2. Basis of Presentation and Summary of Significant Accounting Policies

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”) for interim financial information and include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.

In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of the financial position, results of operations and cash flows for the periods presented. The results of operations for the interim periods are not necessarily indicative of the results that may be expected for the full fiscal year or any future period. There were no items of other comprehensive income (loss) during the periods presented. Accordingly, net loss equaled comprehensive loss for all periods presented.

Significant Accounting Policies

The Company’s significant accounting policies, including the recent accounting pronouncements adopted and recently issued accounting standards not yet adopted, are described in Note 2 of the “Basis of Presentation and Summary of Significant Accounting Policies” to the audited consolidated financial statements as of and for the fiscal years ended December 31, 2025 and 2024, included as Exhibit 99.1 to the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on April 16, 2026. Other than the early adoption of ASU 2025-10 described below, there have been no material changes to these policies during the nine months ended September 30, 2026.

Recently Adopted Accounting Pronouncements

In December 2025, the Financial Accounting Standards Board (“FASB”) issued ASU 2025-10, Government Grants (Topic 832): Accounting for Government Grants Received by Business Entities, which establishes recognition, measurement and presentation guidance for government grants received by business entities. The Company early adopted ASU 2025-10 effective January 1, 2026 using the modified prospective transition method. The adoption did not have a material impact on the Company’s condensed consolidated financial statements. See “Government Grants” below.

Segment Reporting

The Company operates as a single operating and reportable segment. The Company’s Chief Operating Decision Maker (“CODM”) is its Chief Executive Officer, who reviews financial information presented on a consolidated basis for purposes of financial performance review and allocation of resources. Net loss is the primary measure of segment profit or loss that the CODM reviews when assessing consolidated performance. Revenue from customers and significant segment expenses are presented in the Company’s condensed consolidated statements of operations. The CODM does not evaluate segment performance using balance sheet information. All of the Company’s long-lived assets and revenue are concentrated in the United States.

Use of Estimates

The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the amounts reported and disclosed in the Company’s condensed consolidated financial statements and accompanying notes. The Company regularly evaluates estimates and assumptions including, but not limited to, determination of allowance for credit losses, valuation of inventory, valuation and estimated useful lives of long-lived assets, valuation of SAFE liability, valuation of derivative liability, valuation of common stock prior to the Company becoming publicly traded and preferred stock warrants, stock-based compensation, the incremental borrowing rate applied to leases, and income tax related estimates. Actual results could differ materially from those estimates.

Restricted Cash

Restricted cash consists of (i) a certificate of deposit pledged as collateral under certain contractual arrangements, which is classified as long-term restricted cash, (ii) funds subject to regulatory restrictions administered by the Office of Foreign Assets Control (“OFAC”), which are classified as short-term restricted cash based on the expected duration of the restriction, and (iii) funds held to satisfy financial assurance requirements imposed by applicable federal and state regulatory authorities for certain of the Company’s radioisotope production facilities, including decommissioning obligations.

Restricted cash is classified as current or non-current based on the nature and expected duration of the restrictions. As of September 30, 2026, restricted cash of $12 was included in prepaid expenses and other current assets, and $677 was included in other non-current assets in the condensed consolidated balance sheets.

Transaction Costs

Transaction costs consist of legal, accounting, placement agent fees, and other direct and incremental costs incurred in connection with the Company’s equity financing transactions. Such costs are deferred and capitalized while the related financing transaction is in process and recorded as a reduction of additional paid-in capital upon completion of the transaction.

During the nine months ended September 30, 2026, the Company completed the Merger and related private placement offerings and recorded $4.2 million of transaction costs as a reduction of additional paid-in capital.

As of September 30, 2026, the Company had deferred $0.1 million of transaction costs, primarily legal fees, related to a private placement offering of its common stock that was in process as of that date. The initial closing of the offering occurred in October 2026 (see Note 17). These costs are expected to be recorded as a reduction of additional paid-in capital upon completion of the financing transaction.

Significant Customers

The following table summarizes customers that accounted for 10% or more of revenue or accounts receivable:

Accounts Receivable, Net

Accounts receivable are stated net of an allowance for credit losses. The following table summarizes accounts receivable, net:

The allowance for credit losses is estimated using historical collection experience, the aging of receivables, customer-specific information, current economic conditions, and management’s expectations regarding collectability. Receivables sharing similar risk characteristics are evaluated collectively, while receivables exhibiting specific credit risk indicators are evaluated individually.

The Company recognized a provision for credit losses of $133 and $251 during the three and nine months ended September 30, 2026, respectively. No provision for credit losses was recognized during the three and nine months ended September 30, 2025.

Revenue Recognition

The Company recognizes revenue when control of goods or services is transferred to customers in an amount that reflects the consideration to which the Company expects to be entitled. Revenue is recognized either at a point in time or over time depending on the nature of the performance obligation.

The Company generates revenues primarily from (i) diagnostic drug and medical radioisotopes sales, (ii) cyclotron system and parts sales (including installation and acceptance), and (iii) consulting services and system support services.

The following table presents revenue disaggregated by major product and service lines for the three and nine months ended September 30, 2026 and 2025:

The Company’s performance obligations are typically part of contracts that have an original expected duration of one year or less. As such, the Company does not disclose the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied (or partially satisfied) as of the end of the reporting period. The Company did not record any revenue related to performance obligations satisfied (or partially satisfied) in previous periods, during the three and nine months ended September 30, 2026 and 2025.

Government Grants

The Company is party to a cost-reimbursement subaward, funded by the U.S. Department of Energy, under which it is reimbursed for allowable costs incurred in performing certain research activities, up to the approved subaward budget. Government grants are recognized when it is probable that the Company will comply with the conditions attached to the grants and that the grants will be received. Grants related to income are recognized in the periods in which the related eligible costs are incurred. The Company presents such grants within other income (expense), net, and the related research and development costs are presented on a gross basis within research and development expenses. During the three and nine months ended September 30, 2026, the Company recognized grant income of $53. No grant income was recognized during the three and nine months ended September 30, 2025.

Other income (expense), net

Other income (expense), net consists of changes in the fair value of the Company’s financial instruments measured at fair value, including the SAFE liability, preferred stock warrant liability, and derivative liabilities, losses recognized upon the issuance of equity-classified instruments where the aggregate fair value of instruments issued exceeds the proceeds received, losses recognized in connection with the settlement of investor agreements, the write-off of unamortized debt discount and issuance costs upon the repayment of debt, government grant income and other non-operating gains and losses incidental to the Company’s primary business activities. Changes in fair value of these instruments are recognized in earnings as a component of other income (expense), net in the condensed consolidated statements of operations.