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DE 98-0551945 3350 Virginia Street Miami FL 33133 800 583-2652 Common Stock, par value $0.0001 per share WRAP NASDAQ No No Yes Yes Non-accelerated Filer true false false false false 79136515 55500054 <div style="text-align: justify;"> <span style="font-size: 10.0pt;">We maintain a comprehensive process for identifying, assessing, and managing material risks from cybersecurity threats (as such term is defined in Item 106(a) of Regulation S-K) as part of our broader risk management system and processes. The cybersecurity risk management system involves risk assessments, implementation of security measures, and ongoing monitoring of systems and networks, including networks on which we rely. We actively monitor the current threat landscape in an effort to identify material risks arising from new and evolving cybersecurity threats. We obtain input, as appropriate, for our cybersecurity risk management program on the security industry and threat trends from consultants, cybersecurity assessors, auditors and other third parties to gather certain insights designed to identify and assess material cybersecurity threat risks, their severity and potential mitigations. We depend on and engage various third parties, including suppliers, vendors, and service providers. Our risk management, legal, information technology, and compliance personnel identify and oversee risks from cybersecurity threats associated with our use of such entities. Any incident assessed as potentially being or potentially becoming material is immediately escalated for further assessment, and then reported to Mr. Srinivasan, our designated member of our Board.</span> </div><div style="text-align: justify;"> <span style="font-size: 10.0pt;">Mr. Srinivasan has oversight responsibility for risks and incidents relating to cybersecurity threats, including compliance with disclosure requirements, cooperation with law enforcement, and related effects on financial and other risks, and report any findings and recommendations, as appropriate, to the full Board for consideration. Senior management regularly discusses cyber risks and trends and, should they arise, any material incidents with the designated member of the Board.</span> </div><div style="text-align: justify;"> <span style="font-size: 10.0pt;">Our business strategy, results of operations and financial condition have not been materially affected by risks from cybersecurity threats, but we cannot provide assurance that they will not be materially affected in the future by such risks or any future material incidents. Further, a cyber incident impacting our systems or a third-party’s systems could subject us to business, regulatory, litigation and reputational risk, which could have a negative effect on our business, results of operations and financial condition. For more information on our cybersecurity related risks, see Item 1A Risk Factors of this Annual Report.</span> </div> The cybersecurity risk management system involves risk assessments, implementation of security measures, and ongoing monitoring of systems and networks, including networks on which we rely. true true Our risk management, legal, information technology, and compliance personnel identify and oversee risks from cybersecurity threats associated with our use of such entities. Any incident assessed as potentially being or potentially becoming material is immediately escalated for further assessment, and then reported to Mr. Srinivasan, our designated member of our Board. Our risk management, legal, information technology, and compliance personnel identify and oversee risks from cybersecurity threats associated with our use of such entities. true true true Any incident assessed as potentially being or potentially becoming material is immediately escalated for further assessment, and then reported to Mr. Srinivasan, our designated member of our Board. <div style="text-align: justify;"> <span style="font-size: 10.0pt;">Mr. Srinivasan has oversight responsibility for risks and incidents relating to cybersecurity threats, including compliance with disclosure requirements, cooperation with law enforcement, and related effects on financial and other risks, and report any findings and recommendations, as appropriate, to the full Board for consideration. Senior management regularly discusses cyber risks and trends and, should they arise, any material incidents with the designated member of the Board.</span> </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">Mr. Srinivasan has oversight responsibility for risks and incidents relating to cybersecurity threats, including compliance with disclosure requirements, cooperation with law enforcement, and related effects on financial and other risks, and report any findings and recommendations, as appropriate, to the full Board for consideration. Senior management regularly discusses cyber risks and trends and, should they arise, any material incidents with the designated member of the Board.</span> </div> Senior management regularly discusses cyber risks and trends and, should they arise, any material incidents with the designated member of the Board. false false false false false true 7000 <div style="text-align: justify;"> <span style="font-size: 10.0pt;">We have audited the accompanying consolidated balance sheets of Wrap Technologies, Inc. (the “Company”) as of December 31, 2025 and 2024, and the related consolidated statements of operations and comprehensive loss, stockholders’ equity, and cash flows for each of the two years in the period ended December 31, 2025, including the related notes (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Company as of December 31, 2025 and 2024, and the consolidated results of its operations and its consolidated cash flows for each of the two years in the period ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America. </span> </div> HTL International, LLC Houston, TX 3468000 3610000 2787000 513000 4971000 6170000 194000 178000 11420000 10471000 123000 146000 2175000 1964000 1572000 2354000 128000 186000 15418000 15121000 620000 609000 407000 1403000 62000 27000 408000 466000 320000 567000 10131000 1817000 13203000 14000 39000 2097000 1629000 2111000 1668000 3928000 14871000 5000000 5000000 0.0001 0.0001 12707 12707 8207 8207 0 0 200000000 200000000 0.0001 0.0001 51733217 51733217 47101631 47101631 5000 5000 10000 10000 0.0001 0.0001 8207 8207 8207 8207 0 0 4500 4500 0.0001 0.0001 4500 4500 0 0 0 0 127804000 105326000 -116319000 -105081000 0 0 11490000 250000 15418000 15121000 3507000 3590000 1696000 917000 5203000 4507000 531000 0 4672000 4507000 1973000 2042000 2699000 2465000 16128000 15688000 56000 2344000 16184000 18032000 -13485000 -15567000 7000 156000 -3158000 -9572000 -15000 -36000 3150000 9692000 -10335000 -5875000 903000 1218000 -11238000 -7093000 -0.22 -0.22 -0.16 -0.16 50390735 50390735 45621214 45621214 -10335000 -5875000 -10335000 -5875000 43855503 4000 9898 0 0 0 101147000 -97988000 3163000 232081 0 0 0 588000 0 588000 0 0 0 2433000 0 2433000 1125300 0 0 0 1158000 -1218000 -60000 497564 1000 0 0 0 0 1000 1391183 0 -1691 0 0 0 0 0 0 0 0 0 -5875000 -5875000 47101631 5000 8207 0 0 0 105326000 -105081000 250000 0 0 0 4076000 0 4076000 406045 0 0 0 903000 -903000 0 837460 0 0 0 0 0 0 171415 0 0 0 245000 245000 0 0 4500 0 4500000 0 4500000 3216666 0 0 0 603000 0 603000 0 0 0 12151000 0 12151000 0 0 0 0 -10335000 -10335000 51733217 5000 8207 0 4500 0 127804000 -116319000 11490000 -10335000 -5875000 594000 827000 588000 1631000 -10000 0 4076000 2433000 -40000 90000 -3158000 -9572000 -211000 292000 117000 66000 36000 15000 2391000 -2446000 -1163000 391000 16000 -775000 11000 -441000 221000 -91000 -35000 975000 -951000 700000 -13000 -79000 -83000 -39000 -58000 -63000 -10289000 -8125000 0 7500000 100000 12000 287000 156000 0 20000 -387000 7312000 245000 588000 4500000 0 5789000 0 0 120000 10534000 468000 -142000 -345000 3610000 3955000 3468000 3610000 12151000 0 -1067000 -1098000 492000 1158000 <div style="margin-left: 0.5pt;"> <span style="font-size: 10.0pt; color: #000000; font-weight: bold;">1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt; text-decoration: underline;">Organization and Business Description</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">Wrap Technologies, Inc., a Delaware corporation (the “</span><span style="font-size: 10.0pt; font-style: italic;">Company</span><span style="font-size: 10.0pt;">”), is a publicly traded company with its common stock, par value $0.0001 per share (“</span><span style="font-size: 10pt;">Common Stock</span><span style="font-size: 10.0pt;">”), listed on the Nasdaq Capital Market (“</span><span style="font-size: 10.0pt; font-style: italic;">Nasdaq</span><span style="font-size: 10.0pt;">”) under the trading symbol “WRAP”. The Company is a developer and supplier of public safety products and training services for law enforcement and security personnel. The Company’s primary product is the BolaWrap® device. The principal markets for the Company’s proprietary products and services are in North and South America, Europe, the Middle East and Asia.</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt; text-decoration: underline;">Principles of Consolidation</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries after elimination of intercompany transactions and balances. </span> </div><div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt; text-decoration: underline;">Basis of Presentation and Use of Estimates</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">The accompanying financial statements have been prepared on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America (“</span><span style="font-size: 10.0pt; font-style: italic;">US GAAP</span><span style="font-size: 10.0pt;">”). The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions (e.g., share-based compensation valuation, allowance for doubtful accounts, valuation of inventory and intangible assets, warranty reserve, accrued costs, valuation allowance related to deferred tax assets and recognition and measurement of contingencies) that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements and affect the reported amounts of revenues and expenses during the reporting period. Actual results could materially differ from those estimates.</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt; text-decoration: underline;">Concentrations of Risk</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt; font-style: italic;">Credit Risk</span><span style="font-size: 10.0pt;"> – Financial instruments that potentially subject the Company to concentration of credit risk consisted primarily of cash, cash equivalents, US treasury bills and accounts receivable from customers. The Company maintains its cash and cash equivalent deposits at two domestic financial institutions. The Company is exposed to credit risk in the event of default by a financial institution to the extent that cash and cash equivalents are in excess of the amount insured by the Federal Deposit Insurance Corporation. The Company places its cash and cash equivalents with high-credit quality financial institutions and are managed within established guidelines to mitigate risks. To date, the Company has not experienced any losses on its cash and cash equivalents.</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt; font-style: italic;">Concentrations of Accounts Receivable and Revenue</span><span style="font-size: 10.0pt;"> – The Company has a limited number of domestic and international customers. The Company may experience concentrations in both accounts receivable and revenue due to the timing of sales and collections of related payments (see Note 18).</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt; font-style: italic;">Concentration of Suppliers</span><span style="font-size: 10.0pt;"> – The Company assembles its BolaWrap products in-house using components and subassemblies from a limited number of suppliers and contract suppliers. In particular, a single supplier is currently the sole manufacturer of the BolaWrap battery assembly, and another single supplier is the sole manufacturer of the propulsion component for BolaWrap cassettes. Other parts are solely sourced from other suppliers. If supplier shortages or logistic delays occur, or quality problems arise, production schedules could be significantly delayed or costs significantly increased, which could in turn have a material adverse effect on the Company’s financial condition, results of operation and cash flows.</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt; text-decoration: underline;">Cash and Cash Equivalents</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">The Company considers all highly liquid investments purchased with original maturities of three months or less from the purchase date to be cash equivalents. Cash equivalents consist primarily of amounts invested in Money Market Funds and US (“</span><span style="font-size: 10.0pt; font-style: italic;">US</span><span style="font-size: 10.0pt;">”) Treasury bills and are stated at fair value.</span> </div><div style="text-align: justify;"> <span style="font-size: 10.0pt; text-decoration: underline;">Share-Based Compensation</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">The Company follows the fair value recognition provisions issued by the Financial Accounting Standards Board ("FASB") in Accounting Standards Codification ("ASC") Topic 718, Stock Compensation (“</span><span style="font-size: 10.0pt; font-style: italic;">ASC 718</span><span style="font-size: 10.0pt;">”) and has adopted Accounting Standards Update (“</span><span style="font-size: 10.0pt; font-style: italic;">ASU</span><span style="font-size: 10.0pt;">”) 2018-07 for share-based transactions with non-employees. Share-based compensation expense recognized during 2025 and 2024 includes stock option and restricted stock unit compensation expense. The grant date fair value of stock options is determined using the Black-Scholes option-pricing model. The grant date is the date at which an employer and employee or non-employee reach a mutual understanding of the key terms and conditions of a share-based payment award and approved by the Company’s Board of Directors. The Black-Scholes option-pricing model requires inputs including the market price of the Company’s Common Stock on the date of grant, the term that the stock options are expected to be outstanding, the implied stock volatilities of several publicly traded peers over the expected term of stock options, risk-free interest rate and expected dividend. Each of these inputs is subjective and generally requires significant judgment to determine. The grant date fair value of restricted stock units is based upon the market price of the Company’s Common Stock on the date of the grant. The Company determines the amount of share-based compensation expense based on awards that the Company ultimately expect to vest and account for forfeitures as they occur. The fair value of share-based compensation is amortized to compensation expense over the vesting term.</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt; text-decoration: underline;">Loss per Share</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">Basic loss per share (EPS) is computed by dividing net loss, less any dividends, accretion or decretion, redemption or induced conversion, if any, on the Company's Series A and Series B Convertible Preferred Stock, by the weighted average number of shares outstanding during the reported period.</span></div><div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">In computing diluted EPS, the Company adjusts the numerator used in the basic EPS computation, subject to anti-dilution requirements, to add back the dividends (declared or cumulative undeclared) applicable to the Series A and Series B Convertible Preferred Stock. Such add-back would also include any adjustments to equity in the period to accrete the Series A and Series B Convertible Preferred Stock to their respective redemption prices, or recorded upon a redemption or induced conversion, if any. The Company adjusts the denominator used in the basic EPS computation, subject to anti-dilution requirements, to include the dilution from potential shares resulting from the issuance of the Series A and Series B Convertible Preferred Stock, restricted stock units, and stock options. Stock options and restricted stock units exercisable or issuable fo<span style="background-color: rgb(255, 255, 255);">r a total of 7,464,097 </span>and 4,932,386 shares of Common Stock were outstanding at December 31, 2025 and 2024, respectively. These securities are not included in the computation of diluted net loss per share of common stock for the years presented as their inclusion would be antidilutive due to losses incurred by the Company.</span></div><div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt; text-decoration: underline;">Accounts Receivable and Allowance for Credit Losses</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">ASU No. 2016-13, </span><span style="font-size: 10.0pt; font-style: italic;">Financial Instruments - Credit Losses (Topic 326)</span><span style="font-size: 10.0pt;"> requires that financial assets measured at amortized cost be presented at the net amount expected to be collected. The expected credit losses are developed using an estimated loss rate method that considers historical collection experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. The estimated loss rates are applied to accounts receivables with similar risk characteristics such as the length of time the balance has been outstanding and the location of the customer. In certain instances, the Company may identify individual accounts receivable assets that do not share risk characteristics with other accounts receivables, in which case the Company records its expected credit losses on an individual asset basis. If an accounts receivable asset is evaluated on an individual basis, the Company excludes those assets from the portfolios of accounts receivables evaluated on a collective basis.</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">At December 31, 2025 and 2024, the Company had an allowance for credit losses related to accounts receivable<span style="background-color: rgb(255, 255, 255);"> of $</span></span><span style="font-size: 10pt; background-color: rgb(255, 255, 255);">119</span><span style="font-size: 10.0pt;"><span style="background-color: rgb(255, 255, 255);"> an</span>d $230, respectively. If a major customer’s creditworthiness deteriorates, or actual defaults exceed our historical experience, such estimates could change and impact our future reported financial results.</span> </div> <div style="font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt; text-decoration: underline;">Inventories</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">Inventories are valued at the lower of cost or net realizable value. The cost of substantially all the Company’s inventory is determined by the FIFO cost method. Inventory is comprised of raw materials, assemblies and finished products intended for sale to customers</span><span style="font-size: 10.0pt; font-style: italic;">.</span><span style="font-size: 10.0pt;"> The Company evaluates the need for reserves for excess and obsolete inventories determined primarily based upon estimates of future demand for the Company’s products.</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">As of December 31, 2025 and 2024 the Company h<span style="background-color: rgb(255, 255, 255);">ad </span></span><span style="font-size: 10pt; background-color: rgb(255, 255, 255);">$516</span><span style="font-size: 10.0pt;"><span style="background-color: rgb(255, 255, 255);"> an</span>d $480 in reserves, respectively for obsolescence.</span> </div><div style="text-align: justify;"> <span style="font-size: 10.0pt; text-decoration: underline;">Property, Equipment and Depreciation</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">Property and equipment are stated at cost. Depreciation on property and equipment is computed over the estimated useful lives of three years using the straight-line method. On any retirement or disposition of property and equipment, the related cost and accumulated depreciation or amortization is removed, and a gain or loss recorded.</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt; text-decoration: underline;">Business Combinations</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">The Company accounts for its business combinations under the provisions of ASC Topic 805-10, Business Combinations ("ASC 805-10"), which requires that the purchase method of accounting be used for all business combinations. Assets acquired and liabilities assumed, including non-controlling interests, are recorded at the date of acquisition at their respective fair values. The estimated fair value of net assets acquired, including the allocation of the fair value to identifiable assets and liabilities, was determined using established valuation techniques. ASC 805-10 also specifies criteria that intangible assets acquired in a business combination must meet to be recognized and reported apart from goodwill. Goodwill represents the excess purchase price over the fair value of the tangible net assets and intangible assets acquired in a business combination. Acquisition-related expenses are recognized separately from the business combinations and are expensed as incurred.</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">The estimated fair value of the acquired intangible assets was determined using a method which reflects the present value of the operating cash flows generated by this asset after taking into account the cost to realize the revenue, and an appropriate discount rate to reflect the time value and risk associated with the invested capital.</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">Certain adjustments to the assessed fair values of the assets and liabilities made subsequent to the acquisition date, but within the measurement period, which is up to one year, are recorded as adjustments to goodwill. Any adjustments subsequent to the measurement period are recorded in income.</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt; text-decoration: underline;">Goodwill</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">Goodwill represents the difference, if any, between the aggregate consideration paid for an acquisition and the fair values of the underlying net assets and liabilities assumed from an acquired business. Goodwill is not amortized but instead is tested for impairment. The Company tests goodwill for impairment on an annual basis during the fourth quarter, or more frequently if conditions indicate that such impairment could exist. The Company evaluates qualitative factors to determine if it is more likely than not that the fair value of a reporting unit is less than its carrying value and whether it is necessary to perform goodwill impairment process.</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt; text-decoration: underline;">Definite-lived Intangible Assets</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">Definite-lived intangible assets represent certain trade names, patents, licenses, software, acquired technology and customer relationships. Definite-lived intangible assets are recorded at cost less any accumulated amortization and accumulated impairment losses, if any. Definite-lived intangible assets acquired through the business combination are measured at fair value at the acquisition date. The Company amortizes these acquired definite-lived intangibles assets with a finite life on a straight-line basis, over 6 years for technology; 7 years for customer relationships; and 8 years for trademarks and trade names.</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt; text-decoration: underline;">Intangible Assets</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">Intangible assets consist of (a) capitalized legal fees and filing costs related to obtaining patents and trademarks, (b) tradenames and software, (c) purchased software, and (d) the purchase cost of indefinite-lived website domains. The estimated useful lives of identifiable intangible assets with definite useful lives have been estimated to be between one and twenty years. Purchased website domain costs with an indefinite useful life are not subject to amortization, but are subject to an annual impairment test, by comparing their carrying amount with their corresponding fair value. For any given intangible asset with an indefinite useful life, if its fair value exceeds its carrying amount no impairment loss shall be recognized.</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">The carrying value of intangibles is periodically reviewed and impairments, if any, are recognized when the future undiscounted cash flows realized from the assets is less than its carrying value.</span> </div><div style="text-align: justify;"> <span style="font-size: 10.0pt; text-decoration: underline;">Impairment of Long-Lived Assets</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">Long-lived assets and identifiable intangibles held for use are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If the sum of undiscounted expected future cash flows is less than the carrying amount of the asset or if changes in facts and circumstances indicate, an impairment loss is recognized and measured using the asset’s fair value. </span></div> <div style="text-align: justify;">  </div><div style="text-align: justify;"><span style="font-size: 10.0pt;">In December 2024, the Company determined that the assessment of the Intrensic unit’s fair value indicated that its carrying value exceeded its fair value by $1,631 and therefore the Company recorded a $1,631 impairment charge related to the goodwill initially recorded from the acquisition.</span> </div><div style="text-align: justify; font-size: 10pt;"> </div> <div style="text-align: justify; font-size: 10pt;">During the year ended December 31, 2025, the Company recorded impairment charges of $588 related to certain purchased software and technology and customer relationship intangible assets. These impairment charges were primarily the result of revisions to projected future operating results and cash flows associated with these assets, which indicated that their carrying amounts were not recoverable.</div><div style="text-align: justify; font-size: 10pt;">  </div><div style="text-align: justify;"> <span style="font-size: 10.0pt; text-decoration: underline;">Warrants</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">The Company accounts for warrants as liability-classified instruments based on an assessment of the warrant’s specific terms and applicable authoritative guidance in </span><span style="font-size: 10pt;">FASB ASC</span><span style="font-size: 10.0pt;"> 480, Distinguishing Liabilities from Equity (“</span><span style="font-size: 10.0pt; font-style: italic;">ASC</span><span style="font-size: 10.0pt;"> 480”) and ASC 815, Derivatives and Hedging (“</span><span style="font-size: 10.0pt; font-style: italic;">ASC</span><span style="font-size: 10.0pt;"> 815”). The assessment considers whether the warrants are freestanding financial instruments pursuant to ASC 480, meet the definition of a liability pursuant to ASC 480, and whether the warrants meet all of the requirements for equity classification under ASC 815, including whether the warrants are indexed to the Company’s own Common Stock and whether the warrant holders could potentially require “net cash settlement” in a circumstance outside of the Company’s control, among other conditions for equity classification. This assessment, which requires the use of professional judgment, is conducted at the time of warrant issuance and as of each subsequent quarterly period end date while the warrants are outstanding.</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">For issued warrants that do not meet all the criteria for equity classification, the warrants are required to be recorded at their initial fair value on the date of issuance, and each balance sheet date thereafter. The Company accounts for the warrants issued in accordance with the guidance contained in ASC 815-40-15-7C, under which the warrants do not meet the criteria for equity treatment and must be recorded as liabilities. Accordingly, the Company classifies the warrants as liabilities at their fair value and adjusts the warrants to fair value at each reporting period. This liability is subject to re-measurement at each balance sheet date until exercised, and any change in fair value is recognized in the Company’s consolidated statement of operations.</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">On June 30, 2025, the Company entered into the Series A Warrant Amendment (as defined herein) and the 2025 Warrant Amendment (as defined herein). As a result, the Series A Warrants (as defined herein) and the PIPE Warrants (as defined herein), each satisfy the requirements outlined in ASC 815-10-15-74(a)(1) and in ASC 815-10-15-74(a)(2). Under ASC 815-40-35-10, the amended instruments qualify for equity-classification on a prospective basis. The effective date of the relating reclassification from warrant liabilities to additional paid-in capital was June 30, 2025. See Footnote 10: Warrants for additional detail.</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt; text-decoration: underline;">Series A Preferred Stock</span></div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">The Company evaluates and accounts for conversion options embedded in its convertible instruments in accordance with ASC 480 and ASC 815 to determine if those instruments or embedded components of those instruments qualify as derivatives and are subject to bifurcation accounting. The Company determines that the economic characteristics and risks of the embedded derivative instrument are clearly and closely related to the economic characteristics and risks of the host contract. The convertible instruments are accounted for as a single hybrid instrument. Additionally, the convertible instruments do not have any redemption features that would preclude permanent equity classification in accordance with the guidance contained in ASC 480-10-S99.</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">The Company issued the Series A Warrants (as defined herein), which are classified as liabilities and measured at fair value on a recurring basis, and the Company's Series A Convertible Preferred Stock, par value $0.0001 per share (the “Series A Preferred Stock”) in one transaction. The proceeds from the issuances were allocated by using the with and-without method. Under this method, the Company first allocated the proceeds to the Series A Warrants based on their initial fair value measurement and then allocated the remaining proceeds to the Series A Preferred Stock. On June 30, 2025, the Company and holders of the Series A Warrants amended the Series A Warrants, which allowed the Company to account for the Series A Warrants as equity under ASC 480 and a reclassification was recorded from warrant liability to additional paid-in-capital.</span> </div><div style="text-align: justify;"> <span style="font-size: 10.0pt; text-decoration: underline;">Advertising and Promotion Costs</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">Advertising costs are charged to expense as incurred and we<span style="background-color: rgb(255, 255, 255);">re </span></span><span style="font-size: 10pt; background-color: rgb(255, 255, 255);">$384</span><span style="font-size: 10.0pt;"> and $575 for the years ended December 31, 2025 and 2024, respectively. The Company also incurred product promotion costs for demonstration products delivered to prospective customers <span style="background-color: rgb(255, 255, 255);">of </span></span><span style="font-size: 10pt; background-color: rgb(255, 255, 255);">$45</span><span style="font-size: 10.0pt;"><span style="background-color: rgb(255, 255, 255);"> </span>and $129 for the years ended December 31, 2025 and 2024, respectively. Advertising and promotion costs are included in selling, general and administrative expenses in the accompanying statements of operations.</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt; text-decoration: underline;">Demonstration and Training Costs</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">The Company maintains a demonstration and training department as a part of its sales and marketing activities and does not charge for product demonstrations or training. Training is not a condition or requirement of sale as most sales are made through distributors to their end customers. The Company conducts local and regional in-person, webinar and on-line demonstrations and use of force and escalation training to support law enforcement agencies with no purchase requirement. Such training, when provided, may occur before or after initial or subsequent purchase or field deployment of the Company’s products. The Company believes that law enforcement trainers and officers that have seen demonstrations or have been trained about its products are more supportive of their departments purchase and deployment of product.</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt; text-decoration: underline;">Research and Development Costs</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">Research and development costs are expensed as incurred.</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt; text-decoration: underline;">Contract Manufacturers</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">The Company employs contract manufacturers for production of certain components and sub-assemblies. The Company may provide parts and components to such parties from time to time but recognizes no revenue or markup on such transactions.</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt; text-decoration: underline;">Leases</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">The Company adopted ASC Topic 842, Leases (“</span><span style="font-size: 10.0pt; font-style: italic;">Topic 842</span><span style="font-size: 10.0pt;">”) on January 1, 2019. In accordance with the guidance in Topic 842, the Company recognizes lease liabilities and corresponding right-of-use assets for all leases with terms of greater than 12 months. Leases with a term of 12 months or less will be accounted for in a manner similar to the guidance for operating leases prior to the adoption of Topic 842. Refer to Note 9, Leases for more information.</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt; text-decoration: underline;">Revenue Recognition</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">The Company adopted ASC Topic 606, Revenue from Contracts with Customers on January 1, 2018. The Company enters into contracts that include various combinations of products, accessories, software and services, each of which are generally distinct and are accounted for as separate performance obligations. Product sales include BolaWrap products and accessories. Other revenue includes VR revenues, professional service, training and shipping revenues.</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">The timing of revenue recognition may differ from the timing of invoicing to customers. The Company generally has an unconditional right to consideration when customers are invoiced, and a receivable is recorded. A contract asset is recognized when revenue is recognized prior to invoicing, or a contract liability (deferred revenue) when revenue will be recognized subsequent to invoicing. The Company recognizes an asset if there are incremental costs of obtaining a contract with a customer such as commissions. These costs are ascribed to or allocated to the underlying performance obligations in the contract. The Company may receive consideration, per terms of a contract, from customers prior to transferring goods to the customer. The Company records customer deposits as a contract liability. Additionally, the Company may receive payments, most typically for service and warranty contracts, at the onset of the contract and before the services have been performed. In such instances, a deferred revenue liability is recorded. The Company recognizes these contract liabilities as revenue after all revenue recognition criteria are met.</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">Estimated costs for the Company’s standard warranty, generally one-year, are charged to cost of products sold when revenue is recorded for the related product. Royalties are also charged to cost of products sold.</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt; text-decoration: underline;">Shipping and Handling Costs</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">Shipping and handling costs are included in cost of revenues. Shipping and handling costs invoiced to customers are included in revenue. Actual shipping and handling costs wer<span style="background-color: rgb(255, 255, 255);">e </span></span><span style="font-size: 10pt; background-color: rgb(255, 255, 255);">$33</span><span style="font-size: 10.0pt;"><span style="background-color: rgb(255, 255, 255);"> and</span> $125 for the years ended December 31, 2025 and 2024, respectively. Actual revenues from shipping and handling we<span style="background-color: rgb(255, 255, 255);">re </span></span><span style="font-size: 10pt; background-color: rgb(255, 255, 255);">$24</span><span style="font-size: 10.0pt;"><span style="background-color: rgb(255, 255, 255);"> and $</span>73 for the years ended December 31, 2025 and 2024, respectively.</span> </div><div style="text-align: justify;"> <span style="font-size: 10.0pt; text-decoration: underline;">Warranty Reserves</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">The Company warrants its products and accessories to be free from defects in materials and workmanship for a period of one year from the date of purchase. The warranty is generally limited. The Company currently provides direct warranty service. International market warranties are generally similar to the US market.</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">The Company establishes a warranty reserve based on anticipated warranty claims at the time product revenues are recognized. Factors affecting warranty reserve levels include the number of units sold, anticipated cost of warranty repairs and anticipated rates of warranty claims. The Company evaluates the adequacy of the provision for warranty costs each reporting period. The warranty reserve was<span style="background-color: rgb(255, 255, 255);"> </span></span><span style="font-size: 10pt; background-color: rgb(255, 255, 255);">$30</span><span style="font-size: 10.0pt;"><span style="background-color: rgb(255, 255, 255);"> and $</span>83 at December 31, 2025 and 2024, respectively. Actual warranty costs could differ from estimates.</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt; text-decoration: underline;">Segment Information</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">The Company operates as a single operating and reportable segment in accordance with ASC 280, Segment Reporting<i>.</i> The Company’s Chief Operating Decision Maker (“CODM”) is its Chief Executive Officer. The CODM reviews financial information on a consolidated basis for purposes of evaluating financial performance and allocating resources. Resource allocation decisions are primarily based on consolidated operating results, cash flows, liquidity, and overall strategic priorities rather than discrete financial information at a product line, geography, or functional level. </span></div><div style="text-align: justify;"> </div><div style="text-align: justify;"><span style="font-size: 10.0pt;">While the Company monitors certain operating metrics, including revenue by product line and other operational data, such information is used for operational oversight, forecasting, and strategic planning and is not used by the CODM to assess segment performance or to allocate resources among components of the business. The Company’s operations are managed on an integrated basis, with shared sales channels, manufacturing, research and development, and administrative functions. As a result, discrete financial information at a level below the consolidated financial statements is not regularly reviewed by the CODM for purposes of allocating resources or assessing performance. </span></div><div style="text-align: justify;"> </div><div style="text-align: justify;"><span style="font-size: 10.0pt;">The Company does not present disaggregated segment profit or loss, assets, or other segment-level information, as such information is not used by the CODM in managing the business. Accordingly, the Company has determined that it operates as one operating segment and one reportable segment. The Company has provided the required entity-wide disclosures in accordance with ASC 280. Major Customers and Related Information for further discussion.</span> </div><div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt; text-decoration: underline;">Income Taxes</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. The Company measures deferred tax assets and liabilities using the enacted tax rates for the years and jurisdictions in which the temporary differences are expected to be recovered. A change to the tax rates used to measure the Company’s deferred taxes is recognized in income during the period in which the new rate(s) were enacted.</span> </div><div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">The Company recognizes deferred tax assets to the extent the Company’s assets are more likely than not to be realized. In making such a determination, the Company considers all available positive and negative evidence, including the future reversals of existing taxable temporary differences, projected future taxable income exclusive of reversing temporary differences and carryforwards, tax-planning strategies, taxable income in prior carryback years if permitted under tax law, and the results from prior years. If the Company determines it is more likely than not that all or a portion of a deferred tax asset will not be realized a valuation allowance is recorded with a charge to income tax expense. Alternatively, if the Company determines that all or a portion of a deferred tax asset previously not meeting the more likely than not threshold will be realized, the Company reduces its valuation allowance and recognizes a benefit in income tax expense.</span> </div><div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">The Company recognizes and measure uncertain tax benefits in accordance with ASC 740 based on a two-step process in which (1) the Company determines whether it is more likely than not that the tax position will be sustained based on the technical merits of the position, and (2) for those tax positions that meet the more-likely-than-not recognition threshold, the Company recognizes the largest amount of tax benefit that is more than fifty percent likely to be realized upon ultimate settlement with the related tax authority. The Company's policy is to recognize interest and penalties related to uncertain tax positions, if any, in income tax expense.</span></div><div style="text-align: justify;"> </div><div style="text-align: justify; font-size: 10pt;"><span style="text-decoration:underline"> Reclassifications</span></div> <div style="text-align: justify; font-size: 10pt;"> </div><div style="text-align: justify; font-size: 10pt;">Certain prior year amounts have been reclassified to conform to the current year presentation. These reclassifications had no effect on previously reported net loss, total assets, total liabilities, stockholders’ equity, or cash flows.</div><div style="text-align: justify; font-size: 10pt;">  </div><div style="text-align: justify;"> <span style="font-size: 10.0pt; text-decoration: underline;">Recently Issued Accounting Guidance</span> </div> <div style="text-align: justify; font-size: 10pt;"> </div> <div style="text-align: justify; font-size: 10pt;">In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. This guidance enhances disclosures about significant segment expenses and applies to entities with single reportable segments. The amendments were effective for annual periods beginning after December 15, 2023 and interim periods beginning after December 15, 2024. The Company adopted ASU 2023-07 during the year ended December 31, 2025. Adoption did not impact the Company’s determination that it operates as a single reportable segment but resulted in expanded segment-related disclosures.</div><div style="text-align: justify; font-size: 10pt;"> </div><div style="font-size : 10pt; "> In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures" ("ASU 2023-09"), which enhances the transparency and decision usefulness of income tax disclosures. Adjustments to the annual disclosure of income taxes include: (1) A tabular rate reconciliation comprised of eight specific categories, (2) Incomes taxes paid, disaggregated between significant national, state, and foreign jurisdictions, (3) Eliminates requirements to disclose the nature and estimate of reasonably possible changes to unrecognized tax benefits in the next 12 months or that an estimated range cannot be made, and (4) Adds a requirement to disclose income (or loss) from continuing operations before income tax expense (or benefit) by national and foreign, and income tax expense (or benefit) from continuing operations disaggregated between national, state and foreign. The ASU is effective for public business entities for fiscal years beginning on or after December 15, 2024 with early adoption permitted. The amendments in ASU 2023-09 were adopted by the Company on a prospective basis. There was no material impact to the Company's financial statements as a result of adopting ASU 2023-09. </div><div style="font-size : 10pt; ">In November 2024, the FASB issued ASU No. 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (“ASU 2024-03”), which requires disaggregation of certain costs and expenses, including employee compensation, and requires other improvements to disclosures. The amendments in this update are effective for annual periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027. The update may be applied on a prospective or retrospective basis. The Company is evaluating the impact of ASU 2024-03 on the Company’s notes to the consolidated financial statements. </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt; text-decoration: underline;">Organization and Business Description</span> </div><div style="text-align: justify;"> <span style="font-size: 10.0pt;">Wrap Technologies, Inc., a Delaware corporation (the “</span><span style="font-size: 10.0pt; font-style: italic;">Company</span><span style="font-size: 10.0pt;">”), is a publicly traded company with its common stock, par value $0.0001 per share (“</span><span style="font-size: 10pt;">Common Stock</span><span style="font-size: 10.0pt;">”), listed on the Nasdaq Capital Market (“</span><span style="font-size: 10.0pt; font-style: italic;">Nasdaq</span><span style="font-size: 10.0pt;">”) under the trading symbol “WRAP”. The Company is a developer and supplier of public safety products and training services for law enforcement and security personnel. The Company’s primary product is the BolaWrap® device. The principal markets for the Company’s proprietary products and services are in North and South America, Europe, the Middle East and Asia.</span> </div> 0.0001 <div style="text-align: justify;"> <span style="font-size: 10.0pt; text-decoration: underline;">Principles of Consolidation</span> </div><div style="text-align: justify;"> <span style="font-size: 10.0pt;">The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries after elimination of intercompany transactions and balances. </span> </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt; text-decoration: underline;">Basis of Presentation and Use of Estimates</span> </div><div style="text-align: justify;"> <span style="font-size: 10.0pt;">The accompanying financial statements have been prepared on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America (“</span><span style="font-size: 10.0pt; font-style: italic;">US GAAP</span><span style="font-size: 10.0pt;">”). The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions (e.g., share-based compensation valuation, allowance for doubtful accounts, valuation of inventory and intangible assets, warranty reserve, accrued costs, valuation allowance related to deferred tax assets and recognition and measurement of contingencies) that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements and affect the reported amounts of revenues and expenses during the reporting period. Actual results could materially differ from those estimates.</span> </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt; text-decoration: underline;">Basis of Presentation and Use of Estimates</span> </div><div style="text-align: justify;"> <span style="font-size: 10.0pt;">The accompanying financial statements have been prepared on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America (“</span><span style="font-size: 10.0pt; font-style: italic;">US GAAP</span><span style="font-size: 10.0pt;">”). The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions (e.g., share-based compensation valuation, allowance for doubtful accounts, valuation of inventory and intangible assets, warranty reserve, accrued costs, valuation allowance related to deferred tax assets and recognition and measurement of contingencies) that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements and affect the reported amounts of revenues and expenses during the reporting period. Actual results could materially differ from those estimates.</span> </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt; text-decoration: underline;">Concentrations of Risk</span> </div><div style="text-align: justify;"> <span style="font-size: 10.0pt; font-style: italic;">Credit Risk</span><span style="font-size: 10.0pt;"> – Financial instruments that potentially subject the Company to concentration of credit risk consisted primarily of cash, cash equivalents, US treasury bills and accounts receivable from customers. The Company maintains its cash and cash equivalent deposits at two domestic financial institutions. The Company is exposed to credit risk in the event of default by a financial institution to the extent that cash and cash equivalents are in excess of the amount insured by the Federal Deposit Insurance Corporation. The Company places its cash and cash equivalents with high-credit quality financial institutions and are managed within established guidelines to mitigate risks. To date, the Company has not experienced any losses on its cash and cash equivalents.</span> </div><div style="text-align: justify;"> <span style="font-size: 10.0pt; font-style: italic;">Concentrations of Accounts Receivable and Revenue</span><span style="font-size: 10.0pt;"> – The Company has a limited number of domestic and international customers. The Company may experience concentrations in both accounts receivable and revenue due to the timing of sales and collections of related payments (see Note 18).</span> </div><div style="text-align: justify;"> <span style="font-size: 10.0pt; font-style: italic;">Concentration of Suppliers</span><span style="font-size: 10.0pt;"> – The Company assembles its BolaWrap products in-house using components and subassemblies from a limited number of suppliers and contract suppliers. In particular, a single supplier is currently the sole manufacturer of the BolaWrap battery assembly, and another single supplier is the sole manufacturer of the propulsion component for BolaWrap cassettes. Other parts are solely sourced from other suppliers. If supplier shortages or logistic delays occur, or quality problems arise, production schedules could be significantly delayed or costs significantly increased, which could in turn have a material adverse effect on the Company’s financial condition, results of operation and cash flows.</span> </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt; text-decoration: underline;">Cash and Cash Equivalents</span> </div><div style="text-align: justify;"> <span style="font-size: 10.0pt;">The Company considers all highly liquid investments purchased with original maturities of three months or less from the purchase date to be cash equivalents. Cash equivalents consist primarily of amounts invested in Money Market Funds and US (“</span><span style="font-size: 10.0pt; font-style: italic;">US</span><span style="font-size: 10.0pt;">”) Treasury bills and are stated at fair value.</span> </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt; text-decoration: underline;">Share-Based Compensation</span> </div><div style="text-align: justify;"> <span style="font-size: 10.0pt;">The Company follows the fair value recognition provisions issued by the Financial Accounting Standards Board ("FASB") in Accounting Standards Codification ("ASC") Topic 718, Stock Compensation (“</span><span style="font-size: 10.0pt; font-style: italic;">ASC 718</span><span style="font-size: 10.0pt;">”) and has adopted Accounting Standards Update (“</span><span style="font-size: 10.0pt; font-style: italic;">ASU</span><span style="font-size: 10.0pt;">”) 2018-07 for share-based transactions with non-employees. Share-based compensation expense recognized during 2025 and 2024 includes stock option and restricted stock unit compensation expense. The grant date fair value of stock options is determined using the Black-Scholes option-pricing model. The grant date is the date at which an employer and employee or non-employee reach a mutual understanding of the key terms and conditions of a share-based payment award and approved by the Company’s Board of Directors. The Black-Scholes option-pricing model requires inputs including the market price of the Company’s Common Stock on the date of grant, the term that the stock options are expected to be outstanding, the implied stock volatilities of several publicly traded peers over the expected term of stock options, risk-free interest rate and expected dividend. Each of these inputs is subjective and generally requires significant judgment to determine. The grant date fair value of restricted stock units is based upon the market price of the Company’s Common Stock on the date of the grant. The Company determines the amount of share-based compensation expense based on awards that the Company ultimately expect to vest and account for forfeitures as they occur. The fair value of share-based compensation is amortized to compensation expense over the vesting term.</span> </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt; text-decoration: underline;">Loss per Share</span> </div><div style="text-align: justify;"> <span style="font-size: 10.0pt;">Basic loss per share (EPS) is computed by dividing net loss, less any dividends, accretion or decretion, redemption or induced conversion, if any, on the Company's Series A and Series B Convertible Preferred Stock, by the weighted average number of shares outstanding during the reported period.</span></div><div style="text-align: justify;"> <span style="font-size: 10.0pt;">In computing diluted EPS, the Company adjusts the numerator used in the basic EPS computation, subject to anti-dilution requirements, to add back the dividends (declared or cumulative undeclared) applicable to the Series A and Series B Convertible Preferred Stock. Such add-back would also include any adjustments to equity in the period to accrete the Series A and Series B Convertible Preferred Stock to their respective redemption prices, or recorded upon a redemption or induced conversion, if any. The Company adjusts the denominator used in the basic EPS computation, subject to anti-dilution requirements, to include the dilution from potential shares resulting from the issuance of the Series A and Series B Convertible Preferred Stock, restricted stock units, and stock options. Stock options and restricted stock units exercisable or issuable fo<span style="background-color: rgb(255, 255, 255);">r a total of 7,464,097 </span>and 4,932,386 shares of Common Stock were outstanding at December 31, 2025 and 2024, respectively. These securities are not included in the computation of diluted net loss per share of common stock for the years presented as their inclusion would be antidilutive due to losses incurred by the Company.</span></div> 0 4932386 <div style="text-align: justify;"> <span style="font-size: 10.0pt; text-decoration: underline;">Accounts Receivable and Allowance for Credit Losses</span> </div><div style="text-align: justify;"> <span style="font-size: 10.0pt;">ASU No. 2016-13, </span><span style="font-size: 10.0pt; font-style: italic;">Financial Instruments - Credit Losses (Topic 326)</span><span style="font-size: 10.0pt;"> requires that financial assets measured at amortized cost be presented at the net amount expected to be collected. The expected credit losses are developed using an estimated loss rate method that considers historical collection experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. The estimated loss rates are applied to accounts receivables with similar risk characteristics such as the length of time the balance has been outstanding and the location of the customer. In certain instances, the Company may identify individual accounts receivable assets that do not share risk characteristics with other accounts receivables, in which case the Company records its expected credit losses on an individual asset basis. If an accounts receivable asset is evaluated on an individual basis, the Company excludes those assets from the portfolios of accounts receivables evaluated on a collective basis.</span> </div><div style="text-align: justify;"> <span style="font-size: 10.0pt;">At December 31, 2025 and 2024, the Company had an allowance for credit losses related to accounts receivable<span style="background-color: rgb(255, 255, 255);"> of $</span></span><span style="font-size: 10pt; background-color: rgb(255, 255, 255);">119</span><span style="font-size: 10.0pt;"><span style="background-color: rgb(255, 255, 255);"> an</span>d $230, respectively. If a major customer’s creditworthiness deteriorates, or actual defaults exceed our historical experience, such estimates could change and impact our future reported financial results.</span> </div> 119000 230000 <div style="text-align: justify;"> <span style="font-size: 10.0pt; text-decoration: underline;">Inventories</span> </div><div style="text-align: justify;"> <span style="font-size: 10.0pt;">Inventories are valued at the lower of cost or net realizable value. The cost of substantially all the Company’s inventory is determined by the FIFO cost method. Inventory is comprised of raw materials, assemblies and finished products intended for sale to customers</span><span style="font-size: 10.0pt; font-style: italic;">.</span><span style="font-size: 10.0pt;"> The Company evaluates the need for reserves for excess and obsolete inventories determined primarily based upon estimates of future demand for the Company’s products.</span> </div><div style="text-align: justify;"> <span style="font-size: 10.0pt;">As of December 31, 2025 and 2024 the Company h<span style="background-color: rgb(255, 255, 255);">ad </span></span><span style="font-size: 10pt; background-color: rgb(255, 255, 255);">$516</span><span style="font-size: 10.0pt;"><span style="background-color: rgb(255, 255, 255);"> an</span>d $480 in reserves, respectively for obsolescence.</span> </div> 516000 480000 <div style="text-align: justify;"> <span style="font-size: 10.0pt; text-decoration: underline;">Property, Equipment and Depreciation</span> </div><div style="text-align: justify;"> <span style="font-size: 10.0pt;">Property and equipment are stated at cost. Depreciation on property and equipment is computed over the estimated useful lives of three years using the straight-line method. On any retirement or disposition of property and equipment, the related cost and accumulated depreciation or amortization is removed, and a gain or loss recorded.</span> </div> P3Y <div style="text-align: justify;"> <span style="font-size: 10.0pt; text-decoration: underline;">Business Combinations</span> </div><div style="text-align: justify;"> <span style="font-size: 10.0pt;">The Company accounts for its business combinations under the provisions of ASC Topic 805-10, Business Combinations ("ASC 805-10"), which requires that the purchase method of accounting be used for all business combinations. Assets acquired and liabilities assumed, including non-controlling interests, are recorded at the date of acquisition at their respective fair values. The estimated fair value of net assets acquired, including the allocation of the fair value to identifiable assets and liabilities, was determined using established valuation techniques. ASC 805-10 also specifies criteria that intangible assets acquired in a business combination must meet to be recognized and reported apart from goodwill. Goodwill represents the excess purchase price over the fair value of the tangible net assets and intangible assets acquired in a business combination. Acquisition-related expenses are recognized separately from the business combinations and are expensed as incurred.</span> </div><div style="text-align: justify;"> <span style="font-size: 10.0pt;">The estimated fair value of the acquired intangible assets was determined using a method which reflects the present value of the operating cash flows generated by this asset after taking into account the cost to realize the revenue, and an appropriate discount rate to reflect the time value and risk associated with the invested capital.</span> </div><div style="text-align: justify;"> <span style="font-size: 10.0pt;">Certain adjustments to the assessed fair values of the assets and liabilities made subsequent to the acquisition date, but within the measurement period, which is up to one year, are recorded as adjustments to goodwill. Any adjustments subsequent to the measurement period are recorded in income.</span> </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt; text-decoration: underline;">Goodwill</span> </div><div style="text-align: justify;"> <span style="font-size: 10.0pt;">Goodwill represents the difference, if any, between the aggregate consideration paid for an acquisition and the fair values of the underlying net assets and liabilities assumed from an acquired business. Goodwill is not amortized but instead is tested for impairment. The Company tests goodwill for impairment on an annual basis during the fourth quarter, or more frequently if conditions indicate that such impairment could exist. The Company evaluates qualitative factors to determine if it is more likely than not that the fair value of a reporting unit is less than its carrying value and whether it is necessary to perform goodwill impairment process.</span> </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt; text-decoration: underline;">Definite-lived Intangible Assets</span> </div><div style="text-align: justify;"> <span style="font-size: 10.0pt;">Definite-lived intangible assets represent certain trade names, patents, licenses, software, acquired technology and customer relationships. Definite-lived intangible assets are recorded at cost less any accumulated amortization and accumulated impairment losses, if any. Definite-lived intangible assets acquired through the business combination are measured at fair value at the acquisition date. The Company amortizes these acquired definite-lived intangibles assets with a finite life on a straight-line basis, over 6 years for technology; 7 years for customer relationships; and 8 years for trademarks and trade names.</span> </div> P6Y P7Y P8Y <div style="text-align: justify;"> <span style="font-size: 10.0pt; text-decoration: underline;">Intangible Assets</span> </div><div style="text-align: justify;"> <span style="font-size: 10.0pt;">Intangible assets consist of (a) capitalized legal fees and filing costs related to obtaining patents and trademarks, (b) tradenames and software, (c) purchased software, and (d) the purchase cost of indefinite-lived website domains. The estimated useful lives of identifiable intangible assets with definite useful lives have been estimated to be between one and twenty years. Purchased website domain costs with an indefinite useful life are not subject to amortization, but are subject to an annual impairment test, by comparing their carrying amount with their corresponding fair value. For any given intangible asset with an indefinite useful life, if its fair value exceeds its carrying amount no impairment loss shall be recognized.</span> </div><div style="text-align: justify;"> <span style="font-size: 10.0pt;">The carrying value of intangibles is periodically reviewed and impairments, if any, are recognized when the future undiscounted cash flows realized from the assets is less than its carrying value.</span> </div> P1Y P20Y <div style="text-align: justify;"> <span style="font-size: 10.0pt; text-decoration: underline;">Impairment of Long-Lived Assets</span> </div><div style="text-align: justify;"> <span style="font-size: 10.0pt;">Long-lived assets and identifiable intangibles held for use are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If the sum of undiscounted expected future cash flows is less than the carrying amount of the asset or if changes in facts and circumstances indicate, an impairment loss is recognized and measured using the asset’s fair value. </span></div><div style="text-align: justify;"><span style="font-size: 10.0pt;">In December 2024, the Company determined that the assessment of the Intrensic unit’s fair value indicated that its carrying value exceeded its fair value by $1,631 and therefore the Company recorded a $1,631 impairment charge related to the goodwill initially recorded from the acquisition.</span> </div><div style="text-align: justify; font-size: 10pt;">During the year ended December 31, 2025, the Company recorded impairment charges of $588 related to certain purchased software and technology and customer relationship intangible assets. These impairment charges were primarily the result of revisions to projected future operating results and cash flows associated with these assets, which indicated that their carrying amounts were not recoverable.</div> 1631000 1631000 false 588000 <div style="text-align: justify;"> <span style="font-size: 10.0pt; text-decoration: underline;">Warrants</span> </div><div style="text-align: justify;"> <span style="font-size: 10.0pt;">The Company accounts for warrants as liability-classified instruments based on an assessment of the warrant’s specific terms and applicable authoritative guidance in </span><span style="font-size: 10pt;">FASB ASC</span><span style="font-size: 10.0pt;"> 480, Distinguishing Liabilities from Equity (“</span><span style="font-size: 10.0pt; font-style: italic;">ASC</span><span style="font-size: 10.0pt;"> 480”) and ASC 815, Derivatives and Hedging (“</span><span style="font-size: 10.0pt; font-style: italic;">ASC</span><span style="font-size: 10.0pt;"> 815”). The assessment considers whether the warrants are freestanding financial instruments pursuant to ASC 480, meet the definition of a liability pursuant to ASC 480, and whether the warrants meet all of the requirements for equity classification under ASC 815, including whether the warrants are indexed to the Company’s own Common Stock and whether the warrant holders could potentially require “net cash settlement” in a circumstance outside of the Company’s control, among other conditions for equity classification. This assessment, which requires the use of professional judgment, is conducted at the time of warrant issuance and as of each subsequent quarterly period end date while the warrants are outstanding.</span> </div><div style="text-align: justify;"> <span style="font-size: 10.0pt;">For issued warrants that do not meet all the criteria for equity classification, the warrants are required to be recorded at their initial fair value on the date of issuance, and each balance sheet date thereafter. The Company accounts for the warrants issued in accordance with the guidance contained in ASC 815-40-15-7C, under which the warrants do not meet the criteria for equity treatment and must be recorded as liabilities. Accordingly, the Company classifies the warrants as liabilities at their fair value and adjusts the warrants to fair value at each reporting period. This liability is subject to re-measurement at each balance sheet date until exercised, and any change in fair value is recognized in the Company’s consolidated statement of operations.</span> </div><div style="text-align: justify;"> <span style="font-size: 10.0pt;">On June 30, 2025, the Company entered into the Series A Warrant Amendment (as defined herein) and the 2025 Warrant Amendment (as defined herein). As a result, the Series A Warrants (as defined herein) and the PIPE Warrants (as defined herein), each satisfy the requirements outlined in ASC 815-10-15-74(a)(1) and in ASC 815-10-15-74(a)(2). Under ASC 815-40-35-10, the amended instruments qualify for equity-classification on a prospective basis. The effective date of the relating reclassification from warrant liabilities to additional paid-in capital was June 30, 2025. See Footnote 10: Warrants for additional detail.</span> </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt; text-decoration: underline;">Series A Preferred Stock</span></div><div style="text-align: justify;"> <span style="font-size: 10.0pt;">The Company evaluates and accounts for conversion options embedded in its convertible instruments in accordance with ASC 480 and ASC 815 to determine if those instruments or embedded components of those instruments qualify as derivatives and are subject to bifurcation accounting. The Company determines that the economic characteristics and risks of the embedded derivative instrument are clearly and closely related to the economic characteristics and risks of the host contract. The convertible instruments are accounted for as a single hybrid instrument. Additionally, the convertible instruments do not have any redemption features that would preclude permanent equity classification in accordance with the guidance contained in ASC 480-10-S99.</span> </div><div style="text-align: justify;"> <span style="font-size: 10.0pt;">The Company issued the Series A Warrants (as defined herein), which are classified as liabilities and measured at fair value on a recurring basis, and the Company's Series A Convertible Preferred Stock, par value $0.0001 per share (the “Series A Preferred Stock”) in one transaction. The proceeds from the issuances were allocated by using the with and-without method. Under this method, the Company first allocated the proceeds to the Series A Warrants based on their initial fair value measurement and then allocated the remaining proceeds to the Series A Preferred Stock. On June 30, 2025, the Company and holders of the Series A Warrants amended the Series A Warrants, which allowed the Company to account for the Series A Warrants as equity under ASC 480 and a reclassification was recorded from warrant liability to additional paid-in-capital.</span> </div> 0.0001 <div style="text-align: justify;"> <span style="font-size: 10.0pt; text-decoration: underline;">Advertising and Promotion Costs</span> </div><div style="text-align: justify;"> <span style="font-size: 10.0pt;">Advertising costs are charged to expense as incurred and we<span style="background-color: rgb(255, 255, 255);">re </span></span><span style="font-size: 10pt; background-color: rgb(255, 255, 255);">$384</span><span style="font-size: 10.0pt;"> and $575 for the years ended December 31, 2025 and 2024, respectively. The Company also incurred product promotion costs for demonstration products delivered to prospective customers <span style="background-color: rgb(255, 255, 255);">of </span></span><span style="font-size: 10pt; background-color: rgb(255, 255, 255);">$45</span><span style="font-size: 10.0pt;"><span style="background-color: rgb(255, 255, 255);"> </span>and $129 for the years ended December 31, 2025 and 2024, respectively. Advertising and promotion costs are included in selling, general and administrative expenses in the accompanying statements of operations.</span> </div> 384000 575000 45000 129000 <div style="text-align: justify;"> <span style="font-size: 10.0pt; text-decoration: underline;">Demonstration and Training Costs</span> </div><div style="text-align: justify;"> <span style="font-size: 10.0pt;">The Company maintains a demonstration and training department as a part of its sales and marketing activities and does not charge for product demonstrations or training. Training is not a condition or requirement of sale as most sales are made through distributors to their end customers. The Company conducts local and regional in-person, webinar and on-line demonstrations and use of force and escalation training to support law enforcement agencies with no purchase requirement. Such training, when provided, may occur before or after initial or subsequent purchase or field deployment of the Company’s products. The Company believes that law enforcement trainers and officers that have seen demonstrations or have been trained about its products are more supportive of their departments purchase and deployment of product.</span> </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt; text-decoration: underline;">Research and Development Costs</span> </div><div style="text-align: justify;"> <span style="font-size: 10.0pt;">Research and development costs are expensed as incurred.</span> </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt; text-decoration: underline;">Contract Manufacturers</span> </div><div style="text-align: justify;"> <span style="font-size: 10.0pt;">The Company employs contract manufacturers for production of certain components and sub-assemblies. The Company may provide parts and components to such parties from time to time but recognizes no revenue or markup on such transactions.</span> </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt; text-decoration: underline;">Leases</span> </div><div style="text-align: justify;"> <span style="font-size: 10.0pt;">The Company adopted ASC Topic 842, Leases (“</span><span style="font-size: 10.0pt; font-style: italic;">Topic 842</span><span style="font-size: 10.0pt;">”) on January 1, 2019. In accordance with the guidance in Topic 842, the Company recognizes lease liabilities and corresponding right-of-use assets for all leases with terms of greater than 12 months. Leases with a term of 12 months or less will be accounted for in a manner similar to the guidance for operating leases prior to the adoption of Topic 842. Refer to Note 9, Leases for more information.</span> </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt; text-decoration: underline;">Revenue Recognition</span> </div><div style="text-align: justify;"> <span style="font-size: 10.0pt;">The Company adopted ASC Topic 606, Revenue from Contracts with Customers on January 1, 2018. The Company enters into contracts that include various combinations of products, accessories, software and services, each of which are generally distinct and are accounted for as separate performance obligations. Product sales include BolaWrap products and accessories. Other revenue includes VR revenues, professional service, training and shipping revenues.</span> </div><div style="text-align: justify;"> <span style="font-size: 10.0pt;">The timing of revenue recognition may differ from the timing of invoicing to customers. The Company generally has an unconditional right to consideration when customers are invoiced, and a receivable is recorded. A contract asset is recognized when revenue is recognized prior to invoicing, or a contract liability (deferred revenue) when revenue will be recognized subsequent to invoicing. The Company recognizes an asset if there are incremental costs of obtaining a contract with a customer such as commissions. These costs are ascribed to or allocated to the underlying performance obligations in the contract. The Company may receive consideration, per terms of a contract, from customers prior to transferring goods to the customer. The Company records customer deposits as a contract liability. Additionally, the Company may receive payments, most typically for service and warranty contracts, at the onset of the contract and before the services have been performed. In such instances, a deferred revenue liability is recorded. The Company recognizes these contract liabilities as revenue after all revenue recognition criteria are met.</span> </div><div style="text-align: justify;"> <span style="font-size: 10.0pt;">Estimated costs for the Company’s standard warranty, generally one-year, are charged to cost of products sold when revenue is recorded for the related product. Royalties are also charged to cost of products sold.</span> </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt; text-decoration: underline;">Shipping and Handling Costs</span> </div><div style="text-align: justify;"> <span style="font-size: 10.0pt;">Shipping and handling costs are included in cost of revenues. Shipping and handling costs invoiced to customers are included in revenue. Actual shipping and handling costs wer<span style="background-color: rgb(255, 255, 255);">e </span></span><span style="font-size: 10pt; background-color: rgb(255, 255, 255);">$33</span><span style="font-size: 10.0pt;"><span style="background-color: rgb(255, 255, 255);"> and</span> $125 for the years ended December 31, 2025 and 2024, respectively. Actual revenues from shipping and handling we<span style="background-color: rgb(255, 255, 255);">re </span></span><span style="font-size: 10pt; background-color: rgb(255, 255, 255);">$24</span><span style="font-size: 10.0pt;"><span style="background-color: rgb(255, 255, 255);"> and $</span>73 for the years ended December 31, 2025 and 2024, respectively.</span> </div> 33000 125000 24000 73000 <div style="text-align: justify;"> <span style="font-size: 10.0pt; text-decoration: underline;">Warranty Reserves</span> </div><div style="text-align: justify;"> <span style="font-size: 10.0pt;">The Company warrants its products and accessories to be free from defects in materials and workmanship for a period of one year from the date of purchase. The warranty is generally limited. The Company currently provides direct warranty service. International market warranties are generally similar to the US market.</span> </div><div style="text-align: justify;"> <span style="font-size: 10.0pt;">The Company establishes a warranty reserve based on anticipated warranty claims at the time product revenues are recognized. Factors affecting warranty reserve levels include the number of units sold, anticipated cost of warranty repairs and anticipated rates of warranty claims. The Company evaluates the adequacy of the provision for warranty costs each reporting period. The warranty reserve was<span style="background-color: rgb(255, 255, 255);"> </span></span><span style="font-size: 10pt; background-color: rgb(255, 255, 255);">$30</span><span style="font-size: 10.0pt;"><span style="background-color: rgb(255, 255, 255);"> and $</span>83 at December 31, 2025 and 2024, respectively. Actual warranty costs could differ from estimates.</span> </div> 30000 83000 <div style="text-align: justify;"> <span style="font-size: 10.0pt; text-decoration: underline;">Segment Information</span> </div><div style="text-align: justify;"> <span style="font-size: 10.0pt;">The Company operates as a single operating and reportable segment in accordance with ASC 280, Segment Reporting<i>.</i> The Company’s Chief Operating Decision Maker (“CODM”) is its Chief Executive Officer. The CODM reviews financial information on a consolidated basis for purposes of evaluating financial performance and allocating resources. Resource allocation decisions are primarily based on consolidated operating results, cash flows, liquidity, and overall strategic priorities rather than discrete financial information at a product line, geography, or functional level. </span></div><div style="text-align: justify;"><span style="font-size: 10.0pt;">While the Company monitors certain operating metrics, including revenue by product line and other operational data, such information is used for operational oversight, forecasting, and strategic planning and is not used by the CODM to assess segment performance or to allocate resources among components of the business. The Company’s operations are managed on an integrated basis, with shared sales channels, manufacturing, research and development, and administrative functions. As a result, discrete financial information at a level below the consolidated financial statements is not regularly reviewed by the CODM for purposes of allocating resources or assessing performance. </span></div><div style="text-align: justify;"><span style="font-size: 10.0pt;">The Company does not present disaggregated segment profit or loss, assets, or other segment-level information, as such information is not used by the CODM in managing the business. Accordingly, the Company has determined that it operates as one operating segment and one reportable segment. The Company has provided the required entity-wide disclosures in accordance with ASC 280. Major Customers and Related Information for further discussion.</span> </div> 1 1 <div style="text-align: justify;"> <span style="font-size: 10.0pt; text-decoration: underline;">Income Taxes</span> </div><div style="text-align: justify;"> <span style="font-size: 10.0pt;">The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. The Company measures deferred tax assets and liabilities using the enacted tax rates for the years and jurisdictions in which the temporary differences are expected to be recovered. A change to the tax rates used to measure the Company’s deferred taxes is recognized in income during the period in which the new rate(s) were enacted.</span> </div><div style="text-align: justify;"> <span style="font-size: 10.0pt;">The Company recognizes deferred tax assets to the extent the Company’s assets are more likely than not to be realized. In making such a determination, the Company considers all available positive and negative evidence, including the future reversals of existing taxable temporary differences, projected future taxable income exclusive of reversing temporary differences and carryforwards, tax-planning strategies, taxable income in prior carryback years if permitted under tax law, and the results from prior years. If the Company determines it is more likely than not that all or a portion of a deferred tax asset will not be realized a valuation allowance is recorded with a charge to income tax expense. Alternatively, if the Company determines that all or a portion of a deferred tax asset previously not meeting the more likely than not threshold will be realized, the Company reduces its valuation allowance and recognizes a benefit in income tax expense.</span> </div><div style="text-align: justify;"> <span style="font-size: 10.0pt;">The Company recognizes and measure uncertain tax benefits in accordance with ASC 740 based on a two-step process in which (1) the Company determines whether it is more likely than not that the tax position will be sustained based on the technical merits of the position, and (2) for those tax positions that meet the more-likely-than-not recognition threshold, the Company recognizes the largest amount of tax benefit that is more than fifty percent likely to be realized upon ultimate settlement with the related tax authority. The Company's policy is to recognize interest and penalties related to uncertain tax positions, if any, in income tax expense.</span></div> <div style="text-align: justify;"> <span style="font-size: 10.0pt; text-decoration: underline;">Recently Issued Accounting Guidance</span> </div><div style="text-align: justify; font-size: 10pt;">In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. This guidance enhances disclosures about significant segment expenses and applies to entities with single reportable segments. The amendments were effective for annual periods beginning after December 15, 2023 and interim periods beginning after December 15, 2024. The Company adopted ASU 2023-07 during the year ended December 31, 2025. Adoption did not impact the Company’s determination that it operates as a single reportable segment but resulted in expanded segment-related disclosures.</div><div style="font-size : 10pt; "> In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures" ("ASU 2023-09"), which enhances the transparency and decision usefulness of income tax disclosures. Adjustments to the annual disclosure of income taxes include: (1) A tabular rate reconciliation comprised of eight specific categories, (2) Incomes taxes paid, disaggregated between significant national, state, and foreign jurisdictions, (3) Eliminates requirements to disclose the nature and estimate of reasonably possible changes to unrecognized tax benefits in the next 12 months or that an estimated range cannot be made, and (4) Adds a requirement to disclose income (or loss) from continuing operations before income tax expense (or benefit) by national and foreign, and income tax expense (or benefit) from continuing operations disaggregated between national, state and foreign. The ASU is effective for public business entities for fiscal years beginning on or after December 15, 2024 with early adoption permitted. The amendments in ASU 2023-09 were adopted by the Company on a prospective basis. There was no material impact to the Company's financial statements as a result of adopting ASU 2023-09. </div><div style="font-size : 10pt; ">In November 2024, the FASB issued ASU No. 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (“ASU 2024-03”), which requires disaggregation of certain costs and expenses, including employee compensation, and requires other improvements to disclosures. The amendments in this update are effective for annual periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027. The update may be applied on a prospective or retrospective basis. The Company is evaluating the impact of ASU 2024-03 on the Company’s notes to the consolidated financial statements. </div> <div style="margin-left: 0.5pt;"> <span style="font-size: 10.0pt; color: #000000; font-weight: bold;">2. REVENUES AND PRODUCT COSTS</span> </div> <div style="font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">Revenues consist of product revenue and other revenue. Product sales include BolaWrap products and accessories. Other revenue includes VR revenues, professional service, training and shipping revenues.</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">The table below details the activity in our contract liabilities during the year ended December 31, 2025.</span> </div> <div style="font-size: 10pt;">  </div> <table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr style="height: 0px; font-size: 0px;"><td style="font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 9%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 9%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td></tr><tr><td style="font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="Note 2 - D65"> </td><td style="font-weight: bold; text-align: center; width: 9%; font-size: 10pt;">Customer</td><td style="width: 1%; font-size: 10pt;" title="Note 2 - D65"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="Note 2 - F65"> </td><td style="font-weight: bold; text-align: center; width: 9%; font-size: 10pt;">Deferred</td><td style="width: 1%; font-size: 10pt;" title="Note 2 - F65"> </td></tr><tr><td style="font-size: 10pt;"> </td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="Note 2 - D66"> </td><td style="font-weight: bold; text-align: center; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 9%; font-size: 10pt;">Deposits</td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="Note 2 - D66"> </td><td style="font-size: 10pt;"> </td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="Note 2 - F66"> </td><td style="font-weight: bold; text-align: center; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 9%; font-size: 10pt;">Revenue</td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="Note 2 - F66"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">Balance at January 1, 2025</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="Note 2 - D67">$</td><td style="width: 9%; text-align: right; font-size: 10pt;">27</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="Note 2 - D67"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="Note 2 - F67">$</td><td style="width: 9%; text-align: right; font-size: 10pt;">505</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="Note 2 - F67"> </td></tr><tr><td style="font-size: 10pt;">Additions, net</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="Note 2 - D68"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">34</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="Note 2 - D68"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="Note 2 - F68"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">717</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="Note 2 - F68"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">Transfer to revenue</td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="Note 2 - D69"> </td><td style="width: 9%; text-align: right; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;">-</td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="Note 2 - D69"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="Note 2 - F69"> </td><td style="width: 9%; text-align: right; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;">(800</td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="Note 2 - F69">) </td></tr><tr><td style="font-size: 10pt;">Balance at December 31, 2025</td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="Note 2 - D70">$</td><td style="width: 9%; text-align: right; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;">62</td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="Note 2 - D70"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="Note 2 - F70">$</td><td style="width: 9%; text-align: right; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;">422</td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="Note 2 - F70"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">Current portion</td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="Note 2 - D71">$</td><td style="width: 9%; text-align: right; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;">62</td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="Note 2 - D71"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="Note 2 - F71">$</td><td style="width: 9%; text-align: right; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;">408</td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="Note 2 - F71"> </td></tr><tr><td style="font-size: 10pt;">Long-term portion</td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="Note 2 - D72">$</td><td style="width: 9%; text-align: right; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;">-</td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="Note 2 - D72"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="Note 2 - F72">$</td><td style="width: 9%; text-align: right; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;">14</td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="Note 2 - F72"> </td></tr></table><div style="font-size: 10pt;"> </div><div style="text-align: justify;"> <span style="font-size: 10.0pt;">As of December 31, 2025, the Company’s deferred rev<span style="background-color: rgb(255, 255, 255);">enue of $</span></span><span style="background-color: rgb(255, 255, 255);"><span style="font-size: 10pt;">422</span><span style="font-size: 10.0pt;"> consisted of $</span><span style="font-size: 10pt;">12</span><span style="font-size: 10.0pt;"> related to BolaWrap extended warranties and software, </span><span style="font-size: 10pt;">$25</span><span style="font-size: 10.0pt;"> related to Wrap Ready, </span><span style="font-size: 10pt;">$339</span><span style="font-size: 10.0pt;"> related to Intrensic extended warranties and services, </span><span style="font-size: 10pt;">$30</span><span style="font-size: 10.0pt;"> related to VR, and </span><span style="font-size: 10pt;">$16</span></span><span style="font-size: 10.0pt;"><span style="background-color: rgb(255, 255, 255);"> rela</span>ted to training.</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">As of December 31, 2024, the Company’s deferred revenue of $505 consisted of $76 related to BolaWrap extended warranties and software, $352 related to Intrensic extended warranties and services, $73 related to VR, and $4 related to training.</span> </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">The table below details the activity in our contract liabilities during the year ended December 31, 2025.</span> </div> <div style="font-size: 10pt;">  </div> <table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr style="height: 0px; font-size: 0px;"><td style="font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 9%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 9%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td></tr><tr><td style="font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="Note 2 - D65"> </td><td style="font-weight: bold; text-align: center; width: 9%; font-size: 10pt;">Customer</td><td style="width: 1%; font-size: 10pt;" title="Note 2 - D65"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="Note 2 - F65"> </td><td style="font-weight: bold; text-align: center; width: 9%; font-size: 10pt;">Deferred</td><td style="width: 1%; font-size: 10pt;" title="Note 2 - F65"> </td></tr><tr><td style="font-size: 10pt;"> </td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="Note 2 - D66"> </td><td style="font-weight: bold; text-align: center; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 9%; font-size: 10pt;">Deposits</td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="Note 2 - D66"> </td><td style="font-size: 10pt;"> </td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="Note 2 - F66"> </td><td style="font-weight: bold; text-align: center; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 9%; font-size: 10pt;">Revenue</td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="Note 2 - F66"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">Balance at January 1, 2025</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="Note 2 - D67">$</td><td style="width: 9%; text-align: right; font-size: 10pt;">27</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="Note 2 - D67"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="Note 2 - F67">$</td><td style="width: 9%; text-align: right; font-size: 10pt;">505</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="Note 2 - F67"> </td></tr><tr><td style="font-size: 10pt;">Additions, net</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="Note 2 - D68"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">34</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="Note 2 - D68"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="Note 2 - F68"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">717</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="Note 2 - F68"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">Transfer to revenue</td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="Note 2 - D69"> </td><td style="width: 9%; text-align: right; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;">-</td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="Note 2 - D69"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="Note 2 - F69"> </td><td style="width: 9%; text-align: right; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;">(800</td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="Note 2 - F69">) </td></tr><tr><td style="font-size: 10pt;">Balance at December 31, 2025</td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="Note 2 - D70">$</td><td style="width: 9%; text-align: right; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;">62</td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="Note 2 - D70"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="Note 2 - F70">$</td><td style="width: 9%; text-align: right; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;">422</td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="Note 2 - F70"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">Current portion</td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="Note 2 - D71">$</td><td style="width: 9%; text-align: right; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;">62</td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="Note 2 - D71"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="Note 2 - F71">$</td><td style="width: 9%; text-align: right; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;">408</td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="Note 2 - F71"> </td></tr><tr><td style="font-size: 10pt;">Long-term portion</td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="Note 2 - D72">$</td><td style="width: 9%; text-align: right; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;">-</td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="Note 2 - D72"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="Note 2 - F72">$</td><td style="width: 9%; text-align: right; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;">14</td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="Note 2 - F72"> </td></tr></table> 27000 505000 34000 717000 0 -800000 62000 422000 62000 408000 0 14000 422000 12000 25000 339000 30000 16000 505000 76000 352000 73000 4000 <div style="margin-left: 0.5pt;"> <span style="font-size: 10.0pt; color: #000000; font-weight: bold;">3. ASSET ACQUISITIONS</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">On February 18, 2025, the Company entered into an Asset Purchase Agreement with W1 Global, LLC (“W1”), pursuant to which the Company acquired substantially all of the assets used in, held for use in, or relating to W1’s advisory and investigative professional services business associated with specific identified customer contracts. The transaction was accounted for as an asset acquisition in accordance with ASC 805. As a result of the transaction, the Company recorded approximately $58 of customer relationship intangible assets, which were included within Customer Relationships (see Note 7, Intangible Assets). The customer relationships were initially assigned an estimated useful life of three years. During the third quarter of 2025, management performed an evaluation of the acquired assets in connection with a strategic realignment of the Company’s managed services offerings. Based on this evaluation, the Company determined that certain investigative services acquired from W1 were no longer aligned with the Company’s strategic objectives. Accordingly, the Company recorded an impairment charge of $48 related to customer relationship intangible assets during the year ended December 31, 2025. Following this evaluation, the Company continues to focus its managed services efforts on policy governance and training services in support of its broader go-to-market strategy.</span></div> 58000 P3Y 48000 <div style="margin-left: 0.5pt;"> <span style="font-size: 10.0pt; color: #000000; font-weight: bold;">4. FINANCIAL INSTRUMENTS</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">Assets and liabilities recorded at fair value on a recurring basis in the Consolidated Balance Sheets and assets and liabilities measured at fair value on a non-recurring basis or disclosed at fair value, are categorized based upon the level of judgment associated with inputs used to measure their fair values. The accounting guidance for fair value provides a framework for measuring fair value and requires certain disclosures about how fair value is determined. Fair value is defined as the price that would be received upon the sale of an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. The accounting guidance also establishes a three-level valuation hierarchy that prioritizes the inputs to valuation techniques used to measure fair value based upon whether such inputs are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect market assumptions made by the reporting entity. The three-level hierarchy for the inputs to valuation techniques is briefly summarized as follows:</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt; font-style: italic;">Level 1</span><span style="font-size: 10.0pt;">—Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date;</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt; font-style: italic;">Level 2</span><span style="font-size: 10.0pt;">—Inputs are observable, unadjusted quoted prices in active markets for similar assets or liabilities, unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities; and</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt; font-style: italic;">Level 3</span><span style="font-size: 10.0pt;">—Unobservable inputs that are significant to the measurement of the fair value of the assets or liabilities that are supported by little or no market data.</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">The Company’s short-term investments consisting of US Treasury bill securities and Certificate of Deposits are classified as Level 1 because they are valued using quoted market prices.</span> </div> <div style="font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">The following table shows the Company’s short-term investments by significant investment category as of December 31, 2025 and 2024.</span> </div> <div style="font-size: 10pt;"> </div> <table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr style="height: 0px; font-size: 0px;"><td style="font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 9%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 9%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 9%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 9%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td></tr><tr><td style="font-size: 10pt;"> </td><td colspan="15" style="text-align: center; border-bottom: 1.11111px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-weight: bold; font-size: 10pt;">As of December 31, 2025</td></tr><tr><td style="font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - C5"> </td><td style="text-align: center; font-weight: bold; width: 9%; font-size: 10pt;">Adjusted</td><td style="width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - C5"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - E5"> </td><td style="text-align: center; font-weight: bold; width: 9%; font-size: 10pt;">Unrealized</td><td style="width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - E5"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - G5"> </td><td style="text-align: center; font-weight: bold; width: 9%; font-size: 10pt;">Unrealized </td><td style="width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - G5"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - I5"> </td><td style="text-align: center; font-weight: bold; width: 9%; font-size: 10pt;">Market</td><td style="width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - I5"> </td></tr><tr><td style="font-size: 10pt;"> </td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - C6"> </td><td style="text-align: center; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-weight: bold; width: 9%; font-size: 10pt;"> Cost</td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - C6"> </td><td style="font-size: 10pt;"> </td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - E6"> </td><td style="text-align: center; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-weight: bold; width: 9%; font-size: 10pt;"> Gains</td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - E6"> </td><td style="font-size: 10pt;"> </td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - G6"> </td><td style="text-align: center; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-weight: bold; width: 9%; font-size: 10pt;"> Losses</td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - G6"> </td><td style="font-size: 10pt;"> </td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - I6"> </td><td style="text-align: center; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-weight: bold; width: 9%; font-size: 10pt;"> Value</td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - I6"> </td></tr><tr><td style="font-size: 10pt;">Level 1:</td><td style="width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - C7"> </td><td style="width: 9%; font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - C7"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - E7"> </td><td style="width: 9%; font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - E7"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - G7"> </td><td style="width: 9%; font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - G7"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - I7"> </td><td style="width: 9%; font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - I7"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">Money Market Funds </td><td style="text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - C8">$</td><td style="text-align: right; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 9%; font-size: 10pt;">639</td><td style="text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - C8"> </td><td style="font-size: 10pt;"> </td><td style="text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - E8">$</td><td style="text-align: right; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 9%; font-size: 10pt;">-</td><td style="text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - E8"> </td><td style="font-size: 10pt;"> </td><td style="text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - G8">$</td><td style="text-align: right; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 9%; font-size: 10pt;">-</td><td style="text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - G8"> </td><td style="font-size: 10pt;"> </td><td style="text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - I8">$</td><td style="text-align: right; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 9%; font-size: 10pt;">639</td><td style="text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - I8"> </td></tr><tr><td style="font-size: 10pt;">Total Financial Assets</td><td style="text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - C9">$</td><td style="text-align: right; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 9%; font-size: 10pt;">639</td><td style="text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - C9"> </td><td style="font-size: 10pt;"> </td><td style="text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - E9">$</td><td style="text-align: right; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 9%; font-size: 10pt;">-</td><td style="text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - E9"> </td><td style="font-size: 10pt;"> </td><td style="text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - G9">$</td><td style="text-align: right; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 9%; font-size: 10pt;">-</td><td style="text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - G9"> </td><td style="font-size: 10pt;"> </td><td style="text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - I9">$</td><td style="text-align: right; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 9%; font-size: 10pt;">639</td><td style="text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - I9"> </td></tr></table><div style="font-size: 10pt;"> </div> <div style="font-size: 10pt;"> </div><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr style="height: 0px; font-size: 0px;"><td style="font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 9%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 9%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 9%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 9%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td></tr><tr><td style="font-size: 10pt;"> </td><td colspan="15" style="text-align: center; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-weight: bold; font-size: 10pt;">As of December 31, 2024</td></tr><tr><td style="font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - C12"> </td><td style="width: 9%; text-align: center; font-weight: bold; font-size: 10pt;">Adjusted</td><td style="width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - C12"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - E12"> </td><td style="width: 9%; text-align: center; font-weight: bold; font-size: 10pt;">Unrealized</td><td style="width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - E12"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - G12"> </td><td style="width: 9%; text-align: center; font-weight: bold; font-size: 10pt;">Unrealized </td><td style="width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - G12"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - I12"> </td><td style="width: 9%; text-align: center; font-weight: bold; font-size: 10pt;">Market</td><td style="width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - I12"> </td></tr><tr><td style="font-size: 10pt;"> </td><td style="width: 1%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="FN 4 Financial Instruments - C13"> </td><td style="width: 9%; text-align: center; font-weight: bold; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;"> Cost</td><td style="width: 1%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="FN 4 Financial Instruments - C13"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="FN 4 Financial Instruments - E13"> </td><td style="width: 9%; text-align: center; font-weight: bold; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;"> Gains</td><td style="width: 1%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="FN 4 Financial Instruments - E13"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="FN 4 Financial Instruments - G13"> </td><td style="width: 9%; text-align: center; font-weight: bold; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;"> Losses</td><td style="width: 1%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="FN 4 Financial Instruments - G13"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="FN 4 Financial Instruments - I13"> </td><td style="width: 9%; text-align: center; font-weight: bold; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;"> Value</td><td style="width: 1%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="FN 4 Financial Instruments - I13"> </td></tr><tr><td style="font-size: 10pt;">Level 1:</td><td style="width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - C14"> </td><td style="width: 9%; font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - C14"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - E14"> </td><td style="width: 9%; font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - E14"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - G14"> </td><td style="width: 9%; font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - G14"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - I14"> </td><td style="width: 9%; font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - I14"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">Money Market Funds </td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="FN 4 Financial Instruments - C15">$</td><td style="width: 9%; text-align: right; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;">631</td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="FN 4 Financial Instruments - C15"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="FN 4 Financial Instruments - E15">$</td><td style="width: 9%; text-align: right; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;">-</td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="FN 4 Financial Instruments - E15"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="FN 4 Financial Instruments - G15">$</td><td style="width: 9%; text-align: right; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;">-</td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="FN 4 Financial Instruments - G15"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="FN 4 Financial Instruments - I15">$</td><td style="width: 9%; text-align: right; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;">631</td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="FN 4 Financial Instruments - I15"> </td></tr><tr><td style="font-size: 10pt;">Total Financial Assets</td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="FN 4 Financial Instruments - C16">$</td><td style="width: 9%; text-align: right; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;">631</td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="FN 4 Financial Instruments - C16"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="FN 4 Financial Instruments - E16">$</td><td style="width: 9%; text-align: right; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;">-</td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="FN 4 Financial Instruments - E16"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="FN 4 Financial Instruments - G16">$</td><td style="width: 9%; text-align: right; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;">-</td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="FN 4 Financial Instruments - G16"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="FN 4 Financial Instruments - I16">$</td><td style="width: 9%; text-align: right; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;">631</td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="FN 4 Financial Instruments - I16"> </td></tr></table><div style="font-size: 10pt;"> </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">The warrant liabilities as of December 31, 2024 are measured at fair value on a recurring basis. The subsequent measurement of the warrant liabilities  is classified as Level 3 due to the use of an observable market quote in a non-active market and the management’s assumption of the expected stock price volatility. During the year ended December 2025, the warrant liability was reclassified to equity due to an amendment of the warrant agreement.</span></div><div style="font-size: 10pt;">The following table presents the fair value in the beginning of the period, the changes in the fair value, and the fair value at the end of the period of warrant liabilities:</div><div style="font-size: 10pt;"> </div><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr style="height: 0px; font-size: 0px;"><td style="font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 9%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 9%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td></tr><tr><td style="font-size: 10pt;">Level 3:</td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - C21"> </td><td style="text-align: center; font-weight: bold; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 9%; font-size: 10pt;">December 31, 2025</td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - C21"> </td><td style="font-size: 10pt;"> </td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - E21"> </td><td style="text-align: center; font-weight: bold; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 9%; font-size: 10pt;">December 31, 2024</td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - E21"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">Fair value at inceptions for December 31, 2024 or the beginning of the period for December 31, 2025</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - C22">$</td><td style="width: 9%; text-align: right; font-size: 10pt;">(10,131</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - C22">) </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - E22">$</td><td style="width: 9%; text-align: right; font-size: 10pt;">(19,703</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - E22">) </td></tr><tr><td style="font-size: 10pt; padding-left: 10px;"> Warrants issued with Private Placement</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - C23"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">(5,178</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - C23">) </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - E23"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">-</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - E23"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt; padding-left: 10px;"> Change in fair value of warrant liabilities</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - C24"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">3,158</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - C24"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - E24"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">9,572</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - E24"> </td></tr><tr><td style="font-size: 10pt; padding-left: 10px;"> Reclassification of warrant liabilities to equity</td><td style="width: 1%; text-align: left; border-top: none; border-left: none; border-right: none; border-bottom: 1px solid rgb(0, 0, 0); font-size: 10pt;" title="FN 4 Financial Instruments - C25"> </td><td style="width: 9%; text-align: right; border-left: none; border-right: none; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; font-size: 10pt;">12,151</td><td style="width: 1%; text-align: left; border-top: none; border-right: none; border-bottom: 1px solid rgb(0, 0, 0); border-left: none; font-size: 10pt;" title="FN 4 Financial Instruments - C25"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; border-left: none; border-right: none; border-top: none; border-bottom: 1px solid rgb(0, 0, 0); font-size: 10pt;" title="FN 4 Financial Instruments - E25"> </td><td style="width: 9%; text-align: right; border-left: none; border-right: none; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; font-size: 10pt;">-</td><td style="width: 1%; text-align: left; border-top: none; border-right: none; border-bottom: 1px solid rgb(0, 0, 0); border-left: none; font-size: 10pt;" title="FN 4 Financial Instruments - E25"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">Fair value as of period end</td><td style="width: 1%; text-align: left; border-top: none; border-left: none; border-right: none; border-bottom: 3px double rgb(0, 0, 0); font-size: 10pt;" title="FN 4 Financial Instruments - C26">$</td><td style="width: 9%; text-align: right; border-left: none; border-right: none; border-bottom: 3px double rgb(0, 0, 0); border-top: none; font-size: 10pt;">-</td><td style="width: 1%; text-align: left; border-top: none; border-right: none; border-bottom: 3px double rgb(0, 0, 0); border-left: none; font-size: 10pt;" title="FN 4 Financial Instruments - C26"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; border-left: none; border-right: none; border-top: none; border-bottom: 3px double rgb(0, 0, 0); font-size: 10pt;" title="FN 4 Financial Instruments - E26">$</td><td style="width: 9%; text-align: right; border-left: none; border-right: none; border-bottom: 3px double rgb(0, 0, 0); border-top: none; font-size: 10pt;">(10,131</td><td style="width: 1%; text-align: left; border-top: none; border-right: none; border-bottom: 3px double rgb(0, 0, 0); border-left: none; font-size: 10pt;" title="FN 4 Financial Instruments - E26">) </td></tr></table><div style="font-size: 10pt;"> </div> <table cellpadding="0" style="font-size: 12pt; ; border-spacing: 0px;"><tr><td style="font-size: 10pt;">MONTE CARLO SIMULATION MODEL - SERIES A WARRANTS</td><td></td></tr></table><div style="text-align: justify; font-size: 10pt;"> </div><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr style="height: 0px; font-size: 0px;"><td style="font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 9%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td></tr><tr><td style="font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - C31"> </td><td style="text-align: center; font-weight: bold; width: 9%; font-size: 10pt;">As of </td><td style="width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - C31"> </td></tr><tr><td style="font-size: 10pt;"> </td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - C32"> </td><td style="text-align: center; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-weight: bold; width: 9%; font-size: 10pt;">June 30, 2025</td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - C32"> </td></tr><tr><td style="font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - C33"> </td><td style="text-align: center; width: 9%; font-style: italic; font-size: 10pt;">Reclassification Date</td><td style="width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - C33"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">Expected stock price volatility</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - C34"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">86</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - C34">%</td></tr><tr><td style="font-size: 10pt;">Risk-free interest rate</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - C35"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">3.73</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - C35">%</td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">Dividends yield</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - C36"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">0</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - C36">%</td></tr><tr><td style="font-size: 10pt;">Terms (years)</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - C37"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">4.5</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - C37"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">Strike Price</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - C38">$</td><td style="width: 9%; text-align: right; font-size: 10pt;">1.45</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - C38"> </td></tr><tr><td style="font-size: 10pt;">Stock Price</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - C39">$</td><td style="width: 9%; text-align: right; font-size: 10pt;">1.56</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - C39"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">Fair Value Per Warrant Share</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - C40">$</td><td style="width: 9%; text-align: right; font-size: 10pt;">1.235</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - C40"> </td></tr></table><div style="text-align: justify; font-size: 10pt;"> </div><table cellpadding="0" style="font-size: 12pt; ; border-spacing: 0px;"><tr><td style="font-size: 10pt;">MONTE CARLO SIMULATION MODEL - FEBRUARY 2025 WARRANTS</td><td></td></tr></table><div style="text-align: justify; font-size: 10pt;"> </div><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr style="height: 0px; font-size: 0px;"><td style="font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 9%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td></tr><tr><td style="font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - C44"> </td><td style="text-align: center; font-weight: bold; width: 9%; font-size: 10pt;">As of </td><td style="width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - C44"> </td></tr><tr><td style="font-size: 10pt;"> </td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - C45"> </td><td style="text-align: center; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-weight: bold; width: 9%; font-size: 10pt;">June 30, 2025</td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - C45"> </td></tr><tr><td style="font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - C46"> </td><td style="text-align: center; width: 9%; font-style: italic; font-size: 10pt;">Reclassification Date</td><td style="width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - C46"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">Expected stock price volatility</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - C47"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">89</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - C47">%</td></tr><tr><td style="font-size: 10pt;">Risk-free interest rate</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - C48"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">3.77</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - C48">%</td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">Dividends yield</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - C49"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">0</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - C49">%</td></tr><tr><td style="font-size: 10pt;">Terms (years)</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - C50"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">5.15</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - C50"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">Strike Price</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - C51">$</td><td style="width: 9%; text-align: right; font-size: 10pt;">1.80</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - C51"> </td></tr><tr><td style="font-size: 10pt;">Stock Price</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - C52">$</td><td style="width: 9%; text-align: right; font-size: 10pt;">1.56</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - C52"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">Fair Value Per Warrant Share</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - C53">$</td><td style="width: 9%; text-align: right; font-size: 10pt;">1.132</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - C53"> </td></tr></table><div style="text-align: justify; font-size: 10pt;"> </div> <table style="font-size: 10pt; font-weight: 400; letter-spacing: normal; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; border-spacing: 0px; border-collapse: collapse;"><tr style="vertical-align: top; height: 14.25pt;"><td style="padding: 0.75pt 0.75pt 0px; width: 600pt; vertical-align: bottom; text-align: justify;"><span>The following table summarizes the assumptions used under the Black-Scholes model to compute the fair value of the Company's warrants:</span></td><td style="padding: 0.75pt 0.75pt 0px; width: 92.25pt; vertical-align: bottom;"> </td></tr></table> <div> </div><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr style="height: 0px; font-size: 0px;"><td style="font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 9%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td></tr><tr><td style="font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - C58"> </td><td style="text-align: center; font-weight: bold; width: 9%; font-size: 10pt;">As of </td><td style="width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - C58"> </td></tr><tr><td style="font-size: 10pt;"> </td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - C59"> </td><td style="text-align: center; font-weight: bold; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 9%; font-size: 10pt;">December 31, 2024</td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - C59"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">Expected stock price volatility</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - C60"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">88</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - C60">%</td></tr><tr><td style="font-size: 10pt;">Risk-free interest rate</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - C61"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">4.25</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - C61">%</td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">Dividends yield</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - C62"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">0</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - C62">%</td></tr><tr><td style="font-size: 10pt;">Weighted average expected life of warrants (years)</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - C63"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">3.5</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - C63"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">Weighted average exercise price</td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="FN 4 Financial Instruments - C64">$</td><td style="width: 9%; text-align: right; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;">1.45</td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="FN 4 Financial Instruments - C64"> </td></tr></table><div style="font-size: 10pt;"> </div><div style="text-align: justify;"> <span style="font-size: 10.0pt;">Our other financial instruments also include accounts receivable, accounts payable, accrued liabilities and business acquisition liabilities. Due to the short-term nature of these instruments, their fair values approximate their carrying values on the balance sheet.</span> </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">The following table shows the Company’s short-term investments by significant investment category as of December 31, 2025 and 2024.</span> </div> <div style="font-size: 10pt;"> </div> <table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr style="height: 0px; font-size: 0px;"><td style="font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 9%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 9%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 9%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 9%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td></tr><tr><td style="font-size: 10pt;"> </td><td colspan="15" style="text-align: center; border-bottom: 1.11111px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-weight: bold; font-size: 10pt;">As of December 31, 2025</td></tr><tr><td style="font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - C5"> </td><td style="text-align: center; font-weight: bold; width: 9%; font-size: 10pt;">Adjusted</td><td style="width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - C5"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - E5"> </td><td style="text-align: center; font-weight: bold; width: 9%; font-size: 10pt;">Unrealized</td><td style="width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - E5"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - G5"> </td><td style="text-align: center; font-weight: bold; width: 9%; font-size: 10pt;">Unrealized </td><td style="width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - G5"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - I5"> </td><td style="text-align: center; font-weight: bold; width: 9%; font-size: 10pt;">Market</td><td style="width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - I5"> </td></tr><tr><td style="font-size: 10pt;"> </td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - C6"> </td><td style="text-align: center; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-weight: bold; width: 9%; font-size: 10pt;"> Cost</td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - C6"> </td><td style="font-size: 10pt;"> </td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - E6"> </td><td style="text-align: center; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-weight: bold; width: 9%; font-size: 10pt;"> Gains</td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - E6"> </td><td style="font-size: 10pt;"> </td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - G6"> </td><td style="text-align: center; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-weight: bold; width: 9%; font-size: 10pt;"> Losses</td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - G6"> </td><td style="font-size: 10pt;"> </td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - I6"> </td><td style="text-align: center; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-weight: bold; width: 9%; font-size: 10pt;"> Value</td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - I6"> </td></tr><tr><td style="font-size: 10pt;">Level 1:</td><td style="width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - C7"> </td><td style="width: 9%; font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - C7"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - E7"> </td><td style="width: 9%; font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - E7"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - G7"> </td><td style="width: 9%; font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - G7"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - I7"> </td><td style="width: 9%; font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - I7"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">Money Market Funds </td><td style="text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - C8">$</td><td style="text-align: right; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 9%; font-size: 10pt;">639</td><td style="text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - C8"> </td><td style="font-size: 10pt;"> </td><td style="text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - E8">$</td><td style="text-align: right; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 9%; font-size: 10pt;">-</td><td style="text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - E8"> </td><td style="font-size: 10pt;"> </td><td style="text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - G8">$</td><td style="text-align: right; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 9%; font-size: 10pt;">-</td><td style="text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - G8"> </td><td style="font-size: 10pt;"> </td><td style="text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - I8">$</td><td style="text-align: right; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 9%; font-size: 10pt;">639</td><td style="text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - I8"> </td></tr><tr><td style="font-size: 10pt;">Total Financial Assets</td><td style="text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - C9">$</td><td style="text-align: right; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 9%; font-size: 10pt;">639</td><td style="text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - C9"> </td><td style="font-size: 10pt;"> </td><td style="text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - E9">$</td><td style="text-align: right; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 9%; font-size: 10pt;">-</td><td style="text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - E9"> </td><td style="font-size: 10pt;"> </td><td style="text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - G9">$</td><td style="text-align: right; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 9%; font-size: 10pt;">-</td><td style="text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - G9"> </td><td style="font-size: 10pt;"> </td><td style="text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - I9">$</td><td style="text-align: right; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 9%; font-size: 10pt;">639</td><td style="text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - I9"> </td></tr></table><div style="font-size: 10pt;"> </div> <div style="font-size: 10pt;"> </div><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr style="height: 0px; font-size: 0px;"><td style="font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 9%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 9%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 9%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 9%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td></tr><tr><td style="font-size: 10pt;"> </td><td colspan="15" style="text-align: center; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-weight: bold; font-size: 10pt;">As of December 31, 2024</td></tr><tr><td style="font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - C12"> </td><td style="width: 9%; text-align: center; font-weight: bold; font-size: 10pt;">Adjusted</td><td style="width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - C12"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - E12"> </td><td style="width: 9%; text-align: center; font-weight: bold; font-size: 10pt;">Unrealized</td><td style="width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - E12"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - G12"> </td><td style="width: 9%; text-align: center; font-weight: bold; font-size: 10pt;">Unrealized </td><td style="width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - G12"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - I12"> </td><td style="width: 9%; text-align: center; font-weight: bold; font-size: 10pt;">Market</td><td style="width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - I12"> </td></tr><tr><td style="font-size: 10pt;"> </td><td style="width: 1%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="FN 4 Financial Instruments - C13"> </td><td style="width: 9%; text-align: center; font-weight: bold; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;"> Cost</td><td style="width: 1%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="FN 4 Financial Instruments - C13"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="FN 4 Financial Instruments - E13"> </td><td style="width: 9%; text-align: center; font-weight: bold; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;"> Gains</td><td style="width: 1%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="FN 4 Financial Instruments - E13"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="FN 4 Financial Instruments - G13"> </td><td style="width: 9%; text-align: center; font-weight: bold; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;"> Losses</td><td style="width: 1%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="FN 4 Financial Instruments - G13"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="FN 4 Financial Instruments - I13"> </td><td style="width: 9%; text-align: center; font-weight: bold; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;"> Value</td><td style="width: 1%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="FN 4 Financial Instruments - I13"> </td></tr><tr><td style="font-size: 10pt;">Level 1:</td><td style="width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - C14"> </td><td style="width: 9%; font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - C14"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - E14"> </td><td style="width: 9%; font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - E14"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - G14"> </td><td style="width: 9%; font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - G14"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - I14"> </td><td style="width: 9%; font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - I14"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">Money Market Funds </td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="FN 4 Financial Instruments - C15">$</td><td style="width: 9%; text-align: right; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;">631</td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="FN 4 Financial Instruments - C15"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="FN 4 Financial Instruments - E15">$</td><td style="width: 9%; text-align: right; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;">-</td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="FN 4 Financial Instruments - E15"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="FN 4 Financial Instruments - G15">$</td><td style="width: 9%; text-align: right; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;">-</td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="FN 4 Financial Instruments - G15"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="FN 4 Financial Instruments - I15">$</td><td style="width: 9%; text-align: right; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;">631</td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="FN 4 Financial Instruments - I15"> </td></tr><tr><td style="font-size: 10pt;">Total Financial Assets</td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="FN 4 Financial Instruments - C16">$</td><td style="width: 9%; text-align: right; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;">631</td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="FN 4 Financial Instruments - C16"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="FN 4 Financial Instruments - E16">$</td><td style="width: 9%; text-align: right; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;">-</td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="FN 4 Financial Instruments - E16"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="FN 4 Financial Instruments - G16">$</td><td style="width: 9%; text-align: right; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;">-</td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="FN 4 Financial Instruments - G16"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="FN 4 Financial Instruments - I16">$</td><td style="width: 9%; text-align: right; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;">631</td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="FN 4 Financial Instruments - I16"> </td></tr></table> 639000 0 0 639000 639000 0 0 639000 631000 0 0 631000 631000 0 0 631000 <div style="font-size: 10pt;">The following table presents the fair value in the beginning of the period, the changes in the fair value, and the fair value at the end of the period of warrant liabilities:</div><div style="font-size: 10pt;"> </div><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr style="height: 0px; font-size: 0px;"><td style="font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 9%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 9%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td></tr><tr><td style="font-size: 10pt;">Level 3:</td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - C21"> </td><td style="text-align: center; font-weight: bold; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 9%; font-size: 10pt;">December 31, 2025</td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - C21"> </td><td style="font-size: 10pt;"> </td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - E21"> </td><td style="text-align: center; font-weight: bold; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 9%; font-size: 10pt;">December 31, 2024</td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - E21"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">Fair value at inceptions for December 31, 2024 or the beginning of the period for December 31, 2025</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - C22">$</td><td style="width: 9%; text-align: right; font-size: 10pt;">(10,131</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - C22">) </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - E22">$</td><td style="width: 9%; text-align: right; font-size: 10pt;">(19,703</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - E22">) </td></tr><tr><td style="font-size: 10pt; padding-left: 10px;"> Warrants issued with Private Placement</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - C23"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">(5,178</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - C23">) </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - E23"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">-</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - E23"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt; padding-left: 10px;"> Change in fair value of warrant liabilities</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - C24"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">3,158</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - C24"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - E24"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">9,572</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - E24"> </td></tr><tr><td style="font-size: 10pt; padding-left: 10px;"> Reclassification of warrant liabilities to equity</td><td style="width: 1%; text-align: left; border-top: none; border-left: none; border-right: none; border-bottom: 1px solid rgb(0, 0, 0); font-size: 10pt;" title="FN 4 Financial Instruments - C25"> </td><td style="width: 9%; text-align: right; border-left: none; border-right: none; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; font-size: 10pt;">12,151</td><td style="width: 1%; text-align: left; border-top: none; border-right: none; border-bottom: 1px solid rgb(0, 0, 0); border-left: none; font-size: 10pt;" title="FN 4 Financial Instruments - C25"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; border-left: none; border-right: none; border-top: none; border-bottom: 1px solid rgb(0, 0, 0); font-size: 10pt;" title="FN 4 Financial Instruments - E25"> </td><td style="width: 9%; text-align: right; border-left: none; border-right: none; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; font-size: 10pt;">-</td><td style="width: 1%; text-align: left; border-top: none; border-right: none; border-bottom: 1px solid rgb(0, 0, 0); border-left: none; font-size: 10pt;" title="FN 4 Financial Instruments - E25"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">Fair value as of period end</td><td style="width: 1%; text-align: left; border-top: none; border-left: none; border-right: none; border-bottom: 3px double rgb(0, 0, 0); font-size: 10pt;" title="FN 4 Financial Instruments - C26">$</td><td style="width: 9%; text-align: right; border-left: none; border-right: none; border-bottom: 3px double rgb(0, 0, 0); border-top: none; font-size: 10pt;">-</td><td style="width: 1%; text-align: left; border-top: none; border-right: none; border-bottom: 3px double rgb(0, 0, 0); border-left: none; font-size: 10pt;" title="FN 4 Financial Instruments - C26"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; border-left: none; border-right: none; border-top: none; border-bottom: 3px double rgb(0, 0, 0); font-size: 10pt;" title="FN 4 Financial Instruments - E26">$</td><td style="width: 9%; text-align: right; border-left: none; border-right: none; border-bottom: 3px double rgb(0, 0, 0); border-top: none; font-size: 10pt;">(10,131</td><td style="width: 1%; text-align: left; border-top: none; border-right: none; border-bottom: 3px double rgb(0, 0, 0); border-left: none; font-size: 10pt;" title="FN 4 Financial Instruments - E26">) </td></tr></table> 10131000 19703000 -5178000 0 3158000 9572000 12151000 0 0 10131000 <table cellpadding="0" style="font-size: 12pt; ; border-spacing: 0px;"><tr><td style="font-size: 10pt;">MONTE CARLO SIMULATION MODEL - SERIES A WARRANTS</td><td></td></tr></table><div style="text-align: justify; font-size: 10pt;"> </div><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr style="height: 0px; font-size: 0px;"><td style="font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 9%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td></tr><tr><td style="font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - C31"> </td><td style="text-align: center; font-weight: bold; width: 9%; font-size: 10pt;">As of </td><td style="width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - C31"> </td></tr><tr><td style="font-size: 10pt;"> </td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - C32"> </td><td style="text-align: center; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-weight: bold; width: 9%; font-size: 10pt;">June 30, 2025</td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - C32"> </td></tr><tr><td style="font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - C33"> </td><td style="text-align: center; width: 9%; font-style: italic; font-size: 10pt;">Reclassification Date</td><td style="width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - C33"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">Expected stock price volatility</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - C34"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">86</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - C34">%</td></tr><tr><td style="font-size: 10pt;">Risk-free interest rate</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - C35"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">3.73</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - C35">%</td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">Dividends yield</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - C36"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">0</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - C36">%</td></tr><tr><td style="font-size: 10pt;">Terms (years)</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - C37"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">4.5</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - C37"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">Strike Price</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - C38">$</td><td style="width: 9%; text-align: right; font-size: 10pt;">1.45</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - C38"> </td></tr><tr><td style="font-size: 10pt;">Stock Price</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - C39">$</td><td style="width: 9%; text-align: right; font-size: 10pt;">1.56</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - C39"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">Fair Value Per Warrant Share</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - C40">$</td><td style="width: 9%; text-align: right; font-size: 10pt;">1.235</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - C40"> </td></tr></table><div style="text-align: justify; font-size: 10pt;"> </div><table cellpadding="0" style="font-size: 12pt; ; border-spacing: 0px;"><tr><td style="font-size: 10pt;">MONTE CARLO SIMULATION MODEL - FEBRUARY 2025 WARRANTS</td><td></td></tr></table><div style="text-align: justify; font-size: 10pt;"> </div><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr style="height: 0px; font-size: 0px;"><td style="font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 9%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td></tr><tr><td style="font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - C44"> </td><td style="text-align: center; font-weight: bold; width: 9%; font-size: 10pt;">As of </td><td style="width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - C44"> </td></tr><tr><td style="font-size: 10pt;"> </td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - C45"> </td><td style="text-align: center; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-weight: bold; width: 9%; font-size: 10pt;">June 30, 2025</td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - C45"> </td></tr><tr><td style="font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - C46"> </td><td style="text-align: center; width: 9%; font-style: italic; font-size: 10pt;">Reclassification Date</td><td style="width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - C46"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">Expected stock price volatility</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - C47"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">89</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - C47">%</td></tr><tr><td style="font-size: 10pt;">Risk-free interest rate</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - C48"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">3.77</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - C48">%</td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">Dividends yield</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - C49"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">0</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - C49">%</td></tr><tr><td style="font-size: 10pt;">Terms (years)</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - C50"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">5.15</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - C50"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">Strike Price</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - C51">$</td><td style="width: 9%; text-align: right; font-size: 10pt;">1.80</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - C51"> </td></tr><tr><td style="font-size: 10pt;">Stock Price</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - C52">$</td><td style="width: 9%; text-align: right; font-size: 10pt;">1.56</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - C52"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">Fair Value Per Warrant Share</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - C53">$</td><td style="width: 9%; text-align: right; font-size: 10pt;">1.132</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - C53"> </td></tr></table><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr style="height: 0px; font-size: 0px;"><td style="font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 9%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td></tr><tr><td style="font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - C58"> </td><td style="text-align: center; font-weight: bold; width: 9%; font-size: 10pt;">As of </td><td style="width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - C58"> </td></tr><tr><td style="font-size: 10pt;"> </td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - C59"> </td><td style="text-align: center; font-weight: bold; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 9%; font-size: 10pt;">December 31, 2024</td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 4 Financial Instruments - C59"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">Expected stock price volatility</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - C60"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">88</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - C60">%</td></tr><tr><td style="font-size: 10pt;">Risk-free interest rate</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - C61"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">4.25</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - C61">%</td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">Dividends yield</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - C62"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">0</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - C62">%</td></tr><tr><td style="font-size: 10pt;">Weighted average expected life of warrants (years)</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - C63"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">3.5</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 4 Financial Instruments - C63"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">Weighted average exercise price</td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="FN 4 Financial Instruments - C64">$</td><td style="width: 9%; text-align: right; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;">1.45</td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="FN 4 Financial Instruments - C64"> </td></tr></table> 86 3.73 0 4.5 1.45 1.56 1.235 89 3.77 0 5.15 1.8 1.56 1.132 88 4.25 0 3.5 1.45 <div style="margin-left: 0.5pt;"> <span style="font-size: 10.0pt; color: #000000; font-weight: bold;">5. INVENTORIES</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">Inventory is recorded at the lower of cost or net realizable value. The cost of substantially all the Company’s inventory is determined by the weighted average cost method. Inventories consisted of the following:</span> </div> <div style="font-size: 10pt;"> </div><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr style="height: 0px; font-size: 0px;"><td style="font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 9%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 9%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td></tr><tr><td style="font-size: 10pt;"> </td><td colspan="7" style="text-align: center; font-weight: bold; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;">December 31,</td></tr><tr><td style="font-size: 10pt;"> </td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 5 Inventory - C7"> </td><td style="text-align: center; font-weight: bold; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 9%; font-size: 10pt;">2025</td><td style="width: 1%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="FN 5 Inventory - C7"> </td><td style="font-size: 10pt;"> </td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 5 Inventory - E7"> </td><td style="text-align: center; font-weight: bold; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 9%; font-size: 10pt;">2024</td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 5 Inventory - E7"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">Finished goods</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 5 Inventory - C8">$</td><td style="width: 9%; text-align: right; font-size: 10pt;">3,509</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 5 Inventory - C8"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 5 Inventory - E8">$</td><td style="width: 9%; text-align: right; font-size: 10pt;">4,387</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 5 Inventory - E8"> </td></tr><tr><td style="font-size: 10pt;">Raw materials</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 5 Inventory - C9"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">1,978</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 5 Inventory - C9"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 5 Inventory - E9"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">2,263</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 5 Inventory - E9"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">Reserve for Obsolescence</td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 1px solid black;" title="FN 5 Inventory - C10"> </td><td style="width: 9%; text-align: right; font-size: 10pt; border-bottom: 1px solid black;">(516</td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 1px solid black;" title="FN 5 Inventory - C10">) </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; font-size: 10pt;" title="FN 5 Inventory - E10"> </td><td style="width: 9%; text-align: right; border-bottom: 1px solid black; font-size: 10pt;">(480</td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; font-size: 10pt;" title="FN 5 Inventory - E10">) </td></tr><tr><td style="font-size: 10pt;">Inventories - net</td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 3px double black;" title="FN 5 Inventory - C11">$</td><td style="width: 9%; text-align: right; font-size: 10pt; border-bottom: 3px double black;">4,971</td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 3px double black;" title="FN 5 Inventory - C11"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; border-bottom: 3px double black; font-size: 10pt;" title="FN 5 Inventory - E11">$</td><td style="width: 9%; text-align: right; border-bottom: 3px double black; font-size: 10pt;">6,170</td><td style="width: 1%; text-align: left; border-bottom: 3px double black; font-size: 10pt;" title="FN 5 Inventory - E11"> </td></tr></table> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">Inventory is recorded at the lower of cost or net realizable value. The cost of substantially all the Company’s inventory is determined by the weighted average cost method. Inventories consisted of the following:</span> </div> <div style="font-size: 10pt;"> </div><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr style="height: 0px; font-size: 0px;"><td style="font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 9%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 9%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td></tr><tr><td style="font-size: 10pt;"> </td><td colspan="7" style="text-align: center; font-weight: bold; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;">December 31,</td></tr><tr><td style="font-size: 10pt;"> </td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 5 Inventory - C7"> </td><td style="text-align: center; font-weight: bold; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 9%; font-size: 10pt;">2025</td><td style="width: 1%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="FN 5 Inventory - C7"> </td><td style="font-size: 10pt;"> </td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 5 Inventory - E7"> </td><td style="text-align: center; font-weight: bold; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 9%; font-size: 10pt;">2024</td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 5 Inventory - E7"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">Finished goods</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 5 Inventory - C8">$</td><td style="width: 9%; text-align: right; font-size: 10pt;">3,509</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 5 Inventory - C8"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 5 Inventory - E8">$</td><td style="width: 9%; text-align: right; font-size: 10pt;">4,387</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 5 Inventory - E8"> </td></tr><tr><td style="font-size: 10pt;">Raw materials</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 5 Inventory - C9"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">1,978</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 5 Inventory - C9"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 5 Inventory - E9"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">2,263</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 5 Inventory - E9"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">Reserve for Obsolescence</td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 1px solid black;" title="FN 5 Inventory - C10"> </td><td style="width: 9%; text-align: right; font-size: 10pt; border-bottom: 1px solid black;">(516</td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 1px solid black;" title="FN 5 Inventory - C10">) </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; font-size: 10pt;" title="FN 5 Inventory - E10"> </td><td style="width: 9%; text-align: right; border-bottom: 1px solid black; font-size: 10pt;">(480</td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; font-size: 10pt;" title="FN 5 Inventory - E10">) </td></tr><tr><td style="font-size: 10pt;">Inventories - net</td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 3px double black;" title="FN 5 Inventory - C11">$</td><td style="width: 9%; text-align: right; font-size: 10pt; border-bottom: 3px double black;">4,971</td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 3px double black;" title="FN 5 Inventory - C11"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; border-bottom: 3px double black; font-size: 10pt;" title="FN 5 Inventory - E11">$</td><td style="width: 9%; text-align: right; border-bottom: 3px double black; font-size: 10pt;">6,170</td><td style="width: 1%; text-align: left; border-bottom: 3px double black; font-size: 10pt;" title="FN 5 Inventory - E11"> </td></tr></table> 3509000 4387000 1978000 2263000 516000 480000 4971000 6170000 <div style="margin-left: 0.5pt;"> <span style="font-size: 10.0pt; color: #000000; font-weight: bold;">6. PROPERTY AND EQUIPMENT</span> </div> <div style="font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">Property and equipment consisted of the following:</span> </div> <div style="font-size: 10pt;"> </div><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr style="height: 0px; font-size: 0px;"><td style="font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 9%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 9%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td></tr><tr><td style="font-size: 10pt;"> </td><td colspan="7" style="text-align: center; font-weight: bold; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;"> December 31,</td></tr><tr><td style="font-size: 10pt;"> </td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 6 Property and Equipment, Net - H36"> </td><td style="text-align: center; font-weight: bold; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 9%; font-size: 10pt;">2025</td><td style="width: 1%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="FN 6 Property and Equipment, Net - H36"> </td><td style="font-size: 10pt;"> </td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 6 Property and Equipment, Net - J36"> </td><td style="text-align: center; font-weight: bold; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 9%; font-size: 10pt;">2024</td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 6 Property and Equipment, Net - J36"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">Production and lab equipment</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 6 Property and Equipment, Net - H37">$</td><td style="width: 9%; text-align: right; font-size: 10pt;">391</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 6 Property and Equipment, Net - H37"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 6 Property and Equipment, Net - J37">$</td><td style="width: 9%; text-align: right; font-size: 10pt;">432</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 6 Property and Equipment, Net - J37"> </td></tr><tr><td style="font-size: 10pt;">Tooling</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 6 Property and Equipment, Net - H38"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">570</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 6 Property and Equipment, Net - H38"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 6 Property and Equipment, Net - J38"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">570</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 6 Property and Equipment, Net - J38"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">Computer equipment</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 6 Property and Equipment, Net - H39"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">183</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 6 Property and Equipment, Net - H39"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 6 Property and Equipment, Net - J39"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">229</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 6 Property and Equipment, Net - J39"> </td></tr><tr><td style="font-size: 10pt;">Furniture, fixtures and improvements</td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; font-size: 10pt;" title="FN 6 Property and Equipment, Net - H40"> </td><td style="width: 9%; text-align: right; border-bottom: 1px solid black; font-size: 10pt;">81</td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; font-size: 10pt;" title="FN 6 Property and Equipment, Net - H40"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; font-size: 10pt;" title="FN 6 Property and Equipment, Net - J40"> </td><td style="width: 9%; text-align: right; border-bottom: 1px solid black; font-size: 10pt;">120</td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; font-size: 10pt;" title="FN 6 Property and Equipment, Net - J40"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 6 Property and Equipment, Net - H41"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">1,225</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 6 Property and Equipment, Net - H41"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 6 Property and Equipment, Net - J41"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">1,351</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 6 Property and Equipment, Net - J41"> </td></tr><tr><td style="font-size: 10pt;">Accumulated depreciation</td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; font-size: 10pt;" title="FN 6 Property and Equipment, Net - H42"> </td><td style="width: 9%; text-align: right; border-bottom: 1px solid black; font-size: 10pt;">(1,102</td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; font-size: 10pt;" title="FN 6 Property and Equipment, Net - H42">) </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; font-size: 10pt;" title="FN 6 Property and Equipment, Net - J42"> </td><td style="width: 9%; text-align: right; border-bottom: 1px solid black; font-size: 10pt;">(1,205</td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; font-size: 10pt;" title="FN 6 Property and Equipment, Net - J42">) </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">Property and equipment, net</td><td style="width: 1%; text-align: left; border-bottom: 3px double black; font-size: 10pt;" title="FN 6 Property and Equipment, Net - H43">$</td><td style="width: 9%; text-align: right; border-bottom: 3px double black; font-size: 10pt;">123</td><td style="width: 1%; text-align: left; border-bottom: 3px double black; font-size: 10pt;" title="FN 6 Property and Equipment, Net - H43"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; border-bottom: 3px double black; font-size: 10pt;" title="FN 6 Property and Equipment, Net - J43">$</td><td style="width: 9%; text-align: right; border-bottom: 3px double black; font-size: 10pt;">146</td><td style="width: 1%; text-align: left; border-bottom: 3px double black; font-size: 10pt;" title="FN 6 Property and Equipment, Net - J43"> </td></tr></table><div style="font-size: 10pt;"> </div><div style="text-align: justify;"> <span style="font-size: 10.0pt;">Depreciation expense was<span style="background-color: rgb(255, 255, 255);"> $</span></span><span style="font-size: 10pt; background-color: rgb(255, 255, 255);">113</span><span style="font-size: 10.0pt;"><span style="background-color: rgb(255, 255, 255);"> </span>and $377 for the years ended December 31, 2025 and 2024, respectively.</span> </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">Property and equipment consisted of the following:</span> </div> <div style="font-size: 10pt;"> </div><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr style="height: 0px; font-size: 0px;"><td style="font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 9%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 9%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td></tr><tr><td style="font-size: 10pt;"> </td><td colspan="7" style="text-align: center; font-weight: bold; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;"> December 31,</td></tr><tr><td style="font-size: 10pt;"> </td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 6 Property and Equipment, Net - H36"> </td><td style="text-align: center; font-weight: bold; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 9%; font-size: 10pt;">2025</td><td style="width: 1%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="FN 6 Property and Equipment, Net - H36"> </td><td style="font-size: 10pt;"> </td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 6 Property and Equipment, Net - J36"> </td><td style="text-align: center; font-weight: bold; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 9%; font-size: 10pt;">2024</td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 6 Property and Equipment, Net - J36"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">Production and lab equipment</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 6 Property and Equipment, Net - H37">$</td><td style="width: 9%; text-align: right; font-size: 10pt;">391</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 6 Property and Equipment, Net - H37"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 6 Property and Equipment, Net - J37">$</td><td style="width: 9%; text-align: right; font-size: 10pt;">432</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 6 Property and Equipment, Net - J37"> </td></tr><tr><td style="font-size: 10pt;">Tooling</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 6 Property and Equipment, Net - H38"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">570</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 6 Property and Equipment, Net - H38"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 6 Property and Equipment, Net - J38"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">570</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 6 Property and Equipment, Net - J38"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">Computer equipment</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 6 Property and Equipment, Net - H39"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">183</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 6 Property and Equipment, Net - H39"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 6 Property and Equipment, Net - J39"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">229</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 6 Property and Equipment, Net - J39"> </td></tr><tr><td style="font-size: 10pt;">Furniture, fixtures and improvements</td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; font-size: 10pt;" title="FN 6 Property and Equipment, Net - H40"> </td><td style="width: 9%; text-align: right; border-bottom: 1px solid black; font-size: 10pt;">81</td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; font-size: 10pt;" title="FN 6 Property and Equipment, Net - H40"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; font-size: 10pt;" title="FN 6 Property and Equipment, Net - J40"> </td><td style="width: 9%; text-align: right; border-bottom: 1px solid black; font-size: 10pt;">120</td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; font-size: 10pt;" title="FN 6 Property and Equipment, Net - J40"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 6 Property and Equipment, Net - H41"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">1,225</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 6 Property and Equipment, Net - H41"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 6 Property and Equipment, Net - J41"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">1,351</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 6 Property and Equipment, Net - J41"> </td></tr><tr><td style="font-size: 10pt;">Accumulated depreciation</td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; font-size: 10pt;" title="FN 6 Property and Equipment, Net - H42"> </td><td style="width: 9%; text-align: right; border-bottom: 1px solid black; font-size: 10pt;">(1,102</td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; font-size: 10pt;" title="FN 6 Property and Equipment, Net - H42">) </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; font-size: 10pt;" title="FN 6 Property and Equipment, Net - J42"> </td><td style="width: 9%; text-align: right; border-bottom: 1px solid black; font-size: 10pt;">(1,205</td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; font-size: 10pt;" title="FN 6 Property and Equipment, Net - J42">) </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">Property and equipment, net</td><td style="width: 1%; text-align: left; border-bottom: 3px double black; font-size: 10pt;" title="FN 6 Property and Equipment, Net - H43">$</td><td style="width: 9%; text-align: right; border-bottom: 3px double black; font-size: 10pt;">123</td><td style="width: 1%; text-align: left; border-bottom: 3px double black; font-size: 10pt;" title="FN 6 Property and Equipment, Net - H43"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; border-bottom: 3px double black; font-size: 10pt;" title="FN 6 Property and Equipment, Net - J43">$</td><td style="width: 9%; text-align: right; border-bottom: 3px double black; font-size: 10pt;">146</td><td style="width: 1%; text-align: left; border-bottom: 3px double black; font-size: 10pt;" title="FN 6 Property and Equipment, Net - J43"> </td></tr></table> 391000 432000 570000 570000 183000 229000 81000 120000 1225000 1351000 1102000 1205000 123000 146000 113000 377000 <div style="margin-left: 0.5pt;"> <span style="font-size: 10.0pt; color: #000000; font-weight: bold;">7. INTANGIBLE ASSETS </span> </div> <div style="font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt; font-weight: bold;">Intangible Assets</span> </div> <div style="font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">Intangible assets consisted of the following:</span> </div> <div style="font-size: 10pt;">  </div> <table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr><td style="font-size: 10pt;"> </td><td style="width: 1%;"></td><td colspan="1" style="text-align: center; font-weight: bold; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt; width: 9%;">December 31, 2025</td><td style="width: 1%;"></td><td style="text-align: center; font-weight: bold; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;"></td><td style="text-align: center; font-weight: bold; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt; width: 1%;" title="FN 7 Intangible Rollforward Q4 - C3"> </td><td style="text-align: center; font-weight: bold; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt; width: 9%;">December 31, 2024</td><td style="text-align: center; font-weight: bold; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt; width: 1%;" title="FN 7 Intangible Rollforward Q4 - C3"> </td></tr><tr><td style="font-size: 10pt;">Amortizable intangible assets:</td><td style="width: 1%; font-size: 10pt;" title="FN 7 Intangible Rollforward Q4 - C5"> </td><td style="width: 9%; font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="FN 7 Intangible Rollforward Q4 - C5"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="FN 7 Intangible Rollforward Q4 - E5"> </td><td style="width: 9%; font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="FN 7 Intangible Rollforward Q4 - E5"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt; padding-left: 10px;"> Patents</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 7 Intangible Rollforward Q4 - C6">$</td><td style="width: 9%; text-align: right; font-size: 10pt;">1,142</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 7 Intangible Rollforward Q4 - C6"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 7 Intangible Rollforward Q4 - E6">$</td><td style="width: 9%; text-align: right; font-size: 10pt;">1,013</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 7 Intangible Rollforward Q4 - E6"> </td></tr><tr><td style="font-size: 10pt; padding-left: 10px;"> Trademarks</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 7 Intangible Rollforward Q4 - C7"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">367</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 7 Intangible Rollforward Q4 - C7"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 7 Intangible Rollforward Q4 - E7"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">264</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 7 Intangible Rollforward Q4 - E7"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt; padding-left: 10px;"> Purchased software and technology</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 7 Intangible Rollforward Q4 - C8"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">512</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 7 Intangible Rollforward Q4 - C8"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 7 Intangible Rollforward Q4 - E8"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">1,752</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 7 Intangible Rollforward Q4 - E8"> </td></tr><tr><td style="font-size: 10pt; padding-left: 10px;">Customer relationships</td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 1px solid black;" title="FN 7 Intangible Rollforward Q4 - C9"> </td><td style="width: 9%; text-align: right; font-size: 10pt; border-bottom: 1px solid black;">-</td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 1px solid black;" title="FN 7 Intangible Rollforward Q4 - C9"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 1px solid black;" title="FN 7 Intangible Rollforward Q4 - E9"> </td><td style="width: 9%; text-align: right; font-size: 10pt; border-bottom: 1px solid black;">160</td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 1px solid black;" title="FN 7 Intangible Rollforward Q4 - E9"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 7 Intangible Rollforward Q4 - C10">$</td><td style="width: 9%; text-align: right; font-size: 10pt;">2,021</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 7 Intangible Rollforward Q4 - C10"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 7 Intangible Rollforward Q4 - E10"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">3,189</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 7 Intangible Rollforward Q4 - E10"> </td></tr><tr><td style="font-size: 10pt;"> Accumulated amortization</td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 1px solid black;" title="FN 7 Intangible Rollforward Q4 - C11"> </td><td style="width: 9%; text-align: right; font-size: 10pt; border-bottom: 1px solid black;">(870</td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 1px solid black;" title="FN 7 Intangible Rollforward Q4 - C11">) </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 1px solid black;" title="FN 7 Intangible Rollforward Q4 - E11"> </td><td style="width: 9%; text-align: right; font-size: 10pt; border-bottom: 1px solid black;">(1,256</td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 1px solid black;" title="FN 7 Intangible Rollforward Q4 - E11">) </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;"> Total amortizable</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 7 Intangible Rollforward Q4 - C12">$</td><td style="width: 9%; text-align: right; font-size: 10pt;">1,151</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 7 Intangible Rollforward Q4 - C12"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 7 Intangible Rollforward Q4 - E12"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">1,933</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 7 Intangible Rollforward Q4 - E12"> </td></tr><tr><td style="font-size: 10pt;">Indefinite life assets (non-amortizable)</td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 1px solid black;" title="FN 7 Intangible Rollforward Q4 - C13"> </td><td style="width: 9%; text-align: right; font-size: 10pt; border-bottom: 1px solid black;">421</td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 1px solid black;" title="FN 7 Intangible Rollforward Q4 - C13"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 1px solid black;" title="FN 7 Intangible Rollforward Q4 - E13"> </td><td style="width: 9%; text-align: right; font-size: 10pt; border-bottom: 1px solid black;">421</td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 1px solid black;" title="FN 7 Intangible Rollforward Q4 - E13"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;"> Total intangible assets, net</td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 3px double black;" title="FN 7 Intangible Rollforward Q4 - C14">$</td><td style="width: 9%; text-align: right; font-size: 10pt; border-bottom: 3px double black;">1,572</td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 3px double black;" title="FN 7 Intangible Rollforward Q4 - C14"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 3px double black;" title="FN 7 Intangible Rollforward Q4 - E14">$</td><td style="width: 9%; text-align: right; font-size: 10pt; border-bottom: 3px double black;">2,354</td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 3px double black;" title="FN 7 Intangible Rollforward Q4 - E14"> </td></tr></table><div style="font-size: 10pt;"> </div><div style="text-align: justify;"> <span style="font-size: 10.0pt;">Amortization expenses <span style="background-color: rgb(255, 255, 255);">were $481 and</span> $450 for the years ended December 31, 2025 and 2024, respectively. The Company recognized impairment charges for Purchases software and technology and Customer relationships of<span style="background-color: rgb(255, 255, 255);"> $</span></span><span style="font-size: 10pt; background-color: rgb(255, 255, 255);">588</span><span style="font-size: 10.0pt;"><span style="background-color: rgb(255, 255, 255);"> f</span>or the year ended December 31, 2025. No impairment charges were recognized for the year ended December 31, 2024.</span>  </div><div style="text-align: justify;"> <span style="font-size: 10.0pt;">At December 31, 2025, annual amortization of intangible assets, based upon the Company’s existing intangible assets and current useful lives, is estimated to be the following:</span> </div> <div style="text-align: justify; font-size: 10pt;"> </div><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr><td>2026</td><td style="width: 1%; text-align: left;" title="FN 7 Intangible Rollforward Q4 - C26"> </td><td style="width: 9%; text-align: right;">118</td><td style="width: 1%; text-align: left;" title="FN 7 Intangible Rollforward Q4 - C26"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>2027</td><td style="width: 1%; text-align: left;" title="FN 7 Intangible Rollforward Q4 - C27"> </td><td style="width: 9%; text-align: right;">116</td><td style="width: 1%; text-align: left;" title="FN 7 Intangible Rollforward Q4 - C27"> </td></tr><tr><td>2028</td><td style="width: 1%; text-align: left;" title="FN 7 Intangible Rollforward Q4 - C28"> </td><td style="width: 9%; text-align: right;">116</td><td style="width: 1%; text-align: left;" title="FN 7 Intangible Rollforward Q4 - C28"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>2029</td><td style="width: 1%; text-align: left;" title="FN 7 Intangible Rollforward Q4 - C29"> </td><td style="width: 9%; text-align: right;">116</td><td style="width: 1%; text-align: left;" title="FN 7 Intangible Rollforward Q4 - C29"> </td></tr><tr><td>2030</td><td style="width: 1%; text-align: left;" title="FN 7 Intangible Rollforward Q4 - C30"> </td><td style="width: 9%; text-align: right; border-width: initial; border-style: none; border-color: initial;">116</td><td style="width: 1%; text-align: left; border-width: initial; border-style: none; border-color: initial;" title="FN 7 Intangible Rollforward Q4 - C30"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Thereafter</td><td style="width: 1%; text-align: left;" title="FN 7 Intangible Rollforward Q4 - C31"> </td><td style="width: 9%; text-align: right; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">569</td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 7 Intangible Rollforward Q4 - C31"> </td></tr><tr><td>Total</td><td style="width: 1%; text-align: left;" title="FN 7 Intangible Rollforward Q4 - C31">$</td><td style="width: 9%; text-align: right; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">1,151</td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 7 Intangible Rollforward Q4 - C31"> </td></tr></table><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr style="height: 0px; font-size: 0px;"><td style="font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 9%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td></tr></table><div style="font-size: 10pt;"> </div><div style="font-size: 10pt;"><b>Goodwill</b></div><div style="font-size: 10pt;"> </div><div style="font-size: 10pt;">As of December 31, 2025, the Company had no Goodwill. </div><div style="font-size: 10pt;"> </div><div style="font-size: 10pt;">During 2024, the Company recorded an increase of $21 to goodwill as result of additional liabilities assumed related to the August 2023 Intrensic Acquisition. </div><div style="font-size: 10pt;">  </div><div style="font-size: 10pt;">In December 2024, the Company assessed the fair value of its Intrensic unit and determined that its carrying value exceeded its fair value by $1,631 and therefore the Company recorded a $1,631 impairment charge related to the goodwill initially recorded from the 2023 acquisition. </div><div style="font-size: 10pt;"> </div><div style="font-size: 10pt; border-width: initial; border-style: none; border-color: initial; border-collapse: collapse;">The table below summarizes the changes in the carrying amount of goodwill:</div><div style="font-size: 10pt;"> </div><table cellpadding="0" style="font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr><td style="text-align: left;">Balance at December 31, 2023</td><td style="text-align: left; width: 1%;" title="FN 7 Intangible Rollforward Q4 - C36"> </td><td style="text-align: right; width: 9%;">1,610</td><td style="text-align: left; width: 1%;" title="FN 7 Intangible Rollforward Q4 - C36"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Additional liabilities recorded post acquisition</td><td style="text-align: left; border-width: initial; border-style: none; border-color: initial; width: 1%;" title="FN 7 Intangible Rollforward Q4 - C37"> </td><td style="text-align: right; border-width: initial; border-style: none; border-color: initial; width: 9%;">21</td><td style="text-align: left; border-width: initial; border-style: none; border-color: initial; width: 1%;" title="FN 7 Intangible Rollforward Q4 - C37"> </td></tr><tr><td>Impairment charge</td><td style="text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%;" title="FN 7 Intangible Rollforward Q4 - C38"> </td><td style="text-align: right; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 9%;">(1,631</td><td style="text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%;" title="FN 7 Intangible Rollforward Q4 - C38">) </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Balance at December 31, 2024</td><td style="text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; border-collapse: collapse; width: 1%;" title="FN 7 Intangible Rollforward Q4 - C38">$</td><td style="text-align: right; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 9%;"> -</td><td style="text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%;" title="FN 7 Intangible Rollforward Q4 - C38"> </td></tr></table> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">Intangible assets consisted of the following:</span> </div> <div style="font-size: 10pt;">  </div> <table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr><td style="font-size: 10pt;"> </td><td style="width: 1%;"></td><td colspan="1" style="text-align: center; font-weight: bold; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt; width: 9%;">December 31, 2025</td><td style="width: 1%;"></td><td style="text-align: center; font-weight: bold; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;"></td><td style="text-align: center; font-weight: bold; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt; width: 1%;" title="FN 7 Intangible Rollforward Q4 - C3"> </td><td style="text-align: center; font-weight: bold; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt; width: 9%;">December 31, 2024</td><td style="text-align: center; font-weight: bold; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt; width: 1%;" title="FN 7 Intangible Rollforward Q4 - C3"> </td></tr><tr><td style="font-size: 10pt;">Amortizable intangible assets:</td><td style="width: 1%; font-size: 10pt;" title="FN 7 Intangible Rollforward Q4 - C5"> </td><td style="width: 9%; font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="FN 7 Intangible Rollforward Q4 - C5"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="FN 7 Intangible Rollforward Q4 - E5"> </td><td style="width: 9%; font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="FN 7 Intangible Rollforward Q4 - E5"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt; padding-left: 10px;"> Patents</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 7 Intangible Rollforward Q4 - C6">$</td><td style="width: 9%; text-align: right; font-size: 10pt;">1,142</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 7 Intangible Rollforward Q4 - C6"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 7 Intangible Rollforward Q4 - E6">$</td><td style="width: 9%; text-align: right; font-size: 10pt;">1,013</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 7 Intangible Rollforward Q4 - E6"> </td></tr><tr><td style="font-size: 10pt; padding-left: 10px;"> Trademarks</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 7 Intangible Rollforward Q4 - C7"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">367</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 7 Intangible Rollforward Q4 - C7"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 7 Intangible Rollforward Q4 - E7"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">264</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 7 Intangible Rollforward Q4 - E7"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt; padding-left: 10px;"> Purchased software and technology</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 7 Intangible Rollforward Q4 - C8"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">512</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 7 Intangible Rollforward Q4 - C8"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 7 Intangible Rollforward Q4 - E8"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">1,752</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 7 Intangible Rollforward Q4 - E8"> </td></tr><tr><td style="font-size: 10pt; padding-left: 10px;">Customer relationships</td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 1px solid black;" title="FN 7 Intangible Rollforward Q4 - C9"> </td><td style="width: 9%; text-align: right; font-size: 10pt; border-bottom: 1px solid black;">-</td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 1px solid black;" title="FN 7 Intangible Rollforward Q4 - C9"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 1px solid black;" title="FN 7 Intangible Rollforward Q4 - E9"> </td><td style="width: 9%; text-align: right; font-size: 10pt; border-bottom: 1px solid black;">160</td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 1px solid black;" title="FN 7 Intangible Rollforward Q4 - E9"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 7 Intangible Rollforward Q4 - C10">$</td><td style="width: 9%; text-align: right; font-size: 10pt;">2,021</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 7 Intangible Rollforward Q4 - C10"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 7 Intangible Rollforward Q4 - E10"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">3,189</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 7 Intangible Rollforward Q4 - E10"> </td></tr><tr><td style="font-size: 10pt;"> Accumulated amortization</td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 1px solid black;" title="FN 7 Intangible Rollforward Q4 - C11"> </td><td style="width: 9%; text-align: right; font-size: 10pt; border-bottom: 1px solid black;">(870</td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 1px solid black;" title="FN 7 Intangible Rollforward Q4 - C11">) </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 1px solid black;" title="FN 7 Intangible Rollforward Q4 - E11"> </td><td style="width: 9%; text-align: right; font-size: 10pt; border-bottom: 1px solid black;">(1,256</td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 1px solid black;" title="FN 7 Intangible Rollforward Q4 - E11">) </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;"> Total amortizable</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 7 Intangible Rollforward Q4 - C12">$</td><td style="width: 9%; text-align: right; font-size: 10pt;">1,151</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 7 Intangible Rollforward Q4 - C12"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 7 Intangible Rollforward Q4 - E12"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">1,933</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 7 Intangible Rollforward Q4 - E12"> </td></tr><tr><td style="font-size: 10pt;">Indefinite life assets (non-amortizable)</td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 1px solid black;" title="FN 7 Intangible Rollforward Q4 - C13"> </td><td style="width: 9%; text-align: right; font-size: 10pt; border-bottom: 1px solid black;">421</td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 1px solid black;" title="FN 7 Intangible Rollforward Q4 - C13"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 1px solid black;" title="FN 7 Intangible Rollforward Q4 - E13"> </td><td style="width: 9%; text-align: right; font-size: 10pt; border-bottom: 1px solid black;">421</td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 1px solid black;" title="FN 7 Intangible Rollforward Q4 - E13"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;"> Total intangible assets, net</td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 3px double black;" title="FN 7 Intangible Rollforward Q4 - C14">$</td><td style="width: 9%; text-align: right; font-size: 10pt; border-bottom: 3px double black;">1,572</td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 3px double black;" title="FN 7 Intangible Rollforward Q4 - C14"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 3px double black;" title="FN 7 Intangible Rollforward Q4 - E14">$</td><td style="width: 9%; text-align: right; font-size: 10pt; border-bottom: 3px double black;">2,354</td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 3px double black;" title="FN 7 Intangible Rollforward Q4 - E14"> </td></tr></table> 1142000 1013000 367000 264000 512000 1752000 160000 2021000 3189000 870000 1256000 1151000 1933000 421000 421000 1572000 2354000 481000 450000 588000 0 false <div style="text-align: justify;"> <span style="font-size: 10.0pt;">At December 31, 2025, annual amortization of intangible assets, based upon the Company’s existing intangible assets and current useful lives, is estimated to be the following:</span> </div> <div style="text-align: justify; font-size: 10pt;"> </div><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr><td>2026</td><td style="width: 1%; text-align: left;" title="FN 7 Intangible Rollforward Q4 - C26"> </td><td style="width: 9%; text-align: right;">118</td><td style="width: 1%; text-align: left;" title="FN 7 Intangible Rollforward Q4 - C26"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>2027</td><td style="width: 1%; text-align: left;" title="FN 7 Intangible Rollforward Q4 - C27"> </td><td style="width: 9%; text-align: right;">116</td><td style="width: 1%; text-align: left;" title="FN 7 Intangible Rollforward Q4 - C27"> </td></tr><tr><td>2028</td><td style="width: 1%; text-align: left;" title="FN 7 Intangible Rollforward Q4 - C28"> </td><td style="width: 9%; text-align: right;">116</td><td style="width: 1%; text-align: left;" title="FN 7 Intangible Rollforward Q4 - C28"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>2029</td><td style="width: 1%; text-align: left;" title="FN 7 Intangible Rollforward Q4 - C29"> </td><td style="width: 9%; text-align: right;">116</td><td style="width: 1%; text-align: left;" title="FN 7 Intangible Rollforward Q4 - C29"> </td></tr><tr><td>2030</td><td style="width: 1%; text-align: left;" title="FN 7 Intangible Rollforward Q4 - C30"> </td><td style="width: 9%; text-align: right; border-width: initial; border-style: none; border-color: initial;">116</td><td style="width: 1%; text-align: left; border-width: initial; border-style: none; border-color: initial;" title="FN 7 Intangible Rollforward Q4 - C30"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Thereafter</td><td style="width: 1%; text-align: left;" title="FN 7 Intangible Rollforward Q4 - C31"> </td><td style="width: 9%; text-align: right; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">569</td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 7 Intangible Rollforward Q4 - C31"> </td></tr><tr><td>Total</td><td style="width: 1%; text-align: left;" title="FN 7 Intangible Rollforward Q4 - C31">$</td><td style="width: 9%; text-align: right; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">1,151</td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 7 Intangible Rollforward Q4 - C31"> </td></tr></table> 118000 116000 116000 116000 116000 569000 1151000 0 21000 1631000 1631000 <div style="font-size: 10pt; border-width: initial; border-style: none; border-color: initial; border-collapse: collapse;">The table below summarizes the changes in the carrying amount of goodwill:</div><div style="font-size: 10pt;"> </div><table cellpadding="0" style="font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr><td style="text-align: left;">Balance at December 31, 2023</td><td style="text-align: left; width: 1%;" title="FN 7 Intangible Rollforward Q4 - C36"> </td><td style="text-align: right; width: 9%;">1,610</td><td style="text-align: left; width: 1%;" title="FN 7 Intangible Rollforward Q4 - C36"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Additional liabilities recorded post acquisition</td><td style="text-align: left; border-width: initial; border-style: none; border-color: initial; width: 1%;" title="FN 7 Intangible Rollforward Q4 - C37"> </td><td style="text-align: right; border-width: initial; border-style: none; border-color: initial; width: 9%;">21</td><td style="text-align: left; border-width: initial; border-style: none; border-color: initial; width: 1%;" title="FN 7 Intangible Rollforward Q4 - C37"> </td></tr><tr><td>Impairment charge</td><td style="text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%;" title="FN 7 Intangible Rollforward Q4 - C38"> </td><td style="text-align: right; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 9%;">(1,631</td><td style="text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%;" title="FN 7 Intangible Rollforward Q4 - C38">) </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Balance at December 31, 2024</td><td style="text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; border-collapse: collapse; width: 1%;" title="FN 7 Intangible Rollforward Q4 - C38">$</td><td style="text-align: right; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 9%;"> -</td><td style="text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%;" title="FN 7 Intangible Rollforward Q4 - C38"> </td></tr></table> 1610000 21000 1631000 0 <div style="margin-left: 0.5pt;"> <span style="font-size: 10.0pt; color: #000000; font-weight: bold;">8. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES</span> </div> <div style="font-size: 10pt;"> </div> <div style="font-size: 10pt;">We are obligated to pay royalties pursuant to an exclusive Amended and Restated Intellectual Property License Agreement (the “License Agreement”), dated as of September 30, 2016, with Syzygy Licensing, LLC (“Syzygy”), a private technology invention, consulting and licensing company owned and controlled by Elwood G. Norris, a founder and former officer and current 5% stockholder of the Company, and James A. Barnes, a former officer and stockholder of the Company (see Note 16). </div><div style="font-size: 10pt;"> </div><div style="font-size: 10pt;">Accrued liabilities include $99 and $81 due to Syzygy pursuant to the License Agreement as of December 31, 2025 and 2024, respectively.</div><div style="font-size: 10pt;">  </div><div style="text-align: justify;"> <span style="font-size: 10.0pt;">Accrued liabilities consist of the following:</span> </div> <div style="font-size: 10pt;"> </div> <table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr style="height: 0px; font-size: 0px;"><td style="font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 9%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 9%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td></tr><tr><td style="font-size: 10pt;"> </td><td colspan="7" style="text-align: center; font-weight: bold; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;">December 31,</td></tr><tr><td style="font-size: 10pt;"> </td><td style="width: 1%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - C7"> </td><td style="font-weight: bold; text-align: center; width: 9%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;">2025</td><td style="width: 1%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - C7"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - E7"> </td><td style="font-weight: bold; text-align: center; width: 9%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;">2024</td><td style="width: 1%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - E7"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">Patent and legal costs</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - C8">$</td><td style="width: 9%; text-align: right; font-size: 10pt;">111</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - C8"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - E8">$</td><td style="width: 9%; text-align: right; font-size: 10pt;">60</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - E8"> </td></tr><tr><td style="font-size: 10pt;">Accrued compensation</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - C9"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">2</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - C9"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - E9"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">121</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - E9"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">Warranty costs</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - C10"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">30</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - C10"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - E10"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">83</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - E10"> </td></tr><tr><td style="font-size: 10pt;">Royalty</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - C11"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">99</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - C11"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - E11"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">81</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - E11"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">Contract settlement</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - C12"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">-</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - C12"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - E12"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">300</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - E12"> </td></tr><tr><td style="font-size: 10pt;">Accrued purchases</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - C13"> </td><td style="width: 9%; text-align: right; font-size: 10pt; background-color: rgb(255, 255, 255);">6</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - C13"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - E13"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">584</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - E13"> </td></tr><tr><td style="font-size: 10pt;">Taxes and other</td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 1px solid black;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - C14"> </td><td style="width: 9%; text-align: right; font-size: 10pt; border-bottom: 1px solid black;">159</td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 1px solid black;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - C14"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 1px solid black;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - E14"> </td><td style="width: 9%; text-align: right; font-size: 10pt; border-bottom: 1px solid black;">174</td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 1px solid black;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - E14"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">Total</td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 3px double black;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - C15">$</td><td style="width: 9%; text-align: right; font-size: 10pt; border-bottom: 3px double black;">407</td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 3px double black;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - C15"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 3px double black;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - E15">$</td><td style="width: 9%; text-align: right; font-size: 10pt; border-bottom: 3px double black;">1,403</td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 3px double black;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - E15"> </td></tr></table><div style="text-align: justify;"> <span style="font-size: 10.0pt;">Changes in our estimated product warranty costs were as follows:</span> </div> <div style="font-size: 10pt;"> </div><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr style="height: 0px; font-size: 0px;"><td style="font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 9%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 9%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td></tr><tr><td style="font-size: 10pt;"> </td><td colspan="7" style="font-weight: bold; text-align: center; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;">Year Ended December 31,</td></tr><tr><td style="font-size: 10pt;"> </td><td style="width: 1%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - C22"> </td><td style="font-weight: bold; text-align: center; width: 9%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;">2025</td><td style="width: 1%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - C22"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - E22"> </td><td style="font-weight: bold; text-align: center; width: 9%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;">2024</td><td style="width: 1%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - E22"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">Balance, beginning of period</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - C23">$</td><td style="width: 9%; text-align: right; font-size: 10pt;">83</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - C23"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - E23">$</td><td style="width: 9%; text-align: right; font-size: 10pt;">72</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - E23"> </td></tr><tr><td style="font-size: 10pt;">Warranty settlements</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - C24"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">(13</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - C24">) </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - E24"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">(79</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - E24">) </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">Warranty provision</td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 1px solid black;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - C25"> </td><td style="width: 9%; text-align: right; font-size: 10pt; border-bottom: 1px solid black;">(40</td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 1px solid black;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - C25">) </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 1px solid black;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - E25"> </td><td style="width: 9%; text-align: right; font-size: 10pt; border-bottom: 1px solid black;">90</td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 1px solid black;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - E25"> </td></tr><tr><td style="font-size: 10pt;">Balance, end of period</td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 3px double black;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - C26">$</td><td style="width: 9%; text-align: right; font-size: 10pt; border-bottom: 3px double black;">30</td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 3px double black;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - C26"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 3px double black;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - E26">$</td><td style="width: 9%; text-align: right; font-size: 10pt; border-bottom: 3px double black;">83</td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 3px double black;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - E26"> </td></tr></table> 0.05 99 81 <div style="text-align: justify;"> <span style="font-size: 10.0pt;">Accrued liabilities consist of the following:</span> </div> <div style="font-size: 10pt;"> </div> <table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr style="height: 0px; font-size: 0px;"><td style="font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 9%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 9%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td></tr><tr><td style="font-size: 10pt;"> </td><td colspan="7" style="text-align: center; font-weight: bold; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;">December 31,</td></tr><tr><td style="font-size: 10pt;"> </td><td style="width: 1%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - C7"> </td><td style="font-weight: bold; text-align: center; width: 9%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;">2025</td><td style="width: 1%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - C7"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - E7"> </td><td style="font-weight: bold; text-align: center; width: 9%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;">2024</td><td style="width: 1%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - E7"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">Patent and legal costs</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - C8">$</td><td style="width: 9%; text-align: right; font-size: 10pt;">111</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - C8"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - E8">$</td><td style="width: 9%; text-align: right; font-size: 10pt;">60</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - E8"> </td></tr><tr><td style="font-size: 10pt;">Accrued compensation</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - C9"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">2</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - C9"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - E9"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">121</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - E9"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">Warranty costs</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - C10"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">30</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - C10"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - E10"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">83</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - E10"> </td></tr><tr><td style="font-size: 10pt;">Royalty</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - C11"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">99</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - C11"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - E11"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">81</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - E11"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">Contract settlement</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - C12"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">-</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - C12"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - E12"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">300</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - E12"> </td></tr><tr><td style="font-size: 10pt;">Accrued purchases</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - C13"> </td><td style="width: 9%; text-align: right; font-size: 10pt; background-color: rgb(255, 255, 255);">6</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - C13"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - E13"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">584</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - E13"> </td></tr><tr><td style="font-size: 10pt;">Taxes and other</td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 1px solid black;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - C14"> </td><td style="width: 9%; text-align: right; font-size: 10pt; border-bottom: 1px solid black;">159</td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 1px solid black;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - C14"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 1px solid black;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - E14"> </td><td style="width: 9%; text-align: right; font-size: 10pt; border-bottom: 1px solid black;">174</td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 1px solid black;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - E14"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">Total</td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 3px double black;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - C15">$</td><td style="width: 9%; text-align: right; font-size: 10pt; border-bottom: 3px double black;">407</td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 3px double black;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - C15"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 3px double black;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - E15">$</td><td style="width: 9%; text-align: right; font-size: 10pt; border-bottom: 3px double black;">1,403</td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 3px double black;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - E15"> </td></tr></table> 111000 60000 2000 121000 30000 83000 99000 81000 0 300000 6000 584000 159000 174000 407000 1403000 <div style="text-align: justify;"> <span style="font-size: 10.0pt;">Changes in our estimated product warranty costs were as follows:</span> </div> <div style="font-size: 10pt;"> </div><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr style="height: 0px; font-size: 0px;"><td style="font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 9%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 9%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td></tr><tr><td style="font-size: 10pt;"> </td><td colspan="7" style="font-weight: bold; text-align: center; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;">Year Ended December 31,</td></tr><tr><td style="font-size: 10pt;"> </td><td style="width: 1%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - C22"> </td><td style="font-weight: bold; text-align: center; width: 9%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;">2025</td><td style="width: 1%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - C22"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - E22"> </td><td style="font-weight: bold; text-align: center; width: 9%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;">2024</td><td style="width: 1%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - E22"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">Balance, beginning of period</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - C23">$</td><td style="width: 9%; text-align: right; font-size: 10pt;">83</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - C23"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - E23">$</td><td style="width: 9%; text-align: right; font-size: 10pt;">72</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - E23"> </td></tr><tr><td style="font-size: 10pt;">Warranty settlements</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - C24"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">(13</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - C24">) </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - E24"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">(79</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - E24">) </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">Warranty provision</td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 1px solid black;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - C25"> </td><td style="width: 9%; text-align: right; font-size: 10pt; border-bottom: 1px solid black;">(40</td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 1px solid black;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - C25">) </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 1px solid black;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - E25"> </td><td style="width: 9%; text-align: right; font-size: 10pt; border-bottom: 1px solid black;">90</td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 1px solid black;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - E25"> </td></tr><tr><td style="font-size: 10pt;">Balance, end of period</td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 3px double black;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - C26">$</td><td style="width: 9%; text-align: right; font-size: 10pt; border-bottom: 3px double black;">30</td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 3px double black;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - C26"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 3px double black;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - E26">$</td><td style="width: 9%; text-align: right; font-size: 10pt; border-bottom: 3px double black;">83</td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 3px double black;" title="FN 8 Accounts Payable and Accrued Liabilities Q4 2025 - E26"> </td></tr></table> 83000 72000 13000 79000 -40000 90000 30000 83000 <div style="margin-left: 0.5pt;"> <span style="font-size: 10.0pt; color: #000000; font-weight: bold;">9. LEASES</span> </div> <div style="font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">The Company determines if an arrangement is a lease at inception. The guidance in FASB ASC Topic 842, </span><span style="font-size: 10.0pt; font-style: italic;">Leases</span><span style="font-size: 10.0pt;"> defines a lease as a contract, or part of a contract, that conveys the right to control the use of identified property, plant, or equipment (an identified asset) for a period of time in exchange for consideration. Operating lease right of use </span><span style="font-size: 10.0pt; font-style: italic;">(</span><span style="font-size: 10.0pt;">“</span><span style="font-size: 10.0pt; font-style: italic;">ROU</span><span style="font-size: 10.0pt;">”) assets and lease liabilities are recognized based on the present value of future minimum lease payments over the lease term at commencement date. The Company’s leases do not provide an implicit rate. Due to a lack of financing history or ability, the Company uses an estimate of low-grade debt rate published by the Federal Reserve Bank as its incremental borrowing rate based on the information available at the commencement date in determining the present value of future payments. The ROU asset includes any lease payments made and excludes lease incentives and initial direct costs incurred.</span> </div> <div style="font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">For leases beginning on or after January 1, 2019</span><span style="font-size: 10.0pt; font-style: italic;">,</span><span style="font-size: 10.0pt;"> lease components are accounted for separately from non-lease components for all asset classes. </span></div> <div style="text-align: justify;"> </div><div style="text-align: justify;"><span style="font-size: 10.0pt;">In March 2026, the Company entered into a month-to-month service agreement for a business address located in Miami, Florida.</span></div><div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">Amortization of ROU operating lease assets <span style="background-color: rgb(255, 255, 255);">was </span></span><span style="font-size: 10pt; background-color: rgb(255, 255, 255);">$286</span><span style="font-size: 10.0pt;"><span style="background-color: rgb(255, 255, 255);"> a</span>nd $292 for the years ended December 31, 2025 and 2024, respectively.</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">Operating lease expense for capitalized operating leases included in operating activities was<span style="background-color: rgb(255, 255, 255);"> </span></span><span style="font-size: 10pt; background-color: rgb(255, 255, 255);">$610</span><span style="font-size: 10.0pt;"><span style="background-color: rgb(255, 255, 255);"> a</span>nd $644 for the years ended December 31, 2025 and 2024, respectively. Operating lease obligations recorded on the balance sheet at December 31, 2025 are:</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr style="height: 0px; font-size: 0px;"><td style="font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 9%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">Operating lease liability - short term</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 9 Lease Reconciliation with life Q4 2025 - B81">$</td><td style="width: 9%; text-align: right; font-size: 10pt;">320</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 9 Lease Reconciliation with life Q4 2025 - B81"> </td></tr><tr><td style="font-size: 10pt;">Operating lease liability - long term</td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 1px solid black;" title="FN 9 Lease Reconciliation with life Q4 2025 - B82"> </td><td style="width: 9%; text-align: right; font-size: 10pt; border-bottom: 1px solid black;">2,097</td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 1px solid black;" title="FN 9 Lease Reconciliation with life Q4 2025 - B82"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">Total Operating Lease Liability</td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 3px double black;" title="FN 9 Lease Reconciliation with life Q4 2025 - B83">$</td><td style="width: 9%; text-align: right; font-size: 10pt; border-bottom: 3px double black;">2,417</td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 3px double black;" title="FN 9 Lease Reconciliation with life Q4 2025 - B83"> </td></tr></table><div style="font-size: 10pt;"> </div><div style="text-align: justify;"> <span style="font-size: 10.0pt;">Future lease payments included in the measurement of lease liabilities on the balance sheet at December 31, 2025 for future periods are as follows:</span> </div> <div style="font-size: 10pt;">  </div> <table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr style="height: 0px; font-size: 0px;"><td style="font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="FN 9 Lease Reconciliation with life Q4 2025 - B85"> </td><td style="width: 9%; font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="FN 9 Lease Reconciliation with life Q4 2025 - B85"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">2026</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 9 Lease Reconciliation with life Q4 2025 - B86">$</td><td style="width: 9%; text-align: right; font-size: 10pt;">627</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 9 Lease Reconciliation with life Q4 2025 - B86"> </td></tr><tr><td style="font-size: 10pt;">2027</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 9 Lease Reconciliation with life Q4 2025 - B87"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">642</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 9 Lease Reconciliation with life Q4 2025 - B87"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">2028</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 9 Lease Reconciliation with life Q4 2025 - B88"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">658</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 9 Lease Reconciliation with life Q4 2025 - B88"> </td></tr><tr><td style="font-size: 10pt;">2029</td><td style="width: 1%; text-align: left; border-width: initial; border-style: none; border-color: initial; font-size: 10pt;" title="FN 9 Lease Reconciliation with life Q4 2025 - B89"> </td><td style="width: 9%; text-align: right; border-width: initial; border-style: none; border-color: initial; font-size: 10pt;">674</td><td style="width: 1%; text-align: left; border-width: initial; border-style: none; border-color: initial; font-size: 10pt;" title="FN 9 Lease Reconciliation with life Q4 2025 - B89"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">2030</td><td style="width: 1%; text-align: left; border-width: initial; border-style: none; border-color: initial; font-size: 10pt;" title="FN 9 Lease Reconciliation with life Q4 2025 - B89"> </td><td style="width: 9%; text-align: right; border-width: initial; border-style: none; border-color: initial; font-size: 10pt;">661</td><td style="width: 1%; text-align: left; border-width: initial; border-style: none; border-color: initial; font-size: 10pt;" title="FN 9 Lease Reconciliation with life Q4 2025 - B89"> </td></tr><tr><td style="font-size: 10pt;">Thereafter</td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 1px solid black;" title="FN 9 Lease Reconciliation with life Q4 2025 - B90"> </td><td style="width: 9%; text-align: right; font-size: 10pt; border-bottom: 1px solid black;">147</td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 1px solid black;" title="FN 9 Lease Reconciliation with life Q4 2025 - B90"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt; padding-left: 10px;">Total future minimum lease payments</td><td style="width: 1%; text-align: left; border-width: initial; border-style: none; border-color: initial; font-size: 10pt;" title="FN 9 Lease Reconciliation with life Q4 2025 - B91"> </td><td style="width: 9%; text-align: right; border-width: initial; border-style: none; border-color: initial; font-size: 10pt;">3,409</td><td style="width: 1%; text-align: left; border-width: initial; border-style: none; border-color: initial; font-size: 10pt;" title="FN 9 Lease Reconciliation with life Q4 2025 - B91"> </td></tr><tr><td style="font-size: 10pt; padding-left: 10px;">Less imputed interest</td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 1px solid black;" title="FN 9 Lease Reconciliation with life Q4 2025 - B92"> </td><td style="width: 9%; text-align: right; font-size: 10pt; border-bottom: 1px solid black;">(992</td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 1px solid black;" title="FN 9 Lease Reconciliation with life Q4 2025 - B92">) </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt; padding-left: 10px;">Total</td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 3px double black;" title="FN 9 Lease Reconciliation with life Q4 2025 - B93">$</td><td style="width: 9%; text-align: right; font-size: 10pt; border-bottom: 3px double black;">2,417</td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 3px double black;" title="FN 9 Lease Reconciliation with life Q4 2025 - B93"> </td></tr></table><div style="font-size: 10pt;"> </div><div style="text-align: justify;"> <span style="font-size: 10.0pt;">The weighted average remaining lease term is<span style="background-color: rgb(255, 255, 255);"> </span></span><span style="background-color: rgb(255, 255, 255);"><span style="font-size: 10pt;">5.15</span><span style="font-size: 10.0pt;"> years, and the weighted average discount rate is </span><span style="font-size: 10pt;">13.5%</span><span style="font-size: 10.0pt;">.</span></span> </div> <div style="font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">Certain leases contain provisions for payment of real estate taxes, insurance and maintenance costs by the Company. These expenses are treated as variable lease payments and recognized in the period in which the obligation for those payments was incurred. The Company ha<span style="background-color: rgb(255, 255, 255);">d </span></span><span style="font-size: 10pt; background-color: rgb(255, 255, 255);">$38</span><span style="font-size: 10.0pt;"><span style="background-color: rgb(255, 255, 255);"> a</span>nd $109 variable lease expenses during the year December 31, 2025 and 2024, respectively.</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">The Company ha<span style="background-color: rgb(255, 255, 255);">d </span></span><span style="font-size: 10pt; background-color: rgb(255, 255, 255);">$0</span><span style="font-size: 10.0pt;"><span style="background-color: rgb(255, 255, 255);"> and</span> $16 short-term lease expense during the year December 31, 2025, and 2024 respectively. The Company does not have any finance leases.</span> </div> 286000 292000 610000 644000 Operating lease obligations recorded on the balance sheet at December 31, 2025 are:<table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr style="height: 0px; font-size: 0px;"><td style="font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 9%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">Operating lease liability - short term</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 9 Lease Reconciliation with life Q4 2025 - B81">$</td><td style="width: 9%; text-align: right; font-size: 10pt;">320</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 9 Lease Reconciliation with life Q4 2025 - B81"> </td></tr><tr><td style="font-size: 10pt;">Operating lease liability - long term</td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 1px solid black;" title="FN 9 Lease Reconciliation with life Q4 2025 - B82"> </td><td style="width: 9%; text-align: right; font-size: 10pt; border-bottom: 1px solid black;">2,097</td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 1px solid black;" title="FN 9 Lease Reconciliation with life Q4 2025 - B82"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">Total Operating Lease Liability</td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 3px double black;" title="FN 9 Lease Reconciliation with life Q4 2025 - B83">$</td><td style="width: 9%; text-align: right; font-size: 10pt; border-bottom: 3px double black;">2,417</td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 3px double black;" title="FN 9 Lease Reconciliation with life Q4 2025 - B83"> </td></tr></table> 320000 2097000 2417000 <div style="text-align: justify;"> <span style="font-size: 10.0pt;">Future lease payments included in the measurement of lease liabilities on the balance sheet at December 31, 2025 for future periods are as follows:</span> </div> <div style="font-size: 10pt;">  </div> <table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr style="height: 0px; font-size: 0px;"><td style="font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="FN 9 Lease Reconciliation with life Q4 2025 - B85"> </td><td style="width: 9%; font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="FN 9 Lease Reconciliation with life Q4 2025 - B85"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">2026</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 9 Lease Reconciliation with life Q4 2025 - B86">$</td><td style="width: 9%; text-align: right; font-size: 10pt;">627</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 9 Lease Reconciliation with life Q4 2025 - B86"> </td></tr><tr><td style="font-size: 10pt;">2027</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 9 Lease Reconciliation with life Q4 2025 - B87"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">642</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 9 Lease Reconciliation with life Q4 2025 - B87"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">2028</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 9 Lease Reconciliation with life Q4 2025 - B88"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">658</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 9 Lease Reconciliation with life Q4 2025 - B88"> </td></tr><tr><td style="font-size: 10pt;">2029</td><td style="width: 1%; text-align: left; border-width: initial; border-style: none; border-color: initial; font-size: 10pt;" title="FN 9 Lease Reconciliation with life Q4 2025 - B89"> </td><td style="width: 9%; text-align: right; border-width: initial; border-style: none; border-color: initial; font-size: 10pt;">674</td><td style="width: 1%; text-align: left; border-width: initial; border-style: none; border-color: initial; font-size: 10pt;" title="FN 9 Lease Reconciliation with life Q4 2025 - B89"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">2030</td><td style="width: 1%; text-align: left; border-width: initial; border-style: none; border-color: initial; font-size: 10pt;" title="FN 9 Lease Reconciliation with life Q4 2025 - B89"> </td><td style="width: 9%; text-align: right; border-width: initial; border-style: none; border-color: initial; font-size: 10pt;">661</td><td style="width: 1%; text-align: left; border-width: initial; border-style: none; border-color: initial; font-size: 10pt;" title="FN 9 Lease Reconciliation with life Q4 2025 - B89"> </td></tr><tr><td style="font-size: 10pt;">Thereafter</td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 1px solid black;" title="FN 9 Lease Reconciliation with life Q4 2025 - B90"> </td><td style="width: 9%; text-align: right; font-size: 10pt; border-bottom: 1px solid black;">147</td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 1px solid black;" title="FN 9 Lease Reconciliation with life Q4 2025 - B90"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt; padding-left: 10px;">Total future minimum lease payments</td><td style="width: 1%; text-align: left; border-width: initial; border-style: none; border-color: initial; font-size: 10pt;" title="FN 9 Lease Reconciliation with life Q4 2025 - B91"> </td><td style="width: 9%; text-align: right; border-width: initial; border-style: none; border-color: initial; font-size: 10pt;">3,409</td><td style="width: 1%; text-align: left; border-width: initial; border-style: none; border-color: initial; font-size: 10pt;" title="FN 9 Lease Reconciliation with life Q4 2025 - B91"> </td></tr><tr><td style="font-size: 10pt; padding-left: 10px;">Less imputed interest</td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 1px solid black;" title="FN 9 Lease Reconciliation with life Q4 2025 - B92"> </td><td style="width: 9%; text-align: right; font-size: 10pt; border-bottom: 1px solid black;">(992</td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 1px solid black;" title="FN 9 Lease Reconciliation with life Q4 2025 - B92">) </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt; padding-left: 10px;">Total</td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 3px double black;" title="FN 9 Lease Reconciliation with life Q4 2025 - B93">$</td><td style="width: 9%; text-align: right; font-size: 10pt; border-bottom: 3px double black;">2,417</td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 3px double black;" title="FN 9 Lease Reconciliation with life Q4 2025 - B93"> </td></tr></table> 627000 642000 658000 674000 661000 147000 3409000 992000 2417000 P5Y1M24D 0.135 38000 109000 0 16000 <div style="margin-left: 0.5pt;"> <span style="font-size: 10.0pt; color: #000000; font-weight: bold;">10.</span><span style="font-size: 10.0pt; font-weight: bold;">WARRANTS</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">On June 29, 2023, the Company entered into a Securities Purchase Agreement (the “Series A Purchase Agreement”) with certain directors of the Company and certain accredited and institutional investors (collectively, the “Series A Investors”), pursuant to which it agreed to sell to the Series A Investors in a registered direct offering (the “Series A Offering”) (i) an aggregate of 10,000 shares of the Company’s newly-designated Series A Convertible Preferred Stock, with par value $0.0001 per share and a stated value of $1,000 per share (the “Series A Preferred Stock”), initially convertible into up to 6,896,553 shares of the Company’s common stock, at an initial conversion price of $1.45 per share, and (ii) warrants to acquire up to an aggregate of 6,896,553 shares of Common Stock (the “Series A Warrants”).</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">Each Series A Warrant has an exercise price of $1.45, became exercisable after the date that was six months from the date of issuance and will expire 5 years following the date of issuance. The exercise price is subject to customary adjustments for stock dividends, stock splits, reclassifications and the like, and subject to price-based adjustment, on a “full ratchet” basis, in the event of any issuances of Common Stock, or securities convertible, exercisable or exchangeable for Common Stock, at a price below the then-applicable exercise price (subject to certain exceptions). The closing of the Offering occurred on July 3, 2023. The aggregate gross proceeds from the Offering were $10,000, of which $7,717 was allocated to the Series A Warrants. The Company expects to use the net proceeds from the Offering for general corporate purposes (see Note 4).</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">On February 24, 2025, the Company entered into a securities purchase agreement (the “PIPE Purchase Agreement”) with certain accredited investors (collectively, the “PIPE Purchasers”) for the issuance and sale in a private placement of an aggregate of 3,216,666 shares (the “Common Shares”) of Common Stock and accompanying warrants (“PIPE Warrants”) to purchase up to 3,216,666 shares of Common Stock, with an exercise price of $1.80 per share. The purchase price for one Common Share and accompanying PIPE Warrant was $1.80. The gross proceeds to the Company were $5,790 before estimated offering expenses payable by the Company, of which $5,178 was allocated to the PIPE Warrants.</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">On June 30, 2025, the Company entered into a warrant amendment (the “Series A Warrant Amendment”) with the Required Holders (as defined in the Series A Purchase Agreement), pursuant to which, the Required Holders agreed to amend the terms of the Series A Warrants to make certain adjustments to the definition of “Black Scholes Value” in each of the Series A Warrants, as described in the Series A Warrant Amendment, such that the underlying price per share as used in such calculation equals the sum of the price per share being offered in cash in the applicable Fundamental Transaction (as defined in the Series A Warrants), if any, plus the value of the non-cash consideration being offered in the applicable Fundamental Transaction, if any. As consideration for entering into the Series A Warrant Amendment, the Company and the Required Holders agreed to amend the term of the Series A Warrants to be <span style="-sec-ix-hidden: hidden-fact-2">six and one-half years</span> from the date of issuance. Additionally, on June 30, 2025, the Company entered into a warrant amendment (the “2025 Warrant Amendment”) with certain of the PIPE Purchasers, pursuant to which, such PIPE Purchasers agreed to amend the terms of their respective PIPE Warrants to make certain adjustments to the definition of “Black Scholes Value,” as described in the 2025 Warrant Amendment, such that the underlying price per share as used in such calculation equals the sum of the price per share being offered in cash in the applicable Fundamental Transaction (as defined in the PIPE Warrants), if any, plus the value of the non-cash consideration being offered in the applicable Fundamental Transaction, if any. As consideration for entering into the 2025 Warrant Amendment, the Company and the applicable PIPE Purchasers agreed to amend the term of their respective 2025 Warrants to be <span style="-sec-ix-hidden: hidden-fact-3">five and one-half years</span> from the date of issuance. Under ASC 815-40-35-10, upon effective amendment on June 30, 2025, each of the Series A Warrants and PIPE Warrants qualify for equity-classification. Immediately before the equity reclassification, such warrants were each revalued at fair value with the resulting gain or loss being recorded in the Statement of Operations. After fair value remeasurement, the reclassification from warrant liabilities to additional paid-in capital was completed. </span></div> <div style="text-align: justify;"> </div><div style="margin: 0in; text-align: justify;"><span style="font-size:10.0pt">On August 18, 2025, <span style="margin-top: 1em; margin-bottom: 1em; font-size: 12pt;"> </span><span style="font-size: 13pt; font-family: TimesNewRoman, Times New Roman, Times, Baskerville, Georgia, serif;"><span style="font-size: 10pt"><span style="margin-top: 1em; margin-bottom: 1em;">the Company entered into a securities purchase agreement with certain accredited investors, including V4 Global, LLC (an entity controlled by the Company's Chief Executive Officer), for the issuance and sale of 4,500 shares of Series B Convertible Preferred Stock (par value $0.0001, stated value $1,000 per share) and accompanying warrants to purchase 3,000,000 shares of Common Stock (the "Series B Warrants") for aggregate gross proceeds of $4,500 before offering expenses. V4 Global, LLC purchased 1,000 shares (22% of the offering) on the same terms as non-affiliated investors.</span> <span style="margin-top: 1em; margin-bottom: 1em; font-size: 12pt;"><span style="font-size: 10pt">The Series B Preferred Stock and Series B Warrants were not exercisable or convertible until stockholder approval was obtained on December 12, 2025, pursuant to Nasdaq Stock Market Rule 5635(d) for issuances exceeding 19.99% of outstanding Common Stock at prices below the Minimum Price.</span></span></span></span></span> </div><div style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-variant-alternates: inherit; font-variant-position: inherit; font-variant-emoji: inherit; font-stretch: inherit; line-height: inherit; font-family: Aptos, Aptos_EmbeddedFont, Aptos_MSFontService, Calibri, Helvetica, sans-serif; font-optical-sizing: inherit; font-size-adjust: inherit; font-kerning: inherit; font-feature-settings: inherit; font-variation-settings: inherit; font-language-override: inherit; margin: 1em 0px; padding: 0px; vertical-align: baseline; letter-spacing: normal; background-color: rgb(255, 255, 255); text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; font-size: 10pt;"><i><span style="font-family: TimesNewRoman, Times New Roman, Times, Baskerville, Georgia, serif;">Series B Warrants</span></i></div><div style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-variant-alternates: inherit; font-variant-position: inherit; font-variant-emoji: inherit; font-stretch: inherit; line-height: inherit; font-family: Aptos, Aptos_EmbeddedFont, Aptos_MSFontService, Calibri, Helvetica, sans-serif; font-optical-sizing: inherit; font-size-adjust: inherit; font-kerning: inherit; font-feature-settings: inherit; font-variation-settings: inherit; font-language-override: inherit; margin: 1em 0px; padding: 0px; vertical-align: baseline; letter-spacing: normal; background-color: rgb(255, 255, 255); text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; font-size: 10pt;"><span style="margin-top: 1em; margin-bottom: 1em;"><span style="font-family: TimesNewRoman, Times New Roman, Times, Baskerville, Georgia, serif;">The Series B Warrants are exercisable for 3,000,000 shares of Common Stock at an exercise price of $1.50 per share and expire on December 12, 2030 (five years from the date stockholder approval was obtained). Warrant holders may not exercise if such exercise would result in the holder owning more than 4.99% (or at holder election, 9.99%) of the Company's outstanding Common Stock immediately after exercise.</span></span></div><div style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-variant-alternates: inherit; font-variant-position: inherit; font-variant-emoji: inherit; font-stretch: inherit; line-height: inherit; font-family: Aptos, Aptos_EmbeddedFont, Aptos_MSFontService, Calibri, Helvetica, sans-serif; font-optical-sizing: inherit; font-size-adjust: inherit; font-kerning: inherit; font-feature-settings: inherit; font-variation-settings: inherit; font-language-override: inherit; margin: 1em 0px; padding: 0px; vertical-align: baseline; letter-spacing: normal; background-color: rgb(255, 255, 255); text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; text-align: justify; font-size: 10pt;"><span style="font-family: TimesNewRoman, Times New Roman, Times, Baskerville, Georgia, serif;">The Series B Warrants are classified within permanent equity (additional paid-in capital) and are not subject to subsequent fair value remeasurement.</span></div><div style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-variant-alternates: inherit; font-variant-position: inherit; font-variant-emoji: inherit; font-stretch: inherit; line-height: inherit; font-family: Aptos, Aptos_EmbeddedFont, Aptos_MSFontService, Calibri, Helvetica, sans-serif; font-optical-sizing: inherit; font-size-adjust: inherit; font-kerning: inherit; font-feature-settings: inherit; font-variation-settings: inherit; font-language-override: inherit; margin: 1em 0px; padding: 0px; vertical-align: baseline; letter-spacing: normal; background-color: rgb(255, 255, 255); text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; font-size: 10pt;"><i><span style="font-family: TimesNewRoman, Times New Roman, Times, Baskerville, Georgia, serif;">Allocation of Proceeds</span></i></div><div style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-variant-alternates: inherit; font-variant-position: inherit; font-variant-emoji: inherit; font-stretch: inherit; line-height: inherit; font-family: Aptos, Aptos_EmbeddedFont, Aptos_MSFontService, Calibri, Helvetica, sans-serif; font-optical-sizing: inherit; font-size-adjust: inherit; font-kerning: inherit; font-feature-settings: inherit; font-variation-settings: inherit; font-language-override: inherit; margin: 1em 0px; padding: 0px; vertical-align: baseline; letter-spacing: normal; background-color: rgb(255, 255, 255); text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; font-size: 10pt;"><span style="font-family: TimesNewRoman, Times New Roman, Times, Baskerville, Georgia, serif;">The Company allocated the $4,500 gross proceeds between the Series B Preferred Stock and Series B Warrants using the with-and-without method. Under this method, the warrants were valued at their fair value as of the issuance date (August 18, 2025), with the residual proceeds allocated to the preferred stock.</span></div><div style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-variant-alternates: inherit; font-variant-position: inherit; font-variant-emoji: inherit; font-stretch: inherit; line-height: inherit; font-family: Aptos, Aptos_EmbeddedFont, Aptos_MSFontService, Calibri, Helvetica, sans-serif; font-optical-sizing: inherit; font-size-adjust: inherit; font-kerning: inherit; font-feature-settings: inherit; font-variation-settings: inherit; font-language-override: inherit; margin: 1em 0px; padding: 0px; vertical-align: baseline; letter-spacing: normal; background-color: rgb(255, 255, 255); text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; font-size: 10pt;"><span style="font-family: TimesNewRoman, Times New Roman, Times, Baskerville, Georgia, serif;">The fair value of the warrants was determined using the Black-Scholes option pricing model with the following key assumptions as of August 18, 2025:</span></div><ul style="color: rgb(36, 36, 36); font-family: &quot;Segoe UI&quot;, &quot;Segoe UI Web (West European)&quot;, -apple-system, BlinkMacSystemFont, Roboto, &quot;Helvetica Neue&quot;, sans-serif; letter-spacing: normal; background-color: rgb(255, 255, 255); text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; font-size: 10pt;"><li style="margin-left : 9px; "><span style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">Stock price: $1.40</span></li><li style="margin-left : 9px; "><span style="font-family: TimesNewRoman, Times New Roman, Times, Baskerville, Georgia, serif;">Exercise price: $1.50</span></li><li style="margin-left : 9px; "><span style="font-family: TimesNewRoman, Times New Roman, Times, Baskerville, Georgia, serif;">Expected term: 5.0 years</span></li><li style="margin-left : 9px; "><span style="font-family: TimesNewRoman, Times New Roman, Times, Baskerville, Georgia, serif;">Expected volatility: 72.4% (based on 1-year historical analysis)</span></li><li style="margin-left : 9px; "><span style="font-family: TimesNewRoman, Times New Roman, Times, Baskerville, Georgia, serif;">Risk-free interest rate: 3.90%</span></li><li style="margin-left : 9px; "><span style="font-family: TimesNewRoman, Times New Roman, Times, Baskerville, Georgia, serif;">Expected dividend yield: 0%</span></li></ul><div style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-variant-alternates: inherit; font-variant-position: inherit; font-variant-emoji: inherit; font-stretch: inherit; line-height: inherit; font-family: Aptos, Aptos_EmbeddedFont, Aptos_MSFontService, Calibri, Helvetica, sans-serif; font-optical-sizing: inherit; font-size-adjust: inherit; font-kerning: inherit; font-feature-settings: inherit; font-variation-settings: inherit; font-language-override: inherit; margin: 1em 0px; padding: 0px; vertical-align: baseline; letter-spacing: normal; background-color: rgb(255, 255, 255); text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; font-size: 10pt;"><span style="font-family: TimesNewRoman, Times New Roman, Times, Baskerville, Georgia, serif;">Based on this valuation, the Company allocated $2,553 to the Series B Warrants and $1,947 to the Series B Preferred Stock within additional paid-in capital.</span></div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">The Company performed sensitivity analysis on the key valuation assumptions. A 10% change in stock price results in approximately 13% change in warrant value, while a 10% change in volatility results in approximately 7% change in warrant value. Across reasonable scenarios, the warrant valuation ranges from $2,000 to $3,100, confirming the materiality of the warrant component and the appropriateness of the allocation methodology.</div><div style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-variant-alternates: inherit; font-variant-position: inherit; font-variant-emoji: inherit; font-stretch: inherit; line-height: inherit; font-optical-sizing: inherit; font-size-adjust: inherit; font-kerning: inherit; font-feature-settings: inherit; font-variation-settings: inherit; font-language-override: inherit; margin: 1em 0px; padding: 0px; vertical-align: baseline; letter-spacing: normal; background-color: rgb(255, 255, 255); text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"><i>Interim Recording and Year-End Adjustment</i></div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">At September 30, 2025, the Company initially recorded the full proceeds as preferred stock equity pending completion of a formal valuation. In the fourth quarter of 2025, upon obtaining a formal Black-Scholes valuation as of the August 18, 2025 issuance date, the Company reallocated $2,553 from additional paid-in capital attributable to preferred stock to additional paid-in capital attributable to warrants to reflect the proper allocation based on relative fair values.</div> 10000 0.0001 1000 6896553 1.45 6896553 1.45 P5Y 10000000 7717000 3216666 3216666 1.8 1.8 5790000 5178000 4500 0.0001 1000 3000000 4500000 1000 0.22 3000000 1.5 2030-12-12 P5Y 4500000 1.4 1.5 5 72.4 3.9 0 2553000 1947000 0.13 0.10 0.10 0.07 2000000000 3100000000 2553000 <div style="margin-left: 0.5pt;"> <span style="font-size: 10.0pt; color: #000000; font-weight: bold;">11. DEBT</span> </div> <div style="font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10pt; background-color: rgb(255, 255, 255);">The Company’s debt at December 31, 2025 and 2024 included operating lease liabilities (see Note 9).</span> </div> <div style="margin-left: 0.5pt;"> <span style="font-size: 10.0pt; color: #000000; font-weight: bold;">12. STOCKHOLDERS</span><span style="font-size: 10.0pt; color: #000000;">’</span><span style="font-size: 10.0pt; color: #000000; font-weight: bold;"> EQUITY</span> </div> <div style="font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">The Company’s authorized capital consists of 200,000,000 shares of Common Stock and 5,000,000 shares of preferred stock, par value $0.0001 per share (“Preferred Stock”), of which 10,000 and 4,500 are designated as Series A and Series B Preferred Stock, respectively.</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt; font-style: italic; text-decoration: underline;">Series A Preferred Stock</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">On July 3, 2023, the Company filed the Certificate of Designations of the Series A Preferred Stock (the “Certificate of Designations”) with the Secretary of State of the State of Delaware, designating 10,000 shares of its Preferred Stock as Series A Convertible Preferred Stock. The terms of the Series A Preferred Stock are as set forth in the form of Certificate of Designations.  of the Series A Preferred Stock (the “Certificate of Designations”). The Series A Preferred Stock is convertible into shares of Common Stock (the “Conversion Shares”) at the election of the holder at any time at an initial conversion price of $1.45 (the “Conversion Price”). The Conversion Price is subject to customary adjustments for stock dividends, stock splits, reclassifications and the like, and subject to price-based adjustment in the event of any issuances of Common Stock, or securities convertible, exercisable or exchangeable for Common Stock, at a price below the then-applicable Conversion Price (subject to certain exceptions).</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">The holders of the Series A Preferred Stock are entitled to dividends of 8% per annum, compounded monthly, which are payable in cash or shares of Common Stock, or a combination thereof, at the Company’s option in accordance with the terms of the Certificate of Designations. Upon the occurrence and during the continuance of a Triggering Event (as defined in the Certificate of Designations), the Series A Preferred Stock will accrue dividends at the rate of 20% per annum. If the Company elects to pay any dividends in shares of Common Stock, the Conversion Price used to calculate the number of shares issuable will equal to the lower of (i) the then applicable Conversion Price and (ii) 85% of the arithmetic average of the three (3) lowest closing prices of the Company’s Common Stock during the twenty (20) consecutive trading day period ending on the trading day immediately preceding the dividend payment date, provided that such price shall not be lower than the lower of (x) $0.2828 (subject to adjustment for stock splits, stock dividends, stock combinations, recapitalizations or other similar events ) and (y) 20% of the “Minimum Price” (as defined in Nasdaq Stock Market Rule 5635) on the date of the Stockholder Approval (subject to adjustment for stock splits, stock dividends, stock combinations, recapitalizations or other similar events) or, in any case, such lower amount as permitted, from time to time, by the Nasdaq Stock Market.</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">On August 19, 2024, the Company entered into an Amendment Agreement (the “August 2024 Amendment”) with the Required Holders (as defined in the Certificate of Designations). Pursuant to the August 2024 Amendment, the Required Holders agreed that (A) the unpaid and accrued dividends on the Series A Preferred Stock due July 1, 2024 (the “July Delinquent Dividend Amount”), shall be payable, at the option of the Company, in (i) cash and/or (ii) shares of Common Stock, at a price per share of Common Stock equal to the lower of (x) $1.00 and (y) the Dividend Conversion Price (as defined in the Certificate of Designations), using July 1, 2024, as the applicable date of determination in accordance with the Certificate of Designations; (B) the dividends due on October 1, 2024 (the “October Dividend Amount” and, together with the July Delinquent Dividend Amount, the “Delinquent Dividend Amounts”), shall be payable in shares of Common Stock based on a per share price of Common Stock equal to 80% of the arithmetic average of the three (3) lowest closing sale prices of the Common Stock during the month of September 2024; and (C) such Delinquent Dividend Amounts and any Dividend Balance Shares (as defined in the Certificate of Designations), with respect thereto, if applicable, shall be delivered on October 1, 2024. The Company and the Required Holders further agreed pursuant to the August 2024 Amendment to amend (i) the Certificate of Designations, as described below, by filing a Certificate of Amendment to the Certificate of Designations (the “August 2024 Certificate of Amendment”) and (ii) the Series A Purchase Agreement to amend the definition of “Excluded Securities.” The August 2024 Certificate of Amendment amends the Certificate of Designations to, among other things, (A) allow for the payment of dividends in the form of Common Stock to a holder of the Series A Preferred Stock who serves as a director, officer or employee of the Company; provided that such issuance is approved by the Company’s stockholders prior to such issuance, and (B) amend certain conditions required for (i) a mandatory conversion of the Series A Preferred Stock (as described below), and (ii) the Company’s right to redeem, all or a portion, of the Series A Preferred Stock outstanding pursuant to an optional redemption (as described below), in each case, pursuant to the terms of the Certificate of Designations.</span> </div><div style="text-align: justify;"> <span style="font-size: 10.0pt;">Pursuant to the August 2024 Certificate of Amendment, the Company may require holders to convert their shares of Series A Preferred Stock into shares of Common Stock if the closing price of the Company’s Common Stock exceeds $8.00 per share (subject to adjustment for stock splits, stock dividends, stock combinations, recapitalizations or other similar events) for 20 consecutive trading days and the daily dollar trading volume of the Common Stock exceeds $2,000 per day during the same period, provided that certain equity conditions described in the Certificate of Designations are satisfied. Pursuant to the August 2024 Certificate of Amendment, at any time beginning 18 months from the date of the issuance, provided that the Company has filed all reports required to be filed by it pursuant to the Exchange Act on a timely basis for a continuous period of one year and provided further that certain equity conditions described in the Certificate of Designations are satisfied, the Company has the right to redeem in cash all or some of the shares of the Series A Preferred Stock outstanding at such time at a redemption price equal to the product of (x) 125% multiplied by (y) the sum of (A) the stated value of the Series A Preferred Stock plus (B) all declared and unpaid Dividends on such Preferred Stock and any other unpaid amounts then due and payable hereunder with respect to such Series A Preferred Stock, plus (C) the make-whole amount, plus (D) any accrued and unpaid late charges with respect to such stated value and amounts payable pursuant to clause (B) as of such date of determination.</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">On October 14, 2024, the Company entered into an Amendment Agreement with the Required Holders (as defined in the Certificate of Designations), pursuant to which, the Required Holders agreed to amend the Certificate of Designations of the Company’s Series A Preferred Stock, as described below, by filing a Certificate of Amendment to the Certificate of Designations (the “October 2024 Certificate of Amendment”). The October 2024 Certificate of Amendment amends the Certificate of Designations to, among other things, provide that, except as required by applicable law, the holders of the Series A Preferred Stock will be entitled to vote with holders of the Common Stock on an as converted basis, with the number of votes to which each holder of Series A Preferred Stock is entitled to be calculated assuming a conversion price of $1.414 per share, which was the Minimum Price (as defined in Rule 5635 of the Rule of the Nasdaq Stock Market) applicable immediately before the execution and delivery of the Series A Purchase Agreement, subject to certain beneficial ownership limitations as set forth in the Certificate of Designations. The October 2024 Certificate of Amendment further provides that (i) certain holders of the Series A Preferred Stock will not be subject to certain beneficial ownership limitations as described in the Certificate of Designations, and (ii) stockholder approval will not be required in connection with the payment of dividends in the form of Common Stock to a holder of the Series A Preferred Stock who serves as a director, officer or employee of the Company. The October 2024 Certificate of Amendment was filed with the Secretary of State of the State of Delaware, effective as of October 14, 2024. The holders of the Series A Preferred Stock have no voting rights, other than with respect to certain matters affecting the rights of the Series A Preferred Stock.</span> </div> <div style="text-align: justify; font-size: 10pt;">   </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">On November 25, 2024, the Company entered into an Amendment and Agreement with the Series A Investors (the “November 2024 Amendment Agreement”), pursuant to which, (i) the Series A Investors agreed to amend the Certificate of Designations, as described below, by filing a Certificate of Amendment to the Certificate of Designations with the Secretary of State (the “November 2024 Certificate of Amendment”), and (ii) the Series A Investors and the Company agreed that all payment amounts that have accrued and are unpaid as of November 25, 2024, pursuant to the Certificate of Designations and the August 2024 Amendment will be satisfied by delivery of shares of Common Stock on or prior to November 25, 2024, with each Series A Investor entitled to receive the number of shares of Common Stock specified below such Series A Investor’s name on its respective signature page thereto. The November 2024 Certificate of Amendment amends the Certificate of Designations to provide that upon the occurrence of a Triggering Event (as defined in the Certificate of Designations), the Series A Preferred Stock will accrue dividends compounded monthly at the rate of 20% per annum. The Certificate of Amendment became effective with the Secretary of State on December 6, 2024.</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10pt; background-color: rgb(255, 255, 255);">At the time of issuance, $2,036 of the net proceeds less transaction cost of the Series A Purchase Agreement was allocated to the 10,000 shares of Series A Preferred Stock initially issued. As of December 31, 2024, a total of 1,793 shares of Series A Preferred Stock were converted into approximately 1,468,000 shares of Common Stock. There were no additional conversions for the year ended December 31, 2025.</span><span style="background-color: rgb(255, 255, 255);"><span style="font-size: 10pt;"> For the year  ended December 31, 2025, the Company authorized and declared dividends totaling $903, of which $492 was paid in shares of the Company’s Common Stock. For the year ended December 31, 2024, authorized and declared dividends total</span></span><span style="font-size: 10pt; background-color: rgb(255, 255, 255);">ing $1,218, of which $60 was paid in cash, $1,158 was paid in shares of the Company’s Common Stock.</span> </div><div style="text-align: justify;"> <span style="font-size: 10.0pt; font-style: italic; text-decoration: underline;">Series B Preferred Stock</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify; font-size: 10pt;"><span><i>Series B Issuance</i></span></div><div style="text-align: justify;"> </div><div style="text-align: justify;"><span style="font-size: 10.0pt;">On August 18, 2025, the Company entered into the Series B Purchase Agreement with the Series B Purchasers, including V4 Global, LLC (an entity controlled by the Company's Chief Executive Officer), for the issuance and sale in a private placement of an aggregate of (i) 4,500 shares of the Company’s Series B Preferred Stock initially convertible into up to 3,000,000 shares of Common Stock, at an initial conversion price of $1.50 per share, and (ii) accompanying Series B Warrants to purchase up to 3,000,000 shares of Common Stock, with an initial exercise price of $1.50 per share, for aggregate gross proceeds of $4,500 before offering expenses. V4 Global, LLC purchased 1,000 shares (22% of the offering) on the same terms as unrelated investors. <span style="margin-top: 1em; margin-bottom: 1em; font-size: 12pt;"><span style="font-family: TimesNewRoman, Times New Roman, Times, Baskerville, Georgia, serif;"><span style="font-size: 10pt">The Series B Preferred Stock and Series B Warrants were not exercisable or convertible until stockholder approval was obtained on December 12, 2025, pursuant to Nasdaq Stock Market Rule 5635(d) for issuances exceeding 19.99% of outstanding common stock at prices below the Minimum Price.</span></span></span></span> </div><div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify; font-size: 10pt;"> On August 20, 2025, the Company filed the Series B Certificate of Designations, thereby creating the Series B Preferred Stock. The Series B Certificate of Designations became effective with the Secretary of State of the State of Delaware upon filing. The terms of the Series B Convertible Preferred Stock are as set forth in the Series B Certificate of Designations. The Series B Preferred Stock are convertible into the Series B Conversion Shares at the election of the holders of the Series B Preferred Stock at any time at an initial conversion price of $1.50 per share (3,000,000 shares in aggregate), the conversion price is subject to customary anti-dilution adjustments for stock dividends, stock splits, reclassifications, stock combinations and similar corporate events. </div><div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify; font-size: 10pt; font-style: italic;">Classification Analysis</div> <div style="border: 0px; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-variant-alternates: inherit; font-variant-position: inherit; font-variant-emoji: inherit; font-stretch: inherit; line-height: inherit; font-family: Aptos, Aptos_EmbeddedFont, Aptos_MSFontService, Calibri, Helvetica, sans-serif; font-optical-sizing: inherit; font-size-adjust: inherit; font-kerning: inherit; font-feature-settings: inherit; font-variation-settings: inherit; font-language-override: inherit; margin: 1em 0px; padding: 0px; vertical-align: baseline; letter-spacing: normal; background-color: rgb(255, 255, 255); text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; font-size: 10pt; text-align: justify;"><span style="font-family: TimesNewRoman, Times New Roman, Times, Baskerville, Georgia, serif;">The Company evaluated the Series B Preferred Stock and Series B Warrants under ASC 480, Distinguishing Liabilities from Equity, and ASC 815-40, Contracts in Entity's Own Equity. Management concluded that both instruments qualify for permanent equity classification from inception because:</span></div> <ul style="color: rgb(36, 36, 36); letter-spacing: normal; background-color: rgb(255, 255, 255); text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; font-size: 10pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif;"><li style="margin-left : 7px; ">Neither instrument contains mandatory redemption provisions requiring liability classification under ASC 480</li><li style="margin-left : 7px; ">Both instruments are indexed to the Company's own stock under ASC 815-40-15 (fixed conversion/exercise price with only standard anti-dilution provisions)</li><li style="margin-left : 7px; ">The Company has sufficient authorized and unissued shares available to settle both instruments </li><li style="margin-left : 7px; ">Physical settlement in registered shares only; no net-cash settlement provisions</li><li style="margin-left : 7px; ">The stockholder approval contingency represents an internal regulatory requirement within the Company's control, not an event outside the issuer's control that would preclude equity classification</li></ul><div style="text-align: justify; font-size: 10pt;">The Series B Preferred Stock has no voting rights except for protective provisions requiring majority holder approval for certain actions that would adversely affect the rights of Series B holders. </div> <div style="text-align: justify; font-size: 10pt;"> </div><div style="text-align: justify; font-size: 10pt;"><span style="letter-spacing: normal; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">Holders are entitled to receive dividends if and when declared by the Board of Directors, payable in cash, securities, or assets at the Board's determination. The Series B Preferred Stock has no mandatory redemption provisions and is classified within permanent stockholders' equity.</span></div> 200000000 5000000 0.0001 10000 4500 10000 1.45 0.08 0.20 0.85 P20D 0.2828 1 0.80 8 P20D 2000 P18M 1.25 1.414 0.20 2036000 10000 1793 1468000 0 903000 492000 1218000 60000 1158000 4500 3000000 1.5 3000000 1.5 4500 1000 0.22 19.99 1.5 3000000 <div style="margin-left: 0.5pt;"> <span style="font-size: 10.0pt; color: #000000; font-weight: bold;">13. SHARE-BASED COMPENSATION</span> </div> <div style="font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">On March 28, 2017, the Company adopted, and the Company’s stockholders approved, the Wrap Technologies, Inc. 2017 Equity Incentive Plan (the “2017 Plan”) subject to stockholder approval. Under the 2017 Plan as originally adopted, the Company initially reserved 2,000,000 shares of Common Stock for issuance as awards under the 2017 Plan. The 2017 Plan was amended by the First Amendment to the 2017 Plan to increase the total number of shares of Common Stock for issuance under the 2017 Plan to 4,100,000 shares, which was adopted by the Board on March 16, 2019, and by stockholders on May 23, 2019. The 2017 Plan was also amended by the Second Amendment to the 2017 Plan to increase the total number of shares of Common Stock for issuance under the 2017 Plan to 6,000,000 shares which was adopted by the Board on April 8, 2020, and by stockholders on June 5, 2020. The 2017 Plan was also amended by the Third Amendment to the 2017 Plan to increase the total number of shares of Common Stock for issuance under the 2017 Plan to 7,500,000 shares which was adopted by the Board on April 23, 2021, and by stockholders on June 22, 2021. The 2017 Plan was also amended by the Fourth Amendment to the 2017 Plan to increase the total number of shares of Common Stock for issuance under the 2017 Plan to 9,000,000 shares which was adopted by the Board on April 22, 2022, and by our stockholders on June 23, 2022.The 2017 Plan was amended by the Fifth Amendment to the 2017 Plan to increase the total number of shares of Common Stock for issuance under the 2017 Plan to 16,500,000 shares which was adopted by the Board on November 12, 2024, and by our stockholders on December 23, 2024. The 2017 Plan was amended by the Sixth Amendment to the 2017 Plan to increase the total number of shares of Common Stock for issuance under the 2017 Plan to 20,500,000 shares which was adopted by the Board of Directors on October 20, 2025, and by the Company stockholders on December 12, 2025.</span></div><div style="font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10pt; background-color: rgb(255, 255, 255);">As of December 31, 2025,</span><span style="font-size: 10.0pt;"><span style="background-color: rgb(255, 255, 255);"> </span>there<span style="background-color: rgb(255, 255, 255);"> were 8,011,625 shar</span>es of Common Stock remaining available for grant under the 2017 Plan.</span> </div><div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;"><span style="text-decoration:underline">Stock Options</span></span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">The following table summarizes stock option activity for the year en<span style="background-color: rgb(255, 255, 255);">ded </span></span><span style="font-size: 10pt; background-color: rgb(255, 255, 255);">December 31, 2025:</span> </div> <div style="font-size: 10pt;"> </div><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr style="height: 0px; font-size: 0px;"><td style="width: 53%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 9%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 9%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 9%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 9%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td></tr><tr><td style="font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="FN 13. SBC - C5"> </td><td style="width: 9%; font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="FN 13. SBC - C5"> </td><td style="font-size: 10pt;"> </td><td colspan="7" style="text-align: center; font-weight: bold; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;">Weighted Average</td><td style="font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="FN 13. SBC - I5"> </td><td style="width: 9%; font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="FN 13. SBC - I5"> </td></tr><tr><td style="font-size: 10pt;"> </td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - C6"> </td><td style="text-align: center; font-weight: bold; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 9%; font-size: 10pt;">Options on Common Shares</td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - C6"> </td><td style="font-size: 10pt;"> </td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - E6"> </td><td style="text-align: center; font-weight: bold; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 9%; font-size: 10pt;">Exercise Price</td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - E6"> </td><td style="font-size: 10pt;"> </td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - G6"> </td><td style="text-align: center; font-weight: bold; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 9%; font-size: 10pt;">Remaining Contractual Term</td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - G6"> </td><td style="font-size: 10pt;"> </td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - I6"> </td><td style="text-align: center; font-weight: bold; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 9%; font-size: 10pt;">Aggregate Intrinsic Value</td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - I6"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">Outstanding January 1, 2025</td><td style="text-align: left; width: 1%; font-size: 10pt;" title="FN 13. SBC - C7"> </td><td style="text-align: right; width: 9%; font-size: 10pt;">3,944,284</td><td style="text-align: left; width: 1%; font-size: 10pt;" title="FN 13. SBC - C7"> </td><td style="font-size: 10pt;"> </td><td style="text-align: left; width: 1%; font-size: 10pt;" title="FN 13. SBC - E7">$</td><td style="text-align: right; width: 9%; font-size: 10pt;">2.12</td><td style="text-align: left; width: 1%; font-size: 10pt;" title="FN 13. SBC - E7"> </td><td style="font-size: 10pt;"> </td><td style="text-align: left; width: 1%; font-size: 10pt;" title="FN 13. SBC - G7"> </td><td style="text-align: right; width: 9%; font-size: 10pt;">8.30</td><td style="text-align: left; width: 1%; font-size: 10pt;" title="FN 13. SBC - G7"> </td><td style="font-size: 10pt;"> </td><td style="text-align: left; width: 1%; font-size: 10pt;" title="FN 13. SBC - I7">$</td><td style="text-align: right; width: 9%; font-size: 10pt;">1,486</td><td style="text-align: left; width: 1%; font-size: 10pt;" title="FN 13. SBC - I7"> </td></tr><tr><td style="font-size: 10pt; padding-left: 10px;"> Granted</td><td style="text-align: left; width: 1%; font-size: 10pt;" title="FN 13. SBC - C8"> </td><td style="text-align: right; width: 9%; font-size: 10pt;">5,273,927</td><td style="text-align: left; width: 1%; font-size: 10pt;" title="FN 13. SBC - C8"> </td><td style="font-size: 10pt;"> </td><td style="text-align: left; width: 1%; font-size: 10pt;" title="FN 13. SBC - E8"> </td><td style="text-align: right; width: 9%; font-size: 10pt;">1.98</td><td style="text-align: left; width: 1%; font-size: 10pt;" title="FN 13. SBC - E8"> </td><td style="font-size: 10pt;"> </td><td style="text-align: left; width: 1%; font-size: 10pt;" title="FN 13. SBC - G8"> </td><td style="text-align: right; width: 9%; font-size: 10pt;">-</td><td style="text-align: left; width: 1%; font-size: 10pt;" title="FN 13. SBC - G8"> </td><td style="font-size: 10pt;"> </td><td style="text-align: left; width: 1%; font-size: 10pt;" title="FN 13. SBC - I8"> </td><td style="text-align: right; width: 9%; font-size: 10pt;">-</td><td style="text-align: left; width: 1%; font-size: 10pt;" title="FN 13. SBC - I8"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt; padding-left: 10px;"> Exercised</td><td style="text-align: left; width: 1%; font-size: 10pt;" title="FN 13. SBC - C9"> </td><td style="text-align: right; width: 9%; font-size: 10pt;">(171,415</td><td style="text-align: left; width: 1%; font-size: 10pt;" title="FN 13. SBC - C9">) </td><td style="font-size: 10pt;"> </td><td style="text-align: left; width: 1%; font-size: 10pt;" title="FN 13. SBC - E9"> </td><td style="text-align: right; width: 9%; font-size: 10pt;">1.43</td><td style="text-align: left; width: 1%; font-size: 10pt;" title="FN 13. SBC - E9"> </td><td style="font-size: 10pt;"> </td><td style="text-align: left; width: 1%; font-size: 10pt;" title="FN 13. SBC - G9"> </td><td style="text-align: right; width: 9%; font-size: 10pt;">-</td><td style="text-align: left; width: 1%; font-size: 10pt;" title="FN 13. SBC - G9"> </td><td style="font-size: 10pt;"> </td><td style="text-align: left; width: 1%; font-size: 10pt;" title="FN 13. SBC - I9"> </td><td style="text-align: right; width: 9%; font-size: 10pt;">-</td><td style="text-align: left; width: 1%; font-size: 10pt;" title="FN 13. SBC - I9"> </td></tr><tr><td style="font-size: 10pt; padding-left: 10px;">Forfeited, cancelled, expired</td><td style="text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - C10"> </td><td style="text-align: right; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 9%; font-size: 10pt;">(2,597,262</td><td style="text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - C10">) </td><td style="font-size: 10pt;"> </td><td style="text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - E10"> </td><td style="text-align: right; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 9%; font-size: 10pt;">2.05</td><td style="text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - E10"> </td><td style="font-size: 10pt;"> </td><td style="text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - G10"> </td><td style="text-align: right; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 9%; font-size: 10pt;">-</td><td style="text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - G10"> </td><td style="font-size: 10pt;"> </td><td style="text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - I10"> </td><td style="text-align: right; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 9%; font-size: 10pt;">-</td><td style="text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - I10"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">Outstanding December 31, 2025</td><td style="text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - C11"> </td><td style="text-align: right; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 9%; font-size: 10pt;">6,449,534</td><td style="text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - C11"> </td><td style="font-size: 10pt;"> </td><td style="text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - E11">$</td><td style="text-align: right; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 9%; font-size: 10pt;">2.05</td><td style="text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - E11"> </td><td style="font-size: 10pt;"> </td><td style="text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - G11"> </td><td style="text-align: right; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 9%; font-size: 10pt;">8.56</td><td style="text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - G11"> </td><td style="font-size: 10pt;"> </td><td style="text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - I11">$</td><td style="text-align: right; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 9%; font-size: 10pt;">3,469</td><td style="text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - I11"> </td></tr><tr><td style="font-size: 10pt;">Exercisable December 31, 2025</td><td style="text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - C12"> </td><td style="text-align: right; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 9%; font-size: 10pt;">1,713,774</td><td style="text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - C12"> </td><td style="font-size: 10pt;"> </td><td style="text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - E12">$</td><td style="text-align: right; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 9%; font-size: 10pt;">2.41</td><td style="text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - E12"> </td><td style="font-size: 10pt;"> </td><td style="text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - G12"> </td><td style="text-align: right; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 9%; font-size: 10pt;">7.37</td><td style="text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - G12"> </td><td style="font-size: 10pt;"> </td><td style="text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - I12">$</td><td style="text-align: right; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 9%; font-size: 10pt;">936</td><td style="text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - I12"> </td></tr></table><div style="font-size: 10pt;"> </div><div style="text-align: justify;"> <span style="font-size: 10.0pt;">At December 31, 2025, there wer<span style="background-color: rgb(255, 255, 255);">e </span></span><span style="font-size: 10pt; background-color: rgb(255, 255, 255);">5,159,368</span><span style="font-size: 10.0pt;"><span style="background-color: rgb(255, 255, 255);"> se</span>rvice-based stock options outstanding, and 1,290,166 performance-based stock options outstanding which were granted in October 2023 to the Company’s current Chief Executive Officer, subject to vesting based on future market capitalization targets.</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">The Company uses the Black-Scholes option pricing model to determine the fair value of service-based options granted. The following table summarizes the assumptions used to compute the fair value of options granted to employees and non-employees:</span> </div> <div style="font-size: 10pt;"> </div> <table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr style="height: 0px; font-size: 0px; background-color: rgb(204, 238, 255);"><td style="width: 75%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td></tr></table><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr style="height: 0px; font-size: 0px;"><td style="width: 77%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 9%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 9%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td></tr><tr><td style="font-size: 10pt;"> </td><td colspan="7" style="text-align: center; font-weight: bold; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;">For the Year Ended December 31,</td></tr><tr><td style="font-size: 10pt;"> </td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - C21"> </td><td style="text-align: center; font-weight: bold; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 9%; font-size: 10pt;">2025</td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - C21"> </td><td style="font-size: 10pt;"> </td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - E21"> </td><td style="text-align: center; font-weight: bold; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 9%; font-size: 10pt;">2024</td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - E21"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">Expected stock price volatility</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - C22"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">76</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - C22">%</td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - E22"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">76</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - E22">%</td></tr><tr><td style="font-size: 10pt;">Risk-free interest rate</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - C23"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">4.06</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - C23">%</td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - E23"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">3.82</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - E23">%</td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">Expected dividend yield</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - C24"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">0</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - C24">%</td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - E24"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">0</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - E24">%</td></tr><tr><td style="font-size: 10pt;">Expected life of options</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - C25"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">6</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - C25"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - E25"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">6</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - E25"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">Weighted-average fair value of options granted</td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="FN 13. SBC - C26">$</td><td style="width: 9%; text-align: right; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;">1.38</td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="FN 13. SBC - C26"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="FN 13. SBC - E26">$</td><td style="width: 9%; text-align: right; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;">1.44</td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="FN 13. SBC - E26"> </td></tr></table><div style="text-align: justify;"> <span style="font-size: 10.0pt;">Estimated volatility is a measure of the amount by which the Company’s stock price is expected to fluctuate each year during the expected life of awards. The Company’s estimated volatility was based on an average of the historical volatility of peer entities whose stock prices were publicly available. The Company’s calculation of estimated volatility is based on historical stock prices of these peer entities over a period equal to the expected life of the awards. The Company uses the historical volatility of peer entities due to the lack of sufficient historical data of its stock price. The Company records forfeitures as they are incurred.</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">The risk-free interest rate assumption is based upon observed interest rates on zero coupon U.S. Treasury bonds whose maturity period is appropriate for the term of the options. The dividend yield of zero is based on the fact that the Company has never paid cash dividends and has no present intention to pay cash dividends. The Company calculates the expected life of the options using the "simplified method," whereby the expected term is calculated as the average of the vesting term and the contractual term of the option, as the Company does not have sufficient historical exercise data to provide a reasonable basis upon which to estimate expected term.</span> </div><div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">Stock option expense was<span style="background-color: rgb(255, 255, 255);"> </span></span><span style="font-size: 10pt; background-color: rgb(255, 255, 255);">$1,759</span><span style="font-size: 10.0pt;"><span style="background-color: rgb(255, 255, 255);"> a</span>nd $1,132 for the years ended December 31, 2025 and 2024, respectively.</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">The following table summarizes information about stock options outstanding at<span style="background-color: rgb(255, 255, 255);"> </span></span><span style="font-size: 10pt; background-color: rgb(255, 255, 255);">December 31, 2025:</span> </div> <div style="font-size: 10pt;">  </div> <table style="border-spacing: 0px; border-collapse: collapse; border-width: 1pt; border-style: solid; border-color: black; font-size: 10pt; width: 100%;"> <tr style="height: 0px; font-size: 0px;"> <td style="width: 36pt;"> </td> <td style="width: 5pt;"> </td> <td style="width: 36pt;"> </td> <td style="width: 5pt;"> </td> <td style="width: 5pt;"> </td> <td style="width: 5pt;"> </td> <td style="width: 68pt;"> </td> <td style="width: 5pt;"> </td> <td style="width: 5pt;"> </td> <td style="width: 5pt;"> </td> <td style="width: 68pt;"> </td> <td style="width: 5pt;"> </td> <td style="width: 5pt;"> </td> <td style="width: 5pt;"> </td> <td style="width: 68pt;"> </td> <td style="width: 5pt;"> </td> <td style="width: 5pt;"> </td> <td style="width: 5pt;"> </td> <td style="width: 68pt;"> </td> <td style="width: 5pt;"> </td> <td style="width: 5pt;"> </td> <td style="width: 5pt;"> </td> <td style="width: 72pt;"> </td> <td style="width: 6pt;"> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom; text-align: center;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td colspan="2" style="padding: 0.25pt; vertical-align: bottom; text-align: center;"> <span style="font-weight: bold;">Weighted</span> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom; text-align: center;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom; text-align: center;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom; text-align: center;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom; text-align: center;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td colspan="2" style="padding: 0.25pt; vertical-align: bottom; text-align: center;"> <span style="font-weight: bold;">Average</span> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td colspan="2" style="padding: 0.25pt; vertical-align: bottom; text-align: center;"> <span style="font-weight: bold;">Weighted</span> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom; text-align: center;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td colspan="2" style="padding: 0.25pt; vertical-align: bottom; text-align: center;"> <span style="font-weight: bold;">Weighted</span> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom; text-align: center;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td colspan="2" style="padding: 0.25pt; vertical-align: bottom; text-align: center;"> <span style="font-weight: bold;">Remaining</span> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td colspan="2" style="padding: 0.25pt; vertical-align: bottom; text-align: center;"> <span style="font-weight: bold;">Average</span> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom; text-align: center;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td colspan="2" style="padding: 0.25pt; vertical-align: bottom; text-align: center;"> <span style="font-weight: bold;">Average</span> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> </tr> <tr style="vertical-align: top;"> <td colspan="3" style="padding: 0.25pt; vertical-align: bottom; text-align: center;"> <span style="font-weight: bold;">Range of</span> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td colspan="2" style="padding: 0.25pt; vertical-align: bottom; text-align: center;"> <span style="font-weight: bold;">Number</span> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td colspan="2" style="padding: 0.25pt; vertical-align: bottom; text-align: center;"> <span style="font-weight: bold;">Contractual</span> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td colspan="2" style="padding: 0.25pt; vertical-align: bottom; text-align: center;"> <span style="font-weight: bold;">Exercise</span> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td colspan="2" style="padding: 0.25pt; vertical-align: bottom; text-align: center;"> <span style="font-weight: bold;">Number</span> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td colspan="2" style="padding: 0.25pt; vertical-align: bottom; text-align: center;"> <span style="font-weight: bold;">Exercise</span> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> </tr> <tr style="vertical-align: top;"> <td colspan="3" style="border-bottom: 1pt solid rgb(0, 0, 0); padding: 0.25pt 0.25pt 0.4pt; vertical-align: bottom; text-align: center;"> <span style="font-weight: bold;">Exercise Prices</span> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td colspan="2" style="border-bottom: 1pt solid rgb(0, 0, 0); padding: 0.25pt 0.25pt 0.4pt; vertical-align: bottom; text-align: center;"> <span style="font-weight: bold;">Outstanding</span> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td colspan="2" style="border-bottom: 1pt solid rgb(0, 0, 0); padding: 0.25pt 0.25pt 0.4pt; vertical-align: bottom; text-align: center;"> <span style="font-weight: bold;">Life (Years)</span> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td colspan="2" style="border-bottom: 1pt solid rgb(0, 0, 0); padding: 0.25pt 0.25pt 0.4pt; vertical-align: bottom; text-align: center;"> <span style="font-weight: bold;">Price</span> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td colspan="2" style="border-bottom: 1pt solid rgb(0, 0, 0); padding: 0.25pt 0.25pt 0.4pt; vertical-align: bottom; text-align: center;"> <span style="font-weight: bold;">Exercisable</span> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td colspan="2" style="border-bottom: 1pt solid rgb(0, 0, 0); padding: 0.25pt 0.25pt 0.4pt; vertical-align: bottom; text-align: center;"> <span style="font-weight: bold;">Price</span> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> </tr> <tr style="vertical-align: top; background-color: rgb(204, 238, 255);"> <td style="padding: 0.25pt; vertical-align: bottom; text-align: right;"> $1.00 </td> <td style="padding: 0.25pt; vertical-align: bottom; text-align: center;"> – </td> <td style="padding: 0.25pt; vertical-align: bottom;"> <div> $2.00 </div> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom; text-align: right;"> 4,282,059</td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom; text-align: right;"> 8.60</td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> <div> $ </div> </td> <td style="padding: 0.25pt; vertical-align: bottom; text-align: right;"> 1.58</td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom; text-align: right;"> 982,542</td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> <div> $ </div> </td> <td style="padding: 0.25pt; vertical-align: bottom; text-align: right;"> 1.43</td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0.25pt; vertical-align: bottom; text-align: right;"> $2.01 </td> <td style="padding: 0.25pt; vertical-align: bottom; text-align: center;"> – </td> <td style="padding: 0.25pt; vertical-align: bottom;"> <div> $3.00 </div> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom; text-align: right;"> 1,735,000</td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom; text-align: right;"> 9.26</td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> <div> $ </div> </td> <td style="padding: 0.25pt; vertical-align: bottom; text-align: right;"> 2.48</td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom; text-align: right;"> 398,758</td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> <div> $ </div> </td> <td style="padding: 0.25pt; vertical-align: bottom; text-align: right;"> 2.45 </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> </tr> <tr style="vertical-align: top; background-color: rgb(204, 238, 255);"> <td style="padding: 0.25pt; vertical-align: bottom; text-align: right;"> $3.01 </td> <td style="padding: 0.25pt; vertical-align: bottom; text-align: center;"> – </td> <td style="padding: 0.25pt; vertical-align: bottom;"> <div> $4.00 </div> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom; text-align: right;"> 150,000 </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom; text-align: right;"> 8.09</td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> <div> $ </div> </td> <td style="padding: 0.25pt; vertical-align: bottom; text-align: right;"> 3.88</td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom; text-align: right;"> 49,999</td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> <div> $ </div> </td> <td style="padding: 0.25pt; vertical-align: bottom; text-align: right;"> 3.88</td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> </tr><tr style="vertical-align: top;"> <td style="vertical-align: bottom; text-align: right;"><span style="letter-spacing: normal; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">$4.01</span></td> <td style="vertical-align: bottom; text-align: center;"><span style="letter-spacing: normal; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">–</span></td> <td style="vertical-align: bottom;"><span style="letter-spacing: normal; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">$5.00</span></td> <td style="vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"> </td> <td style="vertical-align: bottom; text-align: right;">83,975</td> <td style="vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"> </td> <td style="vertical-align: bottom; text-align: right;"><span style="letter-spacing: normal; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">5.02</span></td> <td style="vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"><span style="letter-spacing: normal; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">$</span></td> <td style="vertical-align: bottom; text-align: right;"><span style="letter-spacing: normal; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">4.37</span></td> <td style="vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"> </td> <td style="vertical-align: bottom; text-align: right;"><span style="letter-spacing: normal; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">83,975</span></td> <td style="vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"><span style="letter-spacing: normal; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">$</span></td> <td style="vertical-align: bottom; text-align: right;"><span style="letter-spacing: normal; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">4.37</span></td> <td style="vertical-align: bottom;"> </td> </tr> <tr style="vertical-align: top; background-color: rgb(204, 238, 255);"> <td style="padding: 0.25pt; vertical-align: middle; text-align: right;"> $5.01</td> <td style="padding: 0.25pt; vertical-align: middle; text-align: center;"> – </td> <td style="padding: 0.25pt; vertical-align: middle;"> <div> $6.58</div> </td> <td style="padding: 0.25pt; vertical-align: middle;"> </td> <td style="padding: 0.25pt; vertical-align: middle;"> </td> <td style="padding: 0.25pt; vertical-align: middle;"> </td> <td style="padding: 0.25pt; vertical-align: middle; text-align: right;"> 198,500</td> <td style="padding: 0.25pt; vertical-align: middle;"> </td> <td style="padding: 0.25pt; vertical-align: middle;"> </td> <td style="padding: 0.25pt; vertical-align: middle;"> </td> <td style="padding: 0.25pt; vertical-align: middle; text-align: right;"> 3.54</td> <td style="padding: 0.25pt; vertical-align: middle;"> </td> <td style="padding: 0.25pt; vertical-align: middle;"> </td> <td style="padding: 0.25pt; vertical-align: middle;"> <div> $ </div> </td> <td style="padding: 0.25pt; vertical-align: middle; text-align: right;"> 5.96</td> <td style="padding: 0.25pt; vertical-align: middle;"> </td> <td style="padding: 0.25pt; vertical-align: middle;"> </td> <td style="padding: 0.25pt; vertical-align: middle;"> </td> <td style="padding: 0.25pt; vertical-align: middle; text-align: right;"> 198,500</td> <td style="padding: 0.25pt; vertical-align: middle;"> </td> <td style="padding: 0.25pt; vertical-align: middle;"> </td> <td style="padding: 0.25pt; vertical-align: middle;"> <div> $ </div> </td> <td style="padding: 0.25pt; vertical-align: middle; text-align: right;"> 5.96</td> <td style="padding: 0.25pt; vertical-align: middle;"> </td> </tr> </table><div style="font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt; text-decoration: underline;">Restricted Stock Units</span> </div> <div style="font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">The 2017 Plan provides for the grant of restricted stock units (“</span><span style="font-size: 10.0pt; font-style: italic;">RSUs</span><span style="font-size: 10.0pt;">”). RSUs are settled in shares of the Company’s Common Stock as the RSUs become vested. The following table summarizes RSU activity for the years ended December 31, 2025 and 2024:</span> </div> <div style="font-size: 10pt;">  </div> <table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr style="height: 0px; font-size: 0px;"><td style="width: 65%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 9%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 9%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 9%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td></tr><tr><td style="font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="FN 13. SBC - C30"> </td><td style="text-align: center; font-weight: bold; width: 9%; font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="FN 13. SBC - C30"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="FN 13. SBC - E30"> </td><td style="text-align: center; font-weight: bold; width: 9%; font-size: 10pt;">Weighted</td><td style="width: 1%; font-size: 10pt;" title="FN 13. SBC - E30"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="FN 13. SBC - G30"> </td><td style="text-align: center; font-weight: bold; width: 9%; font-size: 10pt;">Weighted </td><td style="width: 1%; font-size: 10pt;" title="FN 13. SBC - G30"> </td></tr><tr><td style="font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="FN 13. SBC - C31"> </td><td style="text-align: center; font-weight: bold; width: 9%; font-size: 10pt;">Service-Based</td><td style="width: 1%; font-size: 10pt;" title="FN 13. SBC - C31"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="FN 13. SBC - E31"> </td><td style="text-align: center; font-weight: bold; width: 9%; font-size: 10pt;">Average Grant</td><td style="width: 1%; font-size: 10pt;" title="FN 13. SBC - E31"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="FN 13. SBC - G31"> </td><td style="text-align: center; font-weight: bold; width: 9%; font-size: 10pt;">Average Vesting</td><td style="width: 1%; font-size: 10pt;" title="FN 13. SBC - G31"> </td></tr><tr><td style="font-size: 10pt;"> </td><td style="border-left: none; border-right: none; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - C32"> </td><td style="text-align: center; font-weight: bold; border-top: none; border-left: none; border-right: none; border-bottom: 1px solid rgb(0, 0, 0); width: 9%; font-size: 10pt;">RSU's</td><td style="border-left: none; border-right: none; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - C32"> </td><td style="font-size: 10pt;"> </td><td style="border-left: none; border-right: none; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - E32"> </td><td style="text-align: center; font-weight: bold; border-left: none; border-right: none; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; width: 9%; font-size: 10pt;">Date Fair Value</td><td style="border-left: none; border-right: none; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - E32"> </td><td style="font-size: 10pt;"> </td><td style="border-left: none; border-right: none; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - G32"> </td><td style="text-align: center; font-weight: bold; border-left: none; border-right: none; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; width: 9%; font-size: 10pt;">Period (Years)</td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-left: none; border-right: none; border-top: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - G32"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">Unvested at December 31, 2023</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - C33"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">810,588</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - C33"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - E33"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">1.73</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - E33"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - G33"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">2.52</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - G33"> </td></tr><tr><td style="font-size : 10pt; padding-left : 10px; "> Granted-service based</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - C33"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">881,004</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - C33"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - E33"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">2.60</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - E33"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - G33"> </td><td style="width: 9%; text-align: right; font-size: 10pt;"></td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - G33"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size : 10pt; padding-left : 10px; "> Vested</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - C33"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">(465,763</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - C33">) </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - E33"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">2.03</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - E33"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - G33"> </td><td style="width: 9%; text-align: right; font-size: 10pt;"></td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - G33"> </td></tr><tr><td style="font-size : 10pt; padding-left : 10px; "> Forfeited and cancelled</td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 13. SBC - C33"> </td><td style="width: 9%; text-align: right; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">(237,727</td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 13. SBC - C33">) </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - E33"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">2.26</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - E33"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - G33"> </td><td style="width: 9%; text-align: right; font-size: 10pt;"></td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - G33"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">Unvested at December 31, 2024</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - C33"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">988,102</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - C33"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - E33">$</td><td style="width: 9%; text-align: right; font-size: 10pt;">2.25</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - E33"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - G33"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">3.67</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - G33"> </td></tr><tr><td style="font-size: 10pt; padding-left: 10px;"> Granted-service based</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - C34"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">897,225</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - C34"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - E34"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">1.88</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - E34"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - G34"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">-</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - G34"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt; padding-left: 10px;"> Vested</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - C35"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">(870,794</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - C35">) </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - E35"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">1.89</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - E35"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - G35"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">-</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - G35"> </td></tr><tr><td style="font-size: 10pt; padding-left: 10px;"> Forfeited and cancelled</td><td style="width: 1%; text-align: left; border-top: none; border-left: none; border-right: none; border-bottom: 1px solid rgb(0, 0, 0); font-size: 10pt;" title="FN 13. SBC - C36"> </td><td style="width: 9%; text-align: right; border-left: none; border-right: none; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; font-size: 10pt;">-</td><td style="width: 1%; text-align: left; border-left: none; border-right: none; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; font-size: 10pt;" title="FN 13. SBC - C36"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; border-width: initial; border-style: none; border-color: initial; font-size: 10pt;" title="FN 13. SBC - E36"> </td><td style="width: 9%; text-align: right; border-width: initial; border-style: none; border-color: initial; font-size: 10pt;">-</td><td style="width: 1%; text-align: left; border-width: initial; border-style: none; border-color: initial; font-size: 10pt;" title="FN 13. SBC - E36"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; border-width: initial; border-style: none; border-color: initial; font-size: 10pt;" title="FN 13. SBC - G36"> </td><td style="width: 9%; text-align: right; border-width: initial; border-style: none; border-color: initial; font-size: 10pt;">-</td><td style="width: 1%; text-align: left; border-width: initial; border-style: none; border-color: initial; font-size: 10pt;" title="FN 13. SBC - G36"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">Unvested at December 31, 2025</td><td style="width: 1%; text-align: left; border-top: none; border-left: none; border-right: none; border-bottom: 3px double rgb(0, 0, 0); font-size: 10pt;" title="FN 13. SBC - C37"> </td><td style="width: 9%; text-align: right; border-left: none; border-right: none; border-bottom: 3px double rgb(0, 0, 0); border-top: none; font-size: 10pt;">1,014,563</td><td style="width: 1%; text-align: left; border-left: none; border-right: none; border-bottom: 3px double rgb(0, 0, 0); border-top: none; font-size: 10pt;" title="FN 13. SBC - C37"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; border-width: initial; border-style: none; border-color: initial; font-size: 10pt;" title="FN 13. SBC - E37">$</td><td style="width: 9%; text-align: right; border-width: initial; border-style: none; border-color: initial; font-size: 10pt;">2.23</td><td style="width: 1%; text-align: left; border-width: initial; border-style: none; border-color: initial; font-size: 10pt;" title="FN 13. SBC - E37"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; border-width: initial; border-style: none; border-color: initial; font-size: 10pt;" title="FN 13. SBC - G37"> </td><td style="width: 9%; text-align: right; border-width: initial; border-style: none; border-color: initial; font-size: 10pt;">3.62</td><td style="width: 1%; text-align: left; border-width: initial; border-style: none; border-color: initial; font-size: 10pt;" title="FN 13. SBC - G37"> </td></tr></table><div style="font-size: 10pt;"> </div><div style="text-align: justify;"> <span style="font-size: 10.0pt;">The Company used the Monte Carlo Simulation Model to value at the grant date the aggregate <span style="background-color: rgb(255, 255, 255);">of </span></span><span style="background-color: rgb(255, 255, 255);"><span style="font-size: 10pt;">632,911</span><span style="font-size: 10.0pt;"> market condition performance RSUs granted in </span><span style="font-size: 10pt;">January 2024</span><span style="font-size: 10.0pt;"> to the Company’s Chief Executive Officer. The assumptions used in the Monte Carlo Simulation were stock price on the date of grant equal to </span><span style="font-size: 10pt;">$3.40,</span><span style="font-size: 10.0pt;"> a contract term of 10 years, expected volatility of </span><span style="font-size: 10pt;">78%</span><span style="font-size: 10.0pt;"> and risk-free interest rate of </span><span style="font-size: 10pt;">4.10%</span><span style="font-size: 10.0pt;">. Vesting is based on sustained market capitalization of $1,000,000 in consecutive two months, and the derived service period is </span><span style="font-size: 10pt;">4.3 years</span><span style="font-size: 10.0pt;">.</span></span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">RSU exp<span style="background-color: rgb(255, 255, 255);">ense was </span></span><span style="font-size: 10pt; background-color: rgb(255, 255, 255);">$2,317</span><span style="font-size: 10.0pt;"><span style="background-color: rgb(255, 255, 255);"> and $</span>1,301 for the years ended December 31, 2025 and 2024, respectively.</span> </div><div style="text-align: justify;"> <span style="font-size: 10.0pt; text-decoration: underline;">Share-Based Compensation Expense</span> </div> <div style="font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">The Company recorded share-based compensation in its statements of operations for the relevant periods for options and RSUs as follows:</span> </div> <div style="font-size: 10pt;">  </div> <table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr style="height: 0px; font-size: 0px;"><td style="width: 77%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 9%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 9%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td></tr><tr><td style="font-size: 10pt;"> </td><td colspan="7" style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-weight: bold; text-align: center; font-size: 10pt;">For the Year ended December 31,</td></tr><tr><td style="font-size: 10pt;"> </td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - C42"> </td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; text-align: center; font-weight: bold; width: 9%; font-size: 10pt;">2025</td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - C42"> </td><td style="font-size: 10pt;"> </td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - E42"> </td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; text-align: center; font-weight: bold; width: 9%; font-size: 10pt;">2024</td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - E42"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">Selling, general, and administrative</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - C43">$</td><td style="width: 9%; text-align: right; font-size: 10pt;">4,076</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - C43"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - E43">$</td><td style="width: 9%; text-align: right; font-size: 10pt;">2,296</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - E43"> </td></tr><tr><td style="font-size: 10pt;">Research and development</td><td style="width: 1%; text-align: left; border-top: none; border-left: none; border-right: none; border-bottom: 1px solid rgb(0, 0, 0); font-size: 10pt;" title="FN 13. SBC - C44"> </td><td style="width: 9%; text-align: right; border-left: none; border-right: none; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; font-size: 10pt;">-</td><td style="width: 1%; text-align: left; border-left: none; border-right: none; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; font-size: 10pt;" title="FN 13. SBC - C44"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; border-left: none; border-right: none; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; font-size: 10pt;" title="FN 13. SBC - E44"> </td><td style="width: 9%; text-align: right; border-left: none; border-right: none; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; font-size: 10pt;">137</td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-left: none; border-right: none; border-top: none; font-size: 10pt;" title="FN 13. SBC - E44"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">Total share-based expense</td><td style="width: 1%; text-align: left; border-top: none; border-left: none; border-right: none; border-bottom: 3px double rgb(0, 0, 0); font-size: 10pt;" title="FN 13. SBC - C45">$</td><td style="width: 9%; text-align: right; border-left: none; border-right: none; border-bottom: 3px double rgb(0, 0, 0); border-top: none; font-size: 10pt;">4,076</td><td style="width: 1%; text-align: left; border-left: none; border-right: none; border-bottom: 3px double rgb(0, 0, 0); border-top: none; font-size: 10pt;" title="FN 13. SBC - C45"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; border-left: none; border-right: none; border-bottom: 3px double rgb(0, 0, 0); border-top: none; font-size: 10pt;" title="FN 13. SBC - E45">$</td><td style="width: 9%; text-align: right; border-left: none; border-right: none; border-bottom: 3px double rgb(0, 0, 0); border-top: none; font-size: 10pt;">2,433</td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-left: none; border-right: none; border-top: none; font-size: 10pt;" title="FN 13. SBC - E45"> </td></tr></table><div style="font-size: 10pt;"> </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">As of December 31, 2025, total estimated compensation cost of stock options granted and outstanding but not yet vested w<span style="background-color: rgb(255, 255, 255);">as </span></span><span style="font-size: 10pt; background-color: rgb(255, 255, 255);">$<span>4,847</span></span><span style="font-size: 10.0pt;"><span style="background-color: rgb(255, 255, 255);"> w</span>hich is expected to be recognized over the weighted average period of <span>3.08</span> years.</span> </div> <div style="text-align: justify; font-size: 10pt;"> </div><div style="text-align: justify;"> <span style="font-size: 10.0pt;">As of December 31, 2025, total estimated compensation cost of RSUs granted and outstanding but not yet vested w<span style="background-color: rgb(255, 255, 255);">as </span></span><span style="font-size: 10pt; background-color: rgb(255, 255, 255);">$<span>1,112</span></span><span style="font-size: 10.0pt;"><span style="background-color: rgb(255, 255, 255);"> w</span>hich is expected to be recognized over the weighted average period of <span>2.12</span> years.</span> </div> 2000000 4100000 6000000 7500000 9000000 16500000 20500000 8011625 <div style="text-align: justify;"> <span style="font-size: 10.0pt;">The following table summarizes stock option activity for the year en<span style="background-color: rgb(255, 255, 255);">ded </span></span><span style="font-size: 10pt; background-color: rgb(255, 255, 255);">December 31, 2025:</span> </div> <div style="font-size: 10pt;"> </div><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr style="height: 0px; font-size: 0px;"><td style="width: 53%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 9%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 9%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 9%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 9%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td></tr><tr><td style="font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="FN 13. SBC - C5"> </td><td style="width: 9%; font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="FN 13. SBC - C5"> </td><td style="font-size: 10pt;"> </td><td colspan="7" style="text-align: center; font-weight: bold; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;">Weighted Average</td><td style="font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="FN 13. SBC - I5"> </td><td style="width: 9%; font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="FN 13. SBC - I5"> </td></tr><tr><td style="font-size: 10pt;"> </td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - C6"> </td><td style="text-align: center; font-weight: bold; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 9%; font-size: 10pt;">Options on Common Shares</td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - C6"> </td><td style="font-size: 10pt;"> </td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - E6"> </td><td style="text-align: center; font-weight: bold; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 9%; font-size: 10pt;">Exercise Price</td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - E6"> </td><td style="font-size: 10pt;"> </td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - G6"> </td><td style="text-align: center; font-weight: bold; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 9%; font-size: 10pt;">Remaining Contractual Term</td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - G6"> </td><td style="font-size: 10pt;"> </td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - I6"> </td><td style="text-align: center; font-weight: bold; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 9%; font-size: 10pt;">Aggregate Intrinsic Value</td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - I6"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">Outstanding January 1, 2025</td><td style="text-align: left; width: 1%; font-size: 10pt;" title="FN 13. SBC - C7"> </td><td style="text-align: right; width: 9%; font-size: 10pt;">3,944,284</td><td style="text-align: left; width: 1%; font-size: 10pt;" title="FN 13. SBC - C7"> </td><td style="font-size: 10pt;"> </td><td style="text-align: left; width: 1%; font-size: 10pt;" title="FN 13. SBC - E7">$</td><td style="text-align: right; width: 9%; font-size: 10pt;">2.12</td><td style="text-align: left; width: 1%; font-size: 10pt;" title="FN 13. SBC - E7"> </td><td style="font-size: 10pt;"> </td><td style="text-align: left; width: 1%; font-size: 10pt;" title="FN 13. SBC - G7"> </td><td style="text-align: right; width: 9%; font-size: 10pt;">8.30</td><td style="text-align: left; width: 1%; font-size: 10pt;" title="FN 13. SBC - G7"> </td><td style="font-size: 10pt;"> </td><td style="text-align: left; width: 1%; font-size: 10pt;" title="FN 13. SBC - I7">$</td><td style="text-align: right; width: 9%; font-size: 10pt;">1,486</td><td style="text-align: left; width: 1%; font-size: 10pt;" title="FN 13. SBC - I7"> </td></tr><tr><td style="font-size: 10pt; padding-left: 10px;"> Granted</td><td style="text-align: left; width: 1%; font-size: 10pt;" title="FN 13. SBC - C8"> </td><td style="text-align: right; width: 9%; font-size: 10pt;">5,273,927</td><td style="text-align: left; width: 1%; font-size: 10pt;" title="FN 13. SBC - C8"> </td><td style="font-size: 10pt;"> </td><td style="text-align: left; width: 1%; font-size: 10pt;" title="FN 13. SBC - E8"> </td><td style="text-align: right; width: 9%; font-size: 10pt;">1.98</td><td style="text-align: left; width: 1%; font-size: 10pt;" title="FN 13. SBC - E8"> </td><td style="font-size: 10pt;"> </td><td style="text-align: left; width: 1%; font-size: 10pt;" title="FN 13. SBC - G8"> </td><td style="text-align: right; width: 9%; font-size: 10pt;">-</td><td style="text-align: left; width: 1%; font-size: 10pt;" title="FN 13. SBC - G8"> </td><td style="font-size: 10pt;"> </td><td style="text-align: left; width: 1%; font-size: 10pt;" title="FN 13. SBC - I8"> </td><td style="text-align: right; width: 9%; font-size: 10pt;">-</td><td style="text-align: left; width: 1%; font-size: 10pt;" title="FN 13. SBC - I8"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt; padding-left: 10px;"> Exercised</td><td style="text-align: left; width: 1%; font-size: 10pt;" title="FN 13. SBC - C9"> </td><td style="text-align: right; width: 9%; font-size: 10pt;">(171,415</td><td style="text-align: left; width: 1%; font-size: 10pt;" title="FN 13. SBC - C9">) </td><td style="font-size: 10pt;"> </td><td style="text-align: left; width: 1%; font-size: 10pt;" title="FN 13. SBC - E9"> </td><td style="text-align: right; width: 9%; font-size: 10pt;">1.43</td><td style="text-align: left; width: 1%; font-size: 10pt;" title="FN 13. SBC - E9"> </td><td style="font-size: 10pt;"> </td><td style="text-align: left; width: 1%; font-size: 10pt;" title="FN 13. SBC - G9"> </td><td style="text-align: right; width: 9%; font-size: 10pt;">-</td><td style="text-align: left; width: 1%; font-size: 10pt;" title="FN 13. SBC - G9"> </td><td style="font-size: 10pt;"> </td><td style="text-align: left; width: 1%; font-size: 10pt;" title="FN 13. SBC - I9"> </td><td style="text-align: right; width: 9%; font-size: 10pt;">-</td><td style="text-align: left; width: 1%; font-size: 10pt;" title="FN 13. SBC - I9"> </td></tr><tr><td style="font-size: 10pt; padding-left: 10px;">Forfeited, cancelled, expired</td><td style="text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - C10"> </td><td style="text-align: right; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 9%; font-size: 10pt;">(2,597,262</td><td style="text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - C10">) </td><td style="font-size: 10pt;"> </td><td style="text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - E10"> </td><td style="text-align: right; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 9%; font-size: 10pt;">2.05</td><td style="text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - E10"> </td><td style="font-size: 10pt;"> </td><td style="text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - G10"> </td><td style="text-align: right; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 9%; font-size: 10pt;">-</td><td style="text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - G10"> </td><td style="font-size: 10pt;"> </td><td style="text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - I10"> </td><td style="text-align: right; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 9%; font-size: 10pt;">-</td><td style="text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - I10"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">Outstanding December 31, 2025</td><td style="text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - C11"> </td><td style="text-align: right; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 9%; font-size: 10pt;">6,449,534</td><td style="text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - C11"> </td><td style="font-size: 10pt;"> </td><td style="text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - E11">$</td><td style="text-align: right; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 9%; font-size: 10pt;">2.05</td><td style="text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - E11"> </td><td style="font-size: 10pt;"> </td><td style="text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - G11"> </td><td style="text-align: right; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 9%; font-size: 10pt;">8.56</td><td style="text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - G11"> </td><td style="font-size: 10pt;"> </td><td style="text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - I11">$</td><td style="text-align: right; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 9%; font-size: 10pt;">3,469</td><td style="text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - I11"> </td></tr><tr><td style="font-size: 10pt;">Exercisable December 31, 2025</td><td style="text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - C12"> </td><td style="text-align: right; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 9%; font-size: 10pt;">1,713,774</td><td style="text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - C12"> </td><td style="font-size: 10pt;"> </td><td style="text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - E12">$</td><td style="text-align: right; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 9%; font-size: 10pt;">2.41</td><td style="text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - E12"> </td><td style="font-size: 10pt;"> </td><td style="text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - G12"> </td><td style="text-align: right; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 9%; font-size: 10pt;">7.37</td><td style="text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - G12"> </td><td style="font-size: 10pt;"> </td><td style="text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - I12">$</td><td style="text-align: right; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 9%; font-size: 10pt;">936</td><td style="text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - I12"> </td></tr></table> 3944284 2.12 P8Y3M18D 1486000 5273927 1.98 171415 1.43 2597262 2.05 6449534 2.05 P8Y6M21D 3469000 1713774 2.41 P7Y4M13D 936000 5159368 1290166 <div style="text-align: justify;"> <span style="font-size: 10.0pt;">The Company uses the Black-Scholes option pricing model to determine the fair value of service-based options granted. The following table summarizes the assumptions used to compute the fair value of options granted to employees and non-employees:</span> </div> <div style="font-size: 10pt;"> </div> <table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr style="height: 0px; font-size: 0px; background-color: rgb(204, 238, 255);"><td style="width: 75%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td></tr></table><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr style="height: 0px; font-size: 0px;"><td style="width: 77%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 9%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 9%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td></tr><tr><td style="font-size: 10pt;"> </td><td colspan="7" style="text-align: center; font-weight: bold; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;">For the Year Ended December 31,</td></tr><tr><td style="font-size: 10pt;"> </td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - C21"> </td><td style="text-align: center; font-weight: bold; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 9%; font-size: 10pt;">2025</td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - C21"> </td><td style="font-size: 10pt;"> </td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - E21"> </td><td style="text-align: center; font-weight: bold; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 9%; font-size: 10pt;">2024</td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - E21"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">Expected stock price volatility</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - C22"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">76</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - C22">%</td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - E22"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">76</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - E22">%</td></tr><tr><td style="font-size: 10pt;">Risk-free interest rate</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - C23"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">4.06</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - C23">%</td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - E23"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">3.82</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - E23">%</td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">Expected dividend yield</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - C24"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">0</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - C24">%</td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - E24"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">0</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - E24">%</td></tr><tr><td style="font-size: 10pt;">Expected life of options</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - C25"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">6</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - C25"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - E25"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">6</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - E25"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">Weighted-average fair value of options granted</td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="FN 13. SBC - C26">$</td><td style="width: 9%; text-align: right; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;">1.38</td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="FN 13. SBC - C26"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="FN 13. SBC - E26">$</td><td style="width: 9%; text-align: right; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;">1.44</td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-size: 10pt;" title="FN 13. SBC - E26"> </td></tr></table> 0.76 0.76 0.0406 0.0382 0 0 P6Y P6Y 1.38 1.44 0 1759000 1132000 <div style="text-align: justify;"> <span style="font-size: 10.0pt;">The following table summarizes information about stock options outstanding at<span style="background-color: rgb(255, 255, 255);"> </span></span><span style="font-size: 10pt; background-color: rgb(255, 255, 255);">December 31, 2025:</span> </div> <div style="font-size: 10pt;">  </div> <table style="border-spacing: 0px; border-collapse: collapse; border-width: 1pt; border-style: solid; border-color: black; font-size: 10pt; width: 100%;"> <tr style="height: 0px; font-size: 0px;"> <td style="width: 36pt;"> </td> <td style="width: 5pt;"> </td> <td style="width: 36pt;"> </td> <td style="width: 5pt;"> </td> <td style="width: 5pt;"> </td> <td style="width: 5pt;"> </td> <td style="width: 68pt;"> </td> <td style="width: 5pt;"> </td> <td style="width: 5pt;"> </td> <td style="width: 5pt;"> </td> <td style="width: 68pt;"> </td> <td style="width: 5pt;"> </td> <td style="width: 5pt;"> </td> <td style="width: 5pt;"> </td> <td style="width: 68pt;"> </td> <td style="width: 5pt;"> </td> <td style="width: 5pt;"> </td> <td style="width: 5pt;"> </td> <td style="width: 68pt;"> </td> <td style="width: 5pt;"> </td> <td style="width: 5pt;"> </td> <td style="width: 5pt;"> </td> <td style="width: 72pt;"> </td> <td style="width: 6pt;"> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom; text-align: center;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td colspan="2" style="padding: 0.25pt; vertical-align: bottom; text-align: center;"> <span style="font-weight: bold;">Weighted</span> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom; text-align: center;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom; text-align: center;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom; text-align: center;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom; text-align: center;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td colspan="2" style="padding: 0.25pt; vertical-align: bottom; text-align: center;"> <span style="font-weight: bold;">Average</span> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td colspan="2" style="padding: 0.25pt; vertical-align: bottom; text-align: center;"> <span style="font-weight: bold;">Weighted</span> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom; text-align: center;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td colspan="2" style="padding: 0.25pt; vertical-align: bottom; text-align: center;"> <span style="font-weight: bold;">Weighted</span> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom; text-align: center;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td colspan="2" style="padding: 0.25pt; vertical-align: bottom; text-align: center;"> <span style="font-weight: bold;">Remaining</span> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td colspan="2" style="padding: 0.25pt; vertical-align: bottom; text-align: center;"> <span style="font-weight: bold;">Average</span> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom; text-align: center;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td colspan="2" style="padding: 0.25pt; vertical-align: bottom; text-align: center;"> <span style="font-weight: bold;">Average</span> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> </tr> <tr style="vertical-align: top;"> <td colspan="3" style="padding: 0.25pt; vertical-align: bottom; text-align: center;"> <span style="font-weight: bold;">Range of</span> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td colspan="2" style="padding: 0.25pt; vertical-align: bottom; text-align: center;"> <span style="font-weight: bold;">Number</span> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td colspan="2" style="padding: 0.25pt; vertical-align: bottom; text-align: center;"> <span style="font-weight: bold;">Contractual</span> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td colspan="2" style="padding: 0.25pt; vertical-align: bottom; text-align: center;"> <span style="font-weight: bold;">Exercise</span> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td colspan="2" style="padding: 0.25pt; vertical-align: bottom; text-align: center;"> <span style="font-weight: bold;">Number</span> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td colspan="2" style="padding: 0.25pt; vertical-align: bottom; text-align: center;"> <span style="font-weight: bold;">Exercise</span> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> </tr> <tr style="vertical-align: top;"> <td colspan="3" style="border-bottom: 1pt solid rgb(0, 0, 0); padding: 0.25pt 0.25pt 0.4pt; vertical-align: bottom; text-align: center;"> <span style="font-weight: bold;">Exercise Prices</span> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td colspan="2" style="border-bottom: 1pt solid rgb(0, 0, 0); padding: 0.25pt 0.25pt 0.4pt; vertical-align: bottom; text-align: center;"> <span style="font-weight: bold;">Outstanding</span> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td colspan="2" style="border-bottom: 1pt solid rgb(0, 0, 0); padding: 0.25pt 0.25pt 0.4pt; vertical-align: bottom; text-align: center;"> <span style="font-weight: bold;">Life (Years)</span> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td colspan="2" style="border-bottom: 1pt solid rgb(0, 0, 0); padding: 0.25pt 0.25pt 0.4pt; vertical-align: bottom; text-align: center;"> <span style="font-weight: bold;">Price</span> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td colspan="2" style="border-bottom: 1pt solid rgb(0, 0, 0); padding: 0.25pt 0.25pt 0.4pt; vertical-align: bottom; text-align: center;"> <span style="font-weight: bold;">Exercisable</span> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td colspan="2" style="border-bottom: 1pt solid rgb(0, 0, 0); padding: 0.25pt 0.25pt 0.4pt; vertical-align: bottom; text-align: center;"> <span style="font-weight: bold;">Price</span> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> </tr> <tr style="vertical-align: top; background-color: rgb(204, 238, 255);"> <td style="padding: 0.25pt; vertical-align: bottom; text-align: right;"> $1.00 </td> <td style="padding: 0.25pt; vertical-align: bottom; text-align: center;"> – </td> <td style="padding: 0.25pt; vertical-align: bottom;"> <div> $2.00 </div> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom; text-align: right;"> 4,282,059</td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom; text-align: right;"> 8.60</td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> <div> $ </div> </td> <td style="padding: 0.25pt; vertical-align: bottom; text-align: right;"> 1.58</td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom; text-align: right;"> 982,542</td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> <div> $ </div> </td> <td style="padding: 0.25pt; vertical-align: bottom; text-align: right;"> 1.43</td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> </tr> <tr style="vertical-align: top;"> <td style="padding: 0.25pt; vertical-align: bottom; text-align: right;"> $2.01 </td> <td style="padding: 0.25pt; vertical-align: bottom; text-align: center;"> – </td> <td style="padding: 0.25pt; vertical-align: bottom;"> <div> $3.00 </div> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom; text-align: right;"> 1,735,000</td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom; text-align: right;"> 9.26</td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> <div> $ </div> </td> <td style="padding: 0.25pt; vertical-align: bottom; text-align: right;"> 2.48</td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom; text-align: right;"> 398,758</td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> <div> $ </div> </td> <td style="padding: 0.25pt; vertical-align: bottom; text-align: right;"> 2.45 </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> </tr> <tr style="vertical-align: top; background-color: rgb(204, 238, 255);"> <td style="padding: 0.25pt; vertical-align: bottom; text-align: right;"> $3.01 </td> <td style="padding: 0.25pt; vertical-align: bottom; text-align: center;"> – </td> <td style="padding: 0.25pt; vertical-align: bottom;"> <div> $4.00 </div> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom; text-align: right;"> 150,000 </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom; text-align: right;"> 8.09</td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> <div> $ </div> </td> <td style="padding: 0.25pt; vertical-align: bottom; text-align: right;"> 3.88</td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom; text-align: right;"> 49,999</td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> <td style="padding: 0.25pt; vertical-align: bottom;"> <div> $ </div> </td> <td style="padding: 0.25pt; vertical-align: bottom; text-align: right;"> 3.88</td> <td style="padding: 0.25pt; vertical-align: bottom;"> </td> </tr><tr style="vertical-align: top;"> <td style="vertical-align: bottom; text-align: right;"><span style="letter-spacing: normal; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">$4.01</span></td> <td style="vertical-align: bottom; text-align: center;"><span style="letter-spacing: normal; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">–</span></td> <td style="vertical-align: bottom;"><span style="letter-spacing: normal; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">$5.00</span></td> <td style="vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"> </td> <td style="vertical-align: bottom; text-align: right;">83,975</td> <td style="vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"> </td> <td style="vertical-align: bottom; text-align: right;"><span style="letter-spacing: normal; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">5.02</span></td> <td style="vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"><span style="letter-spacing: normal; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">$</span></td> <td style="vertical-align: bottom; text-align: right;"><span style="letter-spacing: normal; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">4.37</span></td> <td style="vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"> </td> <td style="vertical-align: bottom; text-align: right;"><span style="letter-spacing: normal; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">83,975</span></td> <td style="vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"><span style="letter-spacing: normal; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">$</span></td> <td style="vertical-align: bottom; text-align: right;"><span style="letter-spacing: normal; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">4.37</span></td> <td style="vertical-align: bottom;"> </td> </tr> <tr style="vertical-align: top; background-color: rgb(204, 238, 255);"> <td style="padding: 0.25pt; vertical-align: middle; text-align: right;"> $5.01</td> <td style="padding: 0.25pt; vertical-align: middle; text-align: center;"> – </td> <td style="padding: 0.25pt; vertical-align: middle;"> <div> $6.58</div> </td> <td style="padding: 0.25pt; vertical-align: middle;"> </td> <td style="padding: 0.25pt; vertical-align: middle;"> </td> <td style="padding: 0.25pt; vertical-align: middle;"> </td> <td style="padding: 0.25pt; vertical-align: middle; text-align: right;"> 198,500</td> <td style="padding: 0.25pt; vertical-align: middle;"> </td> <td style="padding: 0.25pt; vertical-align: middle;"> </td> <td style="padding: 0.25pt; vertical-align: middle;"> </td> <td style="padding: 0.25pt; vertical-align: middle; text-align: right;"> 3.54</td> <td style="padding: 0.25pt; vertical-align: middle;"> </td> <td style="padding: 0.25pt; vertical-align: middle;"> </td> <td style="padding: 0.25pt; vertical-align: middle;"> <div> $ </div> </td> <td style="padding: 0.25pt; vertical-align: middle; text-align: right;"> 5.96</td> <td style="padding: 0.25pt; vertical-align: middle;"> </td> <td style="padding: 0.25pt; vertical-align: middle;"> </td> <td style="padding: 0.25pt; vertical-align: middle;"> </td> <td style="padding: 0.25pt; vertical-align: middle; text-align: right;"> 198,500</td> <td style="padding: 0.25pt; vertical-align: middle;"> </td> <td style="padding: 0.25pt; vertical-align: middle;"> </td> <td style="padding: 0.25pt; vertical-align: middle;"> <div> $ </div> </td> <td style="padding: 0.25pt; vertical-align: middle; text-align: right;"> 5.96</td> <td style="padding: 0.25pt; vertical-align: middle;"> </td> </tr> </table> 1 2 4282059 P8Y7M6D 1.58 982542 1.43 2.01 3 1735000 P9Y3M3D 2.48 398758 2.45 3.01 4 150000 P8Y1M2D 3.88 49999 3.88 4.01 5 83975 P5Y7D 4.37 83975 4.37 5.01 6.58 198500 P3Y6M14D 5.96 198500 5.96 <div style="text-align: justify;"> <span style="font-size: 10.0pt;">The 2017 Plan provides for the grant of restricted stock units (“</span><span style="font-size: 10.0pt; font-style: italic;">RSUs</span><span style="font-size: 10.0pt;">”). RSUs are settled in shares of the Company’s Common Stock as the RSUs become vested. The following table summarizes RSU activity for the years ended December 31, 2025 and 2024:</span> </div> <div style="font-size: 10pt;">  </div> <table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr style="height: 0px; font-size: 0px;"><td style="width: 65%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 9%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 9%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 9%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td></tr><tr><td style="font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="FN 13. SBC - C30"> </td><td style="text-align: center; font-weight: bold; width: 9%; font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="FN 13. SBC - C30"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="FN 13. SBC - E30"> </td><td style="text-align: center; font-weight: bold; width: 9%; font-size: 10pt;">Weighted</td><td style="width: 1%; font-size: 10pt;" title="FN 13. SBC - E30"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="FN 13. SBC - G30"> </td><td style="text-align: center; font-weight: bold; width: 9%; font-size: 10pt;">Weighted </td><td style="width: 1%; font-size: 10pt;" title="FN 13. SBC - G30"> </td></tr><tr><td style="font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="FN 13. SBC - C31"> </td><td style="text-align: center; font-weight: bold; width: 9%; font-size: 10pt;">Service-Based</td><td style="width: 1%; font-size: 10pt;" title="FN 13. SBC - C31"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="FN 13. SBC - E31"> </td><td style="text-align: center; font-weight: bold; width: 9%; font-size: 10pt;">Average Grant</td><td style="width: 1%; font-size: 10pt;" title="FN 13. SBC - E31"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; font-size: 10pt;" title="FN 13. SBC - G31"> </td><td style="text-align: center; font-weight: bold; width: 9%; font-size: 10pt;">Average Vesting</td><td style="width: 1%; font-size: 10pt;" title="FN 13. SBC - G31"> </td></tr><tr><td style="font-size: 10pt;"> </td><td style="border-left: none; border-right: none; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - C32"> </td><td style="text-align: center; font-weight: bold; border-top: none; border-left: none; border-right: none; border-bottom: 1px solid rgb(0, 0, 0); width: 9%; font-size: 10pt;">RSU's</td><td style="border-left: none; border-right: none; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - C32"> </td><td style="font-size: 10pt;"> </td><td style="border-left: none; border-right: none; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - E32"> </td><td style="text-align: center; font-weight: bold; border-left: none; border-right: none; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; width: 9%; font-size: 10pt;">Date Fair Value</td><td style="border-left: none; border-right: none; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - E32"> </td><td style="font-size: 10pt;"> </td><td style="border-left: none; border-right: none; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - G32"> </td><td style="text-align: center; font-weight: bold; border-left: none; border-right: none; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; width: 9%; font-size: 10pt;">Period (Years)</td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-left: none; border-right: none; border-top: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - G32"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">Unvested at December 31, 2023</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - C33"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">810,588</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - C33"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - E33"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">1.73</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - E33"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - G33"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">2.52</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - G33"> </td></tr><tr><td style="font-size : 10pt; padding-left : 10px; "> Granted-service based</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - C33"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">881,004</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - C33"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - E33"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">2.60</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - E33"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - G33"> </td><td style="width: 9%; text-align: right; font-size: 10pt;"></td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - G33"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size : 10pt; padding-left : 10px; "> Vested</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - C33"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">(465,763</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - C33">) </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - E33"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">2.03</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - E33"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - G33"> </td><td style="width: 9%; text-align: right; font-size: 10pt;"></td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - G33"> </td></tr><tr><td style="font-size : 10pt; padding-left : 10px; "> Forfeited and cancelled</td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 13. SBC - C33"> </td><td style="width: 9%; text-align: right; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">(237,727</td><td style="width: 1%; text-align: left; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 13. SBC - C33">) </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - E33"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">2.26</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - E33"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - G33"> </td><td style="width: 9%; text-align: right; font-size: 10pt;"></td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - G33"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">Unvested at December 31, 2024</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - C33"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">988,102</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - C33"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - E33">$</td><td style="width: 9%; text-align: right; font-size: 10pt;">2.25</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - E33"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - G33"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">3.67</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - G33"> </td></tr><tr><td style="font-size: 10pt; padding-left: 10px;"> Granted-service based</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - C34"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">897,225</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - C34"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - E34"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">1.88</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - E34"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - G34"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">-</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - G34"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt; padding-left: 10px;"> Vested</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - C35"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">(870,794</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - C35">) </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - E35"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">1.89</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - E35"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - G35"> </td><td style="width: 9%; text-align: right; font-size: 10pt;">-</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - G35"> </td></tr><tr><td style="font-size: 10pt; padding-left: 10px;"> Forfeited and cancelled</td><td style="width: 1%; text-align: left; border-top: none; border-left: none; border-right: none; border-bottom: 1px solid rgb(0, 0, 0); font-size: 10pt;" title="FN 13. SBC - C36"> </td><td style="width: 9%; text-align: right; border-left: none; border-right: none; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; font-size: 10pt;">-</td><td style="width: 1%; text-align: left; border-left: none; border-right: none; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; font-size: 10pt;" title="FN 13. SBC - C36"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; border-width: initial; border-style: none; border-color: initial; font-size: 10pt;" title="FN 13. SBC - E36"> </td><td style="width: 9%; text-align: right; border-width: initial; border-style: none; border-color: initial; font-size: 10pt;">-</td><td style="width: 1%; text-align: left; border-width: initial; border-style: none; border-color: initial; font-size: 10pt;" title="FN 13. SBC - E36"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; border-width: initial; border-style: none; border-color: initial; font-size: 10pt;" title="FN 13. SBC - G36"> </td><td style="width: 9%; text-align: right; border-width: initial; border-style: none; border-color: initial; font-size: 10pt;">-</td><td style="width: 1%; text-align: left; border-width: initial; border-style: none; border-color: initial; font-size: 10pt;" title="FN 13. SBC - G36"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">Unvested at December 31, 2025</td><td style="width: 1%; text-align: left; border-top: none; border-left: none; border-right: none; border-bottom: 3px double rgb(0, 0, 0); font-size: 10pt;" title="FN 13. SBC - C37"> </td><td style="width: 9%; text-align: right; border-left: none; border-right: none; border-bottom: 3px double rgb(0, 0, 0); border-top: none; font-size: 10pt;">1,014,563</td><td style="width: 1%; text-align: left; border-left: none; border-right: none; border-bottom: 3px double rgb(0, 0, 0); border-top: none; font-size: 10pt;" title="FN 13. SBC - C37"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; border-width: initial; border-style: none; border-color: initial; font-size: 10pt;" title="FN 13. SBC - E37">$</td><td style="width: 9%; text-align: right; border-width: initial; border-style: none; border-color: initial; font-size: 10pt;">2.23</td><td style="width: 1%; text-align: left; border-width: initial; border-style: none; border-color: initial; font-size: 10pt;" title="FN 13. SBC - E37"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; border-width: initial; border-style: none; border-color: initial; font-size: 10pt;" title="FN 13. SBC - G37"> </td><td style="width: 9%; text-align: right; border-width: initial; border-style: none; border-color: initial; font-size: 10pt;">3.62</td><td style="width: 1%; text-align: left; border-width: initial; border-style: none; border-color: initial; font-size: 10pt;" title="FN 13. SBC - G37"> </td></tr></table> 810588 1.73 P2Y6M7D 881004 2.6 465763 2.03 237727 2.26 988102 2.25 P3Y8M1D 897225 1.88 870794 1.89 0 0 1014563 2.23 P3Y7M13D 632911 3.4 P10Y 0.78 0.041 1000000000 P2M P4Y3M18D 2317000 1301000 <div style="text-align: justify;"> <span style="font-size: 10.0pt;">The Company recorded share-based compensation in its statements of operations for the relevant periods for options and RSUs as follows:</span> </div> <div style="font-size: 10pt;">  </div> <table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr style="height: 0px; font-size: 0px;"><td style="width: 77%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 9%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td><td style="width: 9%; font-size: 10pt;"></td><td style="width: 1%; font-size: 10pt;"></td></tr><tr><td style="font-size: 10pt;"> </td><td colspan="7" style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-weight: bold; text-align: center; font-size: 10pt;">For the Year ended December 31,</td></tr><tr><td style="font-size: 10pt;"> </td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - C42"> </td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; text-align: center; font-weight: bold; width: 9%; font-size: 10pt;">2025</td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - C42"> </td><td style="font-size: 10pt;"> </td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - E42"> </td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; text-align: center; font-weight: bold; width: 9%; font-size: 10pt;">2024</td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%; font-size: 10pt;" title="FN 13. SBC - E42"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">Selling, general, and administrative</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - C43">$</td><td style="width: 9%; text-align: right; font-size: 10pt;">4,076</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - C43"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - E43">$</td><td style="width: 9%; text-align: right; font-size: 10pt;">2,296</td><td style="width: 1%; text-align: left; font-size: 10pt;" title="FN 13. SBC - E43"> </td></tr><tr><td style="font-size: 10pt;">Research and development</td><td style="width: 1%; text-align: left; border-top: none; border-left: none; border-right: none; border-bottom: 1px solid rgb(0, 0, 0); font-size: 10pt;" title="FN 13. SBC - C44"> </td><td style="width: 9%; text-align: right; border-left: none; border-right: none; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; font-size: 10pt;">-</td><td style="width: 1%; text-align: left; border-left: none; border-right: none; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; font-size: 10pt;" title="FN 13. SBC - C44"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; border-left: none; border-right: none; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; font-size: 10pt;" title="FN 13. SBC - E44"> </td><td style="width: 9%; text-align: right; border-left: none; border-right: none; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; font-size: 10pt;">137</td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-left: none; border-right: none; border-top: none; font-size: 10pt;" title="FN 13. SBC - E44"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">Total share-based expense</td><td style="width: 1%; text-align: left; border-top: none; border-left: none; border-right: none; border-bottom: 3px double rgb(0, 0, 0); font-size: 10pt;" title="FN 13. SBC - C45">$</td><td style="width: 9%; text-align: right; border-left: none; border-right: none; border-bottom: 3px double rgb(0, 0, 0); border-top: none; font-size: 10pt;">4,076</td><td style="width: 1%; text-align: left; border-left: none; border-right: none; border-bottom: 3px double rgb(0, 0, 0); border-top: none; font-size: 10pt;" title="FN 13. SBC - C45"> </td><td style="font-size: 10pt;"> </td><td style="width: 1%; text-align: left; border-left: none; border-right: none; border-bottom: 3px double rgb(0, 0, 0); border-top: none; font-size: 10pt;" title="FN 13. SBC - E45">$</td><td style="width: 9%; text-align: right; border-left: none; border-right: none; border-bottom: 3px double rgb(0, 0, 0); border-top: none; font-size: 10pt;">2,433</td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-left: none; border-right: none; border-top: none; font-size: 10pt;" title="FN 13. SBC - E45"> </td></tr></table> 4076000 2296000 0 137000 4076000 2433000 4847000 P3Y29D 1112000 P2Y1M13D <div style="margin-left: 0.5pt;"> <span style="font-size: 10.0pt; color: #000000; font-weight: bold;">14. DEFINED CONTRIBUTION PLAN</span> </div> <div style="font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">The Company has a defined contribution savings plan for all eligible U.S. employees established under the provisions of Section 401(k) of the Internal Revenue Code. This plan was formed on January 1, 2022. Eligible employees may contribute a percentage of their salary subject to certain limitations. The Company’s contributions for the years ended December 31, 2025 and 2024, was $23 and $0, respectively.</span> </div> 23000 0 <div style="margin-left: 0.5pt;"> <span style="font-size: 10.0pt; color: #000000; font-weight: bold;">15. COMMITMENTS AND CONTINGENCIES</span> </div> <div style="font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt; text-decoration: underline;">Facility lease</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">The Company entered into a facility lease agreement for its new production facility based in Norton, Virginia. The initial term of the agreement is for five years and commenced on October 1, 2025 (the "Term"). The Company was granted early occupancy of the facility for use beginning on August 18, 2025. The total cash payments to the lessor during the Term are $600. In March 2026, the Company entered into a month-to-month service agreement for a business address located in Miami, Florida, at an approximate monthly cost of less than $1.</span></div><div style="font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt; text-decoration: underline;">Purchase Commitments</span> </div> <div style="font-size: 10pt;">  </div> <div> <span style="font-size: 10.0pt;">As of December 31, 2025, the Company was committed for approximate<span style="background-color: rgb(255, 255, 255);">ly $338 for futu</span>re component deliveries that are generally subject to modification or rescheduling in the normal course of business.</span> </div> <div style="font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt; text-decoration: underline;">Indemnifications and Guarantees</span> </div> <div style="font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">Our officers and directors are indemnified as to personal liability as provided by the Delaware law and the Company’s articles and bylaws. The Company may also undertake indemnification obligations in the ordinary course of business related to its operations. The Company is unable to estimate with any reasonable accuracy the liability that may be incurred pursuant to any such indemnification obligations now or in the future. Because of the uncertainty surrounding these circumstances, the Company’s current or future indemnification obligations could range from immaterial to having a material adverse impact on its financial position and its ability to continue in the ordinary course of business. The Company has no liabilities recorded for such indemnities.</span> </div> <div style="font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt; text-decoration: underline;">Regulatory Agencies</span> </div> <div style="font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">The Company is subject to oversight from regulatory agencies regarding firearms that arises in the ordinary course of its business.</span> </div><div style="text-align: justify;"> <span style="font-size: 10.0pt; text-decoration: underline;">Litigation</span> </div> <div style="font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">The Company is subject to litigation and other claims in the ordinary course of business. The Company records a provision for a liability relating to legal matters when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These provisions are reviewed and adjusted to include the impacts of negotiations, estimated settlements, legal rulings, advice of legal counsel, and other information and events pertaining to a particular matter. </span> </div> P5Y 600000 1000 338000 <div> <span style="font-size: 10.0pt; color: #000000; font-weight: bold;">16. RELATED PARTY TRANSACTIONS </span> </div> <div style="font-size: 10pt;"> </div> <div style="font-size: 10pt;"><i>Consulting Services </i></div><div style="font-size: 10pt;"> </div><div style="font-size: 10pt;">Commencing in October 2017, the Company began reimbursing Mr. Elwood Norris, a former officer, current 5% stockholder and consultant of the Company, $1.5 per month on a month-to-month basis for laboratory facility costs and $7.5 per month on a month-to month basis for invention consulting services, for an aggregate of $17 for the years ended December 31, 2024. The Company terminated the contract in February 2024. </div><div style="font-size: 10pt;"> </div><div style="font-size: 10pt;">The Company is obligated to pay royalties and development and patent costs pursuant to an exclusive Amended and Restated Intellectual Property License Agreement dated September 30, 2016, with Syzygy Licensing, LLC (“Syzygy”), a company owned and controlled by a 5% stockholder of the Company, Mr. Elwood Norris, and a former officer of the Company, Mr. James Barnes. The agreement provides for royalty payments of 4% of revenue from products employing the licensed ensnarement device technology up to an aggregate of $1,000 in royalties or until September 30, 2026, whichever occurs earlier. During the years ended December 31, 2025 and 2024, the Company incurred royalties to Syzygy of $18 and $66, respectively.</div><div style="font-size: 10pt;">  </div><div style="text-align: justify;"> <span style="font-size: 10.0pt; font-style: italic;">Series A Preferred Stock</span> </div> <div style="font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">On June 29, 2023, the Company entered into the Series A Purchase Agreement with certain investors, including Scot Cohen, the Company’s Chief Executive Officer, and V4 Global LLC (“V4”). Mr. Cohen has voting and dispositive control with respect to the securities as is deemed to be the beneficial owner of the securities held by V4. Pursuant to the Series A Purchase Agreement, the Company issued Mr. Cohen and V4 an aggregate of 3,000 shares of Series A Preferred Stock and Series A Warrants to purchase up to an aggregate of 2,068,966 shares of Common Stock for aggregate gross proceeds of $3,000. For the year ended December 31, 2025, Mr. Cohen and  V4 earned dividends totalin<span style="background-color: rgb(255, 255, 255);">g </span></span><span style="font-size: 10pt; background-color: rgb(255, 255, 255);">$330</span><span style="font-size: 10.0pt;"><span style="background-color: rgb(255, 255, 255);"> on</span> the Series A Preferred Stock.</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt; font-style: italic;">PIPE Financing</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">On February 24, 2025, the Company entered into the PIPE Purchase Agreement with certain accredited including: V4, an entity controlled by Mr. Cohen, the Company’s Chief Executive Officer; Continuum Ventures, LLC (“Continuum”), an entity controlled by Jared Novick, the Company’s President and Chief Operating Officer; and Savbo Investments LLC (“Savbo”), an entity controlled by Marc Savas, a member of the Company’s Board, pursuant to which, the Company issued and sold in a private placement an aggregate of 3,216,666 shares of Common Stock and PIPE Warrants with an exercise price of $1.80 per share, to purchase up to 3,216,666 shares of Common Stock (the “Private Placement”). Pursuant to the PIPE Private Placement, the Company sold to (i) V4 1,100,000 shares of Common Stock and PIPE Warrants to purchase up to an aggregate of 1,100,000 shares of Common Stock, for aggregate gross proceeds of $1,980, (ii) Continuum an aggregate of 275,000 shares of Common stock and PIPE Warrants to purchase up to an aggregate of 275,000 shares of Common Stock for aggregate gross proceeds of $495 and (iii) Savbo an aggregate of 50,000 shares of Common stock and PIPE Warrants to purchase up to an aggregate of 50,000 shares of Common Stock for aggregate gross proceeds of $90.</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">On August 18, 2025, the Company entered into the Series B Purchase Agreement with the Series B Purchasers, including V4, pursuant to which, the Company issued and sold in a private placement an aggregate of (i) 4,500 shares of the Company’s Series B Preferred Stock initially convertible into up to 3,000,000 shares of Common Stock, at an initial conversion price of $1.50 per share, and (ii) accompanying Series B Warrants to purchase up to 3,000,000 shares of Common Stock, with an initial exercise price of $1.50 per share. Pursuant to the Series B Private Placement, the Company sold to V4 1,000 shares of Series B Preferred Stock and 666,667 Series B Warrants for aggregate gross proceeds of $1,000.</span> </div> <div style="font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10pt; background-color: rgb(255, 255, 255);">See Note 8 for additional information on related party transactions and obligations.</span> </div> 0.05 1500 7500 17000 0.05 0.04 1000000 18000 66000 3000 2068966 3000000 330000 3216666 1.8 3216666 1100000 1100000 1100000 1980000 275000 275000 275000 495000 50000 50000 50000 90000 4500 3000000 1.5 3000000 1.5 1000 666667 1000000 <div style="margin-left: 0.5pt;"> <span style="font-size: 10.0pt; color: #000000; font-weight: bold;">17. INCOME TAXES</span></div> <div style="margin-left: 0.5pt;"> </div><div style="margin: 0in 0in 8pt; line-height: 115%; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">Until its reverse recapitalization on March 31, 2017, the Company was treated as a partnership for federal and state income tax purposes and did not incur income taxes. The Company accounts for income taxes under ASC 740. Deferred income tax assets and liabilities are determined based upon differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. Accounting standards require the consideration of a valuation allowance for deferred tax assets if it is "more likely than not" that some component or all of the benefits of deferred tax assets will not be realized.</div><div> <span style="font-size: 10.0pt;">   </span></div><div style="text-align: justify;"> <span style="font-size: 10.0pt;">The following table summarizes income (loss) before income taxes:</span> </div><div> </div><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr style="height: 0px; font-size: 0px;"><td></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td></tr><tr><td> </td><td> </td><td style="width: 1%;" title="FN 17 Income Tax - C5"> </td><td style="text-align: center; font-weight: bold; width: 9%;">Year Ended</td><td style="width: 1%;" title="FN 17 Income Tax - C5"> </td></tr><tr><td> </td><td> </td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%;" title="FN 17 Income Tax - C6"> </td><td style="text-align: center; font-weight: bold; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 9%;">December 31, 2025</td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%;" title="FN 17 Income Tax - C6"> </td></tr><tr><td> </td><td> </td><td style="width: 1%;" title="FN 17 Income Tax - C7"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="FN 17 Income Tax - C7"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Domestic</td><td> </td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C8">$</td><td style="width: 9%; text-align: right;">(10,335</td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C8">) </td></tr><tr><td>Foreign</td><td> </td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 17 Income Tax - C9"> </td><td style="width: 9%; text-align: right; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">-</td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 17 Income Tax - C9"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Total</td><td> </td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 17 Income Tax - C10">$</td><td style="width: 9%; text-align: right; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">(10,335</td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 17 Income Tax - C10">) </td></tr></table><div> </div><div style="text-align: justify;"> <span style="font-size: 10.0pt;">The Company's income tax expense (benefit) is as follows:</span> </div><div> </div><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr style="height: 0px; font-size: 0px;"><td></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td></tr><tr><td> </td><td> </td><td style="width: 1%;" title="FN 17 Income Tax - C13"> </td><td style="text-align: center; font-weight: bold; width: 9%;">Year Ended</td><td style="width: 1%;" title="FN 17 Income Tax - C13"> </td></tr><tr><td> </td><td> </td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%;" title="FN 17 Income Tax - C14"> </td><td style="text-align: center; font-weight: bold; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 9%;">December 31, 2025</td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%;" title="FN 17 Income Tax - C14"> </td></tr><tr><td> </td><td> </td><td style="width: 1%;" title="FN 17 Income Tax - C15"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="FN 17 Income Tax - C15"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>U.S. Federal</td><td> </td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C16">$</td><td style="width: 9%; text-align: right;">-</td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C16"> </td></tr><tr><td>State</td><td> </td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C17"> </td><td style="width: 9%; text-align: right;">-</td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C17"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Foreign</td><td> </td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C18"> </td><td style="width: 9%; text-align: right;">-</td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C18"> </td></tr><tr><td>Current income tax expense (benefit)</td><td> </td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: 1px solid rgb(0, 0, 0); border-left: none; border-right: none;" title="FN 17 Income Tax - C19"> </td><td style="width: 9%; text-align: right; border-bottom: 1px solid rgb(0, 0, 0); border-top: 1px solid rgb(0, 0, 0); border-left: none; border-right: none;">-</td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: 1px solid rgb(0, 0, 0); border-left: none; border-right: none;" title="FN 17 Income Tax - C19"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>U.S. Federal</td><td> </td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C20"> </td><td style="width: 9%; text-align: right;">-</td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C20"> </td></tr><tr><td>State</td><td> </td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C21"> </td><td style="width: 9%; text-align: right;">-</td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C21"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Foreign</td><td> </td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 17 Income Tax - C22"> </td><td style="width: 9%; text-align: right; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">-</td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 17 Income Tax - C22"> </td></tr><tr><td>Deferred income tax expense (benefit)</td><td> </td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 17 Income Tax - C23"> </td><td style="width: 9%; text-align: right; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">-</td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 17 Income Tax - C23"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Total income tax expense (benefit)</td><td> </td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 17 Income Tax - C24">$</td><td style="width: 9%; text-align: right; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">-</td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 17 Income Tax - C24"> </td></tr></table><div> </div><div style="text-align: justify;"> <span style="font-size: 10.0pt;">The Company's effective tax rate for the years ended December 31, 2025 was 0%. For the year ended December 31, 2025, the primary drivers of the variance from the statutory rate were fair value adjustments, state taxes, and valuation allowance.</span></div><div style="text-align: justify; font-size: 10pt;">The following is a reconciliation from the Company's statutory rate to the effective tax rate reported in the financial statements:</div><div> </div><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr style="height: 0px; font-size: 0px;"><td></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td></tr><tr><td> </td><td> </td><td colspan="7" style="text-align: center; font-weight: bold;">Year Ended</td></tr><tr><td> </td><td> </td><td colspan="7" style="text-align: center; font-weight: bold; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">December 31, 2025</td></tr><tr><td> </td><td> </td><td style="width: 1%;" title="FN 17 Income Tax - C30"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="FN 17 Income Tax - C30"> </td><td> </td><td style="width: 1%;" title="FN 17 Income Tax - E30"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="FN 17 Income Tax - E30"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Statutory Federal Income Tax Rate</td><td> </td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C31">$</td><td style="width: 9%; text-align: right;">(2,170</td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C31">) </td><td> </td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - E31"> </td><td style="width: 9%; text-align: right;">21.0</td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - E31">%</td></tr><tr><td>State and local income taxes, net of federal benefit of state</td><td> </td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C32"> </td><td style="width: 9%; text-align: right;">(978</td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C32">) </td><td> </td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - E32"> </td><td style="width: 9%; text-align: right;">9.5</td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - E32">%</td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Foreign Tax Effects</td><td> </td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C33"> </td><td style="width: 9%; text-align: right;">-</td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C33"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - E33"> </td><td style="width: 9%; text-align: right;">0.0</td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - E33">%</td></tr><tr><td>Federal Law Changes</td><td> </td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C34"> </td><td style="width: 9%; text-align: right;">-</td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C34"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - E34"> </td><td style="width: 9%; text-align: right;">0.0</td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - E34">%</td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Total Effect of Cross-Border Tax Laws</td><td> </td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C35"> </td><td style="width: 9%; text-align: right;">-</td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C35"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - E35"> </td><td style="width: 9%; text-align: right;">0.0</td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - E35">%</td></tr><tr><td>Tax Credits (Federal)</td><td> </td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C36"> </td><td style="width: 9%; text-align: right;">-</td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C36"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - E36"> </td><td style="width: 9%; text-align: right;">0.0</td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - E36">%</td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Valuation Allowance</td><td> </td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C37"> </td><td style="width: 9%; text-align: right;">3,440</td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C37"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - E37"> </td><td style="width: 9%; text-align: right;">(33.3</td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - E37">)%</td></tr><tr><td>Non-Deductible or Non-Taxable Items</td><td> </td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C38"> </td><td style="width: 9%; text-align: right;">(584</td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C38">) </td><td> </td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - E38"> </td><td style="width: 9%; text-align: right;">5.7</td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - E38">%</td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Unrecognized Tax Benefits</td><td> </td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C39"> </td><td style="width: 9%; text-align: right;">-</td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C39"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - E39"> </td><td style="width: 9%; text-align: right;">0.0</td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - E39">%</td></tr><tr><td>Other Adjustments</td><td> </td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 17 Income Tax - C40"> </td><td style="width: 9%; text-align: right; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">292</td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 17 Income Tax - C40"> </td><td> </td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 17 Income Tax - E40"> </td><td style="width: 9%; text-align: right; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">(2.9</td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 17 Income Tax - E40">)%</td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Effective Income Tax Rate</td><td> </td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 17 Income Tax - C41">$</td><td style="width: 9%; text-align: right; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">-</td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 17 Income Tax - C41"> </td><td> </td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 17 Income Tax - E41"> </td><td style="width: 9%; text-align: right; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">0.0</td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 17 Income Tax - E41">%</td></tr></table><div> </div><div style="text-align: justify;"> <span style="font-size: 10.0pt;">The tax effect of temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases that give rise to deferred tax assets and liabilities is as follows:</span> </div><div> </div><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr style="height: 0px; font-size: 0px;"><td></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td></tr><tr><td> </td><td> </td><td style="width: 1%;" title="FN 17 Income Tax - C44"> </td><td style="text-align: center; font-weight: bold; width: 9%;">Year Ended</td><td style="width: 1%;" title="FN 17 Income Tax - C44"> </td></tr><tr><td> </td><td> </td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%;" title="FN 17 Income Tax - C45"> </td><td style="text-align: center; font-weight: bold; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 9%;">December 31, 2025</td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%;" title="FN 17 Income Tax - C45"> </td></tr><tr><td> </td><td> </td><td style="width: 1%;" title="FN 17 Income Tax - C46"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="FN 17 Income Tax - C46"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Capitalized Sec. 174 expenses</td><td> </td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C47">$</td><td style="width: 9%; text-align: right;">1,137</td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C47"> </td></tr><tr><td>Stock-based compensation</td><td> </td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C48"> </td><td style="width: 9%; text-align: right;">2,631</td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C48"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Tax credits</td><td> </td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C49"> </td><td style="width: 9%; text-align: right;">81</td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C49"> </td></tr><tr><td>Net operating losses - U.S.</td><td> </td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C50"> </td><td style="width: 9%; text-align: right;">22,195</td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C50"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Accruals and other</td><td> </td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 17 Income Tax - C51"> </td><td style="width: 9%; text-align: right; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">967</td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 17 Income Tax - C51"> </td></tr><tr><td>Gross deferred tax assets</td><td> </td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 17 Income Tax - C52"> </td><td style="width: 9%; text-align: right; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">27,011</td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 17 Income Tax - C52"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Valuation allowance</td><td> </td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 17 Income Tax - C53"> </td><td style="width: 9%; text-align: right; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">(26,455</td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 17 Income Tax - C53">) </td></tr><tr><td>Net deferred tax assets</td><td> </td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 17 Income Tax - C54"> </td><td style="width: 9%; text-align: right; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">556</td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 17 Income Tax - C54"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Deferred tax liabilities</td><td> </td><td style="width: 1%;" title="FN 17 Income Tax - C55"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="FN 17 Income Tax - C55"> </td></tr><tr><td>Capital Lease - ROU Asset</td><td> </td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C56"> </td><td style="width: 9%; text-align: right;">(516</td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C56">) </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Prepaid Expense</td><td> </td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 17 Income Tax - C57"> </td><td style="width: 9%; text-align: right; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">(40</td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 17 Income Tax - C57">) </td></tr><tr><td>Total deferred tax liabilities</td><td> </td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 17 Income Tax - C58"> </td><td style="width: 9%; text-align: right; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">(556</td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 17 Income Tax - C58">) </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Total deferred tax assets (liabilities)</td><td> </td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 17 Income Tax - C59">$</td><td style="width: 9%; text-align: right; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">-</td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 17 Income Tax - C59"> </td></tr></table><div> </div><div style="text-align: justify;"> <span style="font-size: 10.0pt;">For the year ended December 31, 2025, the Company federal and state post-apportioned net operating loss carryforwards are approximately $95,684 and $51,267, respectively. There are no foreign operating loss carryforwards. The federal operating loss carryforwards have $94,981 with an indefinite carryforward period and $703 that begin to expire in 2037. The state post-apportioned operating loss carryforwards of $50,555 have a limited carryforward period and will begin to expire in 2037.</span></div><div style="text-align: justify;"> <span style="font-size: 10.0pt;">  </span> </div><div style="text-align: justify;"> <span style="font-size: 10.0pt;">For the year ended December 31, 2025, the Company federal tax carryforward is $81. There are no state and foreign tax credit carryforwards. All tax credits have a limited carryforward period and will begin to expire in 2037.</span></div><div style="text-align: justify;"> <span style="font-size: 10.0pt;">  </span> </div><div style="text-align: justify;"> <span style="font-size: 10.0pt;">In accordance with Section 382 and Section 383, utilization of the net operating losses ("NOL") and tax credit carryforwards may subject to limitations based on prior or future ownership changes. At this time, no Section 382 study has been completed.</span></div><div style="text-align: justify;"> </div><div style="text-align: justify; font-size: 10pt;">Additionally, after weighing up all available and positive and negative evidence for the year ended December 31, 2025, the Company has recorded a valuation allowance of approximately $26,455.</div><div style="text-align: justify; font-size: 10pt;">The Company is subject to income tax in multiple jurisdictions, including federal, states, and city jurisdictions. The Company has federal, state, and city income tax returns that are open to examination from <span style="-sec-ix-hidden: hidden-fact-4">2022, 2023, and 2024</span>. In addition, the utilization of tax carryforwards from periods prior to those previously mentioned may also be audited by the taxing authorities once utilized.</div><div style="text-align: justify; font-size: 10pt;"> </div><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr style="height: 0px; font-size: 0px;"><td></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td></tr><tr><td> </td><td> </td><td style="width: 1%;" title="FN 17 Income Tax - C63"> </td><td style="text-align: center; font-weight: bold; width: 9%;">Year Ended</td><td style="width: 1%;" title="FN 17 Income Tax - C63"> </td></tr><tr><td> </td><td> </td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%;" title="FN 17 Income Tax - C64"> </td><td style="text-align: center; font-weight: bold; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 9%;">December 31, 2025</td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%;" title="FN 17 Income Tax - C64"> </td></tr><tr><td> </td><td> </td><td style="width: 1%;" title="FN 17 Income Tax - C65"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="FN 17 Income Tax - C65"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Balance as of December 31, 2024</td><td> </td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C66">$</td><td style="width: 9%; text-align: right;">-</td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C66"> </td></tr><tr><td>Additions based on tax positions related to the current year</td><td> </td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C67"> </td><td style="width: 9%; text-align: right;">-</td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C67"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Additions for tax positions of prior years</td><td> </td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C68"> </td><td style="width: 9%; text-align: right;">-</td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C68"> </td></tr><tr><td>Reductions for tax positions of prior years</td><td> </td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C69"> </td><td style="width: 9%; text-align: right;">-</td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C69"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Reductions related to settlements</td><td> </td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C70"> </td><td style="width: 9%; text-align: right;">-</td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C70"> </td></tr><tr><td>Reductions from lapse of statute of limitations</td><td> </td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 17 Income Tax - C71"> </td><td style="width: 9%; text-align: right; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">-</td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 17 Income Tax - C71"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Balance as of December 31, 2025</td><td> </td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 17 Income Tax - C72">$</td><td style="width: 9%; text-align: right; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">-</td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 17 Income Tax - C72"> </td></tr></table><div style="text-align: justify; font-size: 10pt;"> </div><div style="text-align: justify; font-size: 10pt;">The Company has not accrued any interest expense or penalties related to the unrecognized tax benefits for the year ended December 31, 2025.</div><div style="text-align: justify; font-size: 10pt;"> </div><div style="text-align: justify; font-size: 10pt;">The Company has made no income tax payments and received no income tax refunds during the year. All payments made to taxing authorities were for non-income based tax liabilities and are outside the scope of ASC 740.</div><div style="text-align: justify; font-size: 10pt;"> </div><div style="text-align: justify; font-size: 10pt;">The Company has provided a valuation allowance against the Company’s deferred tax assets, since, in the opinion of management, based upon the earnings history of the Company, it is not more likely than not that the benefits will be realized. All or a portion of the remaining valuation allowance may be reduced in future years based on an assessment of earnings sufficient to fully utilize these potential tax benefits.</div><div style="text-align: justify; font-size: 10pt;"> </div><div style="text-align: justify; font-size: 10pt;">The One Big Beautiful Bill Act (OBBBA) was enacted on July 4, 2025. The Company has evaluated whether OBBBA has a material impact on its 2025 financial statements. The only provision of OBBBA that impacts the Company’s income tax accounting under ASC 740 is the new IRC. Sec. 174A, which permanently allows taxpayers to fully expense domestic research or experimental (R&amp;E) expenditures paid or incurred in taxable years beginning after December 31, 2024. The requirement to capitalize foreign Sec. 174 expenses over 15 years has not changed. On August 28, 2025, the IRS released procedural guidance (Rev. Proc. 2025-28) for implementing Section 174A and related elections for domestic research or experimental. Transition rules provide taxpayers with options to account for any remaining unamortized domestic R&amp;E expenditures paid or incurred in taxable years beginning after December 31, 2021, and before January 1, 2025. Taxpayers may continue to amortize such unamortized amounts over the remaining five-year period; alternatively, they may elect to deduct any remaining unamortized domestic R&amp;E expenditures either entirely in the first tax year beginning after December 31, 2024, or ratably over two taxable years (e.g., 2025 or ratably in 2025 and 2026). The Company has decided it will elect to continue to amortize previously capitalized and unamortized domestic R&amp;E expenditures over the remaining five-year period. As of December 31, 2024, the Company has approximately $8,600 of remaining unamortized domestic R&amp;D expenditures, representing approximately $1,900 of its gross deferred tax assets. As of December 31, 2025, the Company has approximately $4,800 of remaining unamortized domestic R&amp;D expenditures, representing approximately $1,100 of its gross deferred tax assets.</div> <div style="text-align: justify; font-size: 10pt;"> </div><div style="margin: 0in 0in 8pt; line-height: 115%; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">The provision/(benefit) for Income Taxes for the year ended December 31, 2024, consists of the following:</div><div> </div><table cellpadding="0" style="margin-left: 0.25pt; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;" width="85%"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td valign="bottom"> </td> <td colspan="3" style="text-align: center;" valign="top"> <div style="margin: 0in;"><b>Year Ended</b></div> </td> </tr> <tr style="mso-yfti-irow:1"> <td valign="bottom"> </td> <td colspan="3" style="border-top: none; border-right: none; border-left: none; border-image: initial; border-bottom: 1pt solid black; text-align: center;" valign="bottom"> <div style="margin: 0in;"><b>December 31, 2024</b></div> </td> </tr> <tr style="mso-yfti-irow:2"> <td valign="bottom"> </td> <td style="width: 1%;" valign="bottom"> </td> <td style="width: 9%;" valign="bottom"> </td><td style="width: 1%;" valign="bottom"> </td> </tr> <tr style="mso-yfti-irow:3"> <td valign="bottom"> <div style="margin: 0in; text-indent: 9pt;"><b>Current Tax Expense/(Benefit)</b></div> </td> <td style="width: 1%;" valign="bottom"> </td> <td style="width: 9%;" valign="bottom"> </td><td style="width: 1%;" valign="bottom"> </td> </tr> <tr style="background-color: rgb(204, 238, 255);"> <td valign="bottom"> <div style="margin: 0in; text-indent: 9pt;">Deferred Tax Expense/(Benefit)</div> </td> <td style="margin: 0in 0in 0in 0.25pt; border-collapse: collapse; border-spacing: 0px; width: 1%; text-align: left;" valign="bottom">$</td> <td style="text-align: right; margin: 0in; width: 9%;" valign="bottom">(2,712</td><td style="text-align: left; margin: 0in; width: 1%;" valign="bottom">) </td> </tr> <tr style="mso-yfti-irow:5"> <td valign="bottom"> <div style="margin: 0in; text-indent: 9pt;">Change in Valuation Allowance</div> </td> <td style="width: 1%; text-align: left; border-bottom: 1px solid black;" valign="bottom"> </td> <td style="text-align: right; margin: 0in; width: 9%; border-bottom: 1px solid black;" valign="bottom">2,712</td><td style="text-align: left; margin: 0in; width: 1%; border-bottom: 1px solid black;" valign="bottom"> </td> </tr> <tr style="background-color: rgb(204, 238, 255);"> <td style="padding-left: 10px;" valign="bottom"> <div style="margin: 0in;">Income Tax Provision/(Benefit)</div> </td> <td style="margin: 0in 0in 0in 0.25pt; border-collapse: collapse; border-spacing: 0px; width: 1%; text-align: left; border-bottom: 3px double black;" valign="bottom">$</td> <td style="text-align: right; margin: 0in; width: 9%; border-bottom: 3px double black;" valign="bottom">  - </td><td style="text-align: left; margin: 0in; width: 1%; border-bottom: 3px double black;" valign="bottom"> </td> </tr> </table><div style="margin: 0in 0in 8pt; line-height: 115%; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">The Company’s effective income tax rate is different from the federal statutory tax rate in 2024 predominantly due to the valuation allowance, permanent differences, and state taxes. A reconciliation of the statutory U.S. Federal Tax Rate to the Company's Effective Tax Rate is as follows:</div><div style="margin: 0in; text-align: justify;"><span style="font-size:10.0pt"> </span></div><table cellpadding="0" style="margin-left: 0.25pt; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;" width="99%"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td valign="top"> </td> <td colspan="3" style="text-align: center; font-weight: bold;" valign="bottom"> <div style="margin: 0in;">Year Ended</div> </td> </tr> <tr style="mso-yfti-irow:1"> <td valign="bottom"> </td> <td colspan="3" style="text-align: center; font-weight: bold;" valign="top"> <div style="margin: 0in;">December 31, 2024</div> </td> </tr> <tr style="mso-yfti-irow:2;height:15.0pt"> <td style="height: 15pt;" valign="bottom"> </td> <td style="height: 15pt; width: 1%;" valign="bottom"> </td> <td style="height: 15pt; width: 9%;" valign="bottom"> </td><td style="width: 1%;" valign="bottom"> </td> </tr> <tr style="background-color: rgb(204, 238, 255);"> <td valign="bottom"> <div style="margin: 0in;">U.S. Statutory Federal Income Tax Rate</div> </td> <td style="margin: 0in 0in 0in 0.25pt; border-collapse: collapse; border-spacing: 0px; width: 1%; text-align: left;" valign="bottom">$</td> <td style="text-align: right; margin: 0in; width: 9%;" valign="bottom">(1,234</td><td style="text-align: left; margin: 0in; width: 1%;" valign="bottom">) </td> </tr> <tr style="mso-yfti-irow:4"> <td valign="bottom"> <div style="margin: 0in; text-indent: 9pt;">State Income Taxes, net of Federal Income tax Benefit</div> </td> <td style="width: 1%; text-align: left;" valign="bottom"> </td> <td style="text-align: right; margin: 0in; width: 9%;" valign="bottom">(67</td><td style="text-align: left; margin: 0in; width: 1%;" valign="bottom">) </td> </tr> <tr style="background-color: rgb(204, 238, 255);"> <td valign="bottom"> <div style="margin: 0in; text-indent: 9pt;">Permanent differences and other</div> </td> <td style="width: 1%; text-align: left;" valign="bottom"> </td> <td style="text-align: right; margin: 0in; width: 9%;" valign="bottom">(1,411</td><td style="text-align: left; margin: 0in; width: 1%;" valign="bottom">) </td> </tr> <tr style="mso-yfti-irow:6"> <td valign="bottom"> <div style="margin: 0in; text-indent: 9pt;">Valuation Allowance</div> </td> <td style="width: 1%; text-align: left; border-bottom: 1px solid black;" valign="bottom"> </td> <td style="text-align: right; margin: 0in; width: 9%; border-bottom: 1px solid black;" valign="bottom">2,712</td><td style="text-align: left; margin: 0in; width: 1%; border-bottom: 1px solid black;" valign="bottom"> </td> </tr> <tr style="background-color: rgb(204, 238, 255);"> <td valign="bottom"> <div style="margin: 0in;">Income Tax Provision/(Benefit)</div> </td> <td style="margin: 0in 0in 0in 0.25pt; border-collapse: collapse; border-spacing: 0px; width: 1%; text-align: left; border-bottom: 3px double black;" valign="bottom">$</td> <td style="text-align: right; margin: 0in; width: 9%; border-bottom: 3px double black;" valign="bottom">  - </td><td style="text-align: left; margin: 0in; width: 1%; border-bottom: 3px double black;" valign="bottom"> </td> </tr> </table><div style="margin: 0in;"><span style="font-size:10.0pt"> </span></div><div style="margin: 0in 0in 8pt; line-height: 115%; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">Deferred income taxes represent the tax effect of transactions that are reported in different periods for financial and tax reporting purposes. The combined temporary differences and carryforwards of each tax paying component of the Company that give rise to a significant portion of the deferred income tax benefits and liabilities are as follows as of December 31, 2024:</div><table cellpadding="0" style="margin-left: 0.25pt; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;" width="99%"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td valign="top"> </td> <td colspan="3" style="font-weight: bold; text-align: center;" valign="bottom"> <div style="margin: 0in;"> Year Ended</div> </td> </tr> <tr style="mso-yfti-irow:1"> <td valign="bottom"> </td> <td colspan="3" style="font-weight: bold; text-align: center;" valign="top"> <div style="margin: 0in;"> December 31, 2024</div> </td> </tr> <tr style="mso-yfti-irow:2"> <td valign="bottom"> </td> <td style="width: 1%;" valign="bottom"> </td> <td style="width: 9%;" valign="bottom"> </td><td style="width: 1%;" valign="bottom"> </td> </tr> <tr style="mso-yfti-irow:3;height:15.0pt"> <td style="height: 15pt;" valign="bottom"> <div style="margin: 0in;">Deferred income tax assets:</div> </td> <td style="height: 15pt; width: 1%;" valign="bottom"> </td> <td style="height: 15pt; width: 9%;" valign="bottom"> </td><td style="width: 1%;" valign="bottom"> </td> </tr> <tr style="background-color: rgb(204, 238, 255);"> <td valign="bottom"> <div style="margin: 0in; text-indent: 0.25in;">Net operating loss carryforwards</div> </td> <td style="margin: 0in 0in 0in 0.25pt; border-collapse: collapse; border-spacing: 0px; text-align: left; width: 1%;" valign="bottom">$</td> <td style="text-align: right; margin: 0in; width: 9%;" valign="bottom">18,832</td><td style="text-align: left; margin: 0in; width: 1%;" valign="bottom"> </td> </tr> <tr style="mso-yfti-irow:5"> <td valign="bottom"> <div style="margin: 0in; text-indent: 0.25in;">Sec. 174 capitalization</div> </td> <td style="text-align: left; width: 1%;" valign="bottom"> </td> <td style="text-align: right; margin: 0in; width: 9%;" valign="bottom">1,931</td><td style="text-align: left; margin: 0in; width: 1%;" valign="bottom"> </td> </tr> <tr style="background-color: rgb(204, 238, 255);"> <td valign="bottom"> <div style="margin: 0in; text-indent: 0.25in;">Research and development credits</div> </td> <td style="text-align: left; width: 1%;" valign="bottom"> </td> <td style="text-align: right; margin: 0in; width: 9%;" valign="bottom">81</td><td style="text-align: left; margin: 0in; width: 1%;" valign="bottom"> </td> </tr> <tr style="mso-yfti-irow:7"> <td valign="bottom"> <div style="margin: 0in; text-indent: 0.25in;">Stock Based Compensation</div> </td> <td style="text-align: left; width: 1%;" valign="bottom"> </td> <td style="text-align: right; margin: 0in; width: 9%;" valign="bottom">1,708</td><td style="text-align: left; margin: 0in; width: 1%;" valign="bottom"> </td> </tr> <tr style="background-color: rgb(204, 238, 255);"> <td valign="bottom"> <div style="margin: 0in; text-indent: 0.25in;">Accruals and Other</div> </td> <td style="text-align: left; width: 1%; border-bottom: 3px double black;" valign="bottom"> </td> <td style="text-align: right; margin: 0in; width: 9%; border-bottom: 3px double black;" valign="bottom">925</td><td style="text-align: left; margin: 0in; width: 1%; border-bottom: 3px double black;" valign="bottom"> </td> </tr> <tr style="mso-yfti-irow:9"> <td valign="bottom"> <div style="margin: 0in; text-indent: 9pt;">Total deferred tax assets (gross)</div> </td> <td style="text-align: left; width: 1%;" valign="bottom"> </td> <td style="border: none; text-align: right; margin: 0in; width: 9%;" valign="bottom">23,477</td><td style="border: none; text-align: left; margin: 0in; width: 1%;" valign="bottom"> </td> </tr> <tr style="background-color: rgb(204, 238, 255);"> <td valign="bottom"> <div style="margin: 0in; text-indent: 9pt;">Less valuation allowance</div> </td> <td style="text-align: left; width: 1%; border-bottom: 1px solid black;" valign="bottom"> </td> <td style="text-align: right; margin: 0in; width: 9%; border-bottom: 1px solid black;" valign="bottom">(23,015</td><td style="text-align: left; margin: 0in; width: 1%; border-bottom: 1px solid black;" valign="bottom">) </td> </tr> <tr style="mso-yfti-irow:11"> <td valign="bottom"> <div style="margin: 0in; text-indent: 9pt;">Net deferred tax assets</div> </td> <td style="text-align: left; width: 1%;" valign="bottom"> </td> <td style="text-align: right; margin: 0in; width: 9%;" valign="bottom">462</td><td style="text-align: left; margin: 0in; width: 1%;" valign="bottom"> </td> </tr> <tr style="background-color: rgb(204, 238, 255);"> <td> </td> <td style="width: 1%;"> </td> <td style="text-align: right; width: 9%;"> </td><td style="text-align: right; width: 1%;"> </td> </tr> <tr style="mso-yfti-irow:13"> <td valign="bottom"> <div style="margin: 0in; text-indent: 9pt;">Deferred income tax liabilities:</div> </td> <td style="text-align: left; width: 1%;" valign="bottom"> </td> <td style="text-align: right; margin: 0in; width: 9%;" valign="bottom">  - </td><td style="text-align: left; margin: 0in; width: 1%;" valign="bottom"> </td> </tr> <tr style="background-color: rgb(204, 238, 255);"> <td valign="bottom"> <div style="margin: 0in; text-indent: 0.25in;">Depreciation and other</div> </td> <td style="text-align: left; width: 1%; border-bottom: 1px solid black;" valign="bottom"> </td> <td style="text-align: right; margin: 0in; width: 9%; border-bottom: 1px solid black;" valign="bottom">(462</td><td style="text-align: left; margin: 0in; width: 1%; border-bottom: 1px solid black;" valign="bottom">) </td> </tr> <tr style="mso-yfti-irow:15"> <td valign="bottom"> <div style="margin: 0in; text-indent: 9pt;">Net deferred tax liabilities</div> </td> <td style="margin: 0in 0in 0in 0.25pt; border-collapse: collapse; border-spacing: 0px; text-align: left; width: 1%; border-bottom: 1px solid black;" valign="bottom">$</td> <td style="text-align: right; margin: 0in; width: 9%; border-bottom: 1px solid black;" valign="bottom">(462</td><td style="text-align: left; margin: 0in; width: 1%; border-bottom: 1px solid black;" valign="bottom">) </td> </tr> <tr style="background-color: rgb(204, 238, 255);"> <td valign="bottom"> <div style="margin: 0in;">Net deferred income taxes</div> </td> <td style="border-top: none; border-right: none; border-left: none; border-image: initial; border-bottom: 2.25pt double black; margin: 0in 0in 0in 0.25pt; border-collapse: collapse; border-spacing: 0px; text-align: left; width: 1%;" valign="bottom">$</td> <td style="border-top: none; border-right: none; border-left: none; border-image: initial; border-bottom: 2.25pt double black; text-align: right; margin: 0in; width: 9%;" valign="bottom"> - </td><td style="border-top: none; border-right: none; border-left: none; border-image: initial; border-bottom: 2.25pt double black; text-align: left; margin: 0in; width: 1%;" valign="bottom"> </td> </tr> </table> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">The following table summarizes income (loss) before income taxes:</span> </div><div> </div><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr style="height: 0px; font-size: 0px;"><td></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td></tr><tr><td> </td><td> </td><td style="width: 1%;" title="FN 17 Income Tax - C5"> </td><td style="text-align: center; font-weight: bold; width: 9%;">Year Ended</td><td style="width: 1%;" title="FN 17 Income Tax - C5"> </td></tr><tr><td> </td><td> </td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%;" title="FN 17 Income Tax - C6"> </td><td style="text-align: center; font-weight: bold; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 9%;">December 31, 2025</td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%;" title="FN 17 Income Tax - C6"> </td></tr><tr><td> </td><td> </td><td style="width: 1%;" title="FN 17 Income Tax - C7"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="FN 17 Income Tax - C7"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Domestic</td><td> </td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C8">$</td><td style="width: 9%; text-align: right;">(10,335</td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C8">) </td></tr><tr><td>Foreign</td><td> </td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 17 Income Tax - C9"> </td><td style="width: 9%; text-align: right; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">-</td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 17 Income Tax - C9"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Total</td><td> </td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 17 Income Tax - C10">$</td><td style="width: 9%; text-align: right; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">(10,335</td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 17 Income Tax - C10">) </td></tr></table> -10335000 0 -10335000 <div style="text-align: justify;"> <span style="font-size: 10.0pt;">The Company's income tax expense (benefit) is as follows:</span> </div><div> </div><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr style="height: 0px; font-size: 0px;"><td></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td></tr><tr><td> </td><td> </td><td style="width: 1%;" title="FN 17 Income Tax - C13"> </td><td style="text-align: center; font-weight: bold; width: 9%;">Year Ended</td><td style="width: 1%;" title="FN 17 Income Tax - C13"> </td></tr><tr><td> </td><td> </td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%;" title="FN 17 Income Tax - C14"> </td><td style="text-align: center; font-weight: bold; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 9%;">December 31, 2025</td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%;" title="FN 17 Income Tax - C14"> </td></tr><tr><td> </td><td> </td><td style="width: 1%;" title="FN 17 Income Tax - C15"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="FN 17 Income Tax - C15"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>U.S. Federal</td><td> </td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C16">$</td><td style="width: 9%; text-align: right;">-</td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C16"> </td></tr><tr><td>State</td><td> </td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C17"> </td><td style="width: 9%; text-align: right;">-</td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C17"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Foreign</td><td> </td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C18"> </td><td style="width: 9%; text-align: right;">-</td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C18"> </td></tr><tr><td>Current income tax expense (benefit)</td><td> </td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: 1px solid rgb(0, 0, 0); border-left: none; border-right: none;" title="FN 17 Income Tax - C19"> </td><td style="width: 9%; text-align: right; border-bottom: 1px solid rgb(0, 0, 0); border-top: 1px solid rgb(0, 0, 0); border-left: none; border-right: none;">-</td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: 1px solid rgb(0, 0, 0); border-left: none; border-right: none;" title="FN 17 Income Tax - C19"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>U.S. Federal</td><td> </td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C20"> </td><td style="width: 9%; text-align: right;">-</td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C20"> </td></tr><tr><td>State</td><td> </td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C21"> </td><td style="width: 9%; text-align: right;">-</td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C21"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Foreign</td><td> </td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 17 Income Tax - C22"> </td><td style="width: 9%; text-align: right; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">-</td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 17 Income Tax - C22"> </td></tr><tr><td>Deferred income tax expense (benefit)</td><td> </td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 17 Income Tax - C23"> </td><td style="width: 9%; text-align: right; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">-</td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 17 Income Tax - C23"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Total income tax expense (benefit)</td><td> </td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 17 Income Tax - C24">$</td><td style="width: 9%; text-align: right; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">-</td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 17 Income Tax - C24"> </td></tr></table><div style="margin: 0in 0in 8pt; line-height: 115%; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">The provision/(benefit) for Income Taxes for the year ended December 31, 2024, consists of the following:</div><div> </div><table cellpadding="0" style="margin-left: 0.25pt; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;" width="85%"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td valign="bottom"> </td> <td colspan="3" style="text-align: center;" valign="top"> <div style="margin: 0in;"><b>Year Ended</b></div> </td> </tr> <tr style="mso-yfti-irow:1"> <td valign="bottom"> </td> <td colspan="3" style="border-top: none; border-right: none; border-left: none; border-image: initial; border-bottom: 1pt solid black; text-align: center;" valign="bottom"> <div style="margin: 0in;"><b>December 31, 2024</b></div> </td> </tr> <tr style="mso-yfti-irow:2"> <td valign="bottom"> </td> <td style="width: 1%;" valign="bottom"> </td> <td style="width: 9%;" valign="bottom"> </td><td style="width: 1%;" valign="bottom"> </td> </tr> <tr style="mso-yfti-irow:3"> <td valign="bottom"> <div style="margin: 0in; text-indent: 9pt;"><b>Current Tax Expense/(Benefit)</b></div> </td> <td style="width: 1%;" valign="bottom"> </td> <td style="width: 9%;" valign="bottom"> </td><td style="width: 1%;" valign="bottom"> </td> </tr> <tr style="background-color: rgb(204, 238, 255);"> <td valign="bottom"> <div style="margin: 0in; text-indent: 9pt;">Deferred Tax Expense/(Benefit)</div> </td> <td style="margin: 0in 0in 0in 0.25pt; border-collapse: collapse; border-spacing: 0px; width: 1%; text-align: left;" valign="bottom">$</td> <td style="text-align: right; margin: 0in; width: 9%;" valign="bottom">(2,712</td><td style="text-align: left; margin: 0in; width: 1%;" valign="bottom">) </td> </tr> <tr style="mso-yfti-irow:5"> <td valign="bottom"> <div style="margin: 0in; text-indent: 9pt;">Change in Valuation Allowance</div> </td> <td style="width: 1%; text-align: left; border-bottom: 1px solid black;" valign="bottom"> </td> <td style="text-align: right; margin: 0in; width: 9%; border-bottom: 1px solid black;" valign="bottom">2,712</td><td style="text-align: left; margin: 0in; width: 1%; border-bottom: 1px solid black;" valign="bottom"> </td> </tr> <tr style="background-color: rgb(204, 238, 255);"> <td style="padding-left: 10px;" valign="bottom"> <div style="margin: 0in;">Income Tax Provision/(Benefit)</div> </td> <td style="margin: 0in 0in 0in 0.25pt; border-collapse: collapse; border-spacing: 0px; width: 1%; text-align: left; border-bottom: 3px double black;" valign="bottom">$</td> <td style="text-align: right; margin: 0in; width: 9%; border-bottom: 3px double black;" valign="bottom">  - </td><td style="text-align: left; margin: 0in; width: 1%; border-bottom: 3px double black;" valign="bottom"> </td> </tr> </table> 0 0 0 0 0 0 0 0 0 0 <div style="text-align: justify; font-size: 10pt;">The following is a reconciliation from the Company's statutory rate to the effective tax rate reported in the financial statements:</div><div> </div><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr style="height: 0px; font-size: 0px;"><td></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td></tr><tr><td> </td><td> </td><td colspan="7" style="text-align: center; font-weight: bold;">Year Ended</td></tr><tr><td> </td><td> </td><td colspan="7" style="text-align: center; font-weight: bold; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">December 31, 2025</td></tr><tr><td> </td><td> </td><td style="width: 1%;" title="FN 17 Income Tax - C30"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="FN 17 Income Tax - C30"> </td><td> </td><td style="width: 1%;" title="FN 17 Income Tax - E30"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="FN 17 Income Tax - E30"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Statutory Federal Income Tax Rate</td><td> </td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C31">$</td><td style="width: 9%; text-align: right;">(2,170</td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C31">) </td><td> </td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - E31"> </td><td style="width: 9%; text-align: right;">21.0</td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - E31">%</td></tr><tr><td>State and local income taxes, net of federal benefit of state</td><td> </td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C32"> </td><td style="width: 9%; text-align: right;">(978</td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C32">) </td><td> </td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - E32"> </td><td style="width: 9%; text-align: right;">9.5</td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - E32">%</td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Foreign Tax Effects</td><td> </td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C33"> </td><td style="width: 9%; text-align: right;">-</td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C33"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - E33"> </td><td style="width: 9%; text-align: right;">0.0</td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - E33">%</td></tr><tr><td>Federal Law Changes</td><td> </td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C34"> </td><td style="width: 9%; text-align: right;">-</td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C34"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - E34"> </td><td style="width: 9%; text-align: right;">0.0</td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - E34">%</td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Total Effect of Cross-Border Tax Laws</td><td> </td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C35"> </td><td style="width: 9%; text-align: right;">-</td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C35"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - E35"> </td><td style="width: 9%; text-align: right;">0.0</td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - E35">%</td></tr><tr><td>Tax Credits (Federal)</td><td> </td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C36"> </td><td style="width: 9%; text-align: right;">-</td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C36"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - E36"> </td><td style="width: 9%; text-align: right;">0.0</td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - E36">%</td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Valuation Allowance</td><td> </td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C37"> </td><td style="width: 9%; text-align: right;">3,440</td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C37"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - E37"> </td><td style="width: 9%; text-align: right;">(33.3</td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - E37">)%</td></tr><tr><td>Non-Deductible or Non-Taxable Items</td><td> </td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C38"> </td><td style="width: 9%; text-align: right;">(584</td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C38">) </td><td> </td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - E38"> </td><td style="width: 9%; text-align: right;">5.7</td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - E38">%</td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Unrecognized Tax Benefits</td><td> </td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C39"> </td><td style="width: 9%; text-align: right;">-</td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C39"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - E39"> </td><td style="width: 9%; text-align: right;">0.0</td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - E39">%</td></tr><tr><td>Other Adjustments</td><td> </td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 17 Income Tax - C40"> </td><td style="width: 9%; text-align: right; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">292</td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 17 Income Tax - C40"> </td><td> </td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 17 Income Tax - E40"> </td><td style="width: 9%; text-align: right; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">(2.9</td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 17 Income Tax - E40">)%</td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Effective Income Tax Rate</td><td> </td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 17 Income Tax - C41">$</td><td style="width: 9%; text-align: right; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">-</td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 17 Income Tax - C41"> </td><td> </td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 17 Income Tax - E41"> </td><td style="width: 9%; text-align: right; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">0.0</td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 17 Income Tax - E41">%</td></tr></table><div style="margin: 0in 0in 8pt; line-height: 115%; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">The Company’s effective income tax rate is different from the federal statutory tax rate in 2024 predominantly due to the valuation allowance, permanent differences, and state taxes. A reconciliation of the statutory U.S. Federal Tax Rate to the Company's Effective Tax Rate is as follows:</div><div style="margin: 0in; text-align: justify;"><span style="font-size:10.0pt"> </span></div><table cellpadding="0" style="margin-left: 0.25pt; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;" width="99%"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td valign="top"> </td> <td colspan="3" style="text-align: center; font-weight: bold;" valign="bottom"> <div style="margin: 0in;">Year Ended</div> </td> </tr> <tr style="mso-yfti-irow:1"> <td valign="bottom"> </td> <td colspan="3" style="text-align: center; font-weight: bold;" valign="top"> <div style="margin: 0in;">December 31, 2024</div> </td> </tr> <tr style="mso-yfti-irow:2;height:15.0pt"> <td style="height: 15pt;" valign="bottom"> </td> <td style="height: 15pt; width: 1%;" valign="bottom"> </td> <td style="height: 15pt; width: 9%;" valign="bottom"> </td><td style="width: 1%;" valign="bottom"> </td> </tr> <tr style="background-color: rgb(204, 238, 255);"> <td valign="bottom"> <div style="margin: 0in;">U.S. Statutory Federal Income Tax Rate</div> </td> <td style="margin: 0in 0in 0in 0.25pt; border-collapse: collapse; border-spacing: 0px; width: 1%; text-align: left;" valign="bottom">$</td> <td style="text-align: right; margin: 0in; width: 9%;" valign="bottom">(1,234</td><td style="text-align: left; margin: 0in; width: 1%;" valign="bottom">) </td> </tr> <tr style="mso-yfti-irow:4"> <td valign="bottom"> <div style="margin: 0in; text-indent: 9pt;">State Income Taxes, net of Federal Income tax Benefit</div> </td> <td style="width: 1%; text-align: left;" valign="bottom"> </td> <td style="text-align: right; margin: 0in; width: 9%;" valign="bottom">(67</td><td style="text-align: left; margin: 0in; width: 1%;" valign="bottom">) </td> </tr> <tr style="background-color: rgb(204, 238, 255);"> <td valign="bottom"> <div style="margin: 0in; text-indent: 9pt;">Permanent differences and other</div> </td> <td style="width: 1%; text-align: left;" valign="bottom"> </td> <td style="text-align: right; margin: 0in; width: 9%;" valign="bottom">(1,411</td><td style="text-align: left; margin: 0in; width: 1%;" valign="bottom">) </td> </tr> <tr style="mso-yfti-irow:6"> <td valign="bottom"> <div style="margin: 0in; text-indent: 9pt;">Valuation Allowance</div> </td> <td style="width: 1%; text-align: left; border-bottom: 1px solid black;" valign="bottom"> </td> <td style="text-align: right; margin: 0in; width: 9%; border-bottom: 1px solid black;" valign="bottom">2,712</td><td style="text-align: left; margin: 0in; width: 1%; border-bottom: 1px solid black;" valign="bottom"> </td> </tr> <tr style="background-color: rgb(204, 238, 255);"> <td valign="bottom"> <div style="margin: 0in;">Income Tax Provision/(Benefit)</div> </td> <td style="margin: 0in 0in 0in 0.25pt; border-collapse: collapse; border-spacing: 0px; width: 1%; text-align: left; border-bottom: 3px double black;" valign="bottom">$</td> <td style="text-align: right; margin: 0in; width: 9%; border-bottom: 3px double black;" valign="bottom">  - </td><td style="text-align: left; margin: 0in; width: 1%; border-bottom: 3px double black;" valign="bottom"> </td> </tr> </table> -2170000 0.21 -978000 0.095 0 0 0 0 0 0 0 0 3440000 -0.333 -584000 0.057 0 0 292000 -0.029 0 0 <div style="text-align: justify;"> <span style="font-size: 10.0pt;">The tax effect of temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases that give rise to deferred tax assets and liabilities is as follows:</span> </div><div> </div><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr style="height: 0px; font-size: 0px;"><td></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td></tr><tr><td> </td><td> </td><td style="width: 1%;" title="FN 17 Income Tax - C44"> </td><td style="text-align: center; font-weight: bold; width: 9%;">Year Ended</td><td style="width: 1%;" title="FN 17 Income Tax - C44"> </td></tr><tr><td> </td><td> </td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%;" title="FN 17 Income Tax - C45"> </td><td style="text-align: center; font-weight: bold; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 9%;">December 31, 2025</td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%;" title="FN 17 Income Tax - C45"> </td></tr><tr><td> </td><td> </td><td style="width: 1%;" title="FN 17 Income Tax - C46"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="FN 17 Income Tax - C46"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Capitalized Sec. 174 expenses</td><td> </td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C47">$</td><td style="width: 9%; text-align: right;">1,137</td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C47"> </td></tr><tr><td>Stock-based compensation</td><td> </td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C48"> </td><td style="width: 9%; text-align: right;">2,631</td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C48"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Tax credits</td><td> </td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C49"> </td><td style="width: 9%; text-align: right;">81</td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C49"> </td></tr><tr><td>Net operating losses - U.S.</td><td> </td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C50"> </td><td style="width: 9%; text-align: right;">22,195</td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C50"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Accruals and other</td><td> </td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 17 Income Tax - C51"> </td><td style="width: 9%; text-align: right; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">967</td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 17 Income Tax - C51"> </td></tr><tr><td>Gross deferred tax assets</td><td> </td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 17 Income Tax - C52"> </td><td style="width: 9%; text-align: right; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">27,011</td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 17 Income Tax - C52"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Valuation allowance</td><td> </td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 17 Income Tax - C53"> </td><td style="width: 9%; text-align: right; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">(26,455</td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 17 Income Tax - C53">) </td></tr><tr><td>Net deferred tax assets</td><td> </td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 17 Income Tax - C54"> </td><td style="width: 9%; text-align: right; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">556</td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 17 Income Tax - C54"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Deferred tax liabilities</td><td> </td><td style="width: 1%;" title="FN 17 Income Tax - C55"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="FN 17 Income Tax - C55"> </td></tr><tr><td>Capital Lease - ROU Asset</td><td> </td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C56"> </td><td style="width: 9%; text-align: right;">(516</td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C56">) </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Prepaid Expense</td><td> </td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 17 Income Tax - C57"> </td><td style="width: 9%; text-align: right; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">(40</td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 17 Income Tax - C57">) </td></tr><tr><td>Total deferred tax liabilities</td><td> </td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 17 Income Tax - C58"> </td><td style="width: 9%; text-align: right; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">(556</td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 17 Income Tax - C58">) </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Total deferred tax assets (liabilities)</td><td> </td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 17 Income Tax - C59">$</td><td style="width: 9%; text-align: right; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">-</td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 17 Income Tax - C59"> </td></tr></table><div style="margin: 0in 0in 8pt; line-height: 115%; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">Deferred income taxes represent the tax effect of transactions that are reported in different periods for financial and tax reporting purposes. The combined temporary differences and carryforwards of each tax paying component of the Company that give rise to a significant portion of the deferred income tax benefits and liabilities are as follows as of December 31, 2024:</div><table cellpadding="0" style="margin-left: 0.25pt; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;" width="99%"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td valign="top"> </td> <td colspan="3" style="font-weight: bold; text-align: center;" valign="bottom"> <div style="margin: 0in;"> Year Ended</div> </td> </tr> <tr style="mso-yfti-irow:1"> <td valign="bottom"> </td> <td colspan="3" style="font-weight: bold; text-align: center;" valign="top"> <div style="margin: 0in;"> December 31, 2024</div> </td> </tr> <tr style="mso-yfti-irow:2"> <td valign="bottom"> </td> <td style="width: 1%;" valign="bottom"> </td> <td style="width: 9%;" valign="bottom"> </td><td style="width: 1%;" valign="bottom"> </td> </tr> <tr style="mso-yfti-irow:3;height:15.0pt"> <td style="height: 15pt;" valign="bottom"> <div style="margin: 0in;">Deferred income tax assets:</div> </td> <td style="height: 15pt; width: 1%;" valign="bottom"> </td> <td style="height: 15pt; width: 9%;" valign="bottom"> </td><td style="width: 1%;" valign="bottom"> </td> </tr> <tr style="background-color: rgb(204, 238, 255);"> <td valign="bottom"> <div style="margin: 0in; text-indent: 0.25in;">Net operating loss carryforwards</div> </td> <td style="margin: 0in 0in 0in 0.25pt; border-collapse: collapse; border-spacing: 0px; text-align: left; width: 1%;" valign="bottom">$</td> <td style="text-align: right; margin: 0in; width: 9%;" valign="bottom">18,832</td><td style="text-align: left; margin: 0in; width: 1%;" valign="bottom"> </td> </tr> <tr style="mso-yfti-irow:5"> <td valign="bottom"> <div style="margin: 0in; text-indent: 0.25in;">Sec. 174 capitalization</div> </td> <td style="text-align: left; width: 1%;" valign="bottom"> </td> <td style="text-align: right; margin: 0in; width: 9%;" valign="bottom">1,931</td><td style="text-align: left; margin: 0in; width: 1%;" valign="bottom"> </td> </tr> <tr style="background-color: rgb(204, 238, 255);"> <td valign="bottom"> <div style="margin: 0in; text-indent: 0.25in;">Research and development credits</div> </td> <td style="text-align: left; width: 1%;" valign="bottom"> </td> <td style="text-align: right; margin: 0in; width: 9%;" valign="bottom">81</td><td style="text-align: left; margin: 0in; width: 1%;" valign="bottom"> </td> </tr> <tr style="mso-yfti-irow:7"> <td valign="bottom"> <div style="margin: 0in; text-indent: 0.25in;">Stock Based Compensation</div> </td> <td style="text-align: left; width: 1%;" valign="bottom"> </td> <td style="text-align: right; margin: 0in; width: 9%;" valign="bottom">1,708</td><td style="text-align: left; margin: 0in; width: 1%;" valign="bottom"> </td> </tr> <tr style="background-color: rgb(204, 238, 255);"> <td valign="bottom"> <div style="margin: 0in; text-indent: 0.25in;">Accruals and Other</div> </td> <td style="text-align: left; width: 1%; border-bottom: 3px double black;" valign="bottom"> </td> <td style="text-align: right; margin: 0in; width: 9%; border-bottom: 3px double black;" valign="bottom">925</td><td style="text-align: left; margin: 0in; width: 1%; border-bottom: 3px double black;" valign="bottom"> </td> </tr> <tr style="mso-yfti-irow:9"> <td valign="bottom"> <div style="margin: 0in; text-indent: 9pt;">Total deferred tax assets (gross)</div> </td> <td style="text-align: left; width: 1%;" valign="bottom"> </td> <td style="border: none; text-align: right; margin: 0in; width: 9%;" valign="bottom">23,477</td><td style="border: none; text-align: left; margin: 0in; width: 1%;" valign="bottom"> </td> </tr> <tr style="background-color: rgb(204, 238, 255);"> <td valign="bottom"> <div style="margin: 0in; text-indent: 9pt;">Less valuation allowance</div> </td> <td style="text-align: left; width: 1%; border-bottom: 1px solid black;" valign="bottom"> </td> <td style="text-align: right; margin: 0in; width: 9%; border-bottom: 1px solid black;" valign="bottom">(23,015</td><td style="text-align: left; margin: 0in; width: 1%; border-bottom: 1px solid black;" valign="bottom">) </td> </tr> <tr style="mso-yfti-irow:11"> <td valign="bottom"> <div style="margin: 0in; text-indent: 9pt;">Net deferred tax assets</div> </td> <td style="text-align: left; width: 1%;" valign="bottom"> </td> <td style="text-align: right; margin: 0in; width: 9%;" valign="bottom">462</td><td style="text-align: left; margin: 0in; width: 1%;" valign="bottom"> </td> </tr> <tr style="background-color: rgb(204, 238, 255);"> <td> </td> <td style="width: 1%;"> </td> <td style="text-align: right; width: 9%;"> </td><td style="text-align: right; width: 1%;"> </td> </tr> <tr style="mso-yfti-irow:13"> <td valign="bottom"> <div style="margin: 0in; text-indent: 9pt;">Deferred income tax liabilities:</div> </td> <td style="text-align: left; width: 1%;" valign="bottom"> </td> <td style="text-align: right; margin: 0in; width: 9%;" valign="bottom">  - </td><td style="text-align: left; margin: 0in; width: 1%;" valign="bottom"> </td> </tr> <tr style="background-color: rgb(204, 238, 255);"> <td valign="bottom"> <div style="margin: 0in; text-indent: 0.25in;">Depreciation and other</div> </td> <td style="text-align: left; width: 1%; border-bottom: 1px solid black;" valign="bottom"> </td> <td style="text-align: right; margin: 0in; width: 9%; border-bottom: 1px solid black;" valign="bottom">(462</td><td style="text-align: left; margin: 0in; width: 1%; border-bottom: 1px solid black;" valign="bottom">) </td> </tr> <tr style="mso-yfti-irow:15"> <td valign="bottom"> <div style="margin: 0in; text-indent: 9pt;">Net deferred tax liabilities</div> </td> <td style="margin: 0in 0in 0in 0.25pt; border-collapse: collapse; border-spacing: 0px; text-align: left; width: 1%; border-bottom: 1px solid black;" valign="bottom">$</td> <td style="text-align: right; margin: 0in; width: 9%; border-bottom: 1px solid black;" valign="bottom">(462</td><td style="text-align: left; margin: 0in; width: 1%; border-bottom: 1px solid black;" valign="bottom">) </td> </tr> <tr style="background-color: rgb(204, 238, 255);"> <td valign="bottom"> <div style="margin: 0in;">Net deferred income taxes</div> </td> <td style="border-top: none; border-right: none; border-left: none; border-image: initial; border-bottom: 2.25pt double black; margin: 0in 0in 0in 0.25pt; border-collapse: collapse; border-spacing: 0px; text-align: left; width: 1%;" valign="bottom">$</td> <td style="border-top: none; border-right: none; border-left: none; border-image: initial; border-bottom: 2.25pt double black; text-align: right; margin: 0in; width: 9%;" valign="bottom"> - </td><td style="border-top: none; border-right: none; border-left: none; border-image: initial; border-bottom: 2.25pt double black; text-align: left; margin: 0in; width: 1%;" valign="bottom"> </td> </tr> </table> 1137000 2631000 81000 22195000 967000 27011000 26455000 556000 516000 40000 556000 0 95684000 51267000 0 94981000 703000 50555000 81000 0 0 26455000 <div style="text-align: justify; font-size: 10pt;">The Company is subject to income tax in multiple jurisdictions, including federal, states, and city jurisdictions. The Company has federal, state, and city income tax returns that are open to examination from <span style="-sec-ix-hidden: hidden-fact-4">2022, 2023, and 2024</span>. In addition, the utilization of tax carryforwards from periods prior to those previously mentioned may also be audited by the taxing authorities once utilized.</div><div style="text-align: justify; font-size: 10pt;"> </div><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr style="height: 0px; font-size: 0px;"><td></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td></tr><tr><td> </td><td> </td><td style="width: 1%;" title="FN 17 Income Tax - C63"> </td><td style="text-align: center; font-weight: bold; width: 9%;">Year Ended</td><td style="width: 1%;" title="FN 17 Income Tax - C63"> </td></tr><tr><td> </td><td> </td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%;" title="FN 17 Income Tax - C64"> </td><td style="text-align: center; font-weight: bold; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 9%;">December 31, 2025</td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%;" title="FN 17 Income Tax - C64"> </td></tr><tr><td> </td><td> </td><td style="width: 1%;" title="FN 17 Income Tax - C65"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="FN 17 Income Tax - C65"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Balance as of December 31, 2024</td><td> </td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C66">$</td><td style="width: 9%; text-align: right;">-</td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C66"> </td></tr><tr><td>Additions based on tax positions related to the current year</td><td> </td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C67"> </td><td style="width: 9%; text-align: right;">-</td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C67"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Additions for tax positions of prior years</td><td> </td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C68"> </td><td style="width: 9%; text-align: right;">-</td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C68"> </td></tr><tr><td>Reductions for tax positions of prior years</td><td> </td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C69"> </td><td style="width: 9%; text-align: right;">-</td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C69"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Reductions related to settlements</td><td> </td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C70"> </td><td style="width: 9%; text-align: right;">-</td><td style="width: 1%; text-align: left;" title="FN 17 Income Tax - C70"> </td></tr><tr><td>Reductions from lapse of statute of limitations</td><td> </td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 17 Income Tax - C71"> </td><td style="width: 9%; text-align: right; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">-</td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 17 Income Tax - C71"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Balance as of December 31, 2025</td><td> </td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 17 Income Tax - C72">$</td><td style="width: 9%; text-align: right; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">-</td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 17 Income Tax - C72"> </td></tr></table> 0 0 0 0 0 0 0 0 0 0 0 8600000 1900000 4800000 1100000 -2712000 -2712000 0 -1234000 -67000 -1411000 2712000 0 18832000 1931000 81000 1708000 925000 23477000 23015000 462000 462000 462000 0 <div style="margin-left: 0.5pt;"> <span style="font-size: 10.0pt; color: #000000; font-weight: bold;">18. MAJOR CUSTOMERS AND RELATED INFORMATION </span> </div> <div style="font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt; text-decoration: underline;">Major Customers</span> </div> <div style="font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10pt; background-color: rgb(255, 255, 255);">For the year ended December 31, 2025, revenue from one distributor accounted for approximatel</span><span style="background-color: rgb(255, 255, 255);"><span style="font-size: 10pt;">y 38%</span></span><span style="font-size: 10pt;"><span style="background-color: rgb(255, 255, 255);"> of revenue with no other single customer accounting for more than 10% of total revenue. </span><span style="background-color: rgb(255, 255, 255); letter-spacing: normal; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">Accounts receivable from two distributors accounted for approximat</span><span style="background-color: rgb(255, 255, 255);"><span style="letter-spacing: normal; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">ely </span><span style="cursor: pointer; letter-spacing: normal; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial;">71</span><span style="letter-spacing: normal; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">% and 10%, res</span></span><span style="background-color: rgb(255, 255, 255); letter-spacing: normal; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">pectively, of net accounts receivable and contract assets at December 31, 2025.</span></span></div><div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">For the year ended December 31, 2024, revenues from two distributors accounted for approximately 23% and 14%, respectively, of revenues with no other single customer accounting for more than 10% of total revenues. Accounts receivable from two distributors accounted for approximately 11% and 10%, respectively, of net accounts receivable and contract assets at December 31, 2024.</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> <span style="font-size: 10.0pt;">The following table summarizes revenue by geographic region. Revenue is attributed to countries based on customer’s delivery location.</span> </div> <div style="font-size: 10pt;">  </div> <table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr style="height: 0px; font-size: 0px;"><td></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td></tr><tr><td> </td><td colspan="7" style="text-align: center; font-weight: bold; border-width: initial; border-style: none; border-color: initial;">For the Year</td></tr><tr><td> </td><td colspan="7" style="text-align: center; font-weight: bold; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">Ended December 31,</td></tr><tr><td> </td><td style="width: 1%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 18 Summary - E30"> </td><td style="text-align: center; font-weight: bold; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 9%; background-color: rgb(255, 255, 255);">2025</td><td style="width: 1%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 18 Summary - E30"> </td><td> </td><td style="width: 1%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 18 Summary - G30"> </td><td style="text-align: center; font-weight: bold; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 9%;">2024</td><td style="width: 1%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 18 Summary - G30"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">Americas</td><td style="width: 1%; text-align: left;" title="FN 18 Summary - E31">$</td><td style="width: 9%; text-align: right;">2,861</td><td style="width: 1%; text-align: left;" title="FN 18 Summary - E31"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN 18 Summary - G31">$</td><td style="width: 9%; text-align: right;">4,423</td><td style="width: 1%; text-align: left;" title="FN 18 Summary - G31"> </td></tr><tr><td style="font-size: 10pt;">Europe, Middle East and Africa</td><td style="width: 1%; text-align: left;" title="FN 18 Summary - E32"> </td><td style="width: 9%; text-align: right;">2,320</td><td style="width: 1%; text-align: left;" title="FN 18 Summary - E32"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN 18 Summary - G32"> </td><td style="width: 9%; text-align: right;">76</td><td style="width: 1%; text-align: left;" title="FN 18 Summary - G32"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">Asia Pacific</td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 18 Summary - E33"> </td><td style="width: 9%; text-align: right; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">22</td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 18 Summary - E33"> </td><td> </td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 18 Summary - G33"> </td><td style="width: 9%; text-align: right; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">8</td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 18 Summary - G33"> </td></tr><tr><td style="font-size: 10pt;">Total revenues, gross</td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 18 Summary - E34">$</td><td style="width: 9%; text-align: right; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">5,203</td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 18 Summary - E34"> </td><td> </td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 18 Summary - G34">$</td><td style="width: 9%; text-align: right; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">4,507</td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 18 Summary - G34"> </td></tr></table><div style="font-size: 10pt;"> </div><div style="text-align: justify;"> <span style="font-size: 10.0pt;">See Note 1 – </span><span style="font-size: 10.0pt; font-style: italic;">Concentrations of Risks</span><span style="font-size: 10.0pt;"> for information on reliance on suppliers.</span> </div> 1 0.38 2 0.71 0.10 2 0.23 0.14 2 0.11 0.10 <div style="text-align: justify;"> <span style="font-size: 10.0pt;">The following table summarizes revenue by geographic region. Revenue is attributed to countries based on customer’s delivery location.</span> </div> <div style="font-size: 10pt;">  </div> <table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr style="height: 0px; font-size: 0px;"><td></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td></tr><tr><td> </td><td colspan="7" style="text-align: center; font-weight: bold; border-width: initial; border-style: none; border-color: initial;">For the Year</td></tr><tr><td> </td><td colspan="7" style="text-align: center; font-weight: bold; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">Ended December 31,</td></tr><tr><td> </td><td style="width: 1%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 18 Summary - E30"> </td><td style="text-align: center; font-weight: bold; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 9%; background-color: rgb(255, 255, 255);">2025</td><td style="width: 1%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 18 Summary - E30"> </td><td> </td><td style="width: 1%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 18 Summary - G30"> </td><td style="text-align: center; font-weight: bold; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 9%;">2024</td><td style="width: 1%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 18 Summary - G30"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">Americas</td><td style="width: 1%; text-align: left;" title="FN 18 Summary - E31">$</td><td style="width: 9%; text-align: right;">2,861</td><td style="width: 1%; text-align: left;" title="FN 18 Summary - E31"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN 18 Summary - G31">$</td><td style="width: 9%; text-align: right;">4,423</td><td style="width: 1%; text-align: left;" title="FN 18 Summary - G31"> </td></tr><tr><td style="font-size: 10pt;">Europe, Middle East and Africa</td><td style="width: 1%; text-align: left;" title="FN 18 Summary - E32"> </td><td style="width: 9%; text-align: right;">2,320</td><td style="width: 1%; text-align: left;" title="FN 18 Summary - E32"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN 18 Summary - G32"> </td><td style="width: 9%; text-align: right;">76</td><td style="width: 1%; text-align: left;" title="FN 18 Summary - G32"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="font-size: 10pt;">Asia Pacific</td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 18 Summary - E33"> </td><td style="width: 9%; text-align: right; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">22</td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 18 Summary - E33"> </td><td> </td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 18 Summary - G33"> </td><td style="width: 9%; text-align: right; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">8</td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 18 Summary - G33"> </td></tr><tr><td style="font-size: 10pt;">Total revenues, gross</td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 18 Summary - E34">$</td><td style="width: 9%; text-align: right; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">5,203</td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 18 Summary - E34"> </td><td> </td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 18 Summary - G34">$</td><td style="width: 9%; text-align: right; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">4,507</td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN 18 Summary - G34"> </td></tr></table> 2861000 4423000 2320000 76000 22000 8000 5203000 4507000 <div> <span style="font-size: 10.0pt; color: #000000; font-weight: bold;">19. SUBSEQUENT EVENTS</span></div> <div> </div><div style="font-size: 10pt;">On February 2, 2026, the Company entered into a securities purchase agreement with certain accredited investors for a private placement offering. On February 3, 2026, the Company closed the private placement and issued (i) 1,700,000 shares of Common Stock, (ii) pre-funded warrants to purchase up to 800,000 shares of Common Stock, and (iii) common warrants to purchase up to 2,500,000 shares of Common Stock. The purchase price was $2.00 per share (or $1.9999 per pre-funded warrant), with the common warrants having an exercise price of $2.30 per share and a five-year term. </div><div> </div><div style="font-size: 10pt;"> The gross proceeds from the private placement were approximately $5,000, before deducting offering expenses. The securities were issued in transactions exempt from the registration requirements of the Securities Act of 1933, as amended, pursuant to Section 4(a)(2) and Regulation D thereunder.</div><div style="font-size: 10pt;"> </div><div style="font-size: 10pt;">On February 13, 2026, the Company entered into a Termination and Mutual Release Agreement with Atlantic Gateway, LLC, the landlord of the Company's office space located at 3480 Main Highway, Suite 202, Miami, Florida 33133. Pursuant to the agreement, the Office Lease dated September 20, 2023 was terminated effective as of February 13, 2026, and the Company surrendered possession of the premises. The landlord agreed to refund the prorated portion of February 2026 rent attributable to the period following the termination date and to return the security deposit in accordance with the terms of the original lease. The parties exchanged mutual releases of all claims arising out of or relating to the lease, except for obligations expressly set forth in the termination agreement and any obligations that by their terms survive termination. In March 2026, the Company entered into a month-to-month service agreement for a business address located at 3350 Virginia Street, Miami, Florida 33133.</div> 1700000 800000 2500000 2 1.9999 2.3 P5Y 5000000000 P6Y6M P5Y6M 2022 2023 2024 0001702924 false FY