The Company’s complete accounting policies are described in Note 3 to the Company’s audited consolidated financial statements and notes included in the annual report on Form 10-K for the year ended December 31, 2025.

Financial instruments that subject the Company to credit risk consist principally of trade accounts receivable and cash and cash equivalents. Cash equivalents are measured at fair value on a recurring basis using quoted prices in active markets for identical assets and are classified within Level 1 of the fair value hierarchy. The Company maintains its cash and cash equivalents primarily with high-credit-quality financial institutions in the United States. Cash balances maintained with financial institutions in the United States are generally in excess of federally insured limits. The Company mitigates its credit risk by limiting its exposure to any single financial institution and by monitoring the credit quality of its counterparties. The Company places its cash with financial institutions that have long-term credit ratings of at least A- or equivalent, as assigned by major credit rating agencies.

In connection with the Company’s credit facility, certain depository accounts of the Company are swept into a blocked account with the lender and shall be used to reduce amounts owed under the credit facility. The Company classifies the balances of these accounts as restricted cash, as of June 30, 2026 and December 31, 2025, $0.5 million and $0.0 million of restricted cash is included in prepaid and other current assets in the accompanying unaudited condensed consolidated balance sheets.

The Company performs certain credit evaluation procedures and does not require collateral for financial instruments subject to credit risk. The Company believes that credit risk is limited because the Company routinely assesses the financial strength of its customers and, based upon factors surrounding the credit risk of its customers, establishes an allowance for credit losses.

As of June 30, 2026 and December 31, 2025, the Company’s provision for credit losses related to its trade accounts receivable is immaterial. As of June 30, 2026 and December 31, 2025 the provision for credit losses of $2.1 million is related to a convertible promissory note receivable, which is fully reserved. There was no change in the provision for credit losses during the three and six months ended June 30, 2026.

In connection with the sale of Inpixon in February 2026, the Company issued a note receivable for EUR 4,640,000 that bears interest of 5% until the fourth anniversary of the Closing Date, as defined below. The Company has the right (the “Unwind Option”) to require the Purchaser to transfer back all shares of Inpixon and its subsidiaries at any time during that fifteen (15) month period beginning on the first day of the thirty-seventh month following the Signing Date and continuing to the end of the fifty-second month following the Signing Date for no consideration by the Company. If exercised, all unpaid amounts of the purchase price will be forgiven. If not exercised within the specified period, the unpaid purchase price will also be forgiven. As of June 30, 2026 the balance of the note receivable was $4.3 million.

The customers from continuing operations who account for 10% or more of the Company’s revenue for the three and six months ended June 30, 2026 or 10% or more of the Company’s outstanding receivable balance as of June 30, 2026 are presented as follows:


	Percentage of revenues				Percentage of accounts receivable
Customer	Three Months Ended June 30, 2026		Six Months Ended June 30, 2026		June 30, 2026		December 31, 2025
A	14	%	10	%	42	%	47	%
B	**		**		14	%	**
C	**		**		10	%	**

** Represents less than 10% of the total for the respective period.

The vendors from continuing operations who account for 10% or more of the Company’s purchases for the three and six months ended June 30, 2026 or 10% or more of the Company’s outstanding accounts payable balance as of June 30, 2026 are presented as follows:

Percentage
of purchases

Percentage
of accounts
payable

Vendor

Three Months Ended
June 30,
2026

Six Months Ended June 30, 2026

June 30, 2026

December 31, 2025

** Represents less than 10% of the total for the respective period.

In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. This ASU requires public entities to provide enhanced disaggregation of certain expense categories presented on the income statement, including disclosure of specific types of expenses such as employee compensation, depreciation, and amortization. The standard is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the impact this guidance will have on its condensed consolidated financial statement disclosures.