Discontinued Operations

3 Months Ended

Aug. 31, 2026

Discontinued Operations and Disposal Groups [Abstract]

During the year ended May 31, 2026, the Board of Directors of ChronoScale committed to a plan to divest its wholly owned subsidiary, Ekso Bionics, Inc., a Delaware corporation (“Ekso”), and to focus ChronoScale's operations solely on its Cloud Services Business. As such, legacy Ekso met the criteria to be classified as "held for sale" on the unaudited condensed consolidated balance sheets. Therefore, upon consolidation, the Company reported Ekso's operations as discontinued operations in its unaudited condensed consolidated statements of operations for the three months ended August 31, 2026 in accordance with ASC 205-20, Discontinued Operations. The sale of the Ekso business was completed on September 30, 2026. Refer to Note 21 - Subsequent Events for additional information regarding the sale of the Ekso business.

The financial results of Ekso are presented as net loss from discontinued operations on the unaudited condensed consolidated statements of operations. The following table presents the major components of the financial results of Ekso for the periods presented (in thousands):


	Three Months Ended
	August 31, 2026
Revenue	$	2,597
Cost of revenues	1,289
Selling, general and administrative	17,366

Operating loss from discontinued operations	(16,058)
Interest expense	(4)
Net loss from discontinued operations before income tax expense	(16,054)
Income tax expense	—
Net loss from discontinued operations	$	(16,054)

As of August 31, 2026, the assets and liabilities of Ekso are classified as current in the unaudited condensed consolidated balance sheets, as it is probable that the sale will occur within one year. The following table represents the aggregated carrying amounts of classes of assets and liabilities that are classified as held for sale on the unaudited condensed consolidated balance sheets for the periods presented (in thousands):


	August 31, 2026		May 31, 2026
Assets:
Cash and cash equivalents	$	2	$	2
Accounts receivable	3,090		3,914
Prepaid expenses and other current assets	5,659		5,604
Property and equipment, net	1,069		1,084
Operating lease right of use asset, net	284		284
Intangible assets	10,950		10,950
Other assets	425		368
Less: Impairment on assets held for sale	$	(16,491)	$	(2,365)
Total current assets held for sale	$	4,988	$	19,841

Liabilities:
Accounts payable	$	360	$	263
Accrued liabilities	1,859		4,205
Current portion of operating lease liability	191		290
Deferred revenue	2,493		2,563

Long-term portion of operating lease liability	86		105
Total current liabilities held for sale	$	4,988	$	7,426

Loss on Impairment of Net Assets Held for Sale

In connection with the classification of the Ekso business as held for sale and discontinued operations, the Company evaluated the Ekso business for impairment as of August 31, 2026, in accordance with ASC 360-10, Impairment and Disposal of Long-Lived Assets. The Ekso business was measured at the lower of its carrying amount and fair value less cost to sell.

During the first and second quarters of fiscal year 2027, the Company continued to market the Ekso business and advance negotiations with prospective buyers. The disposal of the Ekso business was completed on September 30, 2026.

As of August 31, 2026, the Ekso business consisted of approximately $21.5 million of assets and $5.0 million of liabilities, resulting in net assets of $16.5 million. The Company estimated the fair value of the Ekso business to be $1.5 million. After deducting $2.6 million of estimated incremental costs to sell the Ekso business, the Company determined that the fair value less costs to sell resulted in a negative value of $1.1 million. The fair value less costs to sell used for measuring the Ekso business under ASC 360-10 is floored at $0, and as a result, the remaining $1.1 million of estimated costs to sell Ekso is not included in this initial impairment calculation and will be recognized as period expenses when incurred. As the Ekso business’s carrying amount of $16.5 million exceeded its estimated fair value less costs to sell, the Company recognized an impairment loss of $14.1 million as of August 31, 2026. The impairment loss was recognized through a valuation allowance and was not allocated to the individual classes of assets held for sale. The impairment loss is included in net loss from discontinued operations in the unaudited condensed consolidated statement of operations for the three months ended August 31, 2026. The related valuation allowance is presented as valuation allowance for impairment loss on the unaudited condensed consolidated balance sheet as of August 31, 2026.

Following the closing of the sale of the Ekso business, the Company does not expect further material impairment losses related to the Ekso business as of the date of this Quarterly Report on Form 10-Q.

The Company determined that no impairment of goodwill, which was assigned to ChronoScale as discussed in Note 3 - Business Combination, existed for the three months ended August 31, 2026.

The following table summarizes the net cash flows from discontinued operations of Ekso for the three months ended August 31, 2026 (in thousands):


	Three Months Ended
	August 31, 2026
Net cash used in operating activities - discontinued operations	$	(1,257)
Net cash used in investing activities - discontinued operations	$	15