance with the applicable Certificate of Designation. Pursuant to the Amendments, neither the Series B Preferred Stock nor the Series C Preferred Stock shall be convertible into Class A Common Stock until the earlier of (1) the effectiveness of an amendment to the articles of incorporation of the Company increasing the number of shares of authorized Class A Common Stock to at least 25,000,000 shares (subject to adjustments as set forth therein) and (2) August 19, 2025.

At-the-Market Offering (“ATM Program”)

During the year ended December 31, 2025, the Company raised approximately $0.66 million of net proceeds through sales of its Class A Common Stock under its “at the market” offering program (“ATM Program”). In January 2026, the Company sold the remaining shares available under the “at the market offering” program (“ATM Program”). In total, the Company sold 408,276 shares of Class A Common Stock under the program for aggregate proceeds of approximately $4.6 million, after deducting sales agent commissions of $0.14 million but before offering expenses, thereby fully exhausting the capacity of the program. The proceeds were used for working capital and general operating purposes. See Note 11 – Equity to the consolidated financial statements for additional information regarding the Company’s ATM program.

Given the uncertainty surrounding global supply chains, global markets, and general global uncertainty as a result of the fluid U.S. tariff policy, trade wars, and the ongoing and widespread conflicts across multiple regions, the availability of debt and equity capital has been reduced and the cost of capital has increased. Furthermore, recent adverse developments affecting the financial services industry including events involving limited liquidity, defaults, non-performance, or other adverse developments that affect financial institutions may lead to market-wide liquidity problems. This in turn could result in a reduction in our ability to access funding sources and credit arrangements in amounts adequate to finance our current and future business operations. Increasing our capital through equity issuance at this time could cause significant dilution to our existing stockholders. However, there can be no guarantee we will be able to access capital when needed or be able to manage through the current challenges in the equity and debt finance markets by managing payment terms with our customers and vendors.

Cash and cash equivalents, along with anticipated cash flows from operations, may not provide sufficient liquidity for our working capital needs, debt service requirements, or to maintain minimum liquidity requirements under our Credit Agreement, and we may need to raise capital to meet current working capital requirements including maintaining sufficient inventory levels to meet future sales demand.

Inventory Financing Agreement

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On April 1, 2026, the Company amended its inventory financing arrangement with J.J. Astor & Co., an entity affiliated with Michael Pope, the Company’s Chairman of the Board, pursuant to which $556,200 of outstanding inventory financing obligations was converted into 100,000 shares of Class A common stock at a conversion price of $5.562 per share. The amendment also increased the aggregate Maximum Inventory Purchase Amount available under the agreement from $9.0 million to $10.0 million. Further, the parties agreed that, if the aggregate proceeds from the sale of the Conversion Shares are less than $556,200, the Company shall pay the shortfall in cash within five trading days. Michael Pope, Chairman of the Company’s Board of Directors, and its former president and chief executive officer, is the chief executive officer of J.J. Astor. J.J. Astor is beneficially owned, directly or indirectly, by a private investment fund managed by Mr. Pope.

As of June 30, 2026, the aggregate outstanding obligation under this arrangement was $2.6 million, recorded as related party accounts payable on our consolidated balance sheet. This arrangement represents a form of short-term inventory financing and exposes us to material liquidity, cash flow, and operational risks.

Additional information regarding this inventory financing arrangement is included in Note 14 - Commitments and Contingencies to our consolidated financial statements.

Financing

See Note 8 – Debt for a discussion of our existing debt financing arrangements.

Off Balance Sheet Arrangements

We have no significant off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, results of operations or liquidity and capital resources.

Critical Accounting Policies and Estimates

Our condensed consolidated financial statements are prepared in accordance with GAAP. In connection with the preparation of our financial statements, we are required to make assumptions and estimates about future events and apply judgments that affect the reported amounts of assets, liabilities, revenue, expenses and related disclosures. We base our assumptions, estimates and judgments on historical experience, current trends, and other factors that management believes to be relevant at the time our condensed consolidated financial statements are prepared. On a regular basis, we review the accounting policies, assumptions, estimates and judgments to ensure that our financial statements are presented fairly and in accordance with GAAP. However, because future events and their effects cannot be determined with certainty, actual results could differ from our assumptions and estimates, and such differences could be material.

Our significant accounting policies are discussed in the notes to the unaudited condensed consolidated financial statements and in Note 1 in the Company’s 2025 Annual Report, which was filed with the SEC on April 15, 2026. We believe that the following accounting estimates are the most critical to aid in fully understanding and evaluating our reported financial results, and they require our most difficult, subjective, or complex judgments, resulting from the need to make estimates about the effect of matters that are inherently uncertain:

1.Revenue Recognition

2.Inventory Reserve

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3.Goodwill and Intangible Assets

4.Share-based Compensation

5.Derivative Warrant Liabilities

6.Income Taxes

Recent Accounting Pronouncements

For information on accounting pronouncements that have impacted or are expected to materially impact our consolidated financial condition, results of operations or cash flows, see Note 1 to our unaudited condensed consolidated financial statements.

Item 3. Quantitative and Qualitative Disclosure About Market Risk

As a “smaller reporting company,” this item is not required.

Item 4. Controls and Procedures

(a)Evaluation of disclosure controls and procedures.

We maintain disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act that are designed to ensure that information required to be disclosed in our reports filed or submitted to the SEC under the Exchange Act is recorded, processed, summarized and reported within the time periods specified by the SEC’s rules and forms, and that information is accumulated and communicated to management, including the principal executive and financial officer as appropriate, to allow timely decisions regarding required disclosures. Our principal executive officer and principal financial officer evaluated the effectiveness of disclosure controls and procedures as of the end of the period covered by this report (“Evaluation Date”), pursuant to Rule 13a-15(b) under the Exchange Act. Based on that evaluation, our principal executive officer and principal financial officer concluded that, as of the Evaluation Date, our disclosure controls and procedures were not effective due to material weaknesses described in our 2025 Annual Report on Form 10-K, as filed with the SEC on April 15, 2026.

Notwithstanding the existence of these material weaknesses, we believe that the unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q fairly present in accordance with the GAAP, in all material respects, our financial condition, results of operations and cash flows for the periods presented in this report.

Remediation Plans for Material Weaknesses in Internal Control Over Financial Reporting

The Company, under oversight by the Audit Committee of the Company’s Board of Directors, is in the process of remediating the above noted material weaknesses. The Company’s remediation plans include, among other things, the following:

•The Company has added and will continue to add finance and accounting personnel as required to the organization to strengthen our finance and accounting teams. The additional personnel are expected to provide oversight, structure, reporting lines, and additional review over the Company’s disclosures.

•The Company will continue to develop new written accounting policies and procedures over accounting transaction processing and period end financial close and reporting.

•The Company has increased and will continue to increase training for all relevant personnel designed to uphold our internal controls standards.

The identified material weaknesses will not be considered remediated until the remediation plans have been fully implemented, the applicable controls operate for a sufficient period of time, and the Company has concluded that newly implemented controls are operating effectively.

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Limitations on Effectiveness of Controls.

A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Because of the inherent limitations in all controls systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within a company have been detected. Our disclosure controls and procedures are designed to provide reasonable assurance of achieving its objectives.

a.Changes in internal controls over financial reporting.

Other than the remediation activities described above, there were no changes made in the internal controls over financial reporting for the quarter ended June 30, 2026 that have materially affected our internal control over financial reporting.

PART II — OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

While we are not currently involved in any material legal proceedings, from time-to-time we are, and we anticipate that we will be, involved in legal proceedings, claims, and litigation arising in the ordinary course of our business and otherwise. The ultimate costs to resolve any such matters could have a material adverse effect on our financial statements. The Company’s management believes, based on current information, matters currently pending or threatened are not expected to have a material adverse effect on the Company’s consolidated financial position or results of operations.

ITEM 1A. RISK FACTORS

For information regarding other risk factors pertinent to the Company’s business please refer to Part I Item 1A of the Company’s 2025 Annual Report on Form 10-K, which was filed with the SEC on April 15, 2026 and is incorporated by reference herein, as further updated and supplemented by the risk factors set forth below.

We may not be able to maintain a listing of our Class A common stock on Nasdaq Capital Market, or Nasdaq

On July 1, 2026, we received written notice from the Listing Qualifications Staff of The Nasdaq Stock Market LLC (“Nasdaq”) that we are not in compliance with the $2.5 million stockholders’ equity requirement for continued listing on The Nasdaq Capital Market under Nasdaq Listing Rule 5550(b). As a result, our securities are subject to suspension and delisting unless we timely request a hearing before the Nasdaq Hearings Panel (the “Panel”). We timely submitted our hearing request, which stays any further suspension or delisting action on this basis at least pending the conclusion of the hearing and any extension the Panel may grant. There can be no assurance, however, that the Panel will grant continued listing, that any extension period will be sufficient, or that we will be able to demonstrate compliance with the stockholders’ equity requirement within any extension period the Panel may grant.

A delisting of our Class A common stock from Nasdaq may materially impair our stockholders’ ability to buy and sell our Class A common stock and could have an adverse effect on the market price of, and the efficiency of the trading market for, our Class A common stock. In the event our stock is delisted from Nasdaq, whether by choice or otherwise, the delisting of our Class A common stock could significantly impair our ability to raise capital and stockholder value.

A new Nasdaq listing requirement based on market value could result in the immediate suspension and delisting of our common stock.

On July 22, 2026, the SEC approved a new Nasdaq listing rule that requires companies to maintain a Market Value of Listed Securities (“MVLS”) of at least $5 million. If a company’s MVLS remains below $5 million for 30 consecutive business days, Nasdaq will immediately suspend and move to delist the stock, and a hearing request does not stay that suspension. The Panel may grant up to 180 days if a company demonstrates it meets Nasdaq’s initial listing requirements. Nasdaq has indicated the 30 day period began on July 23, 2026.

As of July 23, 2026, our MVLS was approximately $2.4 million, below the new $5 million threshold. If our MVLS remains below $5 million through September 2, 2026, we would receive a Staff Delisting Determination and our

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Class A common stock would become immediately subject to suspension and delisting from Nasdaq, without the cure period generally available for other continued listing deficiencies. While we would retain the right to request review by a Nasdaq Hearings Panel, such a request would not stay the suspension of trading.

On July 30, 2026, the SEC stayed implementation of the rule pending further action by the Commission. As of the date of this Quarterly Report, the stay remains in effect and the 30 consecutive business day measurement period described above is paused. The Company will continue monitoring its market value, evaluating financing alternatives, and assessing strategic options.

We must address these deficiencies to remain listed on Nasdaq. If our common stock is delisted, it could materially and adversely affect the liquidity and market price of our common stock and our ability to raise additional capital.

We have not complied with certain covenants, minimum liquidity and borrowing base requirements under the Credit Agreement and this could cause us to be unable to continue to operate as a going concern.

As of June 30, 2026 we owed $32.2 million to the lender under our Credit Agreement. During 2024 and 2025, we did not comply with certain financial covenants, minimum liquidity requirements, and borrowing base requirements under the Credit Agreement. Although we have obtained waivers and amendments from the lender with respect to these instances of noncompliance, there can be no assurance that we will be able to maintain compliance with the Credit Agreement in the future or that additional waivers or amendments will be available on acceptable terms or at all.

On December 18, 2025, the Company entered into the Eleventh Amendment to the Credit Agreement, which eliminated the Senior Leverage Ratio covenant and replaced it with a Minimum Consolidated Adjusted EBITDA covenant, commencing with the period ending March 31, 2026. Pursuant to the May 2026 Forbearance Agreement, the Lenders granted a limited waiver of the borrowing base and Minimum Consolidated Adjusted EBITDA defaults for the periods ended March 31, 2026 and April 30, 2026. Pursuant to the August 2026 Forbearance Agreement, the mandatory quarterly amortization payments on the initial term loan remain suspended through September 30, 2026, with the first payment due on December 31, 2026. In addition, the August 2026 Forbearance Agreement amended the Credit Agreement’s mandatory prepayment provisions to require that 50% (or 100% if an Event of Default exists) of net cash proceeds from subordinated indebtedness in addition to equity issuances be applied to prepay the Credit Agreement loan, with any retained proceeds restricted from being used to make payments on equity interests, redeemable preferred stock, or subordinated indebtedness.

These conditions, together with our historical operating losses and liquidity constraints, raise substantial doubt about our ability to continue as a going concern for a period of one year following the issuance of these financial statements.

Our ability to continue as a going concern is dependent upon our ability to generate sufficient cash flows from operations, obtain additional waivers or other relief under the Credit Agreement for any future covenant or borrowing base noncompliance, or refinance our indebtedness with the existing lender or a new lender. If the lender were to refuse to grant future waivers or declare an event of default, the lender could accelerate the maturity of our obligations under the Credit Agreement.

In the event of an acceleration, we would be required to refinance our indebtedness or obtain additional capital, which we may not be able to do on acceptable terms, on a timely basis, or at all. Our ability to refinance existing debt or raise additional capital is dependent on market conditions and other factors beyond our control.

If we were required to pursue refinancing or capital raising in response to an imminent or declared default, we could be forced to do so on an expedited basis, which could further limit available options and adversely affect the terms of any such transaction. If we are unable to successfully execute one or more of the foregoing plans, our business, financial condition, and results of operations could be materially adversely affected, and we may be required to significantly curtail or cease operations.

In view of these matters, continuation as a going concern is dependent upon our ability to continue to achieve positive cash flow from operations, obtain waivers or other relief under the Credit Agreement for any future non-

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compliance with the Minimum Consolidated Adjusted EBITDA, borrowing base requirements, or any other covenants or requirements under the Credit Agreement, or refinance our Credit Agreement with a different lender. Furthermore, in the event the Lender refuses to grant waivers to avoid a future default, the Lender might accelerate our obligations under the Credit Agreement. In order to satisfy such obligations, we would similarly have to refinance our obligations or seek additional capital, which we might not be able to do on acceptable terms or on a timely basis, or at all. Our ability to refinance our existing debt is based upon credit markets and economic forces that are outside of our control. There can be no assurance that we will be successful in refinancing our debt or raising additional capital, whether on acceptable terms, or on a timely basis, or at all. Furthermore, if we were attempting to refinance our obligations or raise capital in response to an imminent or declared acceleration and default, we might have to do so on an expedited basis, which might further jeopardize our ability to successfully refinance or obtain capital. In the event we fail in any of the efforts described in the preceding sentences, our business may materially suffer or even cease operations.

Additionally, as we have previously disclosed, there is substantial doubt about our ability to continue as a going concern.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES, USE OF PROCEEDS AND ISSUER PURCHASE OF EQUITY SECURITIES

None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

Not Applicable

ITEM 4. MINE SAFETY DISCLOSURES

Not Applicable.

ITEM 5. OTHER INFORMATION

Securities Trading Plans of Directors and Executive Officers

During the six months ended June 30, 2026, none of our directors or officers (as defined in Rule 16a-1 under the Exchange Act) adopted or terminated any contract, instruction, or written plan for the purchase or sale of our securities that was intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) or any “non-Rule 10b5-1 trading arrangement” (as defined in Item 408 of Regulation S-K).

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ITEM 6. EXHIBITS

The following exhibits are filed or furnished with this report:


Exhibit No.						Description of Exhibit
3.1						Eleventh Amended and Restated Articles of Incorporation (incorporated by reference to Exhibit 3.5 to the Registration Statement on Form S-1 (File No. 333-204811) filed on December 15, 2016).
3.2						Amended and Restated Bylaws, adopted as of April 14, 2026 (incorporated by reference to Exhibit 3.2 to the Annual Report on Form 10-K filed on April 15, 2026).
3.3						Certificate of Change effecting a 1-for-6 reverse stock split of Boxlight Corporation’s Class A Common Stock (incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K filed on June 22, 2026).
3.4						Certificate of Amendment to the Articles of Incorporation of Boxlight Corporation, increasing authorized Class A Common Stock to 55,000,000 shares (incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K filed July 29, 2026).
3.5						Certificate of Designation of Preferences, Rights and Limitations of Series D Convertible Preferred Stock (incorporated by reference to Exhibit 10.2 to the Current Report on Form 8-K filed on August 11, 2026).
4.1						Description of Securities, as restated to reflect the reverse stock splits (incorporated by reference to Exhibit 4.10 to the Annual Report on Form 10-K filed on April 15, 2026).
10.1						Waiver to Credit Agreement, dated March 27, 2026, between Boxlight Corporation, its subsidiaries, Whitehawk Capital Partners, LP and Whitehawk Finance LLC (incorporated by reference to Exhibit 10.23 to the Annual Report on Form 10-K filed on April 15, 2026).
10.2						J.J. Astor Inventory Finance Amendment and Conversion Agreement, dated April 1, 2026 (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed April 7, 2026).
10.3						Waiver to Credit Agreement, dated May 11, 2026, between Boxlight Corporation, its subsidiaries, Whitehawk Capital Partners, LP and Whitehawk Finance LLC (incorporated by reference to Exhibit 10.3 to the Quarterly Report on Form 10-Q filed on May 15, 2026).
10.4						Waiver to Credit Agreement, dated August 10, 2026, between Boxlight Corporation, its subsidiaries, Whitehawk Capital Partners, LP and Whitehawk Finance LLC (filed herewith as Exhibit 10.4).
10.5						Securities Purchase Agreement, dated August 5, 2026, by and among Boxlight Corporation and the Purchasers party thereto (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed on August 11, 2026).
10.6						Registration Rights Agreement, dated August 5, 2026, by and among Boxlight Corporation and the Purchasers party thereto (incorporated by reference to Exhibit 10.3 to the Current Report on Form 8-K filed on August 11, 2026).
10.7						Form of Lock-Up Agreement (incorporated by reference to Exhibit 10.4 to the Current Report on Form 8-K filed on August 11, 2026).
10.8						Form of Irrevocable Transfer Agent Instructions (incorporated by reference to Exhibit 10.5 to the Current Report on Form 8-K filed on August 11, 2026).
10.9						Equity Purchase Agreement, dated August 5, 2026, by and between Boxlight Corporation and the Investor (incorporated by reference to Exhibit 10.6 to the Current Report on Form 8-K filed on August 11, 2026).
10.10						Form of Pre-Funded Warrant to Purchase Class A Common Stock (incorporated by reference to Exhibit 10.7 to the Current Report filed on Form 8-K on August 11, 2026).
10.11						Placement Agent Agreement, dated August 5, 2026, by and among Boxlight Corporation, RBW Capital Partners LLC, and Dawson James Securities, Inc. (incorporated by reference to Exhibit 10.8 to the Current Report on Form 8-K filed on August 11, 2026).
10.12						Interim Chief Financial Officer Appointment Agreement, dated August 3, 2026, by and between Boxlight Corporation and Jennifer Grabow (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed August 4, 2026).
31.1*						Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2*						Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1**						Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

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32.2**						Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS						Inline XBRL Instance Document
101.SCH						Inline XBRL Taxonomy Extension Schema Document
101.CAL						Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF						Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB						Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE						Inline XBRL Taxonomy Extension Presentation Linkbase Document
104						Cover Page Interactive Data File (embedded within the Inline XBRL document)

*Filed herewith.

**Furnished herewith.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.