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The Company’s primary product is the BolaWrap® remote restraint device. The principal markets for the Company’s proprietary products and services are in North and South America, Europe, Middle East and Asia.</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p id="xdx_840_eus-gaap--BasisOfPresentationAndSignificantAccountingPoliciesTextBlock_zcYt58qpVaM4" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><b>Basis of Presentation</b></p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">The Company’s unaudited interim condensed consolidated financial statements included herein have been prepared in accordance with the instructions to Form 10-Q and Article 8 of Regulation S-X and the rules and regulations of the Securities and Exchange Commission (“<i>SEC</i>”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“<i>U.S. GAAP</i>”) have been condensed or omitted pursuant to such rules and regulations. In management’s opinion, the accompanying financial statements reflect adjustments necessary to present fairly the financial position, results of operations, and cash flows for those periods indicated, and contain adequate disclosure to make the information presented not misleading. Adjustments included herein are of a normal, recurring nature unless otherwise disclosed in the footnotes. The condensed consolidated financial statements and notes thereto should be read in conjunction with the Company’s audited financial statements and notes thereto for the year ended December 31, 2024, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 (the “<i>Annual Report</i>”), as filed with the SEC on March 31, 2025 and as amended on April 25, 2025. The accompanying unaudited condensed consolidated balance sheet as of September 30, 2025 has been derived from the audited consolidated balance sheet as of December 31, 2024, contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2024. Results of operations for interim periods are not necessarily indicative of the results of operations for a full year.</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">Where necessary, the prior year’s information has been reclassified to conform to the current year’s presentation.</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p id="xdx_844_eus-gaap--ConsolidationPolicyTextBlock_zRfEfSQKEPEe" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><b>Principles of Consolidation</b></p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">The Company has <span id="xdx_902_ecustom--NumberOfWhollyOwnedSubsidiaries_iI_dc_uInteger_c20250630_z9BJYYCqGBTf" title="Number of wholly-owned subsidiaries">three</span> wholly owned subsidiaries, Wrap Reality, Inc., that sells a virtual reality (“<i>VR</i>”) training system primarily targeting law enforcement agencies, Intrensic, LLC (“Intrensic”), specializing in Body Worn Camera and Digital Evidence Management solutions and Wrap Federal, LLC. The condensed consolidated financial statements include the accounts of these subsidiaries after elimination of intercompany transactions and accounts.</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p id="xdx_842_ecustom--SegmentAndRelatedInformationPolicyTextBlock_z2euPdQFqrsg" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><b>Segment and Related Information</b></p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">The Company operates as a <span style="-sec-ix-hidden: hidden-fact-2"><span style="-sec-ix-hidden: hidden-fact-3">single</span></span> segment. The Company’s chief operating decision maker is Scot Cohen, the Company’s Executive Chairman and Chief Executive Officer, who manages operations for purposes of allocating resources. Refer to Note 15. Major Customers and Related Information for further discussion.</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><b> </b></p> <p id="xdx_841_eus-gaap--GoodwillAndIntangibleAssetsGoodwillPolicy_zXDL5laakUX" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><b>Goodwill</b></p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">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.</p><div> <p id="xdx_841_eus-gaap--IntangibleAssetsFiniteLivedPolicy_zvtTIeNJUHAd" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><b>Definite-lived Intangible Assets</b></p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">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 <span id="xdx_90A_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20250630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TechnologyBasedIntangibleAssetsMember_zi7hViX2i994">6</span> years for technology; between <span id="xdx_907_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20250630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--CustomerRelationshipsMember__srt--RangeAxis__srt--MinimumMember_zgphxER5htD4">3</span> and <span id="xdx_902_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20250630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--CustomerRelationshipsMember__srt--RangeAxis__srt--MaximumMember_zt6KbOFPq6d5">7</span> years for customer relationships; and <span id="xdx_906_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20250630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TrademarksAndTradeNamesMember_ztq8dnfomRJ6" title="Finite-lived intangible asset, useful life">8</span> years for trademarks and trade names.</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p></div><div> <p id="xdx_84C_eus-gaap--UseOfEstimates_zud4SIsdupHe" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><b>Use of Estimates</b></p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions (e.g., stock-based compensation valuation, allowance for doubtful accounts, valuation of inventory and intangible assets, warranty reserve, accrued expense, valuation of warrants, 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 revenue and expense during the reporting period. Actual results could materially differ from those estimates.</p><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"> </p> <p id="xdx_847_ecustom--ClassificationAndValuationOfWarrantsPolicyTextBlock_zPPcB28vzLPe" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><b>Warrants</b></p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">The Company accounts for warrants as liability-classified instruments based on an assessment of the warrant’s specific terms and applicable authoritative guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 480, Distinguishing Liabilities from Equity (“ASC 480”) and ASC 815, Derivatives and Hedging (“ASC 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 shares of 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.</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">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 condensed consolidated statement of operations.</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">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 8: Warrants for additional detail.</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p id="xdx_846_eus-gaap--StockholdersEquityPolicyTextBlock_zffPbfVmqR6k" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><b>Series A Preferred Stock</b></p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">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.</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p></div><div> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">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.</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p id="xdx_842_eus-gaap--RevenueFromContractWithCustomerPolicyTextBlock_zA5uvOOAFhd9" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><b>Revenue Recognition</b></p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">The Company recognizes revenue under ASC Topic 606 - Revenue from Contracts with Customers (“ASC 606”). Revenue is recognized when control of the promised goods or performance obligations for services is transferred to the Company’s customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for the goods or services.</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">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. Managed services revenue represents the consulting services provided to customers of W1 Global, LLC (“W1”). Other revenue includes VR revenues, service, training and shipping revenues.</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p></div><div> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">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 after 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 the 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 completed. In such instances, a deferred revenue liability is recorded. The Company recognizes these contract liabilities as revenue after all revenue recognition criteria are met.</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">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 the cost of products sold.</p> <p style="font: 10pt &quot;Times New Roman&quot;; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; border-width: initial; border-style: none; border-color: initial; border-collapse: collapse;"> </p> <p id="xdx_847_eus-gaap--EarningsPerSharePolicyTextBlock_ztarpDhZ8gA4" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><b>Loss per Share</b></p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">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 Preferred Stock, by the weighted average number of shares outstanding during the reported period.</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">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 Preferred Stock. Such add-back would also include any adjustments to equity in the period to accrete the Series A Preferred Stock to its redemption price, 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 Preferred Stock, restricted stock units, and stock options. Stock options and restricted stock units exercisable or issuable for a total of 7,089,678 shares and <span id="xdx_90C_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20240101__20240630_zeoBNTeRAyK8" title="Antidilutive securities excluded from computation of earnings per share, amount">4,979,745</span> shares of Common Stock were outstanding as of September 30, 2025 and 2024, respectively. These securities are not included in the computation of diluted net loss per share of Common Stock for the periods presented as their inclusion would be antidilutive due to losses incurred by the Company.</p><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">   </p> <p id="xdx_841_eus-gaap--NewAccountingPronouncementsPolicyPolicyTextBlock_zlHJBf9iCYi" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><b>Recently Issued Accounting Guidance Not Yet Effective</b></p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">In November 2024, the FASB issued ASU No. 2024-03, <i>Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses </i>(“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.</p> <p id="xdx_851_zjg3JsRcN7r3" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p></div> <p id="xdx_846_ecustom--OrganizationAndBusinessDescriptionPolicyTextBlock_za9INplApsl6" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><b>Organization and Business Description</b></p><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">Wrap Technologies, Inc., a Delaware corporation (the “Company”, “we”, “us”, and “our”), is a publicly traded company with its common stock, par value $<span id="xdx_901_eus-gaap--CommonStockParOrStatedValuePerShare_iI_pid_c20250630_z4HpQzBNuiX7" title="Common stock, par value">0.0001</span> per share (“Common Stock”), listed on the Nasdaq Capital Market (“Nasdaq”) 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® remote restraint device. The principal markets for the Company’s proprietary products and services are in North and South America, Europe, Middle East and Asia.</p> 0.0001 <p id="xdx_840_eus-gaap--BasisOfPresentationAndSignificantAccountingPoliciesTextBlock_zcYt58qpVaM4" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><b>Basis of Presentation</b></p><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">The Company’s unaudited interim condensed consolidated financial statements included herein have been prepared in accordance with the instructions to Form 10-Q and Article 8 of Regulation S-X and the rules and regulations of the Securities and Exchange Commission (“<i>SEC</i>”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“<i>U.S. GAAP</i>”) have been condensed or omitted pursuant to such rules and regulations. In management’s opinion, the accompanying financial statements reflect adjustments necessary to present fairly the financial position, results of operations, and cash flows for those periods indicated, and contain adequate disclosure to make the information presented not misleading. Adjustments included herein are of a normal, recurring nature unless otherwise disclosed in the footnotes. The condensed consolidated financial statements and notes thereto should be read in conjunction with the Company’s audited financial statements and notes thereto for the year ended December 31, 2024, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 (the “<i>Annual Report</i>”), as filed with the SEC on March 31, 2025 and as amended on April 25, 2025. The accompanying unaudited condensed consolidated balance sheet as of September 30, 2025 has been derived from the audited consolidated balance sheet as of December 31, 2024, contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2024. Results of operations for interim periods are not necessarily indicative of the results of operations for a full year.</p><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">Where necessary, the prior year’s information has been reclassified to conform to the current year’s presentation.</p> <p id="xdx_844_eus-gaap--ConsolidationPolicyTextBlock_zRfEfSQKEPEe" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><b>Principles of Consolidation</b></p><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">The Company has <span id="xdx_902_ecustom--NumberOfWhollyOwnedSubsidiaries_iI_dc_uInteger_c20250630_z9BJYYCqGBTf" title="Number of wholly-owned subsidiaries">three</span> wholly owned subsidiaries, Wrap Reality, Inc., that sells a virtual reality (“<i>VR</i>”) training system primarily targeting law enforcement agencies, Intrensic, LLC (“Intrensic”), specializing in Body Worn Camera and Digital Evidence Management solutions and Wrap Federal, LLC. The condensed consolidated financial statements include the accounts of these subsidiaries after elimination of intercompany transactions and accounts.</p> 3 <p id="xdx_842_ecustom--SegmentAndRelatedInformationPolicyTextBlock_z2euPdQFqrsg" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><b>Segment and Related Information</b></p><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">The Company operates as a <span style="-sec-ix-hidden: hidden-fact-2"><span style="-sec-ix-hidden: hidden-fact-3">single</span></span> segment. The Company’s chief operating decision maker is Scot Cohen, the Company’s Executive Chairman and Chief Executive Officer, who manages operations for purposes of allocating resources. Refer to Note 15. Major Customers and Related Information for further discussion.</p> <p id="xdx_841_eus-gaap--GoodwillAndIntangibleAssetsGoodwillPolicy_zXDL5laakUX" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><b>Goodwill</b></p><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">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.</p> <p id="xdx_841_eus-gaap--IntangibleAssetsFiniteLivedPolicy_zvtTIeNJUHAd" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><b>Definite-lived Intangible Assets</b></p><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">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 <span id="xdx_90A_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20250630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TechnologyBasedIntangibleAssetsMember_zi7hViX2i994">6</span> years for technology; between <span id="xdx_907_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20250630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--CustomerRelationshipsMember__srt--RangeAxis__srt--MinimumMember_zgphxER5htD4">3</span> and <span id="xdx_902_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20250630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--CustomerRelationshipsMember__srt--RangeAxis__srt--MaximumMember_zt6KbOFPq6d5">7</span> years for customer relationships; and <span id="xdx_906_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20250630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TrademarksAndTradeNamesMember_ztq8dnfomRJ6" title="Finite-lived intangible asset, useful life">8</span> years for trademarks and trade names.</p> P6Y P3Y P7Y P8Y <p id="xdx_84C_eus-gaap--UseOfEstimates_zud4SIsdupHe" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><b>Use of Estimates</b></p><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions (e.g., stock-based compensation valuation, allowance for doubtful accounts, valuation of inventory and intangible assets, warranty reserve, accrued expense, valuation of warrants, 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 revenue and expense during the reporting period. Actual results could materially differ from those estimates.</p> <p id="xdx_847_ecustom--ClassificationAndValuationOfWarrantsPolicyTextBlock_zPPcB28vzLPe" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><b>Warrants</b></p><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">The Company accounts for warrants as liability-classified instruments based on an assessment of the warrant’s specific terms and applicable authoritative guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 480, Distinguishing Liabilities from Equity (“ASC 480”) and ASC 815, Derivatives and Hedging (“ASC 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 shares of 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.</p><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">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 condensed consolidated statement of operations.</p><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">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 8: Warrants for additional detail.</p> <p id="xdx_846_eus-gaap--StockholdersEquityPolicyTextBlock_zffPbfVmqR6k" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><b>Series A Preferred Stock</b></p><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">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.</p><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">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.</p> 0.0001 <p id="xdx_842_eus-gaap--RevenueFromContractWithCustomerPolicyTextBlock_zA5uvOOAFhd9" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><b>Revenue Recognition</b></p><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">The Company recognizes revenue under ASC Topic 606 - Revenue from Contracts with Customers (“ASC 606”). Revenue is recognized when control of the promised goods or performance obligations for services is transferred to the Company’s customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for the goods or services.</p><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">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. Managed services revenue represents the consulting services provided to customers of W1 Global, LLC (“W1”). Other revenue includes VR revenues, service, training and shipping revenues.</p><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">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 after 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 the 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 completed. In such instances, a deferred revenue liability is recorded. The Company recognizes these contract liabilities as revenue after all revenue recognition criteria are met.</p><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">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 the cost of products sold.</p> <p id="xdx_847_eus-gaap--EarningsPerSharePolicyTextBlock_ztarpDhZ8gA4" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><b>Loss per Share</b></p><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">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 Preferred Stock, by the weighted average number of shares outstanding during the reported period.</p><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">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 Preferred Stock. Such add-back would also include any adjustments to equity in the period to accrete the Series A Preferred Stock to its redemption price, 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 Preferred Stock, restricted stock units, and stock options. Stock options and restricted stock units exercisable or issuable for a total of 7,089,678 shares and <span id="xdx_90C_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20240101__20240630_zeoBNTeRAyK8" title="Antidilutive securities excluded from computation of earnings per share, amount">4,979,745</span> shares of Common Stock were outstanding as of September 30, 2025 and 2024, respectively. These securities are not included in the computation of diluted net loss per share of Common Stock for the periods presented as their inclusion would be antidilutive due to losses incurred by the Company.</p> 7089678 4979745 <p id="xdx_841_eus-gaap--NewAccountingPronouncementsPolicyPolicyTextBlock_zlHJBf9iCYi" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><b>Recently Issued Accounting Guidance Not Yet Effective</b></p><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">In November 2024, the FASB issued ASU No. 2024-03, <i>Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses </i>(“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.</p> <div> <p id="xdx_808_eus-gaap--RevenueFromContractWithCustomerTextBlock_z6pcWuyPC44h" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><b>2. <span id="xdx_824_zO3LHCm9u2J">REVENUE AND PRODUCT COSTS</span></b></p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">Revenue consists of product revenue, technology enabled services, and managed services. Product sales include BolaWrap products and accessories. Technology enabled services includes VR revenue, service, training and shipping revenue. Managed services revenue includes consulting services delivered to third parties and billed on an agreed hourly fee basis when enforceable right to payment exists.</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">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 the 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 completed. In such instances, a deferred revenue liability is recorded. The Company recognizes these contract liabilities as revenue after all revenue recognition criteria are met. 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 the cost of products sold.</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p></div><div> <p id="xdx_894_eus-gaap--ContractWithCustomerAssetAndLiabilityTableTextBlock_zCttMYt4Olu4" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">The table below details the activity in our contract liabilities during the nine months ended September 30, 2025.</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><span id="xdx_8BE_zcWFvXjWEzIc" style="display: none">SCHEDULE OF CONTRACT LIABILITIES</span></p><table cellpadding="0" class="worksheetTable" 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%;"></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 style="width: 1%;" title="Note 2 - FN 2 - Revenues Product Costs Q2 - D29"></td><td style="text-align: center; font-weight: bold; width: 9%;">Customer</td><td style="width: 1%;" title="Note 2 - FN 2 - Revenues Product Costs Q2 - D29"></td><td> </td><td style="width: 1%;" title="Note 2 - FN 2 - Revenues Product Costs Q2 - F29"></td><td style="text-align: center; font-weight: bold; width: 9%;">Deferred</td><td style="width: 1%;" title="Note 2 - FN 2 - Revenues Product Costs Q2 - F29"></td></tr><tr><td> </td><td style="width: 1%; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="Note 2 - FN 2 - Revenues Product Costs Q2 - D30"></td><td style="text-align: center; font-weight: bold; width: 9%; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;">Deposits</td><td style="width: 1%; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="Note 2 - FN 2 - Revenues Product Costs Q2 - D30"></td><td> </td><td style="width: 1%; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="Note 2 - FN 2 - Revenues Product Costs Q2 - F30"></td><td style="text-align: center; font-weight: bold; width: 9%; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;">Revenue</td><td style="width: 1%; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="Note 2 - FN 2 - Revenues Product Costs Q2 - F30"></td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Balance at January 1, 2025</td><td style="width: 1%; text-align: left;" title="Note 2 - FN 2 - Revenues Product Costs Q2 - D31">$</td><td style="width: 9%; text-align: right;">27</td><td style="width: 1%; text-align: left;" title="Note 2 - FN 2 - Revenues Product Costs Q2 - D31"> </td><td> </td><td style="width: 1%; text-align: left;" title="Note 2 - FN 2 - Revenues Product Costs Q2 - F31">$</td><td style="width: 9%; text-align: right;">505</td><td style="width: 1%; text-align: left;" title="Note 2 - FN 2 - Revenues Product Costs Q2 - F31"> </td></tr><tr><td style="padding-left: 10px;">Additions, net</td><td style="width: 1%; text-align: left;" title="Note 2 - FN 2 - Revenues Product Costs Q2 - D32"> </td><td style="width: 9%; text-align: right;">34</td><td style="width: 1%; text-align: left;" title="Note 2 - FN 2 - Revenues Product Costs Q2 - D32"> </td><td> </td><td style="width: 1%; text-align: left;" title="Note 2 - FN 2 - Revenues Product Costs Q2 - F32"> </td><td style="width: 9%; text-align: right;">491</td><td style="width: 1%; text-align: left;" title="Note 2 - FN 2 - Revenues Product Costs Q2 - F32"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="padding-left: 10px;">Transfer to revenue</td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="Note 2 - FN 2 - Revenues Product Costs Q2 - D33"> </td><td style="width: 9%; text-align: right; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;">-</td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="Note 2 - FN 2 - Revenues Product Costs Q2 - D33"> </td><td> </td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="Note 2 - FN 2 - Revenues Product Costs Q2 - F33"> </td><td style="width: 9%; text-align: right; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;">(596</td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="Note 2 - FN 2 - Revenues Product Costs Q2 - F33">) </td></tr><tr><td>Balance at September 30, 2025</td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="Note 2 - FN 2 - Revenues Product Costs Q2 - D34">$</td><td style="width: 9%; text-align: right; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;">61</td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="Note 2 - FN 2 - Revenues Product Costs Q2 - D34"> </td><td> </td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="Note 2 - FN 2 - Revenues Product Costs Q2 - F34">$</td><td style="width: 9%; text-align: right; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;">400</td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="Note 2 - FN 2 - Revenues Product Costs Q2 - F34"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="padding-left: 10px;">Current portion</td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="Note 2 - FN 2 - Revenues Product Costs Q2 - D35">$</td><td style="width: 9%; text-align: right; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;">61</td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="Note 2 - FN 2 - Revenues Product Costs Q2 - D35"> </td><td> </td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="Note 2 - FN 2 - Revenues Product Costs Q2 - F35">$</td><td style="width: 9%; text-align: right; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;">382</td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="Note 2 - FN 2 - Revenues Product Costs Q2 - F35"> </td></tr><tr><td style="padding-left: 10px;">Long-term portion</td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="Note 2 - FN 2 - Revenues Product Costs Q2 - D36">$</td><td style="width: 9%; text-align: right; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;">-</td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="Note 2 - FN 2 - Revenues Product Costs Q2 - D36"> </td><td> </td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="Note 2 - FN 2 - Revenues Product Costs Q2 - F36">$</td><td style="width: 9%; text-align: right; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;">18</td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="Note 2 - FN 2 - Revenues Product Costs Q2 - F36"> </td></tr></table><p id="xdx_8AC_zLscB1ibma18" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">As of September 30, 2025, the Company’s deferred revenue of $400 consisted of $15 related to BolaWrap extended warranties and services, $20 related to WRAP Ready, $289 related to Intrensic extended warranties and services, $39 related to VR, and $37 related to training.</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p></div> <p id="xdx_894_eus-gaap--ContractWithCustomerAssetAndLiabilityTableTextBlock_zCttMYt4Olu4" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">The table below details the activity in our contract liabilities during the nine months ended September 30, 2025.</p><table cellpadding="0" class="worksheetTable" 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%;"></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 style="width: 1%;" title="Note 2 - FN 2 - Revenues Product Costs Q2 - D29"></td><td style="text-align: center; font-weight: bold; width: 9%;">Customer</td><td style="width: 1%;" title="Note 2 - FN 2 - Revenues Product Costs Q2 - D29"></td><td> </td><td style="width: 1%;" title="Note 2 - FN 2 - Revenues Product Costs Q2 - F29"></td><td style="text-align: center; font-weight: bold; width: 9%;">Deferred</td><td style="width: 1%;" title="Note 2 - FN 2 - Revenues Product Costs Q2 - F29"></td></tr><tr><td> </td><td style="width: 1%; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="Note 2 - FN 2 - Revenues Product Costs Q2 - D30"></td><td style="text-align: center; font-weight: bold; width: 9%; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;">Deposits</td><td style="width: 1%; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="Note 2 - FN 2 - Revenues Product Costs Q2 - D30"></td><td> </td><td style="width: 1%; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="Note 2 - FN 2 - Revenues Product Costs Q2 - F30"></td><td style="text-align: center; font-weight: bold; width: 9%; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;">Revenue</td><td style="width: 1%; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="Note 2 - FN 2 - Revenues Product Costs Q2 - F30"></td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Balance at January 1, 2025</td><td style="width: 1%; text-align: left;" title="Note 2 - FN 2 - Revenues Product Costs Q2 - D31">$</td><td style="width: 9%; text-align: right;">27</td><td style="width: 1%; text-align: left;" title="Note 2 - FN 2 - Revenues Product Costs Q2 - D31"> </td><td> </td><td style="width: 1%; text-align: left;" title="Note 2 - FN 2 - Revenues Product Costs Q2 - F31">$</td><td style="width: 9%; text-align: right;">505</td><td style="width: 1%; text-align: left;" title="Note 2 - FN 2 - Revenues Product Costs Q2 - F31"> </td></tr><tr><td style="padding-left: 10px;">Additions, net</td><td style="width: 1%; text-align: left;" title="Note 2 - FN 2 - Revenues Product Costs Q2 - D32"> </td><td style="width: 9%; text-align: right;">34</td><td style="width: 1%; text-align: left;" title="Note 2 - FN 2 - Revenues Product Costs Q2 - D32"> </td><td> </td><td style="width: 1%; text-align: left;" title="Note 2 - FN 2 - Revenues Product Costs Q2 - F32"> </td><td style="width: 9%; text-align: right;">491</td><td style="width: 1%; text-align: left;" title="Note 2 - FN 2 - Revenues Product Costs Q2 - F32"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="padding-left: 10px;">Transfer to revenue</td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="Note 2 - FN 2 - Revenues Product Costs Q2 - D33"> </td><td style="width: 9%; text-align: right; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;">-</td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="Note 2 - FN 2 - Revenues Product Costs Q2 - D33"> </td><td> </td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="Note 2 - FN 2 - Revenues Product Costs Q2 - F33"> </td><td style="width: 9%; text-align: right; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;">(596</td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="Note 2 - FN 2 - Revenues Product Costs Q2 - F33">) </td></tr><tr><td>Balance at September 30, 2025</td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="Note 2 - FN 2 - Revenues Product Costs Q2 - D34">$</td><td style="width: 9%; text-align: right; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;">61</td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="Note 2 - FN 2 - Revenues Product Costs Q2 - D34"> </td><td> </td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="Note 2 - FN 2 - Revenues Product Costs Q2 - F34">$</td><td style="width: 9%; text-align: right; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;">400</td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="Note 2 - FN 2 - Revenues Product Costs Q2 - F34"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="padding-left: 10px;">Current portion</td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="Note 2 - FN 2 - Revenues Product Costs Q2 - D35">$</td><td style="width: 9%; text-align: right; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;">61</td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="Note 2 - FN 2 - Revenues Product Costs Q2 - D35"> </td><td> </td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="Note 2 - FN 2 - Revenues Product Costs Q2 - F35">$</td><td style="width: 9%; text-align: right; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;">382</td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="Note 2 - FN 2 - Revenues Product Costs Q2 - F35"> </td></tr><tr><td style="padding-left: 10px;">Long-term portion</td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="Note 2 - FN 2 - Revenues Product Costs Q2 - D36">$</td><td style="width: 9%; text-align: right; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;">-</td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="Note 2 - FN 2 - Revenues Product Costs Q2 - D36"> </td><td> </td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="Note 2 - FN 2 - Revenues Product Costs Q2 - F36">$</td><td style="width: 9%; text-align: right; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;">18</td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="Note 2 - FN 2 - Revenues Product Costs Q2 - F36"> </td></tr></table> 27000 505000 34000 491000 0 -596000 61000 400000 61000 382000 0 18000 400000 15000 20000 289000 39000 37000 <div> <p id="xdx_803_eus-gaap--FinancialInstrumentsDisclosureTextBlock_zNGbl1Ra3Ffg" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><b>3. <span id="xdx_82A_zO4WXiP8bYW9">FINANCIAL INSTRUMENTS</span></b></p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">Assets and liabilities recorded at fair value on a recurring basis in the Condensed 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:</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><i>Level 1</i>-Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date;</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><i> </i></p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><i>Level 2</i>-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</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><i>Level 3</i>-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.</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p></div><div> <p id="xdx_891_eus-gaap--FairValueAssetsAndLiabilitiesMeasuredOnRecurringAndNonrecurringBasisTableTextBlock_zUPN8pak1Fk6" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">The following table shows the Company’s short-term investments by significant investment category as of September 30, 2025, and December 31, 2024.</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"> </p><table cellpadding="0" class="worksheetTable" 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: 52%;"></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><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="15" style="font-weight: bold; text-align: center; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">As of September 30, 2025</td></tr><tr><td> </td><td> </td><td style="border-width: initial; border-style: none; border-color: initial; width: 1%;" title="Sheet1 - FN 3 Financial Instruments - D5"> </td><td style="font-weight: bold; text-align: center; border-width: initial; border-style: none; border-color: initial; width: 9%;">Adjusted</td><td style="width: 1%; border-width: initial; border-style: none; border-color: initial;" title="Sheet1 - FN 3 Financial Instruments - D5"> </td><td> </td><td style="border-width: initial; border-style: none; border-color: initial; width: 1%;" title="Sheet1 - FN 3 Financial Instruments - F5"> </td><td style="font-weight: bold; text-align: center; border-width: initial; border-style: none; border-color: initial; width: 9%;">Unrealized</td><td style="width: 1%; border-width: initial; border-style: none; border-color: initial;" title="Sheet1 - FN 3 Financial Instruments - F5"> </td><td> </td><td style="border-width: initial; border-style: none; border-color: initial; width: 1%;" title="Sheet1 - FN 3 Financial Instruments - H5"> </td><td style="font-weight: bold; text-align: center; border-width: initial; border-style: none; border-color: initial; width: 9%;">Unrealized </td><td style="width: 1%; border-width: initial; border-style: none; border-color: initial;" title="Sheet1 - FN 3 Financial Instruments - H5"> </td><td> </td><td style="border-width: initial; border-style: none; border-color: initial; width: 1%;" title="Sheet1 - FN 3 Financial Instruments - J5"> </td><td style="font-weight: bold; text-align: center; border-width: initial; border-style: none; border-color: initial; width: 9%;">Market</td><td style="width: 1%; border-width: initial; border-style: none; border-color: initial;" title="Sheet1 - FN 3 Financial Instruments - J5"> </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="Sheet1 - FN 3 Financial Instruments - D5"> </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%;"> Cost</td><td style="width: 1%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="Sheet1 - FN 3 Financial Instruments - D5"> </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="Sheet1 - FN 3 Financial Instruments - F5"> </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%;"> Gains</td><td style="width: 1%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="Sheet1 - FN 3 Financial Instruments - F5"> </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="Sheet1 - FN 3 Financial Instruments - H5"> </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%;"> Losses</td><td style="width: 1%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="Sheet1 - FN 3 Financial Instruments - H5"> </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="Sheet1 - FN 3 Financial Instruments - J5"> </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%;"> Value</td><td style="width: 1%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="Sheet1 - FN 3 Financial Instruments - J5"> </td></tr><tr><td>Level 1:</td><td> </td><td style="width: 1%;" title="Sheet1 - FN 3 Financial Instruments - D6"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="Sheet1 - FN 3 Financial Instruments - D6"> </td><td> </td><td style="width: 1%;" title="Sheet1 - FN 3 Financial Instruments - F6"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="Sheet1 - FN 3 Financial Instruments - F6"> </td><td> </td><td style="width: 1%;" title="Sheet1 - FN 3 Financial Instruments - H6"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="Sheet1 - FN 3 Financial Instruments - H6"> </td><td> </td><td style="width: 1%;" title="Sheet1 - FN 3 Financial Instruments - J6"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="Sheet1 - FN 3 Financial Instruments - J6"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Money Market Funds </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="Sheet1 - FN 3 Financial Instruments - D7">$</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;">637</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="Sheet1 - FN 3 Financial Instruments - D7"> </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="Sheet1 - FN 3 Financial Instruments - F7">$</td><td style="width: 9%; text-align: right; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">-</td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="Sheet1 - FN 3 Financial Instruments - F7"> </td><td> </td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="Sheet1 - FN 3 Financial Instruments - H7">$</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="Sheet1 - FN 3 Financial Instruments - H7"> </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="Sheet1 - FN 3 Financial Instruments - J7">$</td><td style="width: 9%; text-align: right; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">637</td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="Sheet1 - FN 3 Financial Instruments - J7"> </td></tr><tr><td>Total Financial Assets</td><td> </td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="Sheet1 - FN 3 Financial Instruments - D8">$</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;">637</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="Sheet1 - FN 3 Financial Instruments - D8"> </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="Sheet1 - FN 3 Financial Instruments - F8">$</td><td style="width: 9%; text-align: right; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">-</td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="Sheet1 - FN 3 Financial Instruments - F8"> </td><td> </td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="Sheet1 - FN 3 Financial Instruments - H8">$</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="Sheet1 - FN 3 Financial Instruments - H8"> </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="Sheet1 - FN 3 Financial Instruments - J8">$</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;">637</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="Sheet1 - FN 3 Financial Instruments - J8"> </td></tr></table> <p id="xdx_8A9_zIWDQ6NkPAw2" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p><table cellpadding="0" class="worksheetTable" 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: 52%;"></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><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="15" style="font-weight: bold; text-align: center; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">As of December 31, 2024</td></tr><tr><td> </td><td> </td><td style="border-width: initial; border-style: none; border-color: initial; width: 1%;" title="Sheet1 - FN 3 Financial Instruments - D11"> </td><td style="font-weight: bold; text-align: center; border-width: initial; border-style: none; border-color: initial; width: 9%;">Adjusted</td><td style="width: 1%; border-width: initial; border-style: none; border-color: initial;" title="Sheet1 - FN 3 Financial Instruments - D11"> </td><td> </td><td style="border-width: initial; border-style: none; border-color: initial; width: 1%;" title="Sheet1 - FN 3 Financial Instruments - F11"> </td><td style="font-weight: bold; text-align: center; border-width: initial; border-style: none; border-color: initial; width: 9%;">Unrealized</td><td style="width: 1%; border-width: initial; border-style: none; border-color: initial;" title="Sheet1 - FN 3 Financial Instruments - F11"> </td><td> </td><td style="border-width: initial; border-style: none; border-color: initial; width: 1%;" title="Sheet1 - FN 3 Financial Instruments - H11"> </td><td style="font-weight: bold; text-align: center; border-width: initial; border-style: none; border-color: initial; width: 9%;">Unrealized </td><td style="width: 1%; border-width: initial; border-style: none; border-color: initial;" title="Sheet1 - FN 3 Financial Instruments - H11"> </td><td> </td><td style="border-width: initial; border-style: none; border-color: initial; width: 1%;" title="Sheet1 - FN 3 Financial Instruments - J11"> </td><td style="font-weight: bold; text-align: center; border-width: initial; border-style: none; border-color: initial; width: 9%;">Market</td><td style="width: 1%; border-width: initial; border-style: none; border-color: initial;" title="Sheet1 - FN 3 Financial Instruments - J11"> </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="Sheet1 - FN 3 Financial Instruments - D11"> </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%;"> Cost</td><td style="width: 1%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="Sheet1 - FN 3 Financial Instruments - D11"> </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="Sheet1 - FN 3 Financial Instruments - F11"> </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%;"> Gains</td><td style="width: 1%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="Sheet1 - FN 3 Financial Instruments - F11"> </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="Sheet1 - FN 3 Financial Instruments - H11"> </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%;"> Losses</td><td style="width: 1%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="Sheet1 - FN 3 Financial Instruments - H11"> </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="Sheet1 - FN 3 Financial Instruments - J11"> </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%;"> Value</td><td style="width: 1%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="Sheet1 - FN 3 Financial Instruments - J11"> </td></tr><tr><td>Level 1:</td><td> </td><td style="width: 1%;" title="Sheet1 - FN 3 Financial Instruments - D12"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="Sheet1 - FN 3 Financial Instruments - D12"> </td><td> </td><td style="width: 1%;" title="Sheet1 - FN 3 Financial Instruments - F12"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="Sheet1 - FN 3 Financial Instruments - F12"> </td><td> </td><td style="width: 1%;" title="Sheet1 - FN 3 Financial Instruments - H12"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="Sheet1 - FN 3 Financial Instruments - H12"> </td><td> </td><td style="width: 1%;" title="Sheet1 - FN 3 Financial Instruments - J12"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="Sheet1 - FN 3 Financial Instruments - J12"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Money Market Funds </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="Sheet1 - FN 3 Financial Instruments - D13">$</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;">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;" title="Sheet1 - FN 3 Financial Instruments - D13"> </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="Sheet1 - FN 3 Financial Instruments - F13">$</td><td style="width: 9%; text-align: right; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">-</td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="Sheet1 - FN 3 Financial Instruments - F13"> </td><td> </td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="Sheet1 - FN 3 Financial Instruments - H13">$</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="Sheet1 - FN 3 Financial Instruments - H13"> </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="Sheet1 - FN 3 Financial Instruments - J13">$</td><td style="width: 9%; text-align: right; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">631</td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="Sheet1 - FN 3 Financial Instruments - J13"> </td></tr><tr><td>Total Financial Assets</td><td> </td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="Sheet1 - FN 3 Financial Instruments - D14">$</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;">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;" title="Sheet1 - FN 3 Financial Instruments - D14"> </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="Sheet1 - FN 3 Financial Instruments - F14">$</td><td style="width: 9%; text-align: right; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">-</td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="Sheet1 - FN 3 Financial Instruments - F14"> </td><td> </td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="Sheet1 - FN 3 Financial Instruments - H14">$</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="Sheet1 - FN 3 Financial Instruments - H14"> </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="Sheet1 - FN 3 Financial Instruments - J14">$</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;">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;" title="Sheet1 - FN 3 Financial Instruments - J14"> </td></tr></table><p id="xdx_8A9_zIWDQ6NkPAw2-0" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p></div><div><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">Unrealized gains or losses resulting from our short-term investments are recorded in accumulated other comprehensive gain or loss as they are classified as available for sale. During the nine months ended September 30, 2025, as well as the nine months ended September 30, 2024, no gain (loss) was recorded to comprehensive loss.</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">The warrant liabilities are measured at fair value on a recurring basis. The subsequent measurement of the warrant liabilities as of September 30, 2025, 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.</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p id="xdx_89E_eus-gaap--FairValueLiabilitiesMeasuredOnRecurringBasisTextBlock_z7mzN000XBW4" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">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 the warrant liabilities:</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> <span id="xdx_8BB_zeCxqxBpIKhk" style="display: none">SCHEDULE OF FAIR OF WARRANT LIABILITIES</span></p> <table cellpadding="0" class="worksheetTable" 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: 76%;"></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 style="white-space : nowrap; "><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">Level 3:</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="Sheet1 - FN 3 Financial Instruments - D19"> </td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-weight: bold; text-align: center; width: 9%;">September 30, 2025</td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%;" title="Sheet1 - FN 3 Financial Instruments - D19"> </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="Sheet1 - FN 3 Financial Instruments - F19"> </td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-weight: bold; text-align: center; width: 9%;">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%;" title="Sheet1 - FN 3 Financial Instruments - F19"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="border-width: initial; border-style: none; border-color: initial;">Fair value at inceptions for December 31, 2024 or the beginning of the period for September 30, 2025</td><td> </td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - D20">$</td><td style="width: 9%; text-align: right;">(10,131</td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - D20">) </td><td> </td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - F20">$</td><td style="width: 9%; text-align: right;">(19,703</td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - F20">) </td></tr><tr><td style="padding-left: 10px;"> Warrants issued with Private Placement</td><td> </td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - D21"> </td><td style="width: 9%; text-align: right;">(5,178</td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - D21">) </td><td> </td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - F21"> </td><td style="width: 9%; text-align: right;">-</td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - F21"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="padding-left: 10px;"> Change in fair value of warrant liabilities</td><td> </td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - D22"> </td><td style="width: 9%; text-align: right;">3,158</td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - D22"> </td><td> </td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - F22"> </td><td style="width: 9%; text-align: right;">9,572</td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - F22"> </td></tr><tr><td> Reclassification of warrant liabilities to equity</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="Sheet1 - FN 3 Financial Instruments - D23"> </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;">12,151</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="Sheet1 - FN 3 Financial Instruments - D23"> </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="Sheet1 - FN 3 Financial Instruments - F23"> </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="Sheet1 - FN 3 Financial Instruments - F23"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Fair value as of period end</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="Sheet1 - FN 3 Financial Instruments - D24">$</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="Sheet1 - FN 3 Financial Instruments - D24"> </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="Sheet1 - FN 3 Financial Instruments - F24">$</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;">(10,131</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="Sheet1 - FN 3 Financial Instruments - F24">) </td></tr></table><p id="xdx_8AB_zzqO1Qhn6kvi" style="font: 10pt &quot;Times New Roman&quot;; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; border-width: initial; border-style: none; border-color: initial; border-collapse: collapse;"> </p> <p style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-size-adjust: none; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-variant-emoji: normal; font-stretch: normal; line-height: normal; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">The Company used a Monte Carlo simulation to estimate the fair value of warrant liabilities as of June 30, 2025, being the date the Company entered into the Series A Warrant Amendment and the 2025 Warrant Amendment.  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 (the "Reclassification Date"). The valuation was performed based on the amended terms of the Series A Warrants and PIPE Warrants. The following table summarizes the assumptions used to compute the fair value of the Company’s warrants:</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p></div><div><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">MONTE CARLO SIMULATION MODEL – PIPE WARRANTS</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"> </p> <table cellpadding="0" class="worksheetTable" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr><td> </td><td style="width: 1%;" title="Sheet1 - FN 3 Financial Instruments - C29"> </td><td style="width: 9%; font-weight: bold; text-align: center;">As of </td><td style="width: 1%;" title="Sheet1 - FN 3 Financial Instruments - C29"> </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="Sheet1 - FN 3 Financial Instruments - C30"> </td><td style="width: 9%; font-weight: bold; text-align: center; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">June 30, 2025</td><td style="width: 1%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="Sheet1 - FN 3 Financial Instruments - C30"> </td></tr><tr><td> </td><td style="width: 1%; border-width: initial; border-style: none; border-color: initial;" title="Sheet1 - FN 3 Financial Instruments - C30"> </td><td style="width : 9%; text-align : center; font-style : italic; border-color : black; white-space : nowrap; ">Reclassification Date</td><td style="width: 1%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="Sheet1 - FN 3 Financial Instruments - C30"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Expected stock price volatility</td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - C31"> </td><td style="width: 9%; text-align: right;">86</td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - C31">%</td></tr><tr><td>Risk-free interest rate</td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - C32"> </td><td style="width: 9%; text-align: right;">3.73</td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - C32">%</td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Dividends yield</td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - C33"> </td><td style="width: 9%; text-align: right;">0</td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - C33">%</td></tr><tr><td>Terms (years)</td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - C34"> </td><td style="width: 9%; text-align: right;">4.5</td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - C34"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Strike Price</td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - C35">$</td><td style="width: 9%; text-align: right;">1.45</td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - C35"> </td></tr><tr><td>Stock Price</td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - C36">$</td><td style="width: 9%; text-align: right;">1.56</td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - C36"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Fair Value Per Warrant Share</td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - C37">$</td><td style="width: 9%; text-align: right;">1.235</td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - C37"> </td></tr></table><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p></div><div><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">MONTE CARLO SIMULATION MODEL – 2025 WARRANTS</p> <p id="xdx_8A3_zGOdzQ1z4dLi" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p><table cellpadding="0" class="worksheetTable" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr><td> </td><td style="width: 1%;" title="Sheet1 - FN 3 Financial Instruments - C41"> </td><td style="width: 9%; font-weight: bold; text-align: center;">As of </td><td style="width: 1%;" title="Sheet1 - FN 3 Financial Instruments - C41"> </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="Sheet1 - FN 3 Financial Instruments - C42"> </td><td style="width: 9%; font-weight: bold; text-align: center; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">June 30, 2025</td><td style="width: 1%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="Sheet1 - FN 3 Financial Instruments - C42"> </td></tr><tr><td> </td><td style="width: 1%; border-width: initial; border-style: none; border-color: initial;" title="Sheet1 - FN 3 Financial Instruments - C42"> </td><td style="width : 9%; text-align : center; font-style : italic; border-color : black; white-space : nowrap; ">Reclassification Date</td><td style="width: 1%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="Sheet1 - FN 3 Financial Instruments - C42"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Expected stock price volatility</td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - C43"> </td><td style="width: 9%; text-align: right;">89</td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - C43">%</td></tr><tr><td>Risk-free interest rate</td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - C44"> </td><td style="width: 9%; text-align: right;">3.77</td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - C44">%</td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Dividends yield</td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - C45"> </td><td style="width: 9%; text-align: right;">0</td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - C45">%</td></tr><tr><td>Terms (years)</td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - C46"> </td><td style="width: 9%; text-align: right;">5.15</td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - C46"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Strike Price</td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - C47">$</td><td style="width: 9%; text-align: right;">1.8</td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - C47"> </td></tr><tr><td>Stock Price</td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - C48">$</td><td style="width: 9%; text-align: right;">1.56</td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - C48"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Fair Value Per Warrant Share</td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - C49">$</td><td style="width: 9%; text-align: right;">1.132</td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - C49"> </td></tr></table><p id="xdx_8A3_zGOdzQ1z4dLi-0" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p></div><div><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">The Company used the modified Black-Scholes option pricing model to determine the fair value of warrant liabilities as of December 31, 2024. The following table summarizes the assumptions used to compute the fair value of the Company’s warrants:</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><span id="xdx_C06_gL3FVAALMORAN-LC_z7mYdm6GbTCa"> </span></p> <table cellpadding="0" class="worksheetTable" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr><td> </td><td style="width: 1%;" title="Sheet1 - FN 3 Financial Instruments - C54"> </td><td style="width: 9%; font-weight: bold; text-align: center;">As of </td><td style="width: 1%;" title="Sheet1 - FN 3 Financial Instruments - C54"> </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="Sheet1 - FN 3 Financial Instruments - C55"> </td><td style="width : 9%; font-weight : bold; text-align : center; white-space : nowrap; border-bottom : 1px solid black; border-top-color : black; border-right-color : black; border-left-color : black; ">December 31, 2024</td><td style="width: 1%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="Sheet1 - FN 3 Financial Instruments - C55"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Expected stock price volatility</td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - C56"> </td><td style="width: 9%; text-align: right;">88</td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - C56">%</td></tr><tr><td>Risk-free interest rate</td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - C57"> </td><td style="width: 9%; text-align: right;">4.25</td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - C57">%</td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Dividends yield</td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - C58"> </td><td style="width: 9%; text-align: right;">0</td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - C58">%</td></tr><tr><td>Weighted average expected life of warrants (years)</td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - C59"> </td><td style="width: 9%; text-align: right;">3.5</td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - C59"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>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;" title="Sheet1 - FN 3 Financial Instruments - C60">$</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;">1.45</td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - C60"> </td></tr></table><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">Our other financial instruments also include accounts receivable, accounts payable, accrued liabilities and customer deposits. Due to the short-term nature of these instruments, their fair values approximate their carrying values on the balance sheet.</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><b> </b></p></div> <div> <p id="xdx_891_eus-gaap--FairValueAssetsAndLiabilitiesMeasuredOnRecurringAndNonrecurringBasisTableTextBlock_zUPN8pak1Fk6" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">The following table shows the Company’s short-term investments by significant investment category as of September 30, 2025, and December 31, 2024.</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"> </p><table cellpadding="0" class="worksheetTable" 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: 52%;"></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><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="15" style="font-weight: bold; text-align: center; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">As of September 30, 2025</td></tr><tr><td> </td><td> </td><td style="border-width: initial; border-style: none; border-color: initial; width: 1%;" title="Sheet1 - FN 3 Financial Instruments - D5"> </td><td style="font-weight: bold; text-align: center; border-width: initial; border-style: none; border-color: initial; width: 9%;">Adjusted</td><td style="width: 1%; border-width: initial; border-style: none; border-color: initial;" title="Sheet1 - FN 3 Financial Instruments - D5"> </td><td> </td><td style="border-width: initial; border-style: none; border-color: initial; width: 1%;" title="Sheet1 - FN 3 Financial Instruments - F5"> </td><td style="font-weight: bold; text-align: center; border-width: initial; border-style: none; border-color: initial; width: 9%;">Unrealized</td><td style="width: 1%; border-width: initial; border-style: none; border-color: initial;" title="Sheet1 - FN 3 Financial Instruments - F5"> </td><td> </td><td style="border-width: initial; border-style: none; border-color: initial; width: 1%;" title="Sheet1 - FN 3 Financial Instruments - H5"> </td><td style="font-weight: bold; text-align: center; border-width: initial; border-style: none; border-color: initial; width: 9%;">Unrealized </td><td style="width: 1%; border-width: initial; border-style: none; border-color: initial;" title="Sheet1 - FN 3 Financial Instruments - H5"> </td><td> </td><td style="border-width: initial; border-style: none; border-color: initial; width: 1%;" title="Sheet1 - FN 3 Financial Instruments - J5"> </td><td style="font-weight: bold; text-align: center; border-width: initial; border-style: none; border-color: initial; width: 9%;">Market</td><td style="width: 1%; border-width: initial; border-style: none; border-color: initial;" title="Sheet1 - FN 3 Financial Instruments - J5"> </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="Sheet1 - FN 3 Financial Instruments - D5"> </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%;"> Cost</td><td style="width: 1%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="Sheet1 - FN 3 Financial Instruments - D5"> </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="Sheet1 - FN 3 Financial Instruments - F5"> </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%;"> Gains</td><td style="width: 1%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="Sheet1 - FN 3 Financial Instruments - F5"> </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="Sheet1 - FN 3 Financial Instruments - H5"> </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%;"> Losses</td><td style="width: 1%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="Sheet1 - FN 3 Financial Instruments - H5"> </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="Sheet1 - FN 3 Financial Instruments - J5"> </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%;"> Value</td><td style="width: 1%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="Sheet1 - FN 3 Financial Instruments - J5"> </td></tr><tr><td>Level 1:</td><td> </td><td style="width: 1%;" title="Sheet1 - FN 3 Financial Instruments - D6"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="Sheet1 - FN 3 Financial Instruments - D6"> </td><td> </td><td style="width: 1%;" title="Sheet1 - FN 3 Financial Instruments - F6"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="Sheet1 - FN 3 Financial Instruments - F6"> </td><td> </td><td style="width: 1%;" title="Sheet1 - FN 3 Financial Instruments - H6"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="Sheet1 - FN 3 Financial Instruments - H6"> </td><td> </td><td style="width: 1%;" title="Sheet1 - FN 3 Financial Instruments - J6"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="Sheet1 - FN 3 Financial Instruments - J6"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Money Market Funds </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="Sheet1 - FN 3 Financial Instruments - D7">$</td><td style="width: 9%; text-align: right; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">637</td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="Sheet1 - FN 3 Financial Instruments - D7"> </td><td> </td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="Sheet1 - FN 3 Financial Instruments - F7">$</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="Sheet1 - FN 3 Financial Instruments - F7"> </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="Sheet1 - FN 3 Financial Instruments - H7">$</td><td style="width: 9%; text-align: right; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">-</td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="Sheet1 - FN 3 Financial Instruments - H7"> </td><td> </td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="Sheet1 - FN 3 Financial Instruments - J7">$</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;">637</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="Sheet1 - FN 3 Financial Instruments - J7"> </td></tr><tr><td>Total Financial Assets</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="Sheet1 - FN 3 Financial Instruments - D8">$</td><td style="width: 9%; text-align: right; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">637</td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="Sheet1 - FN 3 Financial Instruments - D8"> </td><td> </td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="Sheet1 - FN 3 Financial Instruments - F8">$</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="Sheet1 - FN 3 Financial Instruments - F8"> </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="Sheet1 - FN 3 Financial Instruments - H8">$</td><td style="width: 9%; text-align: right; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">-</td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="Sheet1 - FN 3 Financial Instruments - H8"> </td><td> </td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="Sheet1 - FN 3 Financial Instruments - J8">$</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;">637</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="Sheet1 - FN 3 Financial Instruments - J8"> </td></tr></table> <p id="xdx_8A9_zIWDQ6NkPAw2" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p><table cellpadding="0" class="worksheetTable" 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: 52%;"></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><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="15" style="font-weight: bold; text-align: center; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">As of December 31, 2024</td></tr><tr><td> </td><td> </td><td style="border-width: initial; border-style: none; border-color: initial; width: 1%;" title="Sheet1 - FN 3 Financial Instruments - D11"> </td><td style="font-weight: bold; text-align: center; border-width: initial; border-style: none; border-color: initial; width: 9%;">Adjusted</td><td style="width: 1%; border-width: initial; border-style: none; border-color: initial;" title="Sheet1 - FN 3 Financial Instruments - D11"> </td><td> </td><td style="border-width: initial; border-style: none; border-color: initial; width: 1%;" title="Sheet1 - FN 3 Financial Instruments - F11"> </td><td style="font-weight: bold; text-align: center; border-width: initial; border-style: none; border-color: initial; width: 9%;">Unrealized</td><td style="width: 1%; border-width: initial; border-style: none; border-color: initial;" title="Sheet1 - FN 3 Financial Instruments - F11"> </td><td> </td><td style="border-width: initial; border-style: none; border-color: initial; width: 1%;" title="Sheet1 - FN 3 Financial Instruments - H11"> </td><td style="font-weight: bold; text-align: center; border-width: initial; border-style: none; border-color: initial; width: 9%;">Unrealized </td><td style="width: 1%; border-width: initial; border-style: none; border-color: initial;" title="Sheet1 - FN 3 Financial Instruments - H11"> </td><td> </td><td style="border-width: initial; border-style: none; border-color: initial; width: 1%;" title="Sheet1 - FN 3 Financial Instruments - J11"> </td><td style="font-weight: bold; text-align: center; border-width: initial; border-style: none; border-color: initial; width: 9%;">Market</td><td style="width: 1%; border-width: initial; border-style: none; border-color: initial;" title="Sheet1 - FN 3 Financial Instruments - J11"> </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="Sheet1 - FN 3 Financial Instruments - D11"> </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%;"> Cost</td><td style="width: 1%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="Sheet1 - FN 3 Financial Instruments - D11"> </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="Sheet1 - FN 3 Financial Instruments - F11"> </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%;"> Gains</td><td style="width: 1%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="Sheet1 - FN 3 Financial Instruments - F11"> </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="Sheet1 - FN 3 Financial Instruments - H11"> </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%;"> Losses</td><td style="width: 1%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="Sheet1 - FN 3 Financial Instruments - H11"> </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="Sheet1 - FN 3 Financial Instruments - J11"> </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%;"> Value</td><td style="width: 1%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="Sheet1 - FN 3 Financial Instruments - J11"> </td></tr><tr><td>Level 1:</td><td> </td><td style="width: 1%;" title="Sheet1 - FN 3 Financial Instruments - D12"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="Sheet1 - FN 3 Financial Instruments - D12"> </td><td> </td><td style="width: 1%;" title="Sheet1 - FN 3 Financial Instruments - F12"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="Sheet1 - FN 3 Financial Instruments - F12"> </td><td> </td><td style="width: 1%;" title="Sheet1 - FN 3 Financial Instruments - H12"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="Sheet1 - FN 3 Financial Instruments - H12"> </td><td> </td><td style="width: 1%;" title="Sheet1 - FN 3 Financial Instruments - J12"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="Sheet1 - FN 3 Financial Instruments - J12"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Money Market Funds </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="Sheet1 - FN 3 Financial Instruments - D13">$</td><td style="width: 9%; text-align: right; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">631</td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="Sheet1 - FN 3 Financial Instruments - D13"> </td><td> </td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="Sheet1 - FN 3 Financial Instruments - F13">$</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="Sheet1 - FN 3 Financial Instruments - F13"> </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="Sheet1 - FN 3 Financial Instruments - H13">$</td><td style="width: 9%; text-align: right; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">-</td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="Sheet1 - FN 3 Financial Instruments - H13"> </td><td> </td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="Sheet1 - FN 3 Financial Instruments - J13">$</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;">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;" title="Sheet1 - FN 3 Financial Instruments - J13"> </td></tr><tr><td>Total Financial Assets</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="Sheet1 - FN 3 Financial Instruments - D14">$</td><td style="width: 9%; text-align: right; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">631</td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="Sheet1 - FN 3 Financial Instruments - D14"> </td><td> </td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="Sheet1 - FN 3 Financial Instruments - F14">$</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="Sheet1 - FN 3 Financial Instruments - F14"> </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="Sheet1 - FN 3 Financial Instruments - H14">$</td><td style="width: 9%; text-align: right; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">-</td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="Sheet1 - FN 3 Financial Instruments - H14"> </td><td> </td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="Sheet1 - FN 3 Financial Instruments - J14">$</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;">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;" title="Sheet1 - FN 3 Financial Instruments - J14"> </td></tr></table><p id="xdx_8A9_zIWDQ6NkPAw2-0" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p></div> 637000 0 0 637000 637000 0 0 637000 631000 0 0 631000 631000 0 0 631000 <p id="xdx_89E_eus-gaap--FairValueLiabilitiesMeasuredOnRecurringBasisTextBlock_z7mzN000XBW4" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">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 the warrant liabilities:</p><table cellpadding="0" class="worksheetTable" 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: 76%;"></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 style="white-space : nowrap; "><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">Level 3:</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="Sheet1 - FN 3 Financial Instruments - D19"> </td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-weight: bold; text-align: center; width: 9%;">September 30, 2025</td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%;" title="Sheet1 - FN 3 Financial Instruments - D19"> </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="Sheet1 - FN 3 Financial Instruments - F19"> </td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-weight: bold; text-align: center; width: 9%;">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%;" title="Sheet1 - FN 3 Financial Instruments - F19"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="border-width: initial; border-style: none; border-color: initial;">Fair value at inceptions for December 31, 2024 or the beginning of the period for September 30, 2025</td><td> </td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - D20">$</td><td style="width: 9%; text-align: right;">(10,131</td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - D20">) </td><td> </td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - F20">$</td><td style="width: 9%; text-align: right;">(19,703</td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - F20">) </td></tr><tr><td style="padding-left: 10px;"> Warrants issued with Private Placement</td><td> </td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - D21"> </td><td style="width: 9%; text-align: right;">(5,178</td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - D21">) </td><td> </td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - F21"> </td><td style="width: 9%; text-align: right;">-</td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - F21"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="padding-left: 10px;"> Change in fair value of warrant liabilities</td><td> </td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - D22"> </td><td style="width: 9%; text-align: right;">3,158</td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - D22"> </td><td> </td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - F22"> </td><td style="width: 9%; text-align: right;">9,572</td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - F22"> </td></tr><tr><td> Reclassification of warrant liabilities to equity</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="Sheet1 - FN 3 Financial Instruments - D23"> </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;">12,151</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="Sheet1 - FN 3 Financial Instruments - D23"> </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="Sheet1 - FN 3 Financial Instruments - F23"> </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="Sheet1 - FN 3 Financial Instruments - F23"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Fair value as of period end</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="Sheet1 - FN 3 Financial Instruments - D24">$</td><td style="width: 9%; text-align: right; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">-</td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="Sheet1 - FN 3 Financial Instruments - D24"> </td><td> </td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="Sheet1 - FN 3 Financial Instruments - F24">$</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;">(10,131</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="Sheet1 - FN 3 Financial Instruments - F24">) </td></tr></table> 10131000 19703000 -5178000 0 3158000 9572000 12151000 0 0 10131000 <p style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-size-adjust: none; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-variant-emoji: normal; font-stretch: normal; line-height: normal; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">The Company used a Monte Carlo simulation to estimate the fair value of warrant liabilities as of June 30, 2025, being the date the Company entered into the Series A Warrant Amendment and the 2025 Warrant Amendment.  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 (the "Reclassification Date"). The valuation was performed based on the amended terms of the Series A Warrants and PIPE Warrants. The following table summarizes the assumptions used to compute the fair value of the Company’s warrants:</p><table cellpadding="0" class="worksheetTable" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr><td> </td><td style="width: 1%;" title="Sheet1 - FN 3 Financial Instruments - C29"> </td><td style="width: 9%; font-weight: bold; text-align: center;">As of </td><td style="width: 1%;" title="Sheet1 - FN 3 Financial Instruments - C29"> </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="Sheet1 - FN 3 Financial Instruments - C30"> </td><td style="width: 9%; font-weight: bold; text-align: center; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">June 30, 2025</td><td style="width: 1%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="Sheet1 - FN 3 Financial Instruments - C30"> </td></tr><tr><td> </td><td style="width: 1%; border-width: initial; border-style: none; border-color: initial;" title="Sheet1 - FN 3 Financial Instruments - C30"> </td><td style="width : 9%; text-align : center; font-style : italic; border-color : black; white-space : nowrap; ">Reclassification Date</td><td style="width: 1%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="Sheet1 - FN 3 Financial Instruments - C30"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Expected stock price volatility</td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - C31"> </td><td style="width: 9%; text-align: right;">86</td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - C31">%</td></tr><tr><td>Risk-free interest rate</td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - C32"> </td><td style="width: 9%; text-align: right;">3.73</td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - C32">%</td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Dividends yield</td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - C33"> </td><td style="width: 9%; text-align: right;">0</td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - C33">%</td></tr><tr><td>Terms (years)</td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - C34"> </td><td style="width: 9%; text-align: right;">4.5</td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - C34"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Strike Price</td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - C35">$</td><td style="width: 9%; text-align: right;">1.45</td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - C35"> </td></tr><tr><td>Stock Price</td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - C36">$</td><td style="width: 9%; text-align: right;">1.56</td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - C36"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Fair Value Per Warrant Share</td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - C37">$</td><td style="width: 9%; text-align: right;">1.235</td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - C37"> </td></tr></table><table cellpadding="0" class="worksheetTable" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr><td> </td><td style="width: 1%;" title="Sheet1 - FN 3 Financial Instruments - C41"> </td><td style="width: 9%; font-weight: bold; text-align: center;">As of </td><td style="width: 1%;" title="Sheet1 - FN 3 Financial Instruments - C41"> </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="Sheet1 - FN 3 Financial Instruments - C42"> </td><td style="width: 9%; font-weight: bold; text-align: center; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">June 30, 2025</td><td style="width: 1%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="Sheet1 - FN 3 Financial Instruments - C42"> </td></tr><tr><td> </td><td style="width: 1%; border-width: initial; border-style: none; border-color: initial;" title="Sheet1 - FN 3 Financial Instruments - C42"> </td><td style="width : 9%; text-align : center; font-style : italic; border-color : black; white-space : nowrap; ">Reclassification Date</td><td style="width: 1%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="Sheet1 - FN 3 Financial Instruments - C42"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Expected stock price volatility</td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - C43"> </td><td style="width: 9%; text-align: right;">89</td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - C43">%</td></tr><tr><td>Risk-free interest rate</td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - C44"> </td><td style="width: 9%; text-align: right;">3.77</td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - C44">%</td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Dividends yield</td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - C45"> </td><td style="width: 9%; text-align: right;">0</td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - C45">%</td></tr><tr><td>Terms (years)</td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - C46"> </td><td style="width: 9%; text-align: right;">5.15</td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - C46"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Strike Price</td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - C47">$</td><td style="width: 9%; text-align: right;">1.8</td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - C47"> </td></tr><tr><td>Stock Price</td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - C48">$</td><td style="width: 9%; text-align: right;">1.56</td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - C48"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Fair Value Per Warrant Share</td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - C49">$</td><td style="width: 9%; text-align: right;">1.132</td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - C49"> </td></tr></table><table cellpadding="0" class="worksheetTable" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr><td> </td><td style="width: 1%;" title="Sheet1 - FN 3 Financial Instruments - C54"> </td><td style="width: 9%; font-weight: bold; text-align: center;">As of </td><td style="width: 1%;" title="Sheet1 - FN 3 Financial Instruments - C54"> </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="Sheet1 - FN 3 Financial Instruments - C55"> </td><td style="width : 9%; font-weight : bold; text-align : center; white-space : nowrap; border-bottom : 1px solid black; border-top-color : black; border-right-color : black; border-left-color : black; ">December 31, 2024</td><td style="width: 1%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="Sheet1 - FN 3 Financial Instruments - C55"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Expected stock price volatility</td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - C56"> </td><td style="width: 9%; text-align: right;">88</td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - C56">%</td></tr><tr><td>Risk-free interest rate</td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - C57"> </td><td style="width: 9%; text-align: right;">4.25</td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - C57">%</td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Dividends yield</td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - C58"> </td><td style="width: 9%; text-align: right;">0</td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - C58">%</td></tr><tr><td>Weighted average expected life of warrants (years)</td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - C59"> </td><td style="width: 9%; text-align: right;">3.5</td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - C59"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>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;" title="Sheet1 - FN 3 Financial Instruments - C60">$</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;">1.45</td><td style="width: 1%; text-align: left;" title="Sheet1 - FN 3 Financial Instruments - C60"> </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> <p id="xdx_80B_eus-gaap--InventoryDisclosureTextBlock_zKeog42AtFsc" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><b>4. <span id="xdx_821_zrPbiZbajRme">INVENTORIES</span></b></p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p id="xdx_896_eus-gaap--ScheduleOfInventoryCurrentTableTextBlock_z3jKjgtX4Ae1" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">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 FIFO cost method. Inventories consisted of the following:</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> <span id="xdx_8B4_zZYS7UM68Ss7" style="display: none">SCHEDULE OF INVENTORY</span></p> <table cellpadding="0" class="worksheetTable" 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 style="white-space : nowrap; "><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 4 Inventory - C5"> </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%;">September 30, 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 4 Inventory - C5"> </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 4 Inventory - E5"> </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, 2024</td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%;" title="FN 4 Inventory - E5"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Finished goods</td><td style="width: 1%; text-align: left;" title="FN 4 Inventory - C6">$</td><td style="width: 9%; text-align: right;">3,746</td><td style="width: 1%; text-align: left;" title="FN 4 Inventory - C6"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN 4 Inventory - E6">$</td><td style="width: 9%; text-align: right;">4,387</td><td style="width: 1%; text-align: left;" title="FN 4 Inventory - E6"> </td></tr><tr><td>Raw materials</td><td style="width: 1%; text-align: left;" title="FN 4 Inventory - C7"> </td><td style="width: 9%; text-align: right;">1,798</td><td style="width: 1%; text-align: left;" title="FN 4 Inventory - C7"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN 4 Inventory - E7"> </td><td style="width: 9%; text-align: right;">2,263</td><td style="width: 1%; text-align: left;" title="FN 4 Inventory - E7"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Reserve for Obsolescence</td><td style="width: 1%; text-align: left; border-top: none; border-left: none; border-right: none; border-bottom: 1px solid rgb(0, 0, 0);" title="FN 4 Inventory - C8"> </td><td style="width: 9%; text-align: right; border-left: none; border-right: none; border-bottom: 1px solid rgb(0, 0, 0); border-top: none;">(83</td><td style="width: 1%; text-align: left; border-left: none; border-right: none; border-bottom: 1px solid rgb(0, 0, 0); border-top: none;" title="FN 4 Inventory - C8">) </td><td> </td><td style="width: 1%; text-align: left; border-left: none; border-right: none; border-bottom: 1px solid rgb(0, 0, 0); border-top: none;" title="FN 4 Inventory - E8"> </td><td style="width: 9%; text-align: right; border-left: none; border-right: none; border-bottom: 1px solid rgb(0, 0, 0); border-top: none;">(480</td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-left: none; border-right: none; border-top: none;" title="FN 4 Inventory - E8">) </td></tr><tr><td>Inventories - net</td><td style="width: 1%; text-align: left; border-top: none; border-left: none; border-right: none; border-bottom: 3px double rgb(0, 0, 0);" title="FN 4 Inventory - C9">$</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;">5,461</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;" title="FN 4 Inventory - C9"> </td><td> </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;" title="FN 4 Inventory - E9">$</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;">6,170</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;" title="FN 4 Inventory - E9"> </td></tr></table><p id="xdx_8A0_zESm2vtYUxda" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"> </p><p style="font: 10pt 'Times New Roman'; text-align: justify; margin-top: 0pt; margin-bottom: 0pt;">Inventory reserve expense was $83 and $270 for the three and nine months ended September 30, 2025, respectively, and $0 and $<span id="xdx_90E_ecustom--InventoryReserveExpenses_c20240101__20240630_znRpt7Ldbxt5" title="Inventory reserve expense">12</span> for the three and nine months ended September 30, 2024, respectively.</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><b> </b></p></div> <p id="xdx_896_eus-gaap--ScheduleOfInventoryCurrentTableTextBlock_z3jKjgtX4Ae1" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">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 FIFO cost method. Inventories consisted of the following:</p><table cellpadding="0" class="worksheetTable" 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 style="white-space : nowrap; "><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 4 Inventory - C5"> </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%;">September 30, 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 4 Inventory - C5"> </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 4 Inventory - E5"> </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, 2024</td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%;" title="FN 4 Inventory - E5"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Finished goods</td><td style="width: 1%; text-align: left;" title="FN 4 Inventory - C6">$</td><td style="width: 9%; text-align: right;">3,746</td><td style="width: 1%; text-align: left;" title="FN 4 Inventory - C6"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN 4 Inventory - E6">$</td><td style="width: 9%; text-align: right;">4,387</td><td style="width: 1%; text-align: left;" title="FN 4 Inventory - E6"> </td></tr><tr><td>Raw materials</td><td style="width: 1%; text-align: left;" title="FN 4 Inventory - C7"> </td><td style="width: 9%; text-align: right;">1,798</td><td style="width: 1%; text-align: left;" title="FN 4 Inventory - C7"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN 4 Inventory - E7"> </td><td style="width: 9%; text-align: right;">2,263</td><td style="width: 1%; text-align: left;" title="FN 4 Inventory - E7"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Reserve for Obsolescence</td><td style="width: 1%; text-align: left; border-top: none; border-left: none; border-right: none; border-bottom: 1px solid rgb(0, 0, 0);" title="FN 4 Inventory - C8"> </td><td style="width: 9%; text-align: right; border-left: none; border-right: none; border-bottom: 1px solid rgb(0, 0, 0); border-top: none;">(83</td><td style="width: 1%; text-align: left; border-left: none; border-right: none; border-bottom: 1px solid rgb(0, 0, 0); border-top: none;" title="FN 4 Inventory - C8">) </td><td> </td><td style="width: 1%; text-align: left; border-left: none; border-right: none; border-bottom: 1px solid rgb(0, 0, 0); border-top: none;" title="FN 4 Inventory - E8"> </td><td style="width: 9%; text-align: right; border-left: none; border-right: none; border-bottom: 1px solid rgb(0, 0, 0); border-top: none;">(480</td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-left: none; border-right: none; border-top: none;" title="FN 4 Inventory - E8">) </td></tr><tr><td>Inventories - net</td><td style="width: 1%; text-align: left; border-top: none; border-left: none; border-right: none; border-bottom: 3px double rgb(0, 0, 0);" title="FN 4 Inventory - C9">$</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;">5,461</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;" title="FN 4 Inventory - C9"> </td><td> </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;" title="FN 4 Inventory - E9">$</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;">6,170</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;" title="FN 4 Inventory - E9"> </td></tr></table> 3746000 4387000 1798000 2263000 83000 480000 5461000 6170000 83000 270000 0 12000 <div> <p id="xdx_80D_eus-gaap--PropertyPlantAndEquipmentDisclosureTextBlock_zhgPYS5SIbyg" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><b>5. <span id="xdx_82D_zKdcgkAot0Tl">PROPERTY AND EQUIPMENT, NET</span></b></p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p id="xdx_898_eus-gaap--PropertyPlantAndEquipmentTextBlock_zDwaQBa2sro5" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">Property and equipment consisted of the following:</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><span id="xdx_8B0_zOGAAWwAEW32" style="display: none">SCHEDULE OF PROPERTY AND EQUIPMENT</span></p><table cellpadding="0" class="worksheetTable" 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%;"></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 style="white-space : nowrap; "><td> </td><td style="border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none; width: 1%;" title="2025 - FN 5 Property and Equipment, Net - H35"></td><td style="text-align: center; font-weight: bold; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none; width: 9%;">September 30, 2025</td><td style="border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none; width: 1%;" title="2025 - FN 5 Property and Equipment, Net - H35"></td><td> </td><td style="border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none; width: 1%;" title="2025 - FN 5 Property and Equipment, Net - J35"></td><td style="text-align: center; font-weight: bold; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none; width: 9%;">December 31, 2024</td><td style="border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none; width: 1%;" title="2025 - FN 5 Property and Equipment, Net - J35"></td></tr><tr><td> </td><td style="width: 1%;" title="2025 - FN 5 Property and Equipment, Net - H36"></td><td style="width: 9%;"> </td><td style="width: 1%;" title="2025 - FN 5 Property and Equipment, Net - H36"></td><td> </td><td style="width: 1%;" title="2025 - FN 5 Property and Equipment, Net - J36"></td><td style="width: 9%;"> </td><td style="width: 1%;" title="2025 - FN 5 Property and Equipment, Net - J36"></td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Production and lab equipment</td><td style="width: 1%; text-align: left;" title="2025 - FN 5 Property and Equipment, Net - H37">$</td><td style="width: 9%; text-align: right;">391</td><td style="width: 1%; text-align: left;" title="2025 - FN 5 Property and Equipment, Net - H37"> </td><td> </td><td style="width: 1%; text-align: left;" title="2025 - FN 5 Property and Equipment, Net - J37">$</td><td style="width: 9%; text-align: right;">432</td><td style="width: 1%; text-align: left;" title="2025 - FN 5 Property and Equipment, Net - J37"> </td></tr><tr><td>Tooling</td><td style="width: 1%; text-align: left;" title="2025 - FN 5 Property and Equipment, Net - H38"> </td><td style="width: 9%; text-align: right;">570</td><td style="width: 1%; text-align: left;" title="2025 - FN 5 Property and Equipment, Net - H38"> </td><td> </td><td style="width: 1%; text-align: left;" title="2025 - FN 5 Property and Equipment, Net - J38"> </td><td style="width: 9%; text-align: right;">570</td><td style="width: 1%; text-align: left;" title="2025 - FN 5 Property and Equipment, Net - J38"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Computer equipment</td><td style="width: 1%; text-align: left;" title="2025 - FN 5 Property and Equipment, Net - H39"> </td><td style="width: 9%; text-align: right;">175</td><td style="width: 1%; text-align: left;" title="2025 - FN 5 Property and Equipment, Net - H39"> </td><td> </td><td style="width: 1%; text-align: left;" title="2025 - FN 5 Property and Equipment, Net - J39"> </td><td style="width: 9%; text-align: right;">229</td><td style="width: 1%; text-align: left;" title="2025 - FN 5 Property and Equipment, Net - J39"> </td></tr><tr><td>Furniture, fixtures and improvements</td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="2025 - FN 5 Property and Equipment, Net - H40"> </td><td style="width: 9%; text-align: right; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;">78</td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="2025 - FN 5 Property and Equipment, Net - H40"> </td><td> </td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="2025 - FN 5 Property and Equipment, Net - J40"> </td><td style="width: 9%; text-align: right; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;">120</td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="2025 - FN 5 Property and Equipment, Net - J40"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td> </td><td style="width: 1%; text-align: left;" title="2025 - FN 5 Property and Equipment, Net - H41">$</td><td style="width: 9%; text-align: right;">1,214</td><td style="width: 1%; text-align: left;" title="2025 - FN 5 Property and Equipment, Net - H41"> </td><td> </td><td style="width: 1%; text-align: left;" title="2025 - FN 5 Property and Equipment, Net - J41">$</td><td style="width: 9%; text-align: right;">1,351</td><td style="width: 1%; text-align: left;" title="2025 - FN 5 Property and Equipment, Net - J41"> </td></tr><tr><td>Accumulated depreciation</td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="2025 - FN 5 Property and Equipment, Net - H42"> </td><td style="width: 9%; text-align: right; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;">(1,076</td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="2025 - FN 5 Property and Equipment, Net - H42">) </td><td> </td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="2025 - FN 5 Property and Equipment, Net - J42"> </td><td style="width: 9%; text-align: right; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;">(1,205</td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="2025 - FN 5 Property and Equipment, Net - J42">) </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Property and equipment, net</td><td style="width: 1%; text-align: left; border-bottom: 3px double black; border-top: none; border-left: none; border-right: none;" title="2025 - FN 5 Property and Equipment, Net - H43">$</td><td style="width: 9%; text-align: right; border-bottom: 3px double black; border-top: none; border-left: none; border-right: none;">138</td><td style="width: 1%; text-align: left; border-bottom: 3px double black; border-top: none; border-left: none; border-right: none;" title="2025 - FN 5 Property and Equipment, Net - H43"> </td><td> </td><td style="width: 1%; text-align: left; border-bottom: 3px double black; border-top: none; border-left: none; border-right: none;" title="2025 - FN 5 Property and Equipment, Net - J43">$</td><td style="width: 9%; text-align: right; border-bottom: 3px double black; border-top: none; border-left: none; border-right: none;">146</td><td style="width: 1%; text-align: left; border-bottom: 3px double black; border-top: none; border-left: none; border-right: none;" title="2025 - FN 5 Property and Equipment, Net - J43"> </td></tr></table><p id="xdx_8AC_zenEPHVzSCW9" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">Depreciation expense was $<span id="xdx_907_eus-gaap--Depreciation_pn3n3_c20250401__20250630_zOt405hnV5jg" title="Depreciation">25</span> and $92 for the three and nine months ended September 30, 2025, respectively, and $82 and $312 for the three and nine months ended September 30, 2024, respectively.</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p></div> <p id="xdx_898_eus-gaap--PropertyPlantAndEquipmentTextBlock_zDwaQBa2sro5" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">Property and equipment consisted of the following:</p><table cellpadding="0" class="worksheetTable" 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%;"></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 style="white-space : nowrap; "><td> </td><td style="border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none; width: 1%;" title="2025 - FN 5 Property and Equipment, Net - H35"></td><td style="text-align: center; font-weight: bold; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none; width: 9%;">September 30, 2025</td><td style="border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none; width: 1%;" title="2025 - FN 5 Property and Equipment, Net - H35"></td><td> </td><td style="border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none; width: 1%;" title="2025 - FN 5 Property and Equipment, Net - J35"></td><td style="text-align: center; font-weight: bold; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none; width: 9%;">December 31, 2024</td><td style="border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none; width: 1%;" title="2025 - FN 5 Property and Equipment, Net - J35"></td></tr><tr><td> </td><td style="width: 1%;" title="2025 - FN 5 Property and Equipment, Net - H36"></td><td style="width: 9%;"> </td><td style="width: 1%;" title="2025 - FN 5 Property and Equipment, Net - H36"></td><td> </td><td style="width: 1%;" title="2025 - FN 5 Property and Equipment, Net - J36"></td><td style="width: 9%;"> </td><td style="width: 1%;" title="2025 - FN 5 Property and Equipment, Net - J36"></td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Production and lab equipment</td><td style="width: 1%; text-align: left;" title="2025 - FN 5 Property and Equipment, Net - H37">$</td><td style="width: 9%; text-align: right;">391</td><td style="width: 1%; text-align: left;" title="2025 - FN 5 Property and Equipment, Net - H37"> </td><td> </td><td style="width: 1%; text-align: left;" title="2025 - FN 5 Property and Equipment, Net - J37">$</td><td style="width: 9%; text-align: right;">432</td><td style="width: 1%; text-align: left;" title="2025 - FN 5 Property and Equipment, Net - J37"> </td></tr><tr><td>Tooling</td><td style="width: 1%; text-align: left;" title="2025 - FN 5 Property and Equipment, Net - H38"> </td><td style="width: 9%; text-align: right;">570</td><td style="width: 1%; text-align: left;" title="2025 - FN 5 Property and Equipment, Net - H38"> </td><td> </td><td style="width: 1%; text-align: left;" title="2025 - FN 5 Property and Equipment, Net - J38"> </td><td style="width: 9%; text-align: right;">570</td><td style="width: 1%; text-align: left;" title="2025 - FN 5 Property and Equipment, Net - J38"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Computer equipment</td><td style="width: 1%; text-align: left;" title="2025 - FN 5 Property and Equipment, Net - H39"> </td><td style="width: 9%; text-align: right;">175</td><td style="width: 1%; text-align: left;" title="2025 - FN 5 Property and Equipment, Net - H39"> </td><td> </td><td style="width: 1%; text-align: left;" title="2025 - FN 5 Property and Equipment, Net - J39"> </td><td style="width: 9%; text-align: right;">229</td><td style="width: 1%; text-align: left;" title="2025 - FN 5 Property and Equipment, Net - J39"> </td></tr><tr><td>Furniture, fixtures and improvements</td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="2025 - FN 5 Property and Equipment, Net - H40"> </td><td style="width: 9%; text-align: right; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;">78</td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="2025 - FN 5 Property and Equipment, Net - H40"> </td><td> </td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="2025 - FN 5 Property and Equipment, Net - J40"> </td><td style="width: 9%; text-align: right; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;">120</td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="2025 - FN 5 Property and Equipment, Net - J40"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td> </td><td style="width: 1%; text-align: left;" title="2025 - FN 5 Property and Equipment, Net - H41">$</td><td style="width: 9%; text-align: right;">1,214</td><td style="width: 1%; text-align: left;" title="2025 - FN 5 Property and Equipment, Net - H41"> </td><td> </td><td style="width: 1%; text-align: left;" title="2025 - FN 5 Property and Equipment, Net - J41">$</td><td style="width: 9%; text-align: right;">1,351</td><td style="width: 1%; text-align: left;" title="2025 - FN 5 Property and Equipment, Net - J41"> </td></tr><tr><td>Accumulated depreciation</td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="2025 - FN 5 Property and Equipment, Net - H42"> </td><td style="width: 9%; text-align: right; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;">(1,076</td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="2025 - FN 5 Property and Equipment, Net - H42">) </td><td> </td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="2025 - FN 5 Property and Equipment, Net - J42"> </td><td style="width: 9%; text-align: right; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;">(1,205</td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="2025 - FN 5 Property and Equipment, Net - J42">) </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Property and equipment, net</td><td style="width: 1%; text-align: left; border-bottom: 3px double black; border-top: none; border-left: none; border-right: none;" title="2025 - FN 5 Property and Equipment, Net - H43">$</td><td style="width: 9%; text-align: right; border-bottom: 3px double black; border-top: none; border-left: none; border-right: none;">138</td><td style="width: 1%; text-align: left; border-bottom: 3px double black; border-top: none; border-left: none; border-right: none;" title="2025 - FN 5 Property and Equipment, Net - H43"> </td><td> </td><td style="width: 1%; text-align: left; border-bottom: 3px double black; border-top: none; border-left: none; border-right: none;" title="2025 - FN 5 Property and Equipment, Net - J43">$</td><td style="width: 9%; text-align: right; border-bottom: 3px double black; border-top: none; border-left: none; border-right: none;">146</td><td style="width: 1%; text-align: left; border-bottom: 3px double black; border-top: none; border-left: none; border-right: none;" title="2025 - FN 5 Property and Equipment, Net - J43"> </td></tr></table> 391000 432000 570000 570000 175000 229000 78000 120000 1214000 1351000 1076000 1205000 138000 146000 25000 92000 82000 312000 <div> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p id="xdx_80F_eus-gaap--IntangibleAssetsDisclosureTextBlock_zTfd89AZUF5a" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><b>6. <span id="xdx_824_zuXT4qwqCOqf">INTANGIBLE ASSETS</span></b></p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><b>Intangible Assets, net</b></p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p id="xdx_89B_eus-gaap--ScheduleOfFiniteLivedIntangibleAssetsTableTextBlock_zLRFVhHobhP7" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">Intangible assets, net consisted of the following:</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"> </p> <table cellpadding="0" class="worksheetTable" 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%;"></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 style="white-space : nowrap; "><td> </td><td style="border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none; width: 1%;" title="Summary - FN 6 Intangible Rollforward Q2 - C2"></td><td style="font-weight: bold; text-align: center; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none; width: 9%;">September 30, 2025</td><td style="border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none; width: 1%;" title="Summary - FN 6 Intangible Rollforward Q2 - C2"></td><td> </td><td style="border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none; width: 1%;" title="Summary - FN 6 Intangible Rollforward Q2 - E2"></td><td style="font-weight: bold; text-align: center; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none; width: 9%;">December 31, 2024</td><td style="border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none; width: 1%;" title="Summary - FN 6 Intangible Rollforward Q2 - E2"></td></tr><tr><td>Amortizable intangible assets:</td><td style="width: 1%;" title="Summary - FN 6 Intangible Rollforward Q2 - C3"></td><td style="width: 9%;"> </td><td style="width: 1%;" title="Summary - FN 6 Intangible Rollforward Q2 - C3"></td><td> </td><td style="width: 1%;" title="Summary - FN 6 Intangible Rollforward Q2 - E3"></td><td style="width: 9%;"> </td><td style="width: 1%;" title="Summary - FN 6 Intangible Rollforward Q2 - E3"></td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="padding-left: 10px;"> Patents</td><td style="width: 1%; text-align: left;" title="Summary - FN 6 Intangible Rollforward Q2 - C4">$</td><td style="width: 9%; text-align: right;">1,093</td><td style="width: 1%; text-align: left;" title="Summary - FN 6 Intangible Rollforward Q2 - C4"> </td><td> </td><td style="width: 1%; text-align: left;" title="Summary - FN 6 Intangible Rollforward Q2 - E4">$</td><td style="width: 9%; text-align: right;">1,013</td><td style="width: 1%; text-align: left;" title="Summary - FN 6 Intangible Rollforward Q2 - E4"> </td></tr><tr><td style="padding-left: 10px;"> Trademarks</td><td style="width: 1%; text-align: left;" title="Summary - FN 6 Intangible Rollforward Q2 - C5"> </td><td style="width: 9%; text-align: right;">339</td><td style="width: 1%; text-align: left;" title="Summary - FN 6 Intangible Rollforward Q2 - C5"> </td><td> </td><td style="width: 1%; text-align: left;" title="Summary - FN 6 Intangible Rollforward Q2 - E5"> </td><td style="width: 9%; text-align: right;">264</td><td style="width: 1%; text-align: left;" title="Summary - FN 6 Intangible Rollforward Q2 - E5"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="padding-left: 10px;"> Purchased software and technology</td><td style="width: 1%; text-align: left;" title="Summary - FN 6 Intangible Rollforward Q2 - C6"> </td><td style="width: 9%; text-align: right;">1,752</td><td style="width: 1%; text-align: left;" title="Summary - FN 6 Intangible Rollforward Q2 - C6"> </td><td> </td><td style="width: 1%; text-align: left;" title="Summary - FN 6 Intangible Rollforward Q2 - E6"> </td><td style="width: 9%; text-align: right;">1,752</td><td style="width: 1%; text-align: left;" title="Summary - FN 6 Intangible Rollforward Q2 - E6"> </td></tr><tr><td style="padding-left: 10px;"> Customer Relationships</td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="Summary - FN 6 Intangible Rollforward Q2 - C7"> </td><td style="width: 9%; text-align: right; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;">160</td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="Summary - FN 6 Intangible Rollforward Q2 - C7"> </td><td> </td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="Summary - FN 6 Intangible Rollforward Q2 - E7"> </td><td style="width: 9%; text-align: right; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;">160</td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="Summary - FN 6 Intangible Rollforward Q2 - E7"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td> </td><td style="width: 1%; text-align: left; border-width: initial; border-style: none; border-color: initial;" title="Summary - FN 6 Intangible Rollforward Q2 - C8">$</td><td style="width: 9%; text-align: right; border-width: initial; border-style: none; border-color: initial;">3,344</td><td style="width: 1%; text-align: left; border-width: initial; border-style: none; border-color: initial;" title="Summary - FN 6 Intangible Rollforward Q2 - C8"> </td><td> </td><td style="width: 1%; text-align: left; border-width: initial; border-style: none; border-color: initial;" title="Summary - FN 6 Intangible Rollforward Q2 - E8">$</td><td style="width: 9%; text-align: right; border-width: initial; border-style: none; border-color: initial;">3,189</td><td style="width: 1%; text-align: left; border-width: initial; border-style: none; border-color: initial;" title="Summary - FN 6 Intangible Rollforward Q2 - E8"> </td></tr><tr><td style="padding-left: 10px;"> Accumulated amortization</td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="Summary - FN 6 Intangible Rollforward Q2 - C9"> </td><td style="width: 9%; text-align: right; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;">(1,618</td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="Summary - FN 6 Intangible Rollforward Q2 - C9">) </td><td> </td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="Summary - FN 6 Intangible Rollforward Q2 - E9"> </td><td style="width: 9%; text-align: right; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;">(1,256</td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="Summary - FN 6 Intangible Rollforward Q2 - E9">) </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="padding-left: 10px;"> Total amortizable</td><td style="width: 1%; text-align: left;" title="Summary - FN 6 Intangible Rollforward Q2 - C10">$</td><td style="width: 9%; text-align: right;">1,726</td><td style="width: 1%; text-align: left;" title="Summary - FN 6 Intangible Rollforward Q2 - C10"> </td><td> </td><td style="width: 1%; text-align: left;" title="Summary - FN 6 Intangible Rollforward Q2 - E10">$</td><td style="width: 9%; text-align: right;">1,933</td><td style="width: 1%; text-align: left;" title="Summary - FN 6 Intangible Rollforward Q2 - E10"> </td></tr><tr><td>Indefinite life assets (non-amortizable)</td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="Summary - FN 6 Intangible Rollforward Q2 - C11"> </td><td style="width: 9%; text-align: right; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;">421</td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="Summary - FN 6 Intangible Rollforward Q2 - C11"> </td><td> </td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="Summary - FN 6 Intangible Rollforward Q2 - E11"> </td><td style="width: 9%; text-align: right; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;">421</td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="Summary - FN 6 Intangible Rollforward Q2 - E11"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="padding-left: 10px;"> Total intangible assets, net</td><td style="width: 1%; text-align: left; border-bottom: 3px double black; border-top: none; border-left: none; border-right: none;" title="Summary - FN 6 Intangible Rollforward Q2 - C12">$</td><td style="width: 9%; text-align: right; border-bottom: 3px double black; border-top: none; border-left: none; border-right: none;">2,147</td><td style="width: 1%; text-align: left; border-bottom: 3px double black; border-top: none; border-left: none; border-right: none;" title="Summary - FN 6 Intangible Rollforward Q2 - C12"> </td><td> </td><td style="width: 1%; text-align: left; border-bottom: 3px double black; border-top: none; border-left: none; border-right: none;" title="Summary - FN 6 Intangible Rollforward Q2 - E12">$</td><td style="width: 9%; text-align: right; border-bottom: 3px double black; border-top: none; border-left: none; border-right: none;">2,354</td><td style="width: 1%; text-align: left; border-bottom: 3px double black; border-top: none; border-left: none; border-right: none;" title="Summary - FN 6 Intangible Rollforward Q2 - E12"> </td></tr></table><p id="xdx_8AC_zyzxSRZHW0Ob" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-size-adjust: none; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-variant-emoji: normal; font-stretch: normal; line-height: normal; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">Amortization expense was $<span id="xdx_908_eus-gaap--AmortizationOfIntangibleAssets_pn3n3_c20250401__20250630_zAfUDrPyl2h1" title="Amortization of Intangible">125</span> and $<span id="xdx_900_eus-gaap--AmortizationOfIntangibleAssets_pn3n3_c20250101__20250630_zdO8IlWw5ZHh" title="Amortization of Intangible">362</span> for the three and nine months ended September 30, 2025, respectively, and $114<span id="xdx_902_eus-gaap--AmortizationOfIntangibleAssets_pn3n3_c20240401__20240630_z5rEsCZ0V81i" title="Amortization of Intangible"></span> and $334<span id="xdx_90C_eus-gaap--AmortizationOfIntangibleAssets_pn3n3_c20240101__20240630_zgmFD6bOqFfj" title="Amortization of Intangible"></span> for the three and nine months ended September 30, 2024, respectively. The Company recognized impairment charges for Customer Relationships of $54 and $54 for the three and nine months ended September 30, 2025, respectively, related to the managed services realignment. No impairment charges were recognized in the three and nine months ended September 30, 2024.</p><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"> </p> <p id="xdx_89E_eus-gaap--ScheduleofFiniteLivedIntangibleAssetsFutureAmortizationExpenseTableTextBlock_z9sdgcbr2gTd" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">As of September 30, 2025, future amortization expense is as follows:</p> </div><div> <p id="xdx_8A4_zU9qbSEOw7Lk" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p><table cellpadding="0" class="worksheetTable" 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: 89%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td></tr><tr><td>2025 (3 months)</td><td style="width: 1%; text-align: left; border-width: initial; border-style: none; border-color: initial;" title="FN 6 Intangible Rollforward - C28"> </td><td style="width: 9%; text-align: right; border-width: initial; border-style: none; border-color: initial;">111</td><td style="width: 1%; text-align: left; border-width: initial; border-style: none; border-color: initial;" title="FN 6 Intangible Rollforward - C28"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>2026</td><td style="width: 1%; text-align: left; border-width: initial; border-style: none; border-color: initial;" title="FN 6 Intangible Rollforward - C28"> </td><td style="width: 9%; text-align: right; border-width: initial; border-style: none; border-color: initial;">370</td><td style="width: 1%; text-align: left; border-width: initial; border-style: none; border-color: initial;" title="FN 6 Intangible Rollforward - C28"> </td></tr><tr><td>2027</td><td style="width: 1%; text-align: left; border-width: initial; border-style: none; border-color: initial;" title="FN 6 Intangible Rollforward - C28"> </td><td style="width: 9%; text-align: right; border-width: initial; border-style: none; border-color: initial;">218</td><td style="width: 1%; text-align: left; border-width: initial; border-style: none; border-color: initial;" title="FN 6 Intangible Rollforward - C28"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>2028</td><td style="width: 1%; text-align: left; border-width: initial; border-style: none; border-color: initial;" title="FN 6 Intangible Rollforward - C28"> </td><td style="width: 9%; text-align: right; border-width: initial; border-style: none; border-color: initial;">218</td><td style="width: 1%; text-align: left; border-width: initial; border-style: none; border-color: initial;" title="FN 6 Intangible Rollforward - C28"> </td></tr><tr><td>2029</td><td style="width: 1%; text-align: left; border-width: initial; border-style: none; border-color: initial;" title="FN 6 Intangible Rollforward - C28"> </td><td style="width: 9%; text-align: right; border-width: initial; border-style: none; border-color: initial;">187</td><td style="width: 1%; text-align: left; border-width: initial; border-style: none; border-color: initial;" title="FN 6 Intangible Rollforward - C28"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Thereafter</td><td style="width: 1%; text-align: left; border-width: initial; border-style: none; border-color: initial;" title="FN 6 Intangible Rollforward - C28"> </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;">622</td><td style="width: 1%; text-align: left; border-width: initial; border-style: none; border-color: initial;" title="FN 6 Intangible Rollforward - C28"> </td></tr><tr><td>Total</td><td style="width: 1%; text-align: left; border-width: initial; border-style: none; border-color: initial;" title="FN 6 Intangible Rollforward - C28"> </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;">1,726</td><td style="width: 1%; text-align: left; border-width: initial; border-style: none; border-color: initial;" title="FN 6 Intangible Rollforward - C28"> </td></tr></table><p id="xdx_8A4_zU9qbSEOw7Lk-0" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><br/></p></div> <p id="xdx_89B_eus-gaap--ScheduleOfFiniteLivedIntangibleAssetsTableTextBlock_zLRFVhHobhP7" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">Intangible assets, net consisted of the following:</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"> </p> <table cellpadding="0" class="worksheetTable" 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%;"></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 style="white-space : nowrap; "><td> </td><td style="border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none; width: 1%;" title="Summary - FN 6 Intangible Rollforward Q2 - C2"></td><td style="font-weight: bold; text-align: center; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none; width: 9%;">September 30, 2025</td><td style="border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none; width: 1%;" title="Summary - FN 6 Intangible Rollforward Q2 - C2"></td><td> </td><td style="border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none; width: 1%;" title="Summary - FN 6 Intangible Rollforward Q2 - E2"></td><td style="font-weight: bold; text-align: center; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none; width: 9%;">December 31, 2024</td><td style="border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none; width: 1%;" title="Summary - FN 6 Intangible Rollforward Q2 - E2"></td></tr><tr><td>Amortizable intangible assets:</td><td style="width: 1%;" title="Summary - FN 6 Intangible Rollforward Q2 - C3"></td><td style="width: 9%;"> </td><td style="width: 1%;" title="Summary - FN 6 Intangible Rollforward Q2 - C3"></td><td> </td><td style="width: 1%;" title="Summary - FN 6 Intangible Rollforward Q2 - E3"></td><td style="width: 9%;"> </td><td style="width: 1%;" title="Summary - FN 6 Intangible Rollforward Q2 - E3"></td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="padding-left: 10px;"> Patents</td><td style="width: 1%; text-align: left;" title="Summary - FN 6 Intangible Rollforward Q2 - C4">$</td><td style="width: 9%; text-align: right;">1,093</td><td style="width: 1%; text-align: left;" title="Summary - FN 6 Intangible Rollforward Q2 - C4"> </td><td> </td><td style="width: 1%; text-align: left;" title="Summary - FN 6 Intangible Rollforward Q2 - E4">$</td><td style="width: 9%; text-align: right;">1,013</td><td style="width: 1%; text-align: left;" title="Summary - FN 6 Intangible Rollforward Q2 - E4"> </td></tr><tr><td style="padding-left: 10px;"> Trademarks</td><td style="width: 1%; text-align: left;" title="Summary - FN 6 Intangible Rollforward Q2 - C5"> </td><td style="width: 9%; text-align: right;">339</td><td style="width: 1%; text-align: left;" title="Summary - FN 6 Intangible Rollforward Q2 - C5"> </td><td> </td><td style="width: 1%; text-align: left;" title="Summary - FN 6 Intangible Rollforward Q2 - E5"> </td><td style="width: 9%; text-align: right;">264</td><td style="width: 1%; text-align: left;" title="Summary - FN 6 Intangible Rollforward Q2 - E5"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="padding-left: 10px;"> Purchased software and technology</td><td style="width: 1%; text-align: left;" title="Summary - FN 6 Intangible Rollforward Q2 - C6"> </td><td style="width: 9%; text-align: right;">1,752</td><td style="width: 1%; text-align: left;" title="Summary - FN 6 Intangible Rollforward Q2 - C6"> </td><td> </td><td style="width: 1%; text-align: left;" title="Summary - FN 6 Intangible Rollforward Q2 - E6"> </td><td style="width: 9%; text-align: right;">1,752</td><td style="width: 1%; text-align: left;" title="Summary - FN 6 Intangible Rollforward Q2 - E6"> </td></tr><tr><td style="padding-left: 10px;"> Customer Relationships</td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="Summary - FN 6 Intangible Rollforward Q2 - C7"> </td><td style="width: 9%; text-align: right; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;">160</td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="Summary - FN 6 Intangible Rollforward Q2 - C7"> </td><td> </td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="Summary - FN 6 Intangible Rollforward Q2 - E7"> </td><td style="width: 9%; text-align: right; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;">160</td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="Summary - FN 6 Intangible Rollforward Q2 - E7"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td> </td><td style="width: 1%; text-align: left; border-width: initial; border-style: none; border-color: initial;" title="Summary - FN 6 Intangible Rollforward Q2 - C8">$</td><td style="width: 9%; text-align: right; border-width: initial; border-style: none; border-color: initial;">3,344</td><td style="width: 1%; text-align: left; border-width: initial; border-style: none; border-color: initial;" title="Summary - FN 6 Intangible Rollforward Q2 - C8"> </td><td> </td><td style="width: 1%; text-align: left; border-width: initial; border-style: none; border-color: initial;" title="Summary - FN 6 Intangible Rollforward Q2 - E8">$</td><td style="width: 9%; text-align: right; border-width: initial; border-style: none; border-color: initial;">3,189</td><td style="width: 1%; text-align: left; border-width: initial; border-style: none; border-color: initial;" title="Summary - FN 6 Intangible Rollforward Q2 - E8"> </td></tr><tr><td style="padding-left: 10px;"> Accumulated amortization</td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="Summary - FN 6 Intangible Rollforward Q2 - C9"> </td><td style="width: 9%; text-align: right; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;">(1,618</td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="Summary - FN 6 Intangible Rollforward Q2 - C9">) </td><td> </td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="Summary - FN 6 Intangible Rollforward Q2 - E9"> </td><td style="width: 9%; text-align: right; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;">(1,256</td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="Summary - FN 6 Intangible Rollforward Q2 - E9">) </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="padding-left: 10px;"> Total amortizable</td><td style="width: 1%; text-align: left;" title="Summary - FN 6 Intangible Rollforward Q2 - C10">$</td><td style="width: 9%; text-align: right;">1,726</td><td style="width: 1%; text-align: left;" title="Summary - FN 6 Intangible Rollforward Q2 - C10"> </td><td> </td><td style="width: 1%; text-align: left;" title="Summary - FN 6 Intangible Rollforward Q2 - E10">$</td><td style="width: 9%; text-align: right;">1,933</td><td style="width: 1%; text-align: left;" title="Summary - FN 6 Intangible Rollforward Q2 - E10"> </td></tr><tr><td>Indefinite life assets (non-amortizable)</td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="Summary - FN 6 Intangible Rollforward Q2 - C11"> </td><td style="width: 9%; text-align: right; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;">421</td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="Summary - FN 6 Intangible Rollforward Q2 - C11"> </td><td> </td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="Summary - FN 6 Intangible Rollforward Q2 - E11"> </td><td style="width: 9%; text-align: right; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;">421</td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="Summary - FN 6 Intangible Rollforward Q2 - E11"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="padding-left: 10px;"> Total intangible assets, net</td><td style="width: 1%; text-align: left; border-bottom: 3px double black; border-top: none; border-left: none; border-right: none;" title="Summary - FN 6 Intangible Rollforward Q2 - C12">$</td><td style="width: 9%; text-align: right; border-bottom: 3px double black; border-top: none; border-left: none; border-right: none;">2,147</td><td style="width: 1%; text-align: left; border-bottom: 3px double black; border-top: none; border-left: none; border-right: none;" title="Summary - FN 6 Intangible Rollforward Q2 - C12"> </td><td> </td><td style="width: 1%; text-align: left; border-bottom: 3px double black; border-top: none; border-left: none; border-right: none;" title="Summary - FN 6 Intangible Rollforward Q2 - E12">$</td><td style="width: 9%; text-align: right; border-bottom: 3px double black; border-top: none; border-left: none; border-right: none;">2,354</td><td style="width: 1%; text-align: left; border-bottom: 3px double black; border-top: none; border-left: none; border-right: none;" title="Summary - FN 6 Intangible Rollforward Q2 - E12"> </td></tr></table> 1093000 1013000 339000 264000 1752000 1752000 160000 160000 3344000 3189000 1618000 1256000 1726000 1933000 421000 421000 2147000 2354000 125000 362000 114000 334000 54000 54000 <p id="xdx_89E_eus-gaap--ScheduleofFiniteLivedIntangibleAssetsFutureAmortizationExpenseTableTextBlock_z9sdgcbr2gTd" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">As of September 30, 2025, future amortization expense is as follows:</p><div> <p id="xdx_8A4_zU9qbSEOw7Lk" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p><table cellpadding="0" class="worksheetTable" 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: 89%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td></tr><tr><td>2025 (3 months)</td><td style="width: 1%; text-align: left; border-width: initial; border-style: none; border-color: initial;" title="FN 6 Intangible Rollforward - C28"> </td><td style="width: 9%; text-align: right; border-width: initial; border-style: none; border-color: initial;">111</td><td style="width: 1%; text-align: left; border-width: initial; border-style: none; border-color: initial;" title="FN 6 Intangible Rollforward - C28"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>2026</td><td style="width: 1%; text-align: left; border-width: initial; border-style: none; border-color: initial;" title="FN 6 Intangible Rollforward - C28"> </td><td style="width: 9%; text-align: right; border-width: initial; border-style: none; border-color: initial;">370</td><td style="width: 1%; text-align: left; border-width: initial; border-style: none; border-color: initial;" title="FN 6 Intangible Rollforward - C28"> </td></tr><tr><td>2027</td><td style="width: 1%; text-align: left; border-width: initial; border-style: none; border-color: initial;" title="FN 6 Intangible Rollforward - C28"> </td><td style="width: 9%; text-align: right; border-width: initial; border-style: none; border-color: initial;">218</td><td style="width: 1%; text-align: left; border-width: initial; border-style: none; border-color: initial;" title="FN 6 Intangible Rollforward - C28"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>2028</td><td style="width: 1%; text-align: left; border-width: initial; border-style: none; border-color: initial;" title="FN 6 Intangible Rollforward - C28"> </td><td style="width: 9%; text-align: right; border-width: initial; border-style: none; border-color: initial;">218</td><td style="width: 1%; text-align: left; border-width: initial; border-style: none; border-color: initial;" title="FN 6 Intangible Rollforward - C28"> </td></tr><tr><td>2029</td><td style="width: 1%; text-align: left; border-width: initial; border-style: none; border-color: initial;" title="FN 6 Intangible Rollforward - C28"> </td><td style="width: 9%; text-align: right; border-width: initial; border-style: none; border-color: initial;">187</td><td style="width: 1%; text-align: left; border-width: initial; border-style: none; border-color: initial;" title="FN 6 Intangible Rollforward - C28"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Thereafter</td><td style="width: 1%; text-align: left; border-width: initial; border-style: none; border-color: initial;" title="FN 6 Intangible Rollforward - C28"> </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;">622</td><td style="width: 1%; text-align: left; border-width: initial; border-style: none; border-color: initial;" title="FN 6 Intangible Rollforward - C28"> </td></tr><tr><td>Total</td><td style="width: 1%; text-align: left; border-width: initial; border-style: none; border-color: initial;" title="FN 6 Intangible Rollforward - C28"> </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;">1,726</td><td style="width: 1%; text-align: left; border-width: initial; border-style: none; border-color: initial;" title="FN 6 Intangible Rollforward - C28"> </td></tr></table><p id="xdx_8A4_zU9qbSEOw7Lk-0" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><br/></p></div> 111000 370000 218000 218000 187000 622000 1726000 <div><p id="xdx_80A_eus-gaap--AccountsPayableAndAccruedLiabilitiesDisclosureTextBlock_zBKpFmwWyFf9" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><b>7. <span id="xdx_82C_zZcXiusnwfl6">ACCOUNTS PAYABLE AND ACCRUED LIABILITIES</span></b></p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p id="xdx_89C_eus-gaap--ScheduleOfAccruedLiabilitiesTableTextBlock_zB4sb8F3WHQ6" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">Accrued liabilities consist of the following:</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> <span id="xdx_8B0_zfFT9EO9wmKl" style="display: none">SCHEDULE OF ACCRUED LIABILITIES</span></p> <table cellpadding="0" class="worksheetTable" 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%;"></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 style="white-space : nowrap; "><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 7 - Accounts Payable and Accrued Liabilities - C6"> </td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-weight: bold; text-align: center; width: 9%;">September 30, 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 7 - Accounts Payable and Accrued Liabilities - C6"> </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 7 - Accounts Payable and Accrued Liabilities - E6"> </td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; text-align: center; width: 9%; font-weight: bold;">December 31, 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 7 - Accounts Payable and Accrued Liabilities - E6"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Patent and legal costs</td><td style="width: 1%; text-align: left;" title="FN 7 - Accounts Payable and Accrued Liabilities - C7">$</td><td style="width: 9%; text-align: right;">133</td><td style="width: 1%; text-align: left;" title="FN 7 - Accounts Payable and Accrued Liabilities - C7"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN 7 - Accounts Payable and Accrued Liabilities - E7">$</td><td style="width: 9%; text-align: right;">60</td><td style="width: 1%; text-align: left;" title="FN 7 - Accounts Payable and Accrued Liabilities - E7"> </td></tr><tr><td>Accrued compensation</td><td style="width: 1%; text-align: left;" title="FN 7 - Accounts Payable and Accrued Liabilities - C8"> </td><td style="width: 9%; text-align: right;">138</td><td style="width: 1%; text-align: left;" title="FN 7 - Accounts Payable and Accrued Liabilities - C8"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN 7 - Accounts Payable and Accrued Liabilities - E8"> </td><td style="width: 9%; text-align: right;">121</td><td style="width: 1%; text-align: left;" title="FN 7 - Accounts Payable and Accrued Liabilities - E8"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Warranty costs</td><td style="width: 1%; text-align: left;" title="FN 7 - Accounts Payable and Accrued Liabilities - C9"> </td><td style="width: 9%; text-align: right;">112</td><td style="width: 1%; text-align: left;" title="FN 7 - Accounts Payable and Accrued Liabilities - C9"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN 7 - Accounts Payable and Accrued Liabilities - E9"> </td><td style="width: 9%; text-align: right;">83</td><td style="width: 1%; text-align: left;" title="FN 7 - Accounts Payable and Accrued Liabilities - E9"> </td></tr><tr><td>Royalty</td><td style="width: 1%; text-align: left;" title="FN 7 - Accounts Payable and Accrued Liabilities - C10"> </td><td style="width: 9%; text-align: right;">79</td><td style="width: 1%; text-align: left;" title="FN 7 - Accounts Payable and Accrued Liabilities - C10"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN 7 - Accounts Payable and Accrued Liabilities - E10"> </td><td style="width: 9%; text-align: right;">81</td><td style="width: 1%; text-align: left;" title="FN 7 - Accounts Payable and Accrued Liabilities - E10"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Contract settlement</td><td style="width: 1%; text-align: left;" title="FN 7 - Accounts Payable and Accrued Liabilities - C11"> </td><td style="width: 9%; text-align: right;">31</td><td style="width: 1%; text-align: left;" title="FN 7 - Accounts Payable and Accrued Liabilities - C11"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN 7 - Accounts Payable and Accrued Liabilities - E11"> </td><td style="width: 9%; text-align: right;">300</td><td style="width: 1%; text-align: left;" title="FN 7 - Accounts Payable and Accrued Liabilities - E11"> </td></tr><tr><td>Accrued purchases</td><td style="width: 1%; text-align: left;" title="FN 7 - Accounts Payable and Accrued Liabilities - C12"> </td><td style="width: 9%; text-align: right;">7</td><td style="width: 1%; text-align: left;" title="FN 7 - Accounts Payable and Accrued Liabilities - C12"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN 7 - Accounts Payable and Accrued Liabilities - E12"> </td><td style="width: 9%; text-align: right;">584</td><td style="width: 1%; text-align: left;" title="FN 7 - Accounts Payable and Accrued Liabilities - E12"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Taxes and other</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 - Accounts Payable and Accrued Liabilities - C13"> </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;">63</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 - Accounts Payable and Accrued Liabilities - C13"> </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 7 - Accounts Payable and Accrued Liabilities - E13"> </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;">174</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 - Accounts Payable and Accrued Liabilities - E13"> </td></tr><tr><td>Total</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 - Accounts Payable and Accrued Liabilities - C14">$</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;">563</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 - Accounts Payable and Accrued Liabilities - C14"> </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 7 - Accounts Payable and Accrued Liabilities - E14">$</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;">1,403</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 - Accounts Payable and Accrued Liabilities - E14"> </td></tr></table><p id="xdx_8AA_z3biZYskGHw1" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p><p id="xdx_891_eus-gaap--ScheduleOfProductWarrantyLiabilityTableTextBlock_zsYADeXySEVl" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">Changes in our estimated product warranty costs were as follows:</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <table cellpadding="0" class="worksheetTable" 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%;"></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-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">Nine Months Ended September 30,</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 7 Accounts Payable and Accrued Liabilities - C21"> </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%;">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 7 Accounts Payable and Accrued Liabilities - C21"> </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 7 Accounts Payable and Accrued Liabilities - E21"> </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%;">2024</td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%;" title="FN 7 Accounts Payable and Accrued Liabilities - E21"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Balance, beginning of period</td><td style="width: 1%; text-align: left;" title="FN 7 Accounts Payable and Accrued Liabilities - C22">$</td><td style="width: 9%; text-align: right;">83</td><td style="width: 1%; text-align: left;" title="FN 7 Accounts Payable and Accrued Liabilities - C22"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN 7 Accounts Payable and Accrued Liabilities - E22">$</td><td style="width: 9%; text-align: right;">72</td><td style="width: 1%; text-align: left;" title="FN 7 Accounts Payable and Accrued Liabilities - E22"> </td></tr><tr><td>Warranty settlements</td><td style="width: 1%; text-align: left;" title="FN 7 Accounts Payable and Accrued Liabilities - C23"> </td><td style="width: 9%; text-align: right;">(13</td><td style="width: 1%; text-align: left;" title="FN 7 Accounts Payable and Accrued Liabilities - C23">) </td><td> </td><td style="width: 1%; text-align: left;" title="FN 7 Accounts Payable and Accrued Liabilities - E23"> </td><td style="width: 9%; text-align: right;">(74</td><td style="width: 1%; text-align: left;" title="FN 7 Accounts Payable and Accrued Liabilities - E23">) </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Warranty provision</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 Accounts Payable and Accrued Liabilities - C24"> </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;">42</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 Accounts Payable and Accrued Liabilities - C24"> </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 7 Accounts Payable and Accrued Liabilities - E24"> </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;">37</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 Accounts Payable and Accrued Liabilities - E24"> </td></tr><tr><td>Balance, end of period</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 Accounts Payable and Accrued Liabilities - C25">$</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;">112</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 Accounts Payable and Accrued Liabilities - C25"> </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 7 Accounts Payable and Accrued Liabilities - E25">$</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;">35</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 Accounts Payable and Accrued Liabilities - E25"> </td></tr></table><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><span id="xdx_8B3_zrytWJQdisca" style="display: none">SCHEDULE OF PRODUCT WARRANTY LIABILITY</span> </p></div> <p id="xdx_89C_eus-gaap--ScheduleOfAccruedLiabilitiesTableTextBlock_zB4sb8F3WHQ6" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">Accrued liabilities consist of the following:</p><table cellpadding="0" class="worksheetTable" 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%;"></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 style="white-space : nowrap; "><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 7 - Accounts Payable and Accrued Liabilities - C6"> </td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; font-weight: bold; text-align: center; width: 9%;">September 30, 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 7 - Accounts Payable and Accrued Liabilities - C6"> </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 7 - Accounts Payable and Accrued Liabilities - E6"> </td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; text-align: center; width: 9%; font-weight: bold;">December 31, 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 7 - Accounts Payable and Accrued Liabilities - E6"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Patent and legal costs</td><td style="width: 1%; text-align: left;" title="FN 7 - Accounts Payable and Accrued Liabilities - C7">$</td><td style="width: 9%; text-align: right;">133</td><td style="width: 1%; text-align: left;" title="FN 7 - Accounts Payable and Accrued Liabilities - C7"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN 7 - Accounts Payable and Accrued Liabilities - E7">$</td><td style="width: 9%; text-align: right;">60</td><td style="width: 1%; text-align: left;" title="FN 7 - Accounts Payable and Accrued Liabilities - E7"> </td></tr><tr><td>Accrued compensation</td><td style="width: 1%; text-align: left;" title="FN 7 - Accounts Payable and Accrued Liabilities - C8"> </td><td style="width: 9%; text-align: right;">138</td><td style="width: 1%; text-align: left;" title="FN 7 - Accounts Payable and Accrued Liabilities - C8"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN 7 - Accounts Payable and Accrued Liabilities - E8"> </td><td style="width: 9%; text-align: right;">121</td><td style="width: 1%; text-align: left;" title="FN 7 - Accounts Payable and Accrued Liabilities - E8"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Warranty costs</td><td style="width: 1%; text-align: left;" title="FN 7 - Accounts Payable and Accrued Liabilities - C9"> </td><td style="width: 9%; text-align: right;">112</td><td style="width: 1%; text-align: left;" title="FN 7 - Accounts Payable and Accrued Liabilities - C9"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN 7 - Accounts Payable and Accrued Liabilities - E9"> </td><td style="width: 9%; text-align: right;">83</td><td style="width: 1%; text-align: left;" title="FN 7 - Accounts Payable and Accrued Liabilities - E9"> </td></tr><tr><td>Royalty</td><td style="width: 1%; text-align: left;" title="FN 7 - Accounts Payable and Accrued Liabilities - C10"> </td><td style="width: 9%; text-align: right;">79</td><td style="width: 1%; text-align: left;" title="FN 7 - Accounts Payable and Accrued Liabilities - C10"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN 7 - Accounts Payable and Accrued Liabilities - E10"> </td><td style="width: 9%; text-align: right;">81</td><td style="width: 1%; text-align: left;" title="FN 7 - Accounts Payable and Accrued Liabilities - E10"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Contract settlement</td><td style="width: 1%; text-align: left;" title="FN 7 - Accounts Payable and Accrued Liabilities - C11"> </td><td style="width: 9%; text-align: right;">31</td><td style="width: 1%; text-align: left;" title="FN 7 - Accounts Payable and Accrued Liabilities - C11"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN 7 - Accounts Payable and Accrued Liabilities - E11"> </td><td style="width: 9%; text-align: right;">300</td><td style="width: 1%; text-align: left;" title="FN 7 - Accounts Payable and Accrued Liabilities - E11"> </td></tr><tr><td>Accrued purchases</td><td style="width: 1%; text-align: left;" title="FN 7 - Accounts Payable and Accrued Liabilities - C12"> </td><td style="width: 9%; text-align: right;">7</td><td style="width: 1%; text-align: left;" title="FN 7 - Accounts Payable and Accrued Liabilities - C12"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN 7 - Accounts Payable and Accrued Liabilities - E12"> </td><td style="width: 9%; text-align: right;">584</td><td style="width: 1%; text-align: left;" title="FN 7 - Accounts Payable and Accrued Liabilities - E12"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Taxes and other</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 - Accounts Payable and Accrued Liabilities - C13"> </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;">63</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 - Accounts Payable and Accrued Liabilities - C13"> </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 7 - Accounts Payable and Accrued Liabilities - E13"> </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;">174</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 - Accounts Payable and Accrued Liabilities - E13"> </td></tr><tr><td>Total</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 - Accounts Payable and Accrued Liabilities - C14">$</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;">563</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 - Accounts Payable and Accrued Liabilities - C14"> </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 7 - Accounts Payable and Accrued Liabilities - E14">$</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;">1,403</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 - Accounts Payable and Accrued Liabilities - E14"> </td></tr></table> 133000 60000 138000 121000 112000 83000 79000 81000 31000 300000 7000 584000 63000 174000 563000 1403000 <p id="xdx_891_eus-gaap--ScheduleOfProductWarrantyLiabilityTableTextBlock_zsYADeXySEVl" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">Changes in our estimated product warranty costs were as follows:</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <table cellpadding="0" class="worksheetTable" 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%;"></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-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">Nine Months Ended September 30,</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 7 Accounts Payable and Accrued Liabilities - C21"> </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%;">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 7 Accounts Payable and Accrued Liabilities - C21"> </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 7 Accounts Payable and Accrued Liabilities - E21"> </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%;">2024</td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%;" title="FN 7 Accounts Payable and Accrued Liabilities - E21"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Balance, beginning of period</td><td style="width: 1%; text-align: left;" title="FN 7 Accounts Payable and Accrued Liabilities - C22">$</td><td style="width: 9%; text-align: right;">83</td><td style="width: 1%; text-align: left;" title="FN 7 Accounts Payable and Accrued Liabilities - C22"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN 7 Accounts Payable and Accrued Liabilities - E22">$</td><td style="width: 9%; text-align: right;">72</td><td style="width: 1%; text-align: left;" title="FN 7 Accounts Payable and Accrued Liabilities - E22"> </td></tr><tr><td>Warranty settlements</td><td style="width: 1%; text-align: left;" title="FN 7 Accounts Payable and Accrued Liabilities - C23"> </td><td style="width: 9%; text-align: right;">(13</td><td style="width: 1%; text-align: left;" title="FN 7 Accounts Payable and Accrued Liabilities - C23">) </td><td> </td><td style="width: 1%; text-align: left;" title="FN 7 Accounts Payable and Accrued Liabilities - E23"> </td><td style="width: 9%; text-align: right;">(74</td><td style="width: 1%; text-align: left;" title="FN 7 Accounts Payable and Accrued Liabilities - E23">) </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Warranty provision</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 Accounts Payable and Accrued Liabilities - C24"> </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;">42</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 Accounts Payable and Accrued Liabilities - C24"> </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 7 Accounts Payable and Accrued Liabilities - E24"> </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;">37</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 Accounts Payable and Accrued Liabilities - E24"> </td></tr><tr><td>Balance, end of period</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 Accounts Payable and Accrued Liabilities - C25">$</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;">112</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 Accounts Payable and Accrued Liabilities - C25"> </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 7 Accounts Payable and Accrued Liabilities - E25">$</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;">35</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 Accounts Payable and Accrued Liabilities - E25"> </td></tr></table> 83000 72000 13000 74000 42000 37000 112000 35000 <div> <p id="xdx_80F_ecustom--WarrantsTextBlock_zBHPmjEyGt28" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><b>8. <span id="xdx_820_zXFhFI4K2Bma">WARRANTS</span></b></p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">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 <span id="xdx_901_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_pid_c20230629__20230629__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember__us-gaap--SubsidiarySaleOfStockAxis__custom--RegisteredDirectOfferingMember_zfgOsBLVP6a4" title="Stock issued during period, shares, new issues">10,000</span> shares of the Company’s newly-designated Series A Convertible Preferred Stock, with par value $<span id="xdx_904_eus-gaap--PreferredStockParOrStatedValuePerShare_iI_pid_c20230629__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember__us-gaap--SubsidiarySaleOfStockAxis__custom--RegisteredDirectOfferingMember_ztfHWdD8ardd" title="Preferred stock, par or stated value per share">0.0001</span> per share and a stated value of $<span id="xdx_901_ecustom--PreferredStockStatedValuePerShare_iI_pid_c20230629__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember__us-gaap--SubsidiarySaleOfStockAxis__custom--RegisteredDirectOfferingMember_z9swad9KDPu4" title="Preferred stock, stated value per share">1,000</span> per share (the “Series A Preferred Stock”), initially convertible into up to <span id="xdx_90D_eus-gaap--PreferredStockConvertibleSharesIssuable_iI_pid_c20230629__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember__us-gaap--SubsidiarySaleOfStockAxis__custom--RegisteredDirectOfferingMember_zMy5gEUzLOMl" title="Preferred stock, convertible, shares issuable">6,896,553</span> shares of Common Stock, at an initial conversion price of $<span id="xdx_90B_eus-gaap--PreferredStockConvertibleConversionPrice_iI_pid_c20230629__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember__us-gaap--SubsidiarySaleOfStockAxis__custom--RegisteredDirectOfferingMember_zJCr6TTQoMe8" title="Preferred stock, convertible, conversion price">1.45</span> per share (the “Conversion Price”), and (ii) warrants to acquire up to an aggregate of <span id="xdx_90B_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_pid_c20230629__us-gaap--ClassOfWarrantOrRightAxis__custom--WarrantsIssuedInRegisteredDirectOfferingMember_z0pKMoxj2mpj" title="Class of warrant or right, number of securities">6,896,553</span> shares of Common Stock (the “Series A Warrants”).</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">Each Series A Warrant has an exercise price of $<span id="xdx_90B_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_pid_c20230629__us-gaap--ClassOfWarrantOrRightAxis__custom--WarrantsIssuedInRegisteredDirectOfferingMember_zGh2uZvPmE88" title="Class of warrant, exercise price">1.45</span> per share, became exercisable after the date that was six months from the date of issuance and will expire <span id="xdx_901_eus-gaap--WarrantsAndRightsOutstandingTerm_iI_dtY_c20230629__us-gaap--ClassOfWarrantOrRightAxis__custom--WarrantsIssuedInRegisteredDirectOfferingMember_zktUIwTlhBaf" title="Warrants and rights outstanding, term">5</span> 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 Series A Offering occurred on July 3, 2023. The aggregate gross proceeds from the Series A Offering were $<span id="xdx_90A_eus-gaap--ProceedsFromIssuanceOrSaleOfEquity_pn3n3_c20230703__20230703__us-gaap--SubsidiarySaleOfStockAxis__custom--RegisteredDirectOfferingMember_zPqrEoBiFon9" title="Proceeds from issuance or sale of equity">10,000</span>, of which $<span id="xdx_90A_eus-gaap--ProceedsFromIssuanceOfWarrants_pn3n3_c20230703__20230703__us-gaap--SubsidiarySaleOfStockAxis__custom--RegisteredDirectOfferingMember_zXnw0wS3CBE8" title="Proceeds from issuance of warrants">7,717</span> was allocated to the Series A Warrants.</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">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 (the “Private Placement”) of an aggregate of <span id="xdx_90C_eus-gaap--SaleOfStockNumberOfSharesIssuedInTransaction_pid_c20250224__20250224__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--PrivatePlacementMember_zXWCTkF01Ej3" title="Private placement, number of shares">3,216,666</span> shares (the “Common Shares”) of Common Stock and accompanying warrants (“PIPE Warrants”) to purchase up to <span id="xdx_906_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_pid_c20250224__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember__us-gaap--StatementEquityComponentsAxis__custom--PIPEWarrantsMember_zQOwXb6UuAd8" title="Warrants to purchase common stock, shares">3,216,666</span> shares of Common Stock, with an exercise price of $<span id="xdx_906_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_pid_c20250224__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember__us-gaap--StatementEquityComponentsAxis__custom--PIPEWarrantsMember_z3UVdnNNMTqa" title="Exercise price">1.80</span> per share. The purchase price for one Common Share and accompanying PIPE Warrant was $<span id="xdx_904_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_pid_c20250224__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember__us-gaap--StatementEquityComponentsAxis__custom--PIPEWarrantsMember_zhOtVHQCMlYd" title="Exercise price">1.80</span>. The gross proceeds to the Company were $<span id="xdx_90D_eus-gaap--ProceedsFromIssuanceOfWarrants_pn3n3_c20250224__20250224__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember__us-gaap--StatementEquityComponentsAxis__custom--PIPEWarrantsMember_zo9Ib9DgtjH" title="Proceeds from issuance of warrants">5,790</span> before estimated offering expenses payable by the Company, of which $<span id="xdx_902_eus-gaap--ProceedsFromIssuanceInitialPublicOffering_pn3n3_c20250224__20250224__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember__us-gaap--StatementEquityComponentsAxis__custom--PIPEWarrantsMember_zphbkrOQ5Thl" title="Proceeds from issuance of public offering">5,185</span> was allocated to the PIPE Warrants.</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p></div><div> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">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-4">six and one-half years</span> from the date of issuance.</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">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-5">five and one-half years</span> from the date of issuance.</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">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. See Footnote 3: Financial Instruments for details of the fair value measurement and impact on the Statement of Operations.</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p><div style="margin: 0in; font-size: 12pt;"><span style="font-size:10.0pt">On August 18, 2025, the Company entered into a securities purchase agreement (the “Series B Purchase Agreement”) with certain accredited investors (collectively, the “Series B Purchasers”) for the issuance and sale in a private placement (the “Series B Private Placement”) of an aggregate of (i) 4,500 shares of the Company’s newly-designated Series B Convertible Preferred Stock, with a par value of $0.0001 per share and a stated value of $1,000 per share, initially convertible into up to 3,000,000 shares of Common Stock, at an initial conversion price of $1.50 per share (the “Series B Preferred Stock”), and (ii) accompanying warrants (“Series B Warrants”) to purchase up to 3,000,000 shares of Common Stock, with an initial exercise price of $1.50 per share. The Series B Warrants and the shares of Series B Preferred Stock will be exercisable or convertible, respectively, into shares of Common Stock (“Series B Conversion Shares”) beginning on the effective date of stockholder approval of (i) under Nasdaq Stock Market Rule 5635(d), the issuance of shares of Common Stock in excess of 19.99% of the Company’s issued and outstanding shares of Common Stock at prices below the “Minimum Price” (as defined in Rule 5635 of the Rules of the Nasdaq Stock Market) on the date of the Series B Purchase Agreement pursuant to the terms of the Series B Preferred Stock and the Series B Warrants, and (ii) an increase in the authorized shares of the Company (the “Series B Stockholder Approval”). As of the date of this Quarterly Report on Form 10-Q, the Company has not obtained the Series B Stockholder Approval. However, the Company plans to hold a special meeting of its stockholders on December 12, 2025, to, among other things, obtain the Series B Stockholder Approval. The Series B Warrants will expire five years from the effective date of the Series B Stockholder Approval.</span></div><div style="margin: 0in; font-size: 12pt;"><span style="font-size:10.0pt"> </span></div></div> 10000 0.0001 1000 6896553 1.45 6896553 1.45 P5Y 10000000 7717000 3216666 3216666 1.8 1.8 5790000 5185000 4500 0.0001 1000 3000000 1.5 3000000 1.5 P5Y <div> <p id="xdx_80E_eus-gaap--LesseeOperatingLeasesTextBlock_z9ZzlBuT1Bk6" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><b>9. <span id="xdx_82E_zTvE6DD3mySk">LEASES</span></b></p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">The Company determines if an arrangement is a lease at inception. The guidance in FASB ASC Topic 842, Leases 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 (“ROU”) 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.</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p></div><div> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">For leases beginning on or after January 1, 2019, lease components are accounted for separately from non-lease components for all asset classes. On January 21, 2023, the Company’s lease was amended to extend the expiration date to July 31, 2025. Upon execution of the amendment, which was deemed a lease modification, the Company reassessed the lease liability using the discount rate determined at the modification date and recorded an additional ROU asset for the same amount. The Company’s lease contains renewal provisions and escalating rental clauses and generally requires the Company to pay utilities, insurance, taxes and other operating expenses. The renewal provisions of the existing lease agreement were not included in the determination of the operating lease liabilities and the ROU assets. The Company also reassessed the lease classification and concluded that the lease continues to be an operating lease.</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">Amortization expense was $76 and $204 for the three and nine months ended September 30, 2025, respectively, and $<span id="xdx_906_eus-gaap--OperatingLeaseRightOfUseAssetAmortizationExpense_pn3n3_c20240401__20240630_zthv5t7qj7mi" title="Operating lease, right-of-use asset">74</span> and $217 for the three and nine months ended September 30, 2024, respectively. Operating lease expense for capitalized operating leases included in operating activities was $154 and $463 for the three and nine months ended September 30, 2025, respectively, and $<span id="xdx_90F_eus-gaap--OperatingLeaseCost_pn3n3_c20240401__20240630_zin8eU5SvtQa" title="Operating lease expense for capitalized operating leases">154</span> and $<span id="xdx_90E_eus-gaap--OperatingLeaseCost_pn3n3_c20240101__20240630_zoIZCfrGc5c6" title="Operating lease expense for capitalized operating leases">463</span> for the three months and nine months ended September 30, 2024, respectively.</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p id="xdx_89F_ecustom--LesseeOperatingLeaseDisclosureTableTextBlock_zqRLSAAb8ma5" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">Operating lease obligations recorded on the balance sheet at September 30, 2025 are:</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"> <span id="xdx_8B8_zsredrK4Lttl" style="display: none">SCHEDULE OF OPERATING LEASE OBLIGATIONS</span></p> <table cellpadding="0" class="worksheetTable" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr style="height: 0px; font-size: 0px;"><td style="width: 89%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="vertical-align: bottom;">Operating lease liability - short term</td><td style="width: 1%; text-align: left;" title="Recon - FN 9 - Lease Reconciliation with life 06.30.25 - B81">$</td><td style="width: 9%; text-align: right;">305</td><td style="width: 1%; text-align: left;" title="Recon - FN 9 - Lease Reconciliation with life 06.30.25 - B81"> </td></tr><tr><td style="vertical-align: bottom;">Operating lease liability - long term</td><td style="width: 1%; text-align: left; border-top: none; border-left: none; border-right: none; border-bottom: 1px solid black;" title="Recon - FN 9 - Lease Reconciliation with life 06.30.25 - B82"> </td><td style="width: 9%; text-align: right; border-left: none; border-right: none; border-bottom: 1px solid black; border-top: none;">2,186</td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-left: none; border-right: none;" title="Recon - FN 9 - Lease Reconciliation with life 06.30.25 - B82"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="vertical-align: bottom;">Total Operating Lease Liability</td><td style="width: 1%; text-align: left; border-top: none; border-left: none; border-right: none;" title="Recon - FN 9 - Lease Reconciliation with life 06.30.25 - B83">$</td><td style="width: 9%; text-align: right; border-left: none; border-right: none; vertical-align: bottom;">2,491</td><td style="width: 1%; text-align: left; border-bottom: none; border-left: none; border-right: none;" title="Recon - FN 9 - Lease Reconciliation with life 06.30.25 - B83"> </td></tr></table><p id="xdx_890_eus-gaap--LesseeOperatingLeaseLiabilityMaturityTableTextBlock_zn2DEV9Gp6vi" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p><p id="xdx_890_eus-gaap--LesseeOperatingLeaseLiabilityMaturityTableTextBlock_zn2DEV9Gp6vi-0" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">Future lease payments included in the measurement of lease liabilities on the balance sheet at September 30, 2025 for future periods are as follows:</p><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <table cellpadding="0" class="worksheetTable" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr style="height: 0px; font-size: 0px;"><td style="width: 89%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td></tr><tr style="height: 0px; font-size: 0px;"><td></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td></tr><tr style="height: 0px; font-size: 0px;"><td></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td></tr><tr style="background-color: rgb(204, 238, 255);"><td>2025 (3 months)</td><td style="width: 1%; text-align: left;" title="Recon - FN 9 - Lease Reconciliation with life 06.30.25 - B86">$</td><td style="width: 9%; text-align: right;">155</td><td style="width: 1%; text-align: left;" title="Recon - FN 9 - Lease Reconciliation with life 06.30.25 - B86"> </td></tr><tr><td style="text-align: left;">2026</td><td style="width: 1%; text-align: left;" title="Recon - FN 9 - Lease Reconciliation with life 06.30.25 - B87"> </td><td style="width: 9%; text-align: right;">627</td><td style="width: 1%; text-align: left;" title="Recon - FN 9 - Lease Reconciliation with life 06.30.25 - B87"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="text-align: left;">2027</td><td style="width: 1%; text-align: left;" title="Recon - FN 9 - Lease Reconciliation with life 06.30.25 - B88"> </td><td style="width: 9%; text-align: right;">642</td><td style="width: 1%; text-align: left;" title="Recon - FN 9 - Lease Reconciliation with life 06.30.25 - B88"> </td></tr><tr><td style="text-align: left;">2028</td><td style="width: 1%; text-align: left;" title="Recon - FN 9 - Lease Reconciliation with life 06.30.25 - B89"> </td><td style="width: 9%; text-align: right;">658</td><td style="width: 1%; text-align: left;" title="Recon - FN 9 - Lease Reconciliation with life 06.30.25 - B89"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="text-align: left;">2029</td><td style="width: 1%; text-align: left;" title="Recon - FN 9 - Lease Reconciliation with life 06.30.25 - B90"> </td><td style="width: 9%; text-align: right;">674</td><td style="width: 1%; text-align: left;" title="Recon - FN 9 - Lease Reconciliation with life 06.30.25 - B90"> </td></tr><tr><td>Thereafter</td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none; border-left: none;" title="Recon - FN 9 - Lease Reconciliation with life 06.30.25 - B91"> </td><td style="width: 9%; text-align: right; border-bottom: 1px solid black; border-top: none;">813</td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none;" title="Recon - FN 9 - Lease Reconciliation with life 06.30.25 - B91"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Total future minimum lease payments</td><td style="width: 1%; text-align: left;" title="Recon - FN 9 - Lease Reconciliation with life 06.30.25 - B92">$</td><td style="width: 9%; text-align: right;">3,569</td><td style="width: 1%; text-align: left;" title="Recon - FN 9 - Lease Reconciliation with life 06.30.25 - B92"> </td></tr><tr><td>Less imputed interest</td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none;" title="Recon - FN 9 - Lease Reconciliation with life 06.30.25 - B93"> </td><td style="width: 9%; text-align: right; border-bottom: 1px solid black; border-top: none;">(1,078</td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none; border-right: none;" title="Recon - FN 9 - Lease Reconciliation with life 06.30.25 - B93">) </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Total</td><td style="width: 1%; text-align: left; border-bottom: 3px double black; border-top: none; border-left: none; border-right: none;" title="Recon - FN 9 - Lease Reconciliation with life 06.30.25 - B94">$</td><td style="width: 9%; text-align: right; border-bottom: 3px double black; border-top: none; border-left: none; border-right: none;">2,491</td><td style="width: 1%; text-align: left; border-bottom: 3px double black; border-top: none; border-left: none; border-right: none;" title="Recon - FN 9 - Lease Reconciliation with life 06.30.25 - B94"> </td></tr></table><p id="xdx_8AD_zNrL2X5DtjEf" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">The weighted average remaining lease term is <span id="xdx_900_eus-gaap--OperatingLeaseWeightedAverageRemainingLeaseTerm1_iI_dtY_c20250630_zYg38xPGnKbf" title="Operating lease, weighted average remaining lease term">5.37</span> years, and the weighted average discount rate is <span id="xdx_901_eus-gaap--OperatingLeaseWeightedAverageDiscountRatePercent_iI_pid_dp_uPure_c20250630_z7orZm2zTRZ6" title="Operating lease, weighted average discount rate, percent">13.50</span>%<b>.</b></p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">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 had $2 and $<span id="xdx_907_eus-gaap--VariableLeaseCost_pn3n3_c20250101__20250630_zM1PNdbTGxdl" title="Variable lease, cost">33</span> variable lease expenses for the three and nine months ended September 30, 2025, respectively, and $23 and $41 variable lease expenses for the three and nine months ended September 30, 2024, respectively.</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">The Company had no short-term lease expenses for the three and nine months ended September 30, 2025, respectively, and had $1 and $<span id="xdx_908_eus-gaap--ShortTermLeaseCost_pn3n3_c20240101__20240630_z50IAcOXPX7f" title="Short-term lease, cost">16</span> in short-term lease expenses for the three and nine months ended September 30, 2024, respectively. The Company does not have any finance leases.</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> <br/> </p></div> 76000 204000 74000 217000 154000 463000 154000 463000 <p id="xdx_89F_ecustom--LesseeOperatingLeaseDisclosureTableTextBlock_zqRLSAAb8ma5" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">Operating lease obligations recorded on the balance sheet at September 30, 2025 are:</p><table cellpadding="0" class="worksheetTable" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr style="height: 0px; font-size: 0px;"><td style="width: 89%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="vertical-align: bottom;">Operating lease liability - short term</td><td style="width: 1%; text-align: left;" title="Recon - FN 9 - Lease Reconciliation with life 06.30.25 - B81">$</td><td style="width: 9%; text-align: right;">305</td><td style="width: 1%; text-align: left;" title="Recon - FN 9 - Lease Reconciliation with life 06.30.25 - B81"> </td></tr><tr><td style="vertical-align: bottom;">Operating lease liability - long term</td><td style="width: 1%; text-align: left; border-top: none; border-left: none; border-right: none; border-bottom: 1px solid black;" title="Recon - FN 9 - Lease Reconciliation with life 06.30.25 - B82"> </td><td style="width: 9%; text-align: right; border-left: none; border-right: none; border-bottom: 1px solid black; border-top: none;">2,186</td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-left: none; border-right: none;" title="Recon - FN 9 - Lease Reconciliation with life 06.30.25 - B82"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="vertical-align: bottom;">Total Operating Lease Liability</td><td style="width: 1%; text-align: left; border-top: none; border-left: none; border-right: none;" title="Recon - FN 9 - Lease Reconciliation with life 06.30.25 - B83">$</td><td style="width: 9%; text-align: right; border-left: none; border-right: none; vertical-align: bottom;">2,491</td><td style="width: 1%; text-align: left; border-bottom: none; border-left: none; border-right: none;" title="Recon - FN 9 - Lease Reconciliation with life 06.30.25 - B83"> </td></tr></table> 305000 2186000 2491000 <p id="xdx_890_eus-gaap--LesseeOperatingLeaseLiabilityMaturityTableTextBlock_zn2DEV9Gp6vi-0" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">Future lease payments included in the measurement of lease liabilities on the balance sheet at September 30, 2025 for future periods are as follows:</p><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <table cellpadding="0" class="worksheetTable" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr style="height: 0px; font-size: 0px;"><td style="width: 89%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td></tr><tr style="height: 0px; font-size: 0px;"><td></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td></tr><tr style="height: 0px; font-size: 0px;"><td></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td></tr><tr style="background-color: rgb(204, 238, 255);"><td>2025 (3 months)</td><td style="width: 1%; text-align: left;" title="Recon - FN 9 - Lease Reconciliation with life 06.30.25 - B86">$</td><td style="width: 9%; text-align: right;">155</td><td style="width: 1%; text-align: left;" title="Recon - FN 9 - Lease Reconciliation with life 06.30.25 - B86"> </td></tr><tr><td style="text-align: left;">2026</td><td style="width: 1%; text-align: left;" title="Recon - FN 9 - Lease Reconciliation with life 06.30.25 - B87"> </td><td style="width: 9%; text-align: right;">627</td><td style="width: 1%; text-align: left;" title="Recon - FN 9 - Lease Reconciliation with life 06.30.25 - B87"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="text-align: left;">2027</td><td style="width: 1%; text-align: left;" title="Recon - FN 9 - Lease Reconciliation with life 06.30.25 - B88"> </td><td style="width: 9%; text-align: right;">642</td><td style="width: 1%; text-align: left;" title="Recon - FN 9 - Lease Reconciliation with life 06.30.25 - B88"> </td></tr><tr><td style="text-align: left;">2028</td><td style="width: 1%; text-align: left;" title="Recon - FN 9 - Lease Reconciliation with life 06.30.25 - B89"> </td><td style="width: 9%; text-align: right;">658</td><td style="width: 1%; text-align: left;" title="Recon - FN 9 - Lease Reconciliation with life 06.30.25 - B89"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="text-align: left;">2029</td><td style="width: 1%; text-align: left;" title="Recon - FN 9 - Lease Reconciliation with life 06.30.25 - B90"> </td><td style="width: 9%; text-align: right;">674</td><td style="width: 1%; text-align: left;" title="Recon - FN 9 - Lease Reconciliation with life 06.30.25 - B90"> </td></tr><tr><td>Thereafter</td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none; border-left: none;" title="Recon - FN 9 - Lease Reconciliation with life 06.30.25 - B91"> </td><td style="width: 9%; text-align: right; border-bottom: 1px solid black; border-top: none;">813</td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none;" title="Recon - FN 9 - Lease Reconciliation with life 06.30.25 - B91"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Total future minimum lease payments</td><td style="width: 1%; text-align: left;" title="Recon - FN 9 - Lease Reconciliation with life 06.30.25 - B92">$</td><td style="width: 9%; text-align: right;">3,569</td><td style="width: 1%; text-align: left;" title="Recon - FN 9 - Lease Reconciliation with life 06.30.25 - B92"> </td></tr><tr><td>Less imputed interest</td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none;" title="Recon - FN 9 - Lease Reconciliation with life 06.30.25 - B93"> </td><td style="width: 9%; text-align: right; border-bottom: 1px solid black; border-top: none;">(1,078</td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none; border-right: none;" title="Recon - FN 9 - Lease Reconciliation with life 06.30.25 - B93">) </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Total</td><td style="width: 1%; text-align: left; border-bottom: 3px double black; border-top: none; border-left: none; border-right: none;" title="Recon - FN 9 - Lease Reconciliation with life 06.30.25 - B94">$</td><td style="width: 9%; text-align: right; border-bottom: 3px double black; border-top: none; border-left: none; border-right: none;">2,491</td><td style="width: 1%; text-align: left; border-bottom: 3px double black; border-top: none; border-left: none; border-right: none;" title="Recon - FN 9 - Lease Reconciliation with life 06.30.25 - B94"> </td></tr></table> 155000 627000 642000 658000 674000 813000 3569000 1078000 2491000 P5Y4M13D 0.135 2000 33000 23000 41000 0 0 1000 16000 <div> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"> </p> <p id="xdx_80A_eus-gaap--StockholdersEquityNoteDisclosureTextBlock_zIqtcRNg1kO7" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><b>10. <span id="xdx_827_zr8JJlKe54Vb">STOCKHOLDERS’ EQUITY</span></b></p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">The Company’s authorized capital consists of <span id="xdx_90B_eus-gaap--CommonStockSharesAuthorized_iI_pid_c20250630_z7mpo1I2Gncd" title="Common stock, shares authorized">150,000,000</span> shares of Common Stock and <span id="xdx_90B_eus-gaap--PreferredStockSharesAuthorized_iI_pid_c20250630_zjijDrvOwFB4" title="Preferred stock, shares authorized">5,000,000</span> shares of preferred stock, par value $<span id="xdx_90D_eus-gaap--PreferredStockParOrStatedValuePerShare_iI_c20250630_zLvoJ4Ddlxtd" title="Preferred stock, par value">0.0001</span> per share (“Preferred Stock”), of which <span id="xdx_90B_eus-gaap--PreferredStockSharesAuthorized_iI_pid_c20250630__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_zQRGjqdXQUb8" title="Preferred stock, shares authorized">10,000</span> and 4,500 are designated as Series A and Series B Preferred Stock, respectively.</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: italic 10pt &quot;Times New Roman&quot;; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-decoration: underline;">Series A Preferred Stock</p><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">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 <span id="xdx_905_eus-gaap--PreferredStockSharesAuthorized_iI_pid_c20230703__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_zY6bmbRO82fe" title="Preferred stock, shares authorized">10,000</span> 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 $<span id="xdx_90D_eus-gaap--PreferredStockConvertibleConversionPrice_iI_pid_uUSDPShares_c20230703__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_z3SPNsxzb8yf" title="Conversion price">1.45</span> (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).</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">The holders of the Series A Preferred Stock are entitled to dividends of <span id="xdx_90C_eus-gaap--PreferredStockDividendRatePercentage_pid_dp_uPure_c20230703__20230703__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_zRDW1u7sgrz6" title="Dividend rate, percentage">8</span>% 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 <span id="xdx_902_eus-gaap--PreferredStockDividendRatePercentage_pid_dp_uPure_c20230703__20230703__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember__srt--StatementScenarioAxis__custom--PostTriggeringEventMember_zP8TBxw5bnK6" title="Dividend rate, percentage">20</span>% per annum. If the Company elects to pay any dividends in shares of Common Stock, <span id="xdx_90D_eus-gaap--CommonStockConversionFeatures_c20230703__20230703_zZ8VPhyRMTp2" title="Conversion description">the Conversion Price used to calculate the number of shares issuable will be 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></p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">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) $<span id="xdx_900_eus-gaap--CommonStockConvertibleConversionPriceDecrease_pid_uUSDPShares_c20240819__20240819_z9Iyn4VfZp11" title="Common stock conversion price">1.00</span> 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.</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p></div><div> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">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 $<span id="xdx_900_ecustom--PreferredStockConvertibleSharePriceThreshold_iI_pid_uUSDPShares_c20240819__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_zJMC5ze384xc" title="Preferred stock conversion price exceeds">8.00</span> 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 $<span id="xdx_90A_ecustom--PreferredStockConvertibleTradingVolumeThreshold_iI_pn3n3_c20240819__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_zJaCVq5QwLve" title="Preferred stock, consecutive trading amount">2,000,000</span> per day during the same period, provided that certain equity conditions described in the Certificate of Designations are satisfied.</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p></div><div> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">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, <span id="xdx_903_eus-gaap--PreferredStockRedemptionTerms_c20240819__20240819__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_zYZXGx1UXpj8" title="Preferred stock, redemption price description">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></p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><span id="xdx_903_eus-gaap--PreferredStockRedemptionTerms_c20240819__20240819__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_zYZXGx1UXpj8-1" title="Preferred stock, redemption price description"> </span> </p> <p style="font: 10pt 'Times New Roman'; text-align: justify; margin-top: 0pt; margin-bottom: 0pt;"> </p> <p style="font: 10pt 'Times New Roman'; text-align: justify; margin-top: 0pt; margin-bottom: 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 $<span id="xdx_905_eus-gaap--PreferredStockConvertibleConversionPrice_iI_pid_uUSDPShares_c20241014__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_z1fIaXzHvoJg" title="Preferred stock conversion price">1.414</span> 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.</p><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">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 <span id="xdx_90F_eus-gaap--PreferredStockDividendRatePercentage_pid_dp_uPure_c20241125__20241125__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember__srt--StatementScenarioAxis__custom--PostTriggeringEventMember_z39w9QUSKAKe" title="Dividend rate, percentage">20</span>% per annum. The Certificate of Amendment became effective with the Secretary of State on December 6, 2024.</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">At the time of issuance, $<span id="xdx_90B_eus-gaap--ProceedsFromIssuanceOfPreferredStockAndPreferenceStock_pn3n3_c20250101__20250630__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_zqil8yC68Sl" title="Net proceeds">2,036</span> of the net proceeds less transaction cost of the Series A Purchase Agreement was allocated to the <span id="xdx_908_eus-gaap--SharesIssued_iI_pid_c20250630__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_znuZr11GpIuc" title="Shares issued">10,000</span> shares of Series A Preferred Stock initially issued. As of December 31, 2024, a total of <span id="xdx_902_eus-gaap--ConversionOfStockSharesConverted1_pid_c20240101__20241231__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_zfCaecMtJWG4" title="Converted shares of common stock">1,793</span> shares of Series A Preferred Stock were converted into approximately <span id="xdx_907_eus-gaap--ConversionOfStockSharesConverted1_pid_c20240101__20241231__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zyu0k9U96Tx" title="Converted shares of common stock">1,468,000</span> shares of Common Stock. There were <span id="xdx_90A_eus-gaap--ConversionOfStockSharesConverted1_pid_do_c20250101__20250630__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zaYDpUiXUEJi" title="Converted shares of common stock">no</span> additional conversions in the nine months ended September 30, 2025. As of September 30, 2025, the Company has authorized, declared and paid $492 in dividends in the form of shares of the Company’s Common Stock during the nine months ended September 30, 2025. For the nine months ended September 30, 2024, authorized and declared dividends totaling $1,017, of which $<span id="xdx_904_eus-gaap--DividendsPreferredStockCash_pn3n3_c20240101__20240630__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_zaJOVwcGyWx7" title="Dividends preferred stock cash">60</span> was paid in cash, $<span id="xdx_900_eus-gaap--DividendsCommonStockStock_pn3n3_c20240101__20240630__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_zTyMW2woBNf8" title="Dividends settled with common stock">129</span> was paid in shares of the Company’s Common Stock.</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"> </p></div><div><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><i><span style="text-decoration:underline">Series B Preferred Stock</span></i></p><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"> </p><p style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-size-adjust: none; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-variant-emoji: normal; font-stretch: normal; line-height: normal; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">On August 18, 2025, the Company entered into the Series B Purchase Agreement with the Series B Purchasers 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. The Series B Warrants and the shares of Series B Preferred Stock will be exercisable or convertible, respectively, into shares of Common Stock beginning on the effective date of stockholder approval of (i) under Nasdaq Stock Market Rule 5635(d), the issuance of shares of Common Stock in excess of 19.99% of the Company’s issued and outstanding shares of Common Stock at prices below the “Minimum Price” (as defined in Rule 5635 of the Rules of the Nasdaq Stock Market) on the date of the Series B Purchase Agreement pursuant to the terms of the Series B Preferred Stock and the Series B Warrants, and (ii) an increase in the authorized shares of the Company. As of the date of this Quarterly Report on Form 10-Q, the Company has not obtained the Series B Stockholder Approval. However, the Company plans to hold a special meeting of its stockholders on December 12, 2025, to, among other things, obtain the Series B Stockholder Approval. The Series B Warrants will expire five years from the effective date of the Series B Stockholder Approval. </p><p style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-size-adjust: none; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-variant-emoji: normal; font-stretch: normal; line-height: normal; margin-top: 0pt; margin-bottom: 0pt;"> </p></div><div><p style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-size-adjust: none; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-variant-emoji: normal; font-stretch: normal; line-height: normal; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> 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. The conversion price is subject to customary adjustments for stock dividends, stock splits, reclassifications, stock combinations and the like (subject to certain exceptions). </p><p style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-size-adjust: none; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-variant-emoji: normal; font-stretch: normal; line-height: normal; margin-top: 0pt; margin-bottom: 0pt;"> </p><p style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-size-adjust: none; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-variant-emoji: normal; font-stretch: normal; line-height: normal; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> Holders of the Series B Preferred Stock shall be entitled to receive dividends when and as declared by the Board, from time to time, in its sole discretion, which dividends will be paid by the Company out of funds legally available therefor, payable, subject to the conditions and other terms of the Series B Certificate of Designations, in cash, in securities of the Company or using assets as determined by the Board on the stated value of such Series B Preferred Stock. </p><p style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-size-adjust: none; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-variant-emoji: normal; font-stretch: normal; line-height: normal; margin-top: 0pt; margin-bottom: 0pt;"> </p><p style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-size-adjust: none; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-variant-emoji: normal; font-stretch: normal; line-height: normal; margin-top: 0pt; margin-bottom: 0pt;"> Except as otherwise provided in the Series B Certificate of Designations or as otherwise required by law, the Series B Preferred Stock has no voting rights. However, as long as any shares of Series B Preferred Stock are outstanding, the Company shall not, without the affirmative vote of the holders of Series B Preferred Stock of a majority of the then outstanding shares of the Series B Preferred Stock, (a) alter or change adversely the powers, preferences or rights given to the of the Series B Preferred Stock or alter or amend the Series B Certificate of Designations, (b) amend its certificate of incorporation or other charter documents in any manner that adversely affects any rights of the holders of Series B Preferred Stock, (c) increase the number of authorized shares of the Series B Preferred Stock, or (d) enter into any agreement with respect to any of the foregoing. </p><p style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-size-adjust: none; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-variant-emoji: normal; font-stretch: normal; line-height: normal; margin-top: 0pt; margin-bottom: 0pt;"> </p><p style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-size-adjust: none; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-variant-emoji: normal; font-stretch: normal; line-height: normal; margin-top: 0pt; margin-bottom: 0pt;"> There is no established public trading market for the Series B Preferred Stock and the Company does not intend to list the Series B Preferred Stock on any national securities exchange or nationally recognized trading system.</p><p style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-size-adjust: none; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-variant-emoji: normal; font-stretch: normal; line-height: normal; margin-top: 0pt; margin-bottom: 0pt;"> </p></div> 150000000 5000000 0.0001 10000 4500 10000 1.45 0.08 0.20 0.85 P20D 0.2828 1 0.80 8 P20D 2000000000 P18M 1.25 1.414 0.20 2036000 10000 1793 1468000 0 492000 1017000 60000 129000 4500 3000000 1.5 3000000 1.5 19.99 P5Y 1.5 <div> <p id="xdx_808_eus-gaap--DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock_zz2cii5QLn5a" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><b>11. <span id="xdx_825_z6m0XaeclZqe">SHARE-BASED COMPENSATION</span></b></p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">On March 28, 2017<i>,</i> the Company adopted, and the Company’s stockholders approved, the Wrap Technologies, Inc. 2017 Equity Incentive Plan (the “2017 Plan”), which was adopted by the Board on November 12, 2024, subject to stockholder approval. Under the 2017 Plan as originally adopted, the Company initially reserved <span id="xdx_90E_eus-gaap--SharesIssued_iI_pid_c20170328__us-gaap--PlanNameAxis__custom--TwoThousandSeventeenStockIncentivePlanMember_z43mbUOQL44c" title="Number if shares, issued">2,000,000</span> 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 <span id="xdx_90D_eus-gaap--SharesIssued_iI_pid_c20170328__us-gaap--PlanNameAxis__custom--TwoThousandSeventeenStockIncentivePlanMember__us-gaap--AwardTypeAxis__custom--FirstAmendmentMember_zuLclsFULqcd" title="Number if shares, issued">4,100,000</span> 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 <span id="xdx_90B_eus-gaap--SharesIssued_iI_pid_c20170328__us-gaap--PlanNameAxis__custom--TwoThousandSeventeenStockIncentivePlanMember__us-gaap--AwardTypeAxis__custom--SecondAmendmentMember_zY5UmGJwJAlb" title="Number if shares, issued">6,000,000</span> 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 <span id="xdx_907_eus-gaap--SharesIssued_iI_pid_c20170328__us-gaap--PlanNameAxis__custom--TwoThousandSeventeenStockIncentivePlanMember__us-gaap--AwardTypeAxis__custom--ThirdAmendmentMember_zQW911UJVYvf" title="Number if shares, issued">7,500,000</span> 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 <span id="xdx_90B_eus-gaap--SharesIssued_iI_pid_c20170328__us-gaap--PlanNameAxis__custom--TwoThousandSeventeenStockIncentivePlanMember__us-gaap--AwardTypeAxis__custom--FourthAmendmentMember_zOXblboAOB3l" title="Number if shares, issued">9,000,000</span> 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 <span id="xdx_908_eus-gaap--SharesIssued_iI_pid_c20170328__us-gaap--PlanNameAxis__custom--TwoThousandSeventeenStockIncentivePlanMember__us-gaap--AwardTypeAxis__custom--FifthAmendmentMember_z0ja6UzsXOM8" title="Number if shares, issued">16,500,000</span> shares which was adopted by the Board on November 12, 2024, and by our stockholders on December 23, 2024.</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"> </p></div><div> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;">As of September 30, 2025, there were <span id="xdx_90B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAvailableForGrant_iI_pid_c20250630__us-gaap--PlanNameAxis__custom--TwoThousandSeventeenStockIncentivePlanMember_zNvGOnnPQaX" title="Shares of common stock remaining available for grant">4,654,885</span> shares of Common Stock remaining available for grant under the 2017 Plan.</p><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><span style="text-decoration: underline">Stock Options</span></p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p id="xdx_899_eus-gaap--ScheduleOfShareBasedCompensationStockOptionsActivityTableTextBlock_zQKS9NuvgsVk" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">The following table summarizes stock option activity for the nine months ended September 30, 2025:</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> <span id="xdx_8B9_zrolGS3h8LVj" style="display: none">SCHEDULE OF STOCK OPTION ACTIVITY</span></p> <table cellpadding="0" class="worksheetTable" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr><td> </td><td> </td><td style="width: 1%;" title="FN11 - D5"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="FN11 - D5"> </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;">Weighted Average</td><td> </td><td style="width: 1%;" title="FN11 - J5"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="FN11 - J5"> </td></tr><tr><td> </td><td> </td><td style="width: 1%; border-width: initial; border-style: none; border-color: initial;" title="FN11 - D6"> </td><td style="width: 9%; text-align: center; font-weight: bold; border-width: initial; border-style: none; border-color: initial;">Options on</td><td style="width: 1%; border-width: initial; border-style: none; border-color: initial;" title="FN11 - D6"> </td><td> </td><td style="width: 1%; border-width: initial; border-style: none; border-color: initial;" title="FN11 - F6"> </td><td style="width: 9%; text-align: center; font-weight: bold; border-width: initial; border-style: none; border-color: initial;"></td><td style="width: 1%; border-width: initial; border-style: none; border-color: initial;" title="FN11 - F6"> </td><td> </td><td style="width: 1%; border-width: initial; border-style: none; border-color: initial;" title="FN11 - H6"> </td><td style="width: 9%; text-align: center; font-weight: bold; border-width: initial; border-style: none; border-color: initial;">Remaining </td><td style="width: 1%; border-width: initial; border-style: none; border-color: initial;" title="FN11 - H6"> </td><td> </td><td style="width: 1%; border-width: initial; border-style: none; border-color: initial;" title="FN11 - J6"> </td><td style="width: 9%; text-align: center; font-weight: bold; border-width: initial; border-style: none; border-color: initial;">Aggregate</td><td style="width: 1%; border-width: initial; border-style: none; border-color: initial;" title="FN11 - J6"> </td></tr><tr><td> </td><td> </td><td style="width: 1%; border-width: initial; border-style: none; border-color: initial;" title="FN11 - D6"> </td><td style="width: 9%; text-align: center; font-weight: bold; border-width: initial; border-style: none; border-color: initial;"> Common</td><td style="width: 1%; border-width: initial; border-style: none; border-color: initial;" title="FN11 - D6"> </td><td> </td><td style="width: 1%; border-width: initial; border-style: none; border-color: initial;" title="FN11 - F6"> </td><td style="width: 9%; text-align: center; font-weight: bold; border-width: initial; border-style: none; border-color: initial;">Exercise </td><td style="width: 1%; border-width: initial; border-style: none; border-color: initial;" title="FN11 - F6"> </td><td> </td><td style="width: 1%; border-width: initial; border-style: none; border-color: initial;" title="FN11 - H6"> </td><td style="width: 9%; text-align: center; font-weight: bold; border-width: initial; border-style: none; border-color: initial;">Contractual</td><td style="width: 1%; border-width: initial; border-style: none; border-color: initial;" title="FN11 - H6"> </td><td> </td><td style="width: 1%; border-width: initial; border-style: none; border-color: initial;" title="FN11 - J6"> </td><td style="width: 9%; text-align: center; font-weight: bold; border-width: initial; border-style: none; border-color: initial;"> Intrinsic </td><td style="width: 1%; border-width: initial; border-style: none; border-color: initial;" title="FN11 - J6"> </td></tr><tr><td> </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="FN11 - D6"> </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;"> Shares</td><td style="width: 1%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN11 - D6"> </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="FN11 - F6"> </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;">Price</td><td style="width: 1%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN11 - F6"> </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="FN11 - H6"> </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;"> Term</td><td style="width: 1%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN11 - H6"> </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="FN11 - J6"> </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;">Value</td><td style="width: 1%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN11 - J6"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Outstanding January 1, 2025</td><td> </td><td style="width: 1%; text-align: left;" title="FN11 - D7"> </td><td style="width: 9%; text-align: right;">3,944,284</td><td style="width: 1%; text-align: left;" title="FN11 - D7"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN11 - F7">$</td><td style="width: 9%; text-align: right;">2.12</td><td style="width: 1%; text-align: left;" title="FN11 - F7"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN11 - H7"> </td><td style="width: 9%; text-align: right;">8.30</td><td style="width: 1%; text-align: left;" title="FN11 - H7"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN11 - J7">$</td><td style="width: 9%; text-align: right;">1,486</td><td style="width: 1%; text-align: left;" title="FN11 - J7"> </td></tr><tr><td style="padding-left: 10px;"> Granted</td><td> </td><td style="width: 1%; text-align: left;" title="FN11 - D8"> </td><td style="width: 9%; text-align: right;">4,113,927</td><td style="width: 1%; text-align: left;" title="FN11 - D8"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN11 - F8"> </td><td style="width: 9%; text-align: right;">1.82</td><td style="width: 1%; text-align: left;" title="FN11 - F8"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN11 - H8"> </td><td style="width: 9%; text-align: right;">-</td><td style="width: 1%; text-align: left;" title="FN11 - H8"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN11 - J8"> </td><td style="width: 9%; text-align: right;">-</td><td style="width: 1%; text-align: left;" title="FN11 - J8"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="padding-left: 10px;"> Exercised</td><td> </td><td style="width: 1%; text-align: left;" title="FN11 - D9"> </td><td style="width: 9%; text-align: right;">-</td><td style="width: 1%; text-align: left;" title="FN11 - D9"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN11 - F9"> </td><td style="width: 9%; text-align: right;">-</td><td style="width: 1%; text-align: left;" title="FN11 - F9"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN11 - H9"> </td><td style="width: 9%; text-align: right;">-</td><td style="width: 1%; text-align: left;" title="FN11 - H9"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN11 - J9"> </td><td style="width: 9%; text-align: right;">-</td><td style="width: 1%; text-align: left;" title="FN11 - J9"> </td></tr><tr><td style="padding-left: 10px;">Forfeited, cancelled, expired</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="FN11 - D10"> </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;">(2,024,762</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="FN11 - D10">) </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="FN11 - F10"> </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;">5.21</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="FN11 - F10"> </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="FN11 - H10"> </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="FN11 - H10"> </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="FN11 - J10"> </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="FN11 - J10"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Outstanding September 30, 2025</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="FN11 - D11"> </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;">6,033,449</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="FN11 - D11"> </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="FN11 - F11">$</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;">1.91</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="FN11 - F11"> </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="FN11 - H11"> </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;">8.38</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;" title="FN11 - H11"> </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="FN11 - J11">$</td><td style="width: 9%; text-align: right; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">3,541</td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN11 - J11"> </td></tr><tr><td>Exercisable September 30, 2025</td><td> </td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN11 - D12"> </td><td style="width: 9%; text-align: right; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">1,625,078</td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN11 - D12"> </td><td> </td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN11 - F12">$</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;">2.43</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="FN11 - F12"> </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="FN11 - H12"> </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;">6.56</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="FN11 - H12"> </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="FN11 - J12">$</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;">856</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="FN11 - J12"> </td></tr></table><p id="xdx_8A9_zPezSlskSJSe" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p></div><div><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">As of September 30, 2025, there were 4,743,283 service-based stock options outstanding, and <span id="xdx_90F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iI_pid_c20250630__us-gaap--AwardTypeAxis__custom--PerformanceBasedOptionsMember__us-gaap--PlanNameAxis__custom--TwoThousandSeventeenStockIncentivePlanMember_zoD6nF4hS9hb" title="Number of stock options">1,290,166</span> 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.</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p id="xdx_89C_eus-gaap--ScheduleOfShareBasedPaymentAwardStockOptionsValuationAssumptionsTableTextBlock_zoa74hkT8rkk" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">The Company uses the Black-Scholes option pricing model to determine the fair value of the service-based options that have been granted. The following table summarizes the assumptions used to compute the fair value of options granted to employees and non-employees:</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> <span id="xdx_8B2_zmFsQMJ3Zfhc" style="display: none">SCHEDULE OF STOCK OPTION ACTIVITY, FAIR VALUE OF ASSUMPTIONS</span></p> <table cellpadding="0" class="worksheetTable" 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: 76%;"></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; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">For the Nine Months Ended September 30,</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="FN11 - D21"> </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%;">2025</td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%;" title="FN11 - D21"> </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="FN11 - F21"> </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="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%;" title="FN11 - F21"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Expected stock price volatility</td><td> </td><td style="width: 1%; text-align: left;" title="FN11 - D22"> </td><td style="width: 9%; text-align: right;">76</td><td style="width: 1%; text-align: left;" title="FN11 - D22">%</td><td> </td><td style="width: 1%; text-align: left;" title="FN11 - F22"> </td><td style="width: 9%; text-align: right;">76</td><td style="width: 1%; text-align: left;" title="FN11 - F22">%</td></tr><tr><td>Risk-free interest rate</td><td> </td><td style="width: 1%; text-align: left;" title="FN11 - D23"> </td><td style="width: 9%; text-align: right;">3.87</td><td style="width: 1%; text-align: left;" title="FN11 - D23">%</td><td> </td><td style="width: 1%; text-align: left;" title="FN11 - F23"> </td><td style="width: 9%; text-align: right;">3.79</td><td style="width: 1%; text-align: left;" title="FN11 - F23">%</td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Expected dividend yield</td><td> </td><td style="width: 1%; text-align: left;" title="FN11 - D24"> </td><td style="width: 9%; text-align: right;">0</td><td style="width: 1%; text-align: left;" title="FN11 - D24">%</td><td> </td><td style="width: 1%; text-align: left;" title="FN11 - F24"> </td><td style="width: 9%; text-align: right;">0</td><td style="width: 1%; text-align: left;" title="FN11 - F24">%</td></tr><tr><td>Expected life of options</td><td> </td><td style="width: 1%; text-align: left;" title="FN11 - D25"> </td><td style="width: 9%; text-align: right;">6</td><td style="width: 1%; text-align: left;" title="FN11 - D25"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN11 - F25"> </td><td style="width: 9%; text-align: right;">6</td><td style="width: 1%; text-align: left;" title="FN11 - F25"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Weighted-average fair value of options granted</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="FN11 - D26">$</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;">1.28</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="FN11 - D26"> </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="FN11 - F26">$</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;">1.48</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="FN11 - F26"> </td></tr></table><p id="xdx_8A8_zHpBN7ai0JF6" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">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 the 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.</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">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 <span id="xdx_909_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate_pid_dp_uPure_c20250101__20250630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zq19rsngoMK2" title="Dividend yield rate">0</span> is based on the fact that the Company has never paid cash dividends and has no present intention of paying cash dividends. The Company calculates the expected life of the options using the Simplified Method for the employee stock options as the Company does not have sufficient historical exercise data.</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">Stock option expense was $295 and $341 for the three months ended September 30, 2025 and 2024, respectively. Stock option expense was $1,158 and $776 for the nine months ended September 30, 2025 and 2024, respectively.</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p></div><div> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><span style="text-decoration: underline">Restricted Stock Units</span></p><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p id="xdx_89C_eus-gaap--ScheduleOfNonvestedRestrictedStockUnitsActivityTableTextBlock_zwq1l13Jxyef" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">The Plan provides for the grant of restricted stock units (“RSUs”). RSUs are settled in shares of the Company’s Common Stock as the RSUs vest. The following table summarizes RSU activity for the nine months ended September 30, 2025:</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> <span id="xdx_8B7_zlICt5T0wdJ2" style="display: none">SCHEDULE OF RESTRICTED STOCK UNITS ACTIVITY</span></p> <table cellpadding="0" class="worksheetTable" 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: 64%;"></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><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="FN11 - FN 11 SBC 6.30.25 - D30"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="FN11 - FN 11 SBC 6.30.25 - D30"> </td><td> </td><td style="width: 1%;" title="FN11 - FN 11 SBC 6.30.25 - F30"> </td><td style="font-weight: bold; text-align: center; width: 9%;">Weighted</td><td style="width: 1%;" title="FN11 - FN 11 SBC 6.30.25 - F30"> </td><td> </td><td style="width: 1%;" title="FN11 - FN 11 SBC 6.30.25 - H30"> </td><td style="font-weight: bold; text-align: center; width: 9%;">Weighted </td><td style="width: 1%;" title="FN11 - FN 11 SBC 6.30.25 - H30"> </td></tr><tr><td> </td><td> </td><td style="width: 1%;" title="FN11 - FN 11 SBC 6.30.25 - D31"> </td><td style="font-weight: bold; text-align: center; width: 9%;">Service-Based</td><td style="width: 1%;" title="FN11 - FN 11 SBC 6.30.25 - D31"> </td><td> </td><td style="width: 1%;" title="FN11 - FN 11 SBC 6.30.25 - F31"> </td><td style="font-weight: bold; text-align: center; width: 9%;">Average Grant</td><td style="width: 1%;" title="FN11 - FN 11 SBC 6.30.25 - F31"> </td><td> </td><td style="width: 1%;" title="FN11 - FN 11 SBC 6.30.25 - H31"> </td><td style="font-weight: bold; text-align: center; width: 9%;">Average Vesting</td><td style="width: 1%;" title="FN11 - FN 11 SBC 6.30.25 - H31"> </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="FN11 - FN 11 SBC 6.30.25 - D32"> </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%;">RSU's</td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%;" title="FN11 - FN 11 SBC 6.30.25 - D32"> </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="FN11 - FN 11 SBC 6.30.25 - F32"> </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%;">Date Fair Value</td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%;" title="FN11 - FN 11 SBC 6.30.25 - F32"> </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="FN11 - FN 11 SBC 6.30.25 - H32"> </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%;">Period (Years)</td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%;" title="FN11 - FN 11 SBC 6.30.25 - H32"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Unvested at January 1, 2025</td><td> </td><td style="width: 1%; text-align: left;" title="FN11 - FN 11 SBC 6.30.25 - D33"> </td><td style="width: 9%; text-align: right;">988,102</td><td style="width: 1%; text-align: left;" title="FN11 - FN 11 SBC 6.30.25 - D33"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN11 - FN 11 SBC 6.30.25 - F33">$</td><td style="width: 9%; text-align: right;">2.25</td><td style="width: 1%; text-align: left;" title="FN11 - FN 11 SBC 6.30.25 - F33"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN11 - FN 11 SBC 6.30.25 - H33"> </td><td style="width: 9%; text-align: right;">3.67</td><td style="width: 1%; text-align: left;" title="FN11 - FN 11 SBC 6.30.25 - H33"> </td></tr><tr><td style="padding-left: 10px;"> Granted-service based</td><td> </td><td style="width: 1%; text-align: left;" title="FN11 - FN 11 SBC 6.30.25 - D34"> </td><td style="width: 9%; text-align: right;">841,495</td><td style="width: 1%; text-align: left;" title="FN11 - FN 11 SBC 6.30.25 - D34"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN11 - FN 11 SBC 6.30.25 - F34"> </td><td style="width: 9%; text-align: right;">1.86</td><td style="width: 1%; text-align: left;" title="FN11 - FN 11 SBC 6.30.25 - F34"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN11 - FN 11 SBC 6.30.25 - H34"> </td><td style="width: 9%; text-align: right;">-</td><td style="width: 1%; text-align: left;" title="FN11 - FN 11 SBC 6.30.25 - H34"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="padding-left: 10px;"> Vested</td><td> </td><td style="width: 1%; text-align: left;" title="FN11 - FN 11 SBC 6.30.25 - D35"> </td><td style="width: 9%; text-align: right;">(773,368</td><td style="width: 1%; text-align: left;" title="FN11 - FN 11 SBC 6.30.25 - D35">) </td><td> </td><td style="width: 1%; text-align: left;" title="FN11 - FN 11 SBC 6.30.25 - F35"> </td><td style="width: 9%; text-align: right;">1.91</td><td style="width: 1%; text-align: left;" title="FN11 - FN 11 SBC 6.30.25 - F35"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN11 - FN 11 SBC 6.30.25 - H35"> </td><td style="width: 9%; text-align: right;">-</td><td style="width: 1%; text-align: left;" title="FN11 - FN 11 SBC 6.30.25 - H35"> </td></tr><tr><td style="padding-left: 10px;"> Forfeited and cancelled</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="FN11 - FN 11 SBC 6.30.25 - D36"> </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="FN11 - FN 11 SBC 6.30.25 - D36"> </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="FN11 - FN 11 SBC 6.30.25 - F36"> </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="FN11 - FN 11 SBC 6.30.25 - F36"> </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="FN11 - FN 11 SBC 6.30.25 - H36"> </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="FN11 - FN 11 SBC 6.30.25 - H36"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Unvested at September 30, 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="FN11 - FN 11 SBC 6.30.25 - D37"> </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;">1,056,229</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="FN11 - FN 11 SBC 6.30.25 - D37"> </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="FN11 - FN 11 SBC 6.30.25 - F37">$</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;">2.19</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="FN11 - FN 11 SBC 6.30.25 - F37"> </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="FN11 - FN 11 SBC 6.30.25 - H37"> </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;">2.31</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="FN11 - FN 11 SBC 6.30.25 - H37"> </td></tr></table><p id="xdx_8A2_zAKmxHvNGLa3" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">The Company used the Monte Carlo Simulation Model to value at the grant date the aggregate of <span id="xdx_903_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_pid_c20240101__20240131__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zWVzk82yGqgc" title="Restricted stock units, granted">632,911</span> market condition performance RSUs granted in January 2024 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 id="xdx_909_eus-gaap--SharePrice_iI_pid_c20250630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_z5SEzm2kQYT4" title="Stock price">3.40</span>, a contract term of <span id="xdx_90D_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20250101__20250630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zsqF91PeAw0e" title="Contract term">10</span> years, expected volatility of <span id="xdx_90A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_pid_dp_uPure_c20250101__20250630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_z3ghMbQNJTp2" title="Expected volatility">78</span>% and risk-free interest rate of <span id="xdx_90A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_pid_dp_uPure_c20250101__20250630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zaw20qoz2Rwk" title="Risk-free interest rate">4.10</span>%. Vesting is based on sustained market capitalization of $<span id="xdx_906_ecustom--MarketCapital_iI_pn9n9_c20250630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zgIMg1YItXQ8" title="Market capital">1</span> billion, and the derived service period is <span id="xdx_905_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardAwardVestingPeriod_dtY_c20250101__20250630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zbiWexZHXWl7" title="Service period">4.3</span> years.</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">RSU expense was $343<span id="xdx_906_eus-gaap--AllocatedShareBasedCompensationExpense_pn3n3_c20250401__20250630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zrn71SU5GXwa" title="Share based expense"></span> and $555 for the three months ended September 30, 2025 and 2024, respectively. RSU expense was $<span id="xdx_908_eus-gaap--AllocatedShareBasedCompensationExpense_pn3n3_c20250101__20250630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_znRDAWJhrp5j" title="Share based expense">1,915</span> and $1,038 for the nine months ended September 30, 2025 and 2024, respectively.</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p></div><div> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><span style="text-decoration: underline">Share-Based Compensation Expense</span></p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p id="xdx_89D_eus-gaap--DisclosureOfShareBasedCompensationArrangementsByShareBasedPaymentAwardTextBlock_zLdpUzSeoP56" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">The Company recorded share-based compensation for options and RSUs in its statements of operations for the relevant periods as follows:</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> <span id="xdx_8BC_zyaVeOEOBwu4" style="display: none">SCHEDULE OF SHARE-BASED COMPENSATION FOR OPTIONS AND RESTRICTED STOCK UNITS</span></p> <table cellpadding="0" class="worksheetTable" 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: 52%;"></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><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="font-weight: bold; text-align: center; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">Three months ended September 30,</td><td> </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;">Nine months ended September 30,</td></tr><tr><td> </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="FN11 - FN 11 SBC 6.30.25 - D42"> </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;">2025</td><td style="width: 1%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN11 - FN 11 SBC 6.30.25 - D42"> </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="FN11 - FN 11 SBC 6.30.25 - F42"> </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;">2024</td><td style="width: 1%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN11 - FN 11 SBC 6.30.25 - F42"> </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="FN11 - FN 11 SBC 6.30.25 - H42"> </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;">2025</td><td style="width: 1%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN11 - FN 11 SBC 6.30.25 - H42"> </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="FN11 - FN 11 SBC 6.30.25 - J42"> </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;">2024</td><td style="width: 1%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN11 - FN 11 SBC 6.30.25 - J42"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Selling, general, and administrative</td><td> </td><td style="width: 1%; text-align: left;" title="FN11 - FN 11 SBC 6.30.25 - D43">$</td><td style="width: 9%; text-align: right;">632</td><td style="width: 1%; text-align: left;" title="FN11 - FN 11 SBC 6.30.25 - D43"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN11 - FN 11 SBC 6.30.25 - F43">$</td><td style="width: 9%; text-align: right;">878</td><td style="width: 1%; text-align: left;" title="FN11 - FN 11 SBC 6.30.25 - F43"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN11 - FN 11 SBC 6.30.25 - H43">$</td><td style="width: 9%; text-align: right;">3,004</td><td style="width: 1%; text-align: left;" title="FN11 - FN 11 SBC 6.30.25 - H43"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN11 - FN 11 SBC 6.30.25 - J43">$</td><td style="width: 9%; text-align: right;">1,735</td><td style="width: 1%; text-align: left;" title="FN11 - FN 11 SBC 6.30.25 - J43"> </td></tr><tr><td>Research and development</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="FN11 - FN 11 SBC 6.30.25 - D44"> </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;">6</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="FN11 - FN 11 SBC 6.30.25 - D44"> </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="FN11 - FN 11 SBC 6.30.25 - F44"> </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;">18</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="FN11 - FN 11 SBC 6.30.25 - F44"> </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="FN11 - FN 11 SBC 6.30.25 - H44"> </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;">69</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="FN11 - FN 11 SBC 6.30.25 - H44"> </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="FN11 - FN 11 SBC 6.30.25 - J44"> </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;">79</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="FN11 - FN 11 SBC 6.30.25 - J44"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Total share-based expense</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="FN11 - FN 11 SBC 6.30.25 - D45">$</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;">638</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="FN11 - FN 11 SBC 6.30.25 - D45"> </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="FN11 - FN 11 SBC 6.30.25 - F45">$</td><td style="width: 9%; text-align: right; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">896</td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN11 - FN 11 SBC 6.30.25 - F45"> </td><td> </td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN11 - FN 11 SBC 6.30.25 - H45">$</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;">3,073</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="FN11 - FN 11 SBC 6.30.25 - H45"> </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="FN11 - FN 11 SBC 6.30.25 - J45">$</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;">1,814</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="FN11 - FN 11 SBC 6.30.25 - J45"> </td></tr></table><p id="xdx_8A6_zGFsUEt6dBp3" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">As of September 30, 2025, total estimated compensation cost of stock options granted and outstanding but not yet vested was $3,974 which is expected to be recognized over the weighted average period of <span id="xdx_90D_eus-gaap--EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognizedPeriodForRecognition1_dtY_c20250101__20250630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_z62X7d4R1I29" title="Weighted average period">3.01</span> years.</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">As of September 30, 2025, total estimated compensation cost of RSUs granted and outstanding but not yet vested was $<span id="xdx_908_eus-gaap--EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognizedStockOptions_iI_pn3n3_c20250630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zbusYqrmhGkb" title="Unrecognized stock-based compensation">1,282</span>, which is expected to be recognized over the weighted average period of <span id="xdx_901_eus-gaap--EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognizedPeriodForRecognition1_dtY_c20250101__20250630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockUnitsRSUMember_zJ2zOZKvPuK6" title="Weighted average period">2.31</span> years.</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p></div> 2000000 4100000 6000000 7500000 9000000 16500000 4654885 <p id="xdx_899_eus-gaap--ScheduleOfShareBasedCompensationStockOptionsActivityTableTextBlock_zQKS9NuvgsVk" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">The following table summarizes stock option activity for the nine months ended September 30, 2025:</p><table cellpadding="0" class="worksheetTable" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"><tr><td> </td><td> </td><td style="width: 1%;" title="FN11 - D5"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="FN11 - D5"> </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;">Weighted Average</td><td> </td><td style="width: 1%;" title="FN11 - J5"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="FN11 - J5"> </td></tr><tr><td> </td><td> </td><td style="width: 1%; border-width: initial; border-style: none; border-color: initial;" title="FN11 - D6"> </td><td style="width: 9%; text-align: center; font-weight: bold; border-width: initial; border-style: none; border-color: initial;">Options on</td><td style="width: 1%; border-width: initial; border-style: none; border-color: initial;" title="FN11 - D6"> </td><td> </td><td style="width: 1%; border-width: initial; border-style: none; border-color: initial;" title="FN11 - F6"> </td><td style="width: 9%; text-align: center; font-weight: bold; border-width: initial; border-style: none; border-color: initial;"></td><td style="width: 1%; border-width: initial; border-style: none; border-color: initial;" title="FN11 - F6"> </td><td> </td><td style="width: 1%; border-width: initial; border-style: none; border-color: initial;" title="FN11 - H6"> </td><td style="width: 9%; text-align: center; font-weight: bold; border-width: initial; border-style: none; border-color: initial;">Remaining </td><td style="width: 1%; border-width: initial; border-style: none; border-color: initial;" title="FN11 - H6"> </td><td> </td><td style="width: 1%; border-width: initial; border-style: none; border-color: initial;" title="FN11 - J6"> </td><td style="width: 9%; text-align: center; font-weight: bold; border-width: initial; border-style: none; border-color: initial;">Aggregate</td><td style="width: 1%; border-width: initial; border-style: none; border-color: initial;" title="FN11 - J6"> </td></tr><tr><td> </td><td> </td><td style="width: 1%; border-width: initial; border-style: none; border-color: initial;" title="FN11 - D6"> </td><td style="width: 9%; text-align: center; font-weight: bold; border-width: initial; border-style: none; border-color: initial;"> Common</td><td style="width: 1%; border-width: initial; border-style: none; border-color: initial;" title="FN11 - D6"> </td><td> </td><td style="width: 1%; border-width: initial; border-style: none; border-color: initial;" title="FN11 - F6"> </td><td style="width: 9%; text-align: center; font-weight: bold; border-width: initial; border-style: none; border-color: initial;">Exercise </td><td style="width: 1%; border-width: initial; border-style: none; border-color: initial;" title="FN11 - F6"> </td><td> </td><td style="width: 1%; border-width: initial; border-style: none; border-color: initial;" title="FN11 - H6"> </td><td style="width: 9%; text-align: center; font-weight: bold; border-width: initial; border-style: none; border-color: initial;">Contractual</td><td style="width: 1%; border-width: initial; border-style: none; border-color: initial;" title="FN11 - H6"> </td><td> </td><td style="width: 1%; border-width: initial; border-style: none; border-color: initial;" title="FN11 - J6"> </td><td style="width: 9%; text-align: center; font-weight: bold; border-width: initial; border-style: none; border-color: initial;"> Intrinsic </td><td style="width: 1%; border-width: initial; border-style: none; border-color: initial;" title="FN11 - J6"> </td></tr><tr><td> </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="FN11 - D6"> </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;"> Shares</td><td style="width: 1%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN11 - D6"> </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="FN11 - F6"> </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;">Price</td><td style="width: 1%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN11 - F6"> </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="FN11 - H6"> </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;"> Term</td><td style="width: 1%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN11 - H6"> </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="FN11 - J6"> </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;">Value</td><td style="width: 1%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN11 - J6"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Outstanding January 1, 2025</td><td> </td><td style="width: 1%; text-align: left;" title="FN11 - D7"> </td><td style="width: 9%; text-align: right;">3,944,284</td><td style="width: 1%; text-align: left;" title="FN11 - D7"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN11 - F7">$</td><td style="width: 9%; text-align: right;">2.12</td><td style="width: 1%; text-align: left;" title="FN11 - F7"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN11 - H7"> </td><td style="width: 9%; text-align: right;">8.30</td><td style="width: 1%; text-align: left;" title="FN11 - H7"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN11 - J7">$</td><td style="width: 9%; text-align: right;">1,486</td><td style="width: 1%; text-align: left;" title="FN11 - J7"> </td></tr><tr><td style="padding-left: 10px;"> Granted</td><td> </td><td style="width: 1%; text-align: left;" title="FN11 - D8"> </td><td style="width: 9%; text-align: right;">4,113,927</td><td style="width: 1%; text-align: left;" title="FN11 - D8"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN11 - F8"> </td><td style="width: 9%; text-align: right;">1.82</td><td style="width: 1%; text-align: left;" title="FN11 - F8"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN11 - H8"> </td><td style="width: 9%; text-align: right;">-</td><td style="width: 1%; text-align: left;" title="FN11 - H8"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN11 - J8"> </td><td style="width: 9%; text-align: right;">-</td><td style="width: 1%; text-align: left;" title="FN11 - J8"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="padding-left: 10px;"> Exercised</td><td> </td><td style="width: 1%; text-align: left;" title="FN11 - D9"> </td><td style="width: 9%; text-align: right;">-</td><td style="width: 1%; text-align: left;" title="FN11 - D9"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN11 - F9"> </td><td style="width: 9%; text-align: right;">-</td><td style="width: 1%; text-align: left;" title="FN11 - F9"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN11 - H9"> </td><td style="width: 9%; text-align: right;">-</td><td style="width: 1%; text-align: left;" title="FN11 - H9"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN11 - J9"> </td><td style="width: 9%; text-align: right;">-</td><td style="width: 1%; text-align: left;" title="FN11 - J9"> </td></tr><tr><td style="padding-left: 10px;">Forfeited, cancelled, expired</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="FN11 - D10"> </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;">(2,024,762</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="FN11 - D10">) </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="FN11 - F10"> </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;">5.21</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="FN11 - F10"> </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="FN11 - H10"> </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="FN11 - H10"> </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="FN11 - J10"> </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="FN11 - J10"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Outstanding September 30, 2025</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="FN11 - D11"> </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;">6,033,449</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="FN11 - D11"> </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="FN11 - F11">$</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;">1.91</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="FN11 - F11"> </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="FN11 - H11"> </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;">8.38</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;" title="FN11 - H11"> </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="FN11 - J11">$</td><td style="width: 9%; text-align: right; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">3,541</td><td style="width: 1%; text-align: left; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN11 - J11"> </td></tr><tr><td>Exercisable September 30, 2025</td><td> </td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN11 - D12"> </td><td style="width: 9%; text-align: right; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">1,625,078</td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN11 - D12"> </td><td> </td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN11 - F12">$</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;">2.43</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="FN11 - F12"> </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="FN11 - H12"> </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;">6.56</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="FN11 - H12"> </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="FN11 - J12">$</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;">856</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="FN11 - J12"> </td></tr></table> 3944284 2.12 P8Y3M18D 1486000 4113927 1.82 0 0 2024762 5.21 6033449 1.91 P8Y4M17D 3541000 1625078 2.43 P6Y6M21D 856000 4743283 1290166 <p id="xdx_89C_eus-gaap--ScheduleOfShareBasedPaymentAwardStockOptionsValuationAssumptionsTableTextBlock_zoa74hkT8rkk" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">The Company uses the Black-Scholes option pricing model to determine the fair value of the service-based options that have been granted. The following table summarizes the assumptions used to compute the fair value of options granted to employees and non-employees:</p><table cellpadding="0" class="worksheetTable" 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: 76%;"></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; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">For the Nine Months Ended September 30,</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="FN11 - D21"> </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%;">2025</td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%;" title="FN11 - D21"> </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="FN11 - F21"> </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="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%;" title="FN11 - F21"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Expected stock price volatility</td><td> </td><td style="width: 1%; text-align: left;" title="FN11 - D22"> </td><td style="width: 9%; text-align: right;">76</td><td style="width: 1%; text-align: left;" title="FN11 - D22">%</td><td> </td><td style="width: 1%; text-align: left;" title="FN11 - F22"> </td><td style="width: 9%; text-align: right;">76</td><td style="width: 1%; text-align: left;" title="FN11 - F22">%</td></tr><tr><td>Risk-free interest rate</td><td> </td><td style="width: 1%; text-align: left;" title="FN11 - D23"> </td><td style="width: 9%; text-align: right;">3.87</td><td style="width: 1%; text-align: left;" title="FN11 - D23">%</td><td> </td><td style="width: 1%; text-align: left;" title="FN11 - F23"> </td><td style="width: 9%; text-align: right;">3.79</td><td style="width: 1%; text-align: left;" title="FN11 - F23">%</td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Expected dividend yield</td><td> </td><td style="width: 1%; text-align: left;" title="FN11 - D24"> </td><td style="width: 9%; text-align: right;">0</td><td style="width: 1%; text-align: left;" title="FN11 - D24">%</td><td> </td><td style="width: 1%; text-align: left;" title="FN11 - F24"> </td><td style="width: 9%; text-align: right;">0</td><td style="width: 1%; text-align: left;" title="FN11 - F24">%</td></tr><tr><td>Expected life of options</td><td> </td><td style="width: 1%; text-align: left;" title="FN11 - D25"> </td><td style="width: 9%; text-align: right;">6</td><td style="width: 1%; text-align: left;" title="FN11 - D25"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN11 - F25"> </td><td style="width: 9%; text-align: right;">6</td><td style="width: 1%; text-align: left;" title="FN11 - F25"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Weighted-average fair value of options granted</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="FN11 - D26">$</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;">1.28</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="FN11 - D26"> </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="FN11 - F26">$</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;">1.48</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="FN11 - F26"> </td></tr></table> 0.76 0.76 0.0387 0.0379 0 0 P6Y P6Y 1.28 1.48 0 295000 341000 1158000 776000 <p id="xdx_89C_eus-gaap--ScheduleOfNonvestedRestrictedStockUnitsActivityTableTextBlock_zwq1l13Jxyef" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">The Plan provides for the grant of restricted stock units (“RSUs”). RSUs are settled in shares of the Company’s Common Stock as the RSUs vest. The following table summarizes RSU activity for the nine months ended September 30, 2025:</p><table cellpadding="0" class="worksheetTable" 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: 64%;"></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><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="FN11 - FN 11 SBC 6.30.25 - D30"> </td><td style="width: 9%;"> </td><td style="width: 1%;" title="FN11 - FN 11 SBC 6.30.25 - D30"> </td><td> </td><td style="width: 1%;" title="FN11 - FN 11 SBC 6.30.25 - F30"> </td><td style="font-weight: bold; text-align: center; width: 9%;">Weighted</td><td style="width: 1%;" title="FN11 - FN 11 SBC 6.30.25 - F30"> </td><td> </td><td style="width: 1%;" title="FN11 - FN 11 SBC 6.30.25 - H30"> </td><td style="font-weight: bold; text-align: center; width: 9%;">Weighted </td><td style="width: 1%;" title="FN11 - FN 11 SBC 6.30.25 - H30"> </td></tr><tr><td> </td><td> </td><td style="width: 1%;" title="FN11 - FN 11 SBC 6.30.25 - D31"> </td><td style="font-weight: bold; text-align: center; width: 9%;">Service-Based</td><td style="width: 1%;" title="FN11 - FN 11 SBC 6.30.25 - D31"> </td><td> </td><td style="width: 1%;" title="FN11 - FN 11 SBC 6.30.25 - F31"> </td><td style="font-weight: bold; text-align: center; width: 9%;">Average Grant</td><td style="width: 1%;" title="FN11 - FN 11 SBC 6.30.25 - F31"> </td><td> </td><td style="width: 1%;" title="FN11 - FN 11 SBC 6.30.25 - H31"> </td><td style="font-weight: bold; text-align: center; width: 9%;">Average Vesting</td><td style="width: 1%;" title="FN11 - FN 11 SBC 6.30.25 - H31"> </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="FN11 - FN 11 SBC 6.30.25 - D32"> </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%;">RSU's</td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%;" title="FN11 - FN 11 SBC 6.30.25 - D32"> </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="FN11 - FN 11 SBC 6.30.25 - F32"> </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%;">Date Fair Value</td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%;" title="FN11 - FN 11 SBC 6.30.25 - F32"> </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="FN11 - FN 11 SBC 6.30.25 - H32"> </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%;">Period (Years)</td><td style="border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none; width: 1%;" title="FN11 - FN 11 SBC 6.30.25 - H32"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Unvested at January 1, 2025</td><td> </td><td style="width: 1%; text-align: left;" title="FN11 - FN 11 SBC 6.30.25 - D33"> </td><td style="width: 9%; text-align: right;">988,102</td><td style="width: 1%; text-align: left;" title="FN11 - FN 11 SBC 6.30.25 - D33"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN11 - FN 11 SBC 6.30.25 - F33">$</td><td style="width: 9%; text-align: right;">2.25</td><td style="width: 1%; text-align: left;" title="FN11 - FN 11 SBC 6.30.25 - F33"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN11 - FN 11 SBC 6.30.25 - H33"> </td><td style="width: 9%; text-align: right;">3.67</td><td style="width: 1%; text-align: left;" title="FN11 - FN 11 SBC 6.30.25 - H33"> </td></tr><tr><td style="padding-left: 10px;"> Granted-service based</td><td> </td><td style="width: 1%; text-align: left;" title="FN11 - FN 11 SBC 6.30.25 - D34"> </td><td style="width: 9%; text-align: right;">841,495</td><td style="width: 1%; text-align: left;" title="FN11 - FN 11 SBC 6.30.25 - D34"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN11 - FN 11 SBC 6.30.25 - F34"> </td><td style="width: 9%; text-align: right;">1.86</td><td style="width: 1%; text-align: left;" title="FN11 - FN 11 SBC 6.30.25 - F34"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN11 - FN 11 SBC 6.30.25 - H34"> </td><td style="width: 9%; text-align: right;">-</td><td style="width: 1%; text-align: left;" title="FN11 - FN 11 SBC 6.30.25 - H34"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td style="padding-left: 10px;"> Vested</td><td> </td><td style="width: 1%; text-align: left;" title="FN11 - FN 11 SBC 6.30.25 - D35"> </td><td style="width: 9%; text-align: right;">(773,368</td><td style="width: 1%; text-align: left;" title="FN11 - FN 11 SBC 6.30.25 - D35">) </td><td> </td><td style="width: 1%; text-align: left;" title="FN11 - FN 11 SBC 6.30.25 - F35"> </td><td style="width: 9%; text-align: right;">1.91</td><td style="width: 1%; text-align: left;" title="FN11 - FN 11 SBC 6.30.25 - F35"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN11 - FN 11 SBC 6.30.25 - H35"> </td><td style="width: 9%; text-align: right;">-</td><td style="width: 1%; text-align: left;" title="FN11 - FN 11 SBC 6.30.25 - H35"> </td></tr><tr><td style="padding-left: 10px;"> Forfeited and cancelled</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="FN11 - FN 11 SBC 6.30.25 - D36"> </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="FN11 - FN 11 SBC 6.30.25 - D36"> </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="FN11 - FN 11 SBC 6.30.25 - F36"> </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="FN11 - FN 11 SBC 6.30.25 - F36"> </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="FN11 - FN 11 SBC 6.30.25 - H36"> </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="FN11 - FN 11 SBC 6.30.25 - H36"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Unvested at September 30, 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="FN11 - FN 11 SBC 6.30.25 - D37"> </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;">1,056,229</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="FN11 - FN 11 SBC 6.30.25 - D37"> </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="FN11 - FN 11 SBC 6.30.25 - F37">$</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;">2.19</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="FN11 - FN 11 SBC 6.30.25 - F37"> </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="FN11 - FN 11 SBC 6.30.25 - H37"> </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;">2.31</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="FN11 - FN 11 SBC 6.30.25 - H37"> </td></tr></table> 988102 2.25 P3Y8M1D 841495 1.86 773368 1.91 0 0 1056229 2.19 P2Y3M21D 632911 3.4 P10Y 0.78 0.041 1000000000 P4Y3M18D 343000 555000 1915000 1038000 <p id="xdx_89D_eus-gaap--DisclosureOfShareBasedCompensationArrangementsByShareBasedPaymentAwardTextBlock_zLdpUzSeoP56" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">The Company recorded share-based compensation for options and RSUs in its statements of operations for the relevant periods as follows:</p><table cellpadding="0" class="worksheetTable" 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: 52%;"></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><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="font-weight: bold; text-align: center; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">Three months ended September 30,</td><td> </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;">Nine months ended September 30,</td></tr><tr><td> </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="FN11 - FN 11 SBC 6.30.25 - D42"> </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;">2025</td><td style="width: 1%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN11 - FN 11 SBC 6.30.25 - D42"> </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="FN11 - FN 11 SBC 6.30.25 - F42"> </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;">2024</td><td style="width: 1%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN11 - FN 11 SBC 6.30.25 - F42"> </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="FN11 - FN 11 SBC 6.30.25 - H42"> </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;">2025</td><td style="width: 1%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN11 - FN 11 SBC 6.30.25 - H42"> </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="FN11 - FN 11 SBC 6.30.25 - J42"> </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;">2024</td><td style="width: 1%; border-bottom: 1px solid rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN11 - FN 11 SBC 6.30.25 - J42"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Selling, general, and administrative</td><td> </td><td style="width: 1%; text-align: left;" title="FN11 - FN 11 SBC 6.30.25 - D43">$</td><td style="width: 9%; text-align: right;">632</td><td style="width: 1%; text-align: left;" title="FN11 - FN 11 SBC 6.30.25 - D43"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN11 - FN 11 SBC 6.30.25 - F43">$</td><td style="width: 9%; text-align: right;">878</td><td style="width: 1%; text-align: left;" title="FN11 - FN 11 SBC 6.30.25 - F43"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN11 - FN 11 SBC 6.30.25 - H43">$</td><td style="width: 9%; text-align: right;">3,004</td><td style="width: 1%; text-align: left;" title="FN11 - FN 11 SBC 6.30.25 - H43"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN11 - FN 11 SBC 6.30.25 - J43">$</td><td style="width: 9%; text-align: right;">1,735</td><td style="width: 1%; text-align: left;" title="FN11 - FN 11 SBC 6.30.25 - J43"> </td></tr><tr><td>Research and development</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="FN11 - FN 11 SBC 6.30.25 - D44"> </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;">6</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="FN11 - FN 11 SBC 6.30.25 - D44"> </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="FN11 - FN 11 SBC 6.30.25 - F44"> </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;">18</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="FN11 - FN 11 SBC 6.30.25 - F44"> </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="FN11 - FN 11 SBC 6.30.25 - H44"> </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;">69</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="FN11 - FN 11 SBC 6.30.25 - H44"> </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="FN11 - FN 11 SBC 6.30.25 - J44"> </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;">79</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="FN11 - FN 11 SBC 6.30.25 - J44"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Total share-based expense</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="FN11 - FN 11 SBC 6.30.25 - D45">$</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;">638</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="FN11 - FN 11 SBC 6.30.25 - D45"> </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="FN11 - FN 11 SBC 6.30.25 - F45">$</td><td style="width: 9%; text-align: right; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;">896</td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN11 - FN 11 SBC 6.30.25 - F45"> </td><td> </td><td style="width: 1%; text-align: left; border-bottom: 3px double rgb(0, 0, 0); border-top: none; border-left: none; border-right: none;" title="FN11 - FN 11 SBC 6.30.25 - H45">$</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;">3,073</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="FN11 - FN 11 SBC 6.30.25 - H45"> </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="FN11 - FN 11 SBC 6.30.25 - J45">$</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;">1,814</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="FN11 - FN 11 SBC 6.30.25 - J45"> </td></tr></table> 632000 878000 3004000 1735000 6000 18000 69000 79000 638000 896000 3073000 1814000 3974000 P3Y3D 1282000 P2Y3M21D <div> <p id="xdx_802_eus-gaap--DefinedContributionPlanTextBlock_zbJLduuLI7W1" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><b>12. <span id="xdx_82B_z4WSwaEGOQ56">DEFINED CONTRIBUTION PLAN</span></b></p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">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 each of the nine months ended September 30, 2025 and 2024 was $<span id="xdx_90B_eus-gaap--DefinedBenefitPlanContributionsByEmployer_pn3n3_c20250101__20250630_zOsfgTaaaod" title="Defined contribution">23</span> and $<span id="xdx_90B_eus-gaap--DefinedBenefitPlanContributionsByEmployer_pn3n3_c20240101__20240630_zQpa7bglEAS" title="Defined contribution">0</span>, respectively.</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> </div> 23000 0 <div> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p id="xdx_809_eus-gaap--CommitmentsAndContingenciesDisclosureTextBlock_zSp6Ma869093" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><b>13. <span id="xdx_82C_zRShBvGxVuzd">COMMITMENTS AND CONTINGENCIES</span></b></p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><span style="text-decoration: underline">Purchase Commitments</span></p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">As of September 30, 2025, the Company was committed for approximately $391 for future component deliveries that are generally subject to modification or rescheduling in the normal course of business.</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><span style="text-decoration: underline">Indemnifications and Guarantees</span></p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">Our officers and directors are indemnified as to personal liability as provided by Delaware law and the Company’s certificate of incorporation 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.</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><span style="text-decoration: underline">Regulatory Agencies</span></p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">The Company is subject to oversight from regulatory agencies regarding firearms that arise in the ordinary course of its business.</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><span style="text-decoration: underline">Litigation</span></p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">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. As of September 30, 2025, the Company had no provision for liability under existing litigation.</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><span style="text-decoration: underline">Facility lease</span></p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">The Company entered into a facility lease agreement for its new production facility based in Norton, Virginia. <span id="xdx_900_eus-gaap--LessorOperatingLeaseDescription_c20250101__20250630__us-gaap--TypeOfArrangementAxis__custom--FacilityLeaseAgreementMember_zbpnccxZvwpb">The initial term of the agreement is for five years and commenced on October 1, 2025 (the "Term"). The Company</span> 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 $<span id="xdx_907_eus-gaap--OperatingLeaseLeaseIncomeLeasePayments_pn3n3_c20250101__20250630__us-gaap--TypeOfArrangementAxis__custom--FacilityLeaseAgreementMember_z9rrdcOulx67">600</span>.</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p></div> 391000 P5Y 600000 <div> <p id="xdx_806_eus-gaap--RelatedPartyTransactionsDisclosureTextBlock_zthdmYfmVT7g" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><b>14. <span id="xdx_823_z9i1UXXIJW2a">RELATED PARTY TRANSACTIONS</span></b></p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><i>Series A Preferred Stock</i></p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">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 and 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 <span id="xdx_90A_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_pid_c20230629__20230629__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--ExecutiveChairmanMember__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_zCJC9DJWEiqb" title="Stock issued during period, shares, new issues">3,000</span> shares of Series A Preferred Stock and Series A Warrants to purchase up to an aggregate of <span id="xdx_909_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_pid_c20230629__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--ExecutiveChairmanMember_zkbVZbtUN3s7" title="Class of warrant or right, number of securities called by warrants or rights">2,068,966</span> shares of Common Stock for aggregate gross proceeds of $<span id="xdx_908_eus-gaap--ProceedsFromIssuanceOrSaleOfEquity_pn3n3_c20230629__20230629__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--ExecutiveChairmanMember_zoScsKreocyc" title="Proceeds from issuance or sale of equity">3,000</span>. For the nine months ended September 30, 2025, Mr. Cohen earned dividends totaling $120 on his Series A Preferred Stock.</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p></div><div> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><i>PIPE Financing</i></p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">On February 24, 2025, the Company entered into the PIPE Purchase Agreement with certain accredited including: V4 Global, LLC (“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 <span id="xdx_90D_eus-gaap--SaleOfStockNumberOfSharesIssuedInTransaction_pid_c20250224__20250224__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--PrivatePlacementMember_zmWafr5ndJE7" title="Sale of stock">3,216,666</span> shares of Common Stock and PIPE Warrants with an exercise price of $<span id="xdx_90A_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20250224__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember__us-gaap--StatementEquityComponentsAxis__custom--PIPEWarrantsMember_zgBMtIFLnyk1" title="Exercise price of warrants">1.80</span> per share, to purchase up to <span id="xdx_90E_eus-gaap--SaleOfStockNumberOfSharesIssuedInTransaction_pid_c20250224__20250224__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--PrivatePlacementMember_zEpdK1Ji3Au2" title="Private placement, number of shares">3,216,666</span> shares of Common Stock (the “Private Placement”). Pursuant to the PIPE Private Placement, the Company sold to (i) V4 <span id="xdx_909_eus-gaap--SaleOfStockNumberOfSharesIssuedInTransaction_pid_c20250224__20250224__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember__us-gaap--StatementEquityComponentsAxis__custom--PIPEWarrantsMember__dei--LegalEntityAxis__custom--V4GlobalLLCMember_zPQDkkJAKpb2" title="Sale of stock">1,100,000</span> shares of Common Stock and PIPE Warrants to purchase up to an aggregate of <span id="xdx_90D_eus-gaap--SaleOfStockNumberOfSharesIssuedInTransaction_pid_c20250224__20250224__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember__us-gaap--StatementEquityComponentsAxis__custom--PIPEWarrantsMember__dei--LegalEntityAxis__custom--V4GlobalLLCMember_zlB2XcnXUaNe" title="Sale of stock">1,100,000</span> shares of Common Stock, for aggregate gross proceeds of $<span id="xdx_907_eus-gaap--ProceedsFromIssuanceOfCommonStock_pn3n3_c20250224__20250224__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember__us-gaap--StatementEquityComponentsAxis__custom--PIPEWarrantsMember__dei--LegalEntityAxis__custom--V4GlobalLLCMember_zY1fL6rdpKRh" title="Gross proceeds">1,980</span>, (ii) Continuum an aggregate of <span id="xdx_901_eus-gaap--SaleOfStockNumberOfSharesIssuedInTransaction_pid_c20250224__20250224__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember__us-gaap--StatementEquityComponentsAxis__custom--PIPEWarrantsMember__dei--LegalEntityAxis__custom--ContinuumVenturesLLCMember_zktXAhRER9Lk" title="Sale of stock">275,000</span> shares of Common stock and PIPE Warrants to purchase up to an aggregate of <span id="xdx_90C_eus-gaap--SaleOfStockNumberOfSharesIssuedInTransaction_pid_c20250224__20250224__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember__us-gaap--StatementEquityComponentsAxis__custom--PIPEWarrantsMember__dei--LegalEntityAxis__custom--ContinuumVenturesLLCMember_zQt4f5Rk07Mb" title="Sale of stock">275,000</span> shares of Common Stock for aggregate gross proceeds of $<span id="xdx_907_eus-gaap--ProceedsFromIssuanceOfCommonStock_pn3n3_c20250224__20250224__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember__us-gaap--StatementEquityComponentsAxis__custom--PIPEWarrantsMember__dei--LegalEntityAxis__custom--ContinuumVenturesLLCMember_zuTQ0YEaeq0h" title="Gross proceeds">495</span> and (iii) Savbo an aggregate of <span id="xdx_903_eus-gaap--SaleOfStockNumberOfSharesIssuedInTransaction_pid_c20250224__20250224__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember__us-gaap--StatementEquityComponentsAxis__custom--PIPEWarrantsMember__dei--LegalEntityAxis__custom--SavboInvestmentsLLCMember_zrTF0hS5xMC4" title="Sale of stock">50,000</span> shares of Common stock and PIPE Warrants to purchase up to an aggregate of <span id="xdx_905_eus-gaap--SaleOfStockNumberOfSharesIssuedInTransaction_pid_c20250224__20250224__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember__us-gaap--StatementEquityComponentsAxis__custom--PIPEWarrantsMember__dei--LegalEntityAxis__custom--SavboInvestmentsLLCMember_zfGZwwJ4EXKe" title="Sale of stock">50,000</span> shares of Common Stock for aggregate gross proceeds of $<span id="xdx_90B_eus-gaap--ProceedsFromIssuanceOfCommonStock_pn3n3_c20250224__20250224__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember__us-gaap--StatementEquityComponentsAxis__custom--PIPEWarrantsMember__dei--LegalEntityAxis__custom--SavboInvestmentsLLCMember_zGBx9zPLRb4c" title="Gross proceeds">90</span>.</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">      </p><p style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-size-adjust: none; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-variant-emoji: normal; font-stretch: normal; line-height: normal; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">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 $100.</p><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> </div> 3000 2068966 3000000 120000 3216666 1.8 3216666 1100000 1100000 1980000 275000 275000 495000 50000 50000 90000 4500 3000000 1.5 3000000 1.5 1000 666667 100000 <div> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p id="xdx_80E_eus-gaap--ConcentrationRiskDisclosureTextBlock_z1iApJrr8ya4" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt;"><b>15. <span id="xdx_827_znMAnP8Whfr6">MAJOR CUSTOMERS AND RELATED INFORMATION</span></b></p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">For the three months ended September 30, 2025, revenue from one customer accounted for approximately 93% of revenue, with no other single customer accounting for more than 10% of total revenue. For the three months ended September 30, 2024, revenue from one distributor accounted for approximately 20% with no other single customer accounting for more than <span id="xdx_90A_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20240401__20240630__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomersMember_z7y6J6gKvGKf">10</span>% of total revenue.</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">For the nine months ended September 30, 2025, revenue from three distributors accounted for approximately 42%, 11%, and 10% of revenue, respectively, with no other single customer accounting for more than 10% of total revenue. For the nine months ended September 30, 2024, revenue from two distributors accounted for approximately 28% and 17% of revenue, respectively, with no other single customer accounting for more than <span id="xdx_906_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20240101__20240630__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomersMember_z8dBnDHUBdRk">10</span>% of total revenue.</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">At September 30, 2025, accounts receivable from one customer accounted for 76%, of net accounts receivable with no other single customer accounting for more than <span id="xdx_90A_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20250101__20250630__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerMember_zQvhibrGMnG6">10</span>% of the accounts receivable balance. At December 31, 2024, accounts receivable from two distributors accounted for 11% and 10%, respectively, of net accounts receivable with no other single customer accounting for more than <span id="xdx_908_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20240101__20241231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomersMember_zm37ASdS9yT4">10</span>% of the accounts receivable balance.</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p id="xdx_898_eus-gaap--DisaggregationOfRevenueTableTextBlock_zZz1oTZikLX7" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">The following table summarizes revenue by geographic region. Revenue is attributed to countries based on customer’s delivery location:</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><span id="xdx_8BA_zptgPt2cQGr9" style="display: none">SCHEDULE OF DISAGGREGATION OF REVENUE</span></p> <table cellpadding="0" class="worksheetTable" 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%;"></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><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 colspan="7" style="text-align: center; font-weight: bold;">For the Three Months </td><td> </td><td colspan="7" style="text-align: center; font-weight: bold;">For the Nine Months</td></tr><tr><td> </td><td colspan="7" style="text-align: center; font-weight: bold;">Ended September 30,</td><td> </td><td colspan="7" style="text-align: center; font-weight: bold;">Ended September 30,</td></tr><tr><td> </td><td style="border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none; width: 1%;" title="FN Summary - FN 15 - 2025 Q2 Revenue by shipped to country - E64"></td><td style="text-align: center; font-weight: bold; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none; width: 9%;">2025</td><td style="border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none; width: 1%;" title="FN Summary - FN 15 - 2025 Q2 Revenue by shipped to country - E64"></td><td> </td><td style="border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none; width: 1%;" title="FN Summary - FN 15 - 2025 Q2 Revenue by shipped to country - G64"></td><td style="text-align: center; font-weight: bold; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none; width: 9%;">2024</td><td style="border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none; width: 1%;" title="FN Summary - FN 15 - 2025 Q2 Revenue by shipped to country - G64"></td><td> </td><td style="border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none; width: 1%;" title="FN Summary - FN 15 - 2025 Q2 Revenue by shipped to country - I64"></td><td style="text-align: center; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none; font-weight: bold; width: 9%;">2025</td><td style="border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none; width: 1%;" title="FN Summary - FN 15 - 2025 Q2 Revenue by shipped to country - I64"></td><td> </td><td style="border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none; width: 1%;" title="FN Summary - FN 15 - 2025 Q2 Revenue by shipped to country - K64"></td><td style="text-align: center; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none; font-weight: bold; width: 9%;">2024</td><td style="border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none; width: 1%;" title="FN Summary - FN 15 - 2025 Q2 Revenue by shipped to country - K64"></td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Americas</td><td style="width: 1%; text-align: left;" title="FN Summary - FN 15 - 2025 Q2 Revenue by shipped to country - E65">$</td><td style="width: 9%; text-align: right;">(70</td><td style="width: 1%; text-align: left;" title="FN Summary - FN 15 - 2025 Q2 Revenue by shipped to country - E65">) </td><td> </td><td style="width: 1%; text-align: left;" title="FN Summary - FN 15 - 2025 Q2 Revenue by shipped to country - G65">$</td><td style="width: 9%; text-align: right;">585</td><td style="width: 1%; text-align: left;" title="FN Summary - FN 15 - 2025 Q2 Revenue by shipped to country - G65"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN Summary - FN 15 - 2025 Q2 Revenue by shipped to country - I65">$</td><td style="width: 9%; text-align: right;">1,522</td><td style="width: 1%; text-align: left;" title="FN Summary - FN 15 - 2025 Q2 Revenue by shipped to country - I65"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN Summary - FN 15 - 2025 Q2 Revenue by shipped to country - K65">$</td><td style="width: 9%; text-align: right;">3,583</td><td style="width: 1%; text-align: left;" title="FN Summary - FN 15 - 2025 Q2 Revenue by shipped to country - K65"> </td></tr><tr><td>Europe, Middle East and Africa</td><td style="width: 1%; text-align: left;" title="FN Summary - FN 15 - 2025 Q2 Revenue by shipped to country - E66"> </td><td style="width: 9%; text-align: right;">1,540</td><td style="width: 1%; text-align: left;" title="FN Summary - FN 15 - 2025 Q2 Revenue by shipped to country - E66"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN Summary - FN 15 - 2025 Q2 Revenue by shipped to country - G66"> </td><td style="width: 9%; text-align: right;">7</td><td style="width: 1%; text-align: left;" title="FN Summary - FN 15 - 2025 Q2 Revenue by shipped to country - G66"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN Summary - FN 15 - 2025 Q2 Revenue by shipped to country - I66"> </td><td style="width: 9%; text-align: right;">1,725</td><td style="width: 1%; text-align: left;" title="FN Summary - FN 15 - 2025 Q2 Revenue by shipped to country - I66"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN Summary - FN 15 - 2025 Q2 Revenue by shipped to country - K66"> </td><td style="width: 9%; text-align: right;">51</td><td style="width: 1%; text-align: left;" title="FN Summary - FN 15 - 2025 Q2 Revenue by shipped to country - K66"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Asia Pacific</td><td style="border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none; width: 1%;" title="FN Summary - FN 15 - 2025 Q2 Revenue by shipped to country - E67"></td><td style="border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none; text-align: right; width: 9%;">21</td><td style="border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none; width: 1%;" title="FN Summary - FN 15 - 2025 Q2 Revenue by shipped to country - E67"></td><td> </td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="FN Summary - FN 15 - 2025 Q2 Revenue by shipped to country - G67"> </td><td style="width: 9%; text-align: right; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;">1</td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="FN Summary - FN 15 - 2025 Q2 Revenue by shipped to country - G67"> </td><td> </td><td style="border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none; width: 1%;" title="FN Summary - FN 15 - 2025 Q2 Revenue by shipped to country - I67"></td><td style="border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none; text-align: right; width: 9%;">21</td><td style="border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none; width: 1%;" title="FN Summary - FN 15 - 2025 Q2 Revenue by shipped to country - I67"></td><td> </td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="FN Summary - FN 15 - 2025 Q2 Revenue by shipped to country - K67"> </td><td style="width: 9%; text-align: right; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;">8</td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="FN Summary - FN 15 - 2025 Q2 Revenue by shipped to country - K67"> </td></tr><tr><td style="padding-left: 10px;">Total revenues</td><td style="width: 1%; text-align: left; border-bottom: 3px double black; border-top: none; border-left: none; border-right: none;" title="FN Summary - FN 15 - 2025 Q2 Revenue by shipped to country - E68">$</td><td style="width: 9%; text-align: right; border-bottom: 3px double black; border-top: none; border-left: none; border-right: none;">1,491</td><td style="width: 1%; text-align: left; border-bottom: 3px double black; border-top: none; border-left: none; border-right: none;" title="FN Summary - FN 15 - 2025 Q2 Revenue by shipped to country - E68"> </td><td> </td><td style="width: 1%; text-align: left; border-bottom: 3px double black; border-top: none; border-left: none; border-right: none;" title="FN Summary - FN 15 - 2025 Q2 Revenue by shipped to country - G68">$</td><td style="width: 9%; text-align: right; border-bottom: 3px double black; border-top: none; border-left: none; border-right: none;">593</td><td style="width: 1%; text-align: left; border-bottom: 3px double black; border-top: none; border-left: none; border-right: none;" title="FN Summary - FN 15 - 2025 Q2 Revenue by shipped to country - G68"> </td><td> </td><td style="width: 1%; text-align: left; border-bottom: 3px double black; border-top: none; border-left: none; border-right: none;" title="FN Summary - FN 15 - 2025 Q2 Revenue by shipped to country - I68">$</td><td style="width: 9%; text-align: right; border-bottom: 3px double black; border-top: none; border-left: none; border-right: none;">3,268</td><td style="width: 1%; text-align: left; border-bottom: 3px double black; border-top: none; border-left: none; border-right: none;" title="FN Summary - FN 15 - 2025 Q2 Revenue by shipped to country - I68"> </td><td> </td><td style="width: 1%; text-align: left; border-bottom: 3px double black; border-top: none; border-left: none; border-right: none;" title="FN Summary - FN 15 - 2025 Q2 Revenue by shipped to country - K68">$</td><td style="width: 9%; text-align: right; border-bottom: 3px double black; border-top: none; border-left: none; border-right: none;">3,642</td><td style="width: 1%; text-align: left; border-bottom: 3px double black; border-top: none; border-left: none; border-right: none;" title="FN Summary - FN 15 - 2025 Q2 Revenue by shipped to country - K68"> </td></tr></table><p id="xdx_8AA_z4WZjPjqyYH2" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p></div> 1 0.93 1 0.20 0.20 3 0.42 0.11 0.10 2 0.28 0.17 1 0.76 2 0.11 0.10 <p id="xdx_898_eus-gaap--DisaggregationOfRevenueTableTextBlock_zZz1oTZikLX7" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">The following table summarizes revenue by geographic region. Revenue is attributed to countries based on customer’s delivery location:</p><table cellpadding="0" class="worksheetTable" 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%;"></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><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 colspan="7" style="text-align: center; font-weight: bold;">For the Three Months </td><td> </td><td colspan="7" style="text-align: center; font-weight: bold;">For the Nine Months</td></tr><tr><td> </td><td colspan="7" style="text-align: center; font-weight: bold;">Ended September 30,</td><td> </td><td colspan="7" style="text-align: center; font-weight: bold;">Ended September 30,</td></tr><tr><td> </td><td style="border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none; width: 1%;" title="FN Summary - FN 15 - 2025 Q2 Revenue by shipped to country - E64"></td><td style="text-align: center; font-weight: bold; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none; width: 9%;">2025</td><td style="border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none; width: 1%;" title="FN Summary - FN 15 - 2025 Q2 Revenue by shipped to country - E64"></td><td> </td><td style="border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none; width: 1%;" title="FN Summary - FN 15 - 2025 Q2 Revenue by shipped to country - G64"></td><td style="text-align: center; font-weight: bold; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none; width: 9%;">2024</td><td style="border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none; width: 1%;" title="FN Summary - FN 15 - 2025 Q2 Revenue by shipped to country - G64"></td><td> </td><td style="border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none; width: 1%;" title="FN Summary - FN 15 - 2025 Q2 Revenue by shipped to country - I64"></td><td style="text-align: center; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none; font-weight: bold; width: 9%;">2025</td><td style="border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none; width: 1%;" title="FN Summary - FN 15 - 2025 Q2 Revenue by shipped to country - I64"></td><td> </td><td style="border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none; width: 1%;" title="FN Summary - FN 15 - 2025 Q2 Revenue by shipped to country - K64"></td><td style="text-align: center; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none; font-weight: bold; width: 9%;">2024</td><td style="border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none; width: 1%;" title="FN Summary - FN 15 - 2025 Q2 Revenue by shipped to country - K64"></td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Americas</td><td style="width: 1%; text-align: left;" title="FN Summary - FN 15 - 2025 Q2 Revenue by shipped to country - E65">$</td><td style="width: 9%; text-align: right;">(70</td><td style="width: 1%; text-align: left;" title="FN Summary - FN 15 - 2025 Q2 Revenue by shipped to country - E65">) </td><td> </td><td style="width: 1%; text-align: left;" title="FN Summary - FN 15 - 2025 Q2 Revenue by shipped to country - G65">$</td><td style="width: 9%; text-align: right;">585</td><td style="width: 1%; text-align: left;" title="FN Summary - FN 15 - 2025 Q2 Revenue by shipped to country - G65"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN Summary - FN 15 - 2025 Q2 Revenue by shipped to country - I65">$</td><td style="width: 9%; text-align: right;">1,522</td><td style="width: 1%; text-align: left;" title="FN Summary - FN 15 - 2025 Q2 Revenue by shipped to country - I65"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN Summary - FN 15 - 2025 Q2 Revenue by shipped to country - K65">$</td><td style="width: 9%; text-align: right;">3,583</td><td style="width: 1%; text-align: left;" title="FN Summary - FN 15 - 2025 Q2 Revenue by shipped to country - K65"> </td></tr><tr><td>Europe, Middle East and Africa</td><td style="width: 1%; text-align: left;" title="FN Summary - FN 15 - 2025 Q2 Revenue by shipped to country - E66"> </td><td style="width: 9%; text-align: right;">1,540</td><td style="width: 1%; text-align: left;" title="FN Summary - FN 15 - 2025 Q2 Revenue by shipped to country - E66"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN Summary - FN 15 - 2025 Q2 Revenue by shipped to country - G66"> </td><td style="width: 9%; text-align: right;">7</td><td style="width: 1%; text-align: left;" title="FN Summary - FN 15 - 2025 Q2 Revenue by shipped to country - G66"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN Summary - FN 15 - 2025 Q2 Revenue by shipped to country - I66"> </td><td style="width: 9%; text-align: right;">1,725</td><td style="width: 1%; text-align: left;" title="FN Summary - FN 15 - 2025 Q2 Revenue by shipped to country - I66"> </td><td> </td><td style="width: 1%; text-align: left;" title="FN Summary - FN 15 - 2025 Q2 Revenue by shipped to country - K66"> </td><td style="width: 9%; text-align: right;">51</td><td style="width: 1%; text-align: left;" title="FN Summary - FN 15 - 2025 Q2 Revenue by shipped to country - K66"> </td></tr><tr style="background-color: rgb(204, 238, 255);"><td>Asia Pacific</td><td style="border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none; width: 1%;" title="FN Summary - FN 15 - 2025 Q2 Revenue by shipped to country - E67"></td><td style="border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none; text-align: right; width: 9%;">21</td><td style="border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none; width: 1%;" title="FN Summary - FN 15 - 2025 Q2 Revenue by shipped to country - E67"></td><td> </td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="FN Summary - FN 15 - 2025 Q2 Revenue by shipped to country - G67"> </td><td style="width: 9%; text-align: right; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;">1</td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="FN Summary - FN 15 - 2025 Q2 Revenue by shipped to country - G67"> </td><td> </td><td style="border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none; width: 1%;" title="FN Summary - FN 15 - 2025 Q2 Revenue by shipped to country - I67"></td><td style="border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none; text-align: right; width: 9%;">21</td><td style="border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none; width: 1%;" title="FN Summary - FN 15 - 2025 Q2 Revenue by shipped to country - I67"></td><td> </td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="FN Summary - FN 15 - 2025 Q2 Revenue by shipped to country - K67"> </td><td style="width: 9%; text-align: right; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;">8</td><td style="width: 1%; text-align: left; border-bottom: 1px solid black; border-top: none; border-left: none; border-right: none;" title="FN Summary - FN 15 - 2025 Q2 Revenue by shipped to country - K67"> </td></tr><tr><td style="padding-left: 10px;">Total revenues</td><td style="width: 1%; text-align: left; border-bottom: 3px double black; border-top: none; border-left: none; border-right: none;" title="FN Summary - FN 15 - 2025 Q2 Revenue by shipped to country - E68">$</td><td style="width: 9%; text-align: right; border-bottom: 3px double black; border-top: none; border-left: none; border-right: none;">1,491</td><td style="width: 1%; text-align: left; border-bottom: 3px double black; border-top: none; border-left: none; border-right: none;" title="FN Summary - FN 15 - 2025 Q2 Revenue by shipped to country - E68"> </td><td> </td><td style="width: 1%; text-align: left; border-bottom: 3px double black; border-top: none; border-left: none; border-right: none;" title="FN Summary - FN 15 - 2025 Q2 Revenue by shipped to country - G68">$</td><td style="width: 9%; text-align: right; border-bottom: 3px double black; border-top: none; border-left: none; border-right: none;">593</td><td style="width: 1%; text-align: left; border-bottom: 3px double black; border-top: none; border-left: none; border-right: none;" title="FN Summary - FN 15 - 2025 Q2 Revenue by shipped to country - G68"> </td><td> </td><td style="width: 1%; text-align: left; border-bottom: 3px double black; border-top: none; border-left: none; border-right: none;" title="FN Summary - FN 15 - 2025 Q2 Revenue by shipped to country - I68">$</td><td style="width: 9%; text-align: right; border-bottom: 3px double black; border-top: none; border-left: none; border-right: none;">3,268</td><td style="width: 1%; text-align: left; border-bottom: 3px double black; border-top: none; border-left: none; border-right: none;" title="FN Summary - FN 15 - 2025 Q2 Revenue by shipped to country - I68"> </td><td> </td><td style="width: 1%; text-align: left; border-bottom: 3px double black; border-top: none; border-left: none; border-right: none;" title="FN Summary - FN 15 - 2025 Q2 Revenue by shipped to country - K68">$</td><td style="width: 9%; text-align: right; border-bottom: 3px double black; border-top: none; border-left: none; border-right: none;">3,642</td><td style="width: 1%; text-align: left; border-bottom: 3px double black; border-top: none; border-left: none; border-right: none;" title="FN Summary - FN 15 - 2025 Q2 Revenue by shipped to country - K68"> </td></tr></table> -70000 585000 1522000 3583000 1540000 7000 1725000 51000 21000 1000 21000 8000 1491000 593000 3268000 3642000 <div><p id="xdx_801_eus-gaap--AssetAcquisitionTextBlock_zVL8L2QddC84" style="font: 10pt &quot;Times New Roman&quot;; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-transform: capitalize;"><b>16. <span id="xdx_820_zfwa17HOOIKe">W1 ACQUISITION</span></b></p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-size-adjust: none; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-variant-emoji: normal; font-stretch: normal; line-height: normal; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">On February 18, 2025, the Company and W1, entered into an Asset Purchase Agreement, dated as of February 18, 2025 pursuant to which, subject to the terms and conditions set forth therein, the Company agreed to acquire substantially all the assets of W1 used in, held for use in or relating to the business of advisory and investigative professional services which related to specific identified customer contracts. The Company recorded the transaction as an Asset Acquisition in accordance with ASC 805 and recorded $<span id="xdx_908_eus-gaap--IntangibleAssetsNetExcludingGoodwill_iI_pn3n3_c20250218__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--CustomerRelationshipsMember__us-gaap--TypeOfArrangementAxis__custom--AssetPurchaseAgreementMember_zmco1Wur7Jf1" title="Intangible assets">54</span> as intangible assets included in Customer Relationships (See Note 6 “Intangible Assets” above). The Company has preliminarily assigned a three-year life to such Customer Relationships. </p><p style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-size-adjust: none; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-variant-emoji: normal; font-stretch: normal; line-height: normal; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">   </p><p style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-size-adjust: none; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-variant-emoji: normal; font-stretch: normal; line-height: normal; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;">The Company acquired W1 Global to integrate technology enablement into its core offerings and expand into managed technology services supporting the BolaWrap go-to-market strategy. Following a third-quarter evaluation, the company determined that W1’s investigative services were not essential to Wrap’s domestic or international expansion; however, customers strongly valued managed services related to policy and training. As a result, Wrap will continue focusing on managed services in policy governance and training to advance the next era of non-lethal technology development, delivering an integrated response package that combines technology with the support, policy alignment, and governance needed for adoption at the state and federal levels.</p><p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p></div> 54000 P3Y <div> <p id="xdx_807_eus-gaap--SubsequentEventsTextBlock_zKDTImdBX7md" style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><b>17. <span id="xdx_821_zhUbD62Wx2D8">SUBSEQUENT EVENTS</span></b></p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font: italic 10pt &quot;Times New Roman&quot;; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-decoration: underline;">Mutual Separation with Jerry Ratigan and Appointment of Scot Cohen</p> <p style="font: 10pt 'Times New Roman'; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p> <p style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-size-adjust: none; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-variant-emoji: normal; font-stretch: normal; line-height: normal; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> On October 21, 2025, the Company and Jerry Ratigan, who served as the Company’s Chief Financial Officer, Principal Accounting Officer and Principal Financial Officer, mutually agreed to the separation of Mr. Ratigan from such roles, effective as of October 24, 2025. </p><p style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-size-adjust: none; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-variant-emoji: normal; font-stretch: normal; line-height: normal; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p><p style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-size-adjust: none; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-variant-emoji: normal; font-stretch: normal; line-height: normal; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> The terms of Mr. Ratigan’s separation from the Company have been memorialized pursuant to a General Release and Severance Agreement, dated as of October 21, 2025, which was executed by the Company and Mr. Ratigan on October 24, 2025 (the “Separation Agreement”). Pursuant to the Separation Agreement, Mr. Ratigan is entitled to receive a severance payment in an amount equal to $50,000, representing three months of Mr. Ratigan’s base salary, less all lawful and authorized withholdings and deductions, payable in a lump sum on the Company’s first regular pay date following the Effective Date (as defined in the Separation Agreement). In exchange for the consideration provided to Mr. Ratigan in the Separation Agreement, Mr. Ratigan agreed to waive and release any claims in connection with Mr. Ratigan’s employment and separation from the Company. On October 25, 2025, the board of directors of the Company appointed Scot Cohen, who serves as the Company’s Chief Executive Officer and Principal Executive Officer, to the position of Chief Executive Officer, Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer, effective immediately. </p><p style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-size-adjust: none; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-variant-emoji: normal; font-stretch: normal; line-height: normal; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p><p style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-size-adjust: none; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-variant-emoji: normal; font-stretch: normal; line-height: normal; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"><i><span style="text-decoration:underline"> Appointment of John Shulman to the Board of Directors </span></i></p><p style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-size-adjust: none; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-variant-emoji: normal; font-stretch: normal; line-height: normal; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p><p style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-size-adjust: none; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-variant-emoji: normal; font-stretch: normal; line-height: normal; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> On October 25, 2025, the Board increased the size of the Board to six (6) members and appointed John Shulman to serve as a member of the Company’s Board, to serve until the Company’s next annual meeting of stockholders or until his successor is duly elected and qualified. Mr. Shulman will be entitled to the standard compensation paid by the Company to all its nonemployee directors under the Company’s director compensation program.</p><p style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-size-adjust: none; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-variant-position: normal; font-variant-emoji: normal; font-stretch: normal; line-height: normal; margin-top: 0pt; margin-bottom: 0pt; text-align: justify;"> </p></div> 50000000 6 false false false false 1 1 P6Y6M P5Y6M 0001702924 false Q3 --12-31