NOTE 3—LIQUIDITY

The Company expects that its existing cash as of September 30, 2026 of $4,458,000 will be sufficient to fund our planned operating expenses and capital expenditure requirements for at least the next 12 months from the issuance date of these financial statements.

At September 30, 2026, the Company had working capital of $2,449,000. Its working capital includes $4,458,000 of cash and deferred revenue of $3,643,000. Such deferred revenue does not require a significant cash outlay for the revenue to be recognized. Total deferred revenue increased by $645,000, from $3,409,000 at December 31, 2025 to $4,054,000 at September 30, 2026, primarily as a result of deferred revenue assumed in the Gen-Tracker Acquisition. Net cash increased during the nine-month period ended September 30, 2026 by $4,000, with $1,276,000 provided by operating activities, $1,282,000 used in investing activities of which $1,000,000 was the cash paid at closing for the Gen-Tracker Acquisition and $250,000 was the payment pursuant to the technology partnership agreement executed January 1, 2026, and $10,000 provided by financing activities.