Schedule of condensed consolidated statement of operations


Line Item	As Previously Reported				Adjustment				As Revised
Change in fair value of derivative liabilities		$	–			$	(334	)		$	(334	)
Preferred dividends			(162	)			162				–
Net loss			(2,011	)			(175	)			(2,186	)
Deemed dividends on Convertible Preferred Shares			–				(961	)			(961	)
Net loss available to common stockholders			(2,011	)			(1,136	)			(3,147	)
Net loss per share available to common stockholders -- basic and diluted			(4.20	)			(1.32	)			(5.52	)

The Company’s Condensed Consolidated Statement of Operations for the Three Months Ended June 30, 2025, contained no accounting for the change in fair value of derivative liabilities, which totaled $334,000 for the period. The financial statements misclassified preferred dividends as an income statement item totaling $162,000. Net loss failed to reflect the sum of these items, totaling $175,000. The financial statements did not properly reflect the deemed dividends related to the Series 2 Shares totaling $961,000. These changes impacted Net loss available to shareholders totaling $1,136,000, and Net loss available to shareholders on a per share basis totaling $1.32 per share.

Effect of Revisions on the Condensed Consolidated Statement of Operations for the Six Months Ended June 30, 2025

(in thousands, except per share data)


Line Item	As Previously Reported				Adjustment				As Revised
Change in fair value of derivative liabilities		$	–			$	81			$	81
Preferred dividends			(285	)			285				–
Net loss			(4,564	)			363				(4,201	)
Deemed dividends on Convertible Preferred Shares			–				(1,262	)			(1,262	)
Net loss available to common stockholders			(4,564	)			(899	)			(5,463	)
Net loss per share available to common stockholders -- basic and diluted			(9.30	)			(0.65	)			(9.95	)

Schedule of condensed consolidated statements of temporary equity and stockholders’ equity deficit


Balance as of March 31, 2025	As Previously Reported				Adjustment				As Revised
Temporary equity preferred stock (shares)			–				8,285				8,285
Temporary equity preferred stock (amount)		$	–			$	6,223			$	6,223
Additional paid-in capital			50,254				(8,426	)			41,828
Accumulated deficit			(43,369	)			114				(43,255	)
Total stockholders' equity (deficit)			6,887				8,313				(1,426	)
Total			6,887				(2,090	)			4,797

The Company’s Consolidated Statements of Temporary Equity and Stockholders’ Equity (Deficit) as of March 31, 2025 misclassified the Series 2 Preferred Shares as Stockholders’ Equity instead of Temporary Equity. Temporary equity preferred stock (shares) increased by 8,285 shares from the original filing and Temporary equity preferred stock (amount) increased by $6,223,000. Additional paid-in capital decreased by $8,426,000, which is the sum of the amounts reclassified to Temporary equity preferred stock (amount) of $6,223,000, Derivative liability in the amount of $2,090,000, and offset by changes to Accumulated deficit in the amount of $114,000. Accumulated deficit decreased by $114,000 related to the change in fair value of $415,000 offset by the Deemed dividend for original issue discount on Preferred Stock totaling $301,000. The change in Total stockholders’ equity (deficit) was the net of the changes to Additional paid-in capital and Accumulated deficit. The change in Total equity was $2,090,000 which was the amount of the Derivative liability reclassified out of equity as of March 31, 2025.

Effect of Revisions on the Condensed Consolidated Statements of Temporary Equity and Stockholders’ Equity (Deficit) (Unaudited) (As Revised) as of June 30, 2025


Balance as of June 30, 2025	As Previously Reported				Adjustment				As Revised
Temporary equity preferred stock (shares)			–				6,687				6,687
Temporary equity preferred stock (amount)		$	–			$	5,239			$	5,239
Additional paid-in capital			53,478				(6,249	)			47,229
Accumulated deficit			(45,420	)			(1,185	)			(46,605	)
Total stockholders' equity (deficit)			8,060				(7,434	)			626
Total			8,060				(2,195	)			5,865

The Company’s Consolidated Statements of Temporary Equity and Stockholders’ Equity (Deficit) as of June 30, 2025 misclassified the Series 2 Preferred Shares as Stockholders’ Equity instead of Temporary Equity. Temporary equity preferred stock (shares) increased by 6,687 shares from the original filing and Temporary equity preferred stock (amount) increased by $5,239,000. Additional paid-in capital decreased by $6,249,000, which is the sum of the amounts reclassified to Temporary equity preferred stock (amount) of $5,239,000, Derivative liability in the amount of $2,190,000, and offset by changes to Accumulated deficit in the amount of $1,185,000. Accumulated deficit increased by $1,185,000 related to the decline in fair value of $334,000 and by the Deemed dividend for original issue discount on Preferred Stock totaling $961,000. The change in Total stockholders’ equity (deficit) was the net of the changes to Additional paid-in capital and Accumulated deficit. The change in Total equity was $2,195,000 which was the amount of the Derivative liability reclassified out of equity as of June 30, 2025.

Effect of Revisions on the Condensed Consolidated Statements of Temporary Equity and Stockholders’ Equity (Deficit) (Unaudited) (As Revised) as of December 31, 2025

(in thousands)


Balance as of December 31, 2025	As Previously Reported				Adjustment				As Revised
Temporary equity preferred stock (shares)			–				5,166				5,166
Temporary equity preferred stock (amount)		$	–			$	4,187			$	4,187
Common stock, Class A (shares)			803,577				(6,718	)			796,859
Common stock, Class A (amount)		$	2			$	1			$	3
Additional paid-in capital			60,191				(6,204	)			53,987
Accumulated deficit			(51,281	)			695				(50,586	)
Total stockholders’ equity (deficit)		$	8,910				(5,508	)			3,402

Schedule of derivative liability roll forward


	Six Months Ended June 30, 2026			Twelve Months Ended December 31, 2025
				(As Revised)
Beginning balance	$	1,321,205		$	–
Issuances (day-1 bifurcation of embedded derivative)		39,783			4,764,474
Fair value losses		(191,735	)		(548,879	)
Settlements (conversions to Class A common stock)		(77,319	)		(2,894,390	)
Derecognition upon amendment of conversion terms		(1,091,934	)		–
Ending balance	$	–		$	1,321,205