Corvex, Inc.

Previous wording

On March 19, 2026, Corvex, Inc. (formerly known as Movano Inc.) (the “Company”), acquired Corvex Legacy Holdings, Inc. (formerly known as Corvex, Inc.) (“Corvex OpCo”), in accordance with the terms of the Amended and Restated Agreement and Plan of Merger, dated March 19, 2026 (the “Merger Agreement”), by and among the Company, Thor Merger Sub Inc., a Delaware corporation and a wholly-owned subsidiary of the Company (“Merger Sub”), and Corvex OpCo. Pursuant to the Merger Agreement, Merger Sub merged with and into Corvex OpCo, with Corvex OpCo surviving as a wholly owned subsidiary of the Company (the “Merger”). The Merger Agreement amended and restated the prior merger agreement entered into on November 6, 2025. Concurrent with the Merger, the Company changed its name to Corvex, Inc., effective March 23, 2026. As a result of this transaction, Corvex OpCo became a wholly owned subsidiary of the Company. This transaction represents a significant change in the Company’s business and strategy.

Current wording

On March 19, 2026, Corvex, Inc. (formerly known as Movano Inc.) (the “Company”), acquired Corvex Legacy Holdings, Inc. (formerly known as Corvex, Inc.) (“Corvex OpCo”), in accordance with the terms of the Amended and Restated Agreement and Plan of Merger, dated March 19, 2026 (the “Merger Agreement”), by and among the Company, Thor Merger Sub Inc., a Delaware corporation and a wholly-owned subsidiary of the Company (“Merger Sub”), and Corvex OpCo. Pursuant to the Merger Agreement, Merger Sub merged with and into Corvex OpCo, with Corvex OpCo surviving as a wholly owned subsidiary of the Company (the “Merger”). The Merger Agreement amended and restated the prior merger agreement entered into on November 6, 2025. Concurrent with the Merger, the Company changed its name to Corvex, Inc., effective March 23, 2026. As a result of this transaction, Corvex OpCo became a wholly owned subsidiary of the Company. This transaction represented a significant change in the Company’s business and strategy.

Previous wording

As a result, the results of operations for the three months ended March 31, 2026 include (i) the Company’s legacy healthcare operations for the full period and (ii) the results of Corvex OpCo for the period from March 19, 2026 through March 31, 2026. Accordingly, the results for the current period are not directly comparable to prior periods.

Current wording

As a result, the results of operations for the six months ended June 30, 2026 include (i) the Company’s legacy healthcare operations for the full period and (ii) the results of Corvex OpCo for the period from March 19, 2026 through June 30, 2026. Accordingly, the results for the current period are not directly comparable to prior periods.

Previous wording

The Company generates revenue through fixed-term contracts under which we reserve compute and storage capacity across our fleet of servers and provide related support services. Customers pay a fixed fee for the reserved capacity and contracted services over the contract term, regardless of utilization. Compute capacity is delivered across two infrastructure tiers: (1) high-performance GPU servers for intensive AI training and inference workloads, and (2) virtual machines provisioned on shared CPU servers for general-purpose compute, development, testing, and supporting AI workloads such as data preprocessing and orchestration. Customers may also contract for integrated storage capacity and platform services, including managed Kubernetes, confidential computing, and service packages. The Company’s primary performance obligation is to stand ready to provide access to specified compute capacity, enabling customers to submit and process workloads on GPU and CPU servers. Revenue is recognized on a straight-line basis over the stated customer contract term.

Current wording

Revenue associated with our AI Platform and services is generated through fixed-term contracts. AI Platform revenue is derived from these fixed-term contracts, where customers pay a fixed fee for reserved compute and storage capacity across our fleet of servers and contracted support services over the contract term, regardless of the level of utilization.

Previous wording

Cost of revenue primarily consists of direct costs in operating data centers, such as utilities including power, rent, labor costs and network access. The Company operates data centers and has co-location service agreements. These agreements generally commit the Company to pay monthly fees plus additional fees for bandwidth usage above the committed level.

Current wording

Cost of revenue primarily consists of direct costs in operating high-performance computing equipment within leased data center space. Other costs included in this line are fees for bandwidth usage via fixed-capacity ISP contract, utilities including power, rent, labor costs and network access. The Company operates data centers and has co-location service agreements. These agreements generally commit the Company to pay monthly fees plus additional fees for bandwidth usage above the committed level.

Previous wording

Costs of revenue consists primarily of material costs, freight charges, purchasing and receiving costs, inspection costs, customer support, data hosting services and other costs, which are directly attributable to the production of the Company’s product. Write-down of inventory to lower of cost or net realizable value is also recorded in cost of revenue.

Current wording

Cost of revenue consists primarily of material costs, freight charges, purchasing and receiving costs, inspection costs, customer support, data hosting services and other costs, which are directly attributable to the production of the Company’s product. Write-down of inventory to lower of cost or net realizable value is also recorded in cost of revenue.

Previous wording

Technology and infrastructure expense consists of costs associated with our infrastructure, such as personnel costs for employees associated with research and development of new and existing products and services or with maintaining our computing infrastructure, such as salaries and benefits, bonuses, benefits, stock-based compensation expense, lab supplies and facility costs, travel expenses, fees paid to non employees conducting certain research activities and other related expenses, and costs related to software subscriptions. The Company’s technology and infrastructure efforts are dedicated towards developing new services, improving the Company’s existing infrastructure, adding new features, bringing the latest compute technology to market and improving the accessibility of the Company’s services.

Current wording

Technology and infrastructure expense consists of costs associated with our infrastructure, such as personnel costs for employees associated with research and development of new and existing products and services or with maintainingour computing infrastructure, such as salaries and benefits, bonuses, benefits, stock-based compensation expense, lab supplies and facility costs, travel expenses, fees paid to non-employees conducting certain research activities and other related expenses, and costs related to software subscriptions. The Company’s technology and infrastructure efforts are dedicated towards developing new services, improving the Company’s existing infrastructure, adding new features, bringing the latest compute technology to market and improving the accessibility of the Company’s services.

Previous wording

Other (expense) income, net relates primarily to interest income earned cash balances held in interest bearing bank accounts and interest expense related to leases.

Current wording

Other (expense) income, net relates primarily to interest income earned cash balances held in interest bearing bank accounts and the gain on disposal of assets represents the excess amount of carrying value of the Bridge Loan over the assets transferred to settle the Bridge Loan.

Previous wording

Our condensed consolidated statements of operations for the three months ended March 31, 2026 and 2025, as discussed herein are presented below.

Current wording

Our condensed consolidated statements of operations for the three and six months ended June 30, 2026 and 2025, as discussed herein are presented below.

Previous wording

Revenue totaled $510 thousand and $206 thousand for the three months ended March 31, 2026 and 2025, respectively. Revenue in the current period increased primarily due to the acquisition of Corvex OpCo which reported $475 thousand in revenue. This was offset by a decrease of $171 thousand in revenue from connected devices caused mostly by a decrease in marketing efforts of the product caused by our strategic shift toward our AI cloud computing business.

Current wording

Revenue totaled $3.8 million and $103 thousand for the three months ended June 30, 2026 and 2025, respectively. For the three months ended, revenue increased $3.7 million, primarily due to the acquisition of Corvex OpCo which reported $3.8 million in revenue. This was offset by a decrease of $103 thousand associated with the wind down of the Legacy Business.

Previous wording

Cost of revenue totaled $512 thousand and $642 thousand for the three months ended March 31, 2026 and 2025, respectively. The reduction is primarily due to the decrease of $377 thousand from the downsizing of our legacy operations and our strategic shift toward our AI cloud computing business. This was offset by the acquisition of Corvex OpCo and the $247 thousand in cost of revenue related to AI platform and services. Cost of revenue in the current period primarily relates to direct costs associated with the operation of Corvex’s data center infrastructure, including rent, network access, utilities and power expenses, while cost of revenue in the prior-year period reflects the Company’s legacy healthcare operations.

Current wording

Cost of revenue totaled $2.1 million and $362 thousand for the three months ended June 30, 2026 and 2025, respectively. For the three months ended, the increase is primarily due to the acquisition of Corvex OpCo and the $2.1 million in cost of revenue related to AI platform services. This was offset by the downsizing of the Legacy Business. Cost of revenue in the current period primarily relates to direct costs associated with the operation of Corvex’s high-performance computing equipment within leased data center space, which includes costs such as rent, network access, utilities and power expenses and personnel costs, including stock-based compensation, Cost of revenue in the prior-year period reflects operations of the Legacy Business.

Previous wording

Depreciation and amortization totaled $326 thousand and $38 thousand for the three months ended March 31, 2026 and 2025, respectively. The increase is due primarily to the acquisition of Corvex OpCo, which reported $295 thousand in depreciation and amortization. Depreciation and amortization expense in the prior-year period reflects the Company’s legacy healthcare operations.

Current wording

Depreciation and amortization totaled $2.7 million and $0 for the three months ended June 30, 2026 and 2025, respectively. For the three months ended, the increase is due primarily to the acquisition of Corvex OpCo, which reported $2.7 million in depreciation and amortization. Depreciation and amortization expense in the prior-year period reflects operations of the Legacy Business.

Previous wording

Technology and infrastructure expense totaled $822 thousand and $2.4 million for the three months ended March 31, 2026 and 2025, respectively. Technology and infrastructure expense in the current period primarily relates to costs associated with the Corvex Opco business, including personnel costs for employees engaged in research and development activities, depreciation associated with servers and software, stock-based compensation expense and other infrastructure-related costs. It also consists of any current period research and development expense from the Company’s historical healthcare operations. The decrease is primarily due to a $1.7 million decrease in research and development expense related to the Company’s legacy healthcare operations caused primarily due a reduction in headcount as the Company shifted to focus on the AI cloud computing business, leading to lower personnel and consulting expense in the current period. The decrease was offset by additional technology and infrastructure cost of $169 thousand from the acquisition of Corvex OpCo. Technology and infrastructure expense in the prior-year period reflects the Company’s legacy healthcare operations , mainly related to research and development expenses.

Current wording

For the six months ended June 30, 2026 and 2025, technology and infrastructure expense totaled $2.2 million and $3.8 million, respectively. For the six months ended, the change is primarily due to a $2.9 million decrease in research and development expense related to the Legacy Business caused primarily by a reduction in headcount as the Company shifted to focus on the AI cloud computing business, leading to lower personnel and consulting expense in the current period. The decrease was offset by additional technology and infrastructure cost of $1.3 million from the acquisition of Corvex OpCo primarily consisting of personnel costs, including stock-based compensation. Technology and infrastructure expense in the prior-year period reflects operations of the Legacy Business, mainly related to research and development expenses.

Previous wording

General and administrative expense totaled $3.4 million and $1.6 million for the three months ended March 31, 2026 and 2025, respectively. The increase is due primarily to increased legal and consulting expenses due to the merger, increased stock-based compensation expense, offset by the reduction in other personnel cost from reduced headcount. In addition, the increase is also explained by the impact of the acquisition of Corvex OpCo which added $1.3 million in general and administrative expenses. General and administrative expense in the current period primarily consists of personnel-related costs, stock-based compensation expense, professional services and lease and other corporate overhead costs.

Current wording

General and administrative expense totaled $12.1 million and $1.6 million for the three months ended June 30, 2026 and 2025, respectively, and $15.5 million and $4.0 million for the six months ended June 30, 2026 and 2025, respectively. The increase is due primarily to increased stock-based compensation expense related to the replacement awards associated with the acquisition of Corvex OpCo, legal and consulting expenses due to the Merger, offset by the reduction in other personnel cost from reduced headcount. In addition, the increase is also explained by the impact of the acquisition of Corvex OpCo which added $11.2 million and $12.5 million for the three and six months ended June 30, 2026 in general and administrative expenses. General and administrative expense in the current period primarily consists of personnel-related costs, stock-based compensation expense, professional services and lease and other corporate overhead costs.

Previous wording

Other income (expense), net totaled $(158) thousand and $60 thousand for the three months ended March 31, 2026 and 2025, respectively. Other income (expense), net in the current period primarily relates to accrued interest expense and amortization of the Company’s Bridge Loan, offset, in part, by interest income earned on cash balances held in interest-bearing accounts. Other income (expense), net in the prior-year period reflects the Company’s legacy healthcare operations and also primarily related to interest and other income.

Current wording

Other income (expense), net totaled $2.5 million and $35 thousand for the three months ended June 30, 2026 and 2025, respectively, and $2.3 million and $95 thousand for the six months ended June 30, 2026 and 2025, respectively. Other income (expense), net in the current period primarily relates to the gain on disposal of assets related to the Connected devices business which represents the excess amount of carrying value of the Bridge Loan over the assets transferred to settle the Bridge Loan. Other income (expense), net in the prior-year period reflects operations of the Legacy Business and also primarily related to interest and other income.

Previous wording

This non-GAAP financial measure is presented for supplemental informational purposes only, should not be considered a substitute for financial information presented in accordance with GAAP, and may be different from similarly titled non-GAAP measure used by other companies. Other companies, including companies in our industry, may calculate this non-GAAP measure differently or may use other measures to evaluate their performance, any of which could reduce the usefulness of our disclosure of non-GAAP measure as a tool for comparison. A reconciliation is provided below for the non-GAAP financial measure to the most directly comparable financial measure presented in accordance with GAAP. Investors should review the related GAAP financial measures and the reconciliation of this non-GAAP financial measure to its most directly comparable GAAP financial measures, as well as our financial statements and related notes included elsewhere in this prospectus.

Current wording

This non-GAAP financial measure is presented for supplemental informational purposes only, should not be considered a substitute for financial information presented in accordance with GAAP, and may be different from similarly titled non-GAAP measure used by other companies. Other companies, including companies in our industry, may calculate this non-GAAP measure differently or may use other measures to evaluate their performance, any of which could reduce the usefulness of our disclosure of non-GAAP measure as a tool for comparison. A reconciliation is provided below for the non-GAAP financial measure to the most directly comparable financial measure presented in accordance with GAAP. Investors should review the related GAAP financial measures and the reconciliation of this non-GAAP financial measure to its most directly comparable GAAP financial measures, as well as our financial statements and related notes included elsewhere in this Quarterly Report.

Previous wording

We report our financial results in accordance with GAAP, however, management believes evaluation of operating results may be enhanced by a presentation of adjusted EBITDA which is a non-GAAP financial measure. We define adjusted EBITDA as net loss, excluding (i) depreciation and amortization, (ii) stock-based compensation, (iii) transaction costs related to the merger, (iv) Other expense (income) (v) benefit from income taxes.

Current wording

We report our financial results in accordance with GAAP, however, management believes evaluation of operating results may be enhanced by a presentation of adjusted EBITDA which is a non-GAAP financial measure. We define adjusted EBITDA as net loss, excluding (i) depreciation and amortization, (ii) stock-based compensation, (iii) benefit from income taxes (iv) transaction costs related to the Merger, (v) gain on disposal of assets and (vi) interest and other income, net.

Previous wording

Note: Adjusted EBITDA for the chief operating decision maker’s (“CODM”) analysis excludes (i) depreciation and amortization, (ii) stock-based compensation, (iii) transaction costs related to the merger, (iv) interest and (v) benefit from income taxes.

Current wording

Note: Adjusted EBITDA for the chief operating decision maker’s (“CODM”) analysis excludes (i) depreciation and amortization, (ii) stock-based compensation, (iii) benefit from income taxes, (iv) transaction costs related to the Merger, (v) gain on disposal of assets and (vi) interest and other income, nets.

Previous wording

Net loss for the AI Platform and services segment was $(1,625) thousand for the three months ended March 31, 2026, as compared to $0 for the three months ended March 31, 2025.

Current wording

Net loss for the AI Platform and services segment was $13.9 million and $0 for the three months ended June 30, 2026 and 2025, respectively, and $15.5 million and $0 for the six months ended June 30, 2026 and 2025, respectively.

Previous wording

The decrease in adjusted EBITDA loss is due to the inclusion of results from the AI Platform and services business following the merger with Corvex OpCo, which did not exist in the prior-year period, and reflects the early stage of commercialization, including investments in infrastructure and personnel.

Current wording

The decrease in adjusted EBITDA is due to the inclusion of results from the AI Platform and services business following the Merger with Corvex OpCo, which did not exist in the prior-year period, and reflects the early stage of commercialization, including investments in infrastructure and personnel.

Previous wording

The increase in adjusted EBITDA of $3,395 thousand is primarily due to reduced operating expenses as the Company downsized its legacy healthcare operations, partially offset by stock-based compensation and transaction-related costs in the current period.

Current wording

The increase in adjusted EBITDA of $1.6 million and $5.0 million for the three and six months ended is primarily due to reduced operating expenses as the Company downsized its Legacy Business, partially offset by stock-based compensation and transaction-related costs in the current period.

Previous wording

On March 19, 2026, we completed the acquisition of Corvex OpCo and determined that the Company is the accounting acquirer. Accordingly, periods prior to the acquisition reflect the historical financial statements of the Company, and the results of Corvex OpCo are included beginning on the acquisition date. As a result, the liquidity and capital resources information for the three months ended March 31, 2026 is not directly comparable to the prior-year period.

Current wording

On March 19, 2026, we completed the acquisition of Corvex OpCo and determined that the Company is the accounting acquirer. Accordingly, periods prior to the acquisition reflect the historical financial statements of the Company, and the results of Corvex OpCo are included beginning on the acquisition date. As a result, the liquidity and capital resources information for the three and six months ended June 30, 2026 is not directly comparable to the prior-year period.

Previous wording

We have incurred significant operating losses and negative cash flows from operations since inception and had an accumulated deficit of approximately $171.4 million as of March 31, 2026. We expect to continue to incur net losses for the foreseeable future as we continue to invest in the development and expansion of our AI cloud computing business and maintain our legacy healthcare operations in a reduced capacity.

Current wording

We have incurred significant operating losses and negative cash flows from operations since inception and had an accumulated deficit of approximately $184.2 million as of June 30, 2026. We expect to continue to incur net losses for the foreseeable future as we continue to invest in the development and expansion of our AI cloud computing business.

Previous wording

As of March 31, 2026, we had cash and cash equivalents of approximately $29.3 million. Based on our current operating plan, we believe that our existing cash and cash equivalents will be sufficient to fund our projected operating requirements for at least the next twelve months from the date of issuance of the condensed consolidated financial statements.

Current wording

As of June 30, 2026, we had cash and cash equivalents of approximately $21.7 million. Based on our current operating plan, we believe that our existing cash and cash equivalents will be sufficient to fund our projected operating requirements for at least the next twelve months from the date of issuance of the condensed consolidated financial statements.

Previous wording

As of March 31, 2026, we had cash and cash equivalents of $29.3 million. During the period ended March 31, 2026, we used $4.3 million of cash in operating activities.

Current wording

As of June 30, 2026, we had cash and cash equivalents of $21.7 million. During the six month period ended June 30, 2026, we used $9.6 million of cash in operating activities.

Previous wording

Our funding requirements are highly dependent on the needs of our AI cloud computing business going forward. We have incurred significant expenses related to evaluating strategic alternatives and entering into the Merger Agreement, and we expect to continue incurring expenses related to exploring transactions to monetize certain legacy assets.

Current wording

Our funding requirements are highly dependent on the needs of our AI cloud computing business going forward. We have incurred significant expenses related to evaluating strategic alternatives and entering into the Merger Agreement.

Previous wording

In connection with the Merger Agreement, we amended the Bridge Loan to extend the maturity date to June 30, 2026. As part of this amendment, upon any sale or disposition of substantially all legacy assets, we are required to repay the $1.5 million principal, plus outstanding obligations, a $3.0 million repayment premium, and any additional proceeds from such sale. If the legacy assets are not sold by the maturity date, they will be transferred to the lender in full satisfaction of the debt.

Current wording

In connection with the Merger Agreement, we amended the Bridge Loan to extend the maturity date to June 30, 2026. As part of this amendment, upon any sale or disposition of substantially all legacy assets, we are required to repay the $1.5 million principal, plus outstanding obligations, a $3.0 million repayment premium, and any additional proceeds from such sale. If the legacy assets are not sold by the maturity date, they will be transferred to the lender in full satisfaction of the debt. On June 30, 2026, the Company completed the transfer of the legacy healthcare assets to the Lender in full satisfaction of its outstanding debt and obligations under the Bridge Loan.

Previous wording

As a result of the Merger, including anticipated operational and financial benefits and access to additional resources, we believe our cash and cash equivalents will be sufficient to fund operations for the next twelve months.

Current wording

As a result of the Merger, including anticipated operational and financial benefits and access to additional resources, we believe our cash and cash equivalents will be sufficient to fund operations for the next twelve months. However, changing circumstances may cause us to consume capital faster than expected. If we are unable to obtain additional funding, our financial condition may be materially adversely affected, and we may not be able to continue operations. In such circumstances, the Board may determine that bankruptcy or liquidation is in the best interests of stockholders.

Previous wording

During the three months ended March 31, 2026, the Company used cash of $4.3 million in operating activities, as compared to $4.3 million used in operating activities during the three months ended March 31, 2025.

Current wording

During the six months ended June 30, 2026, the Company used cash of $9.6 million in operating activities, as compared to $7.4 million used in operating activities during the six months ended June 30, 2025.

Previous wording

The $4.3 million used in operating activities during the three months ended March 31, 2025 was primarily attributable to our net loss of $5.2 million during the period. The net loss was offset by changes in our operating assets and liabilities totaling $530 thousand and by non-cash items, including stock-based compensation, totaling $345 thousand.

Current wording

The $9.6 million used operating activities during the six months ended June 30, 2026 was primarily attributable to our net loss of $17.8 million during the period. The net loss was offset by changes in our operating assets and liabilities totaling $(6.1) million and net cash flows from operating activities and by non-cash items, including stock-based compensation, totaling $11.6 million.

Previous wording

The $4.3 million used in operating activities during the three months ended March 31, 2026 was primarily attributable to our net loss of $5.0 million during the period. The net loss was offset by changes in our operating assets and liabilities totaling $(2.0) million and by non-cash items, including stock-based compensation, totaling $2.7 million.

Current wording

The $7.4 million used in operating activities during the six months ended June 30, 2025 was primarily attributable to our net loss of $8.4 million during the period. The net loss was offset by changes in our operating assets and liabilities totaling $(158) thousand and by non-cash items, including stock-based compensation, totaling $1.1 million.

Previous wording

During the three months ended March 31, 2026, the Company was provided cash of $30.4 million in investing activities, consisting of cash received as part of the Merger totaling $36.7 million, offset by purchases of property and equipment in the amount of $6.2 million, mainly related to the purchase of servers to support our AI cloud operations.

Current wording

During the six months ended June 30, 2026, the Company provided cash of $29.8 million in investing activities, consisting of cash received as part of the Merger totaling $36.7 million, reduced by purchases of property and equipment in the amount of $6.5 million and $409 thousand of capitalized software expenditures, mainly related to the AI cloud operations.

Previous wording

During the three months ended March 31, 2025, the Company used no cash in investing activities.

Current wording

During the six months ended June 30, 2025, the Company used no cash in investing activities.

Previous wording

We anticipate that our expenses and capital requirements will increase as we continue to scale the Corvex AI cloud computing business, support customer demand, expand infrastructure capacity and operate as a public company. Our future funding requirements will depend on many factors, including the rate at which we expand our AI infrastructure capacity; our ability to manage increases in input and operating costs, including price increases for servers, GPUs, memory, storage, networking, cooling, data center space and power; our development efforts with respect to new solutions, services and platform functionality; our ability to retain existing customers and attract new customers; and our ability to generate sufficient cash flow from operations and raise additional capital. These funding drivers are consistent with the combined company’s post-merger operating strategy and risk profile.

Current wording

We anticipate that our expenses and capital requirements will increase as we continue to scale the Corvex AI cloud computing business, support customer demand, expand infrastructure capacity and operate as a public company. Our future funding requirements will depend on many factors, including the rate at which we expand our AI infrastructure capacity; our ability to manage increases in input and operating costs, including price increases for servers, GPUs, memory, storage, networking, cooling, data center space and power; our development efforts with respect to new solutions, services and platform functionality; our ability to retain existing customers and attract new customers; and our ability to generate sufficient cash flow from operations and raise additional capital.

Previous wording

We also expect to incur additional legal, accounting, audit, insurance, regulatory and compliance costs associated with operating as a public company. In addition, our current operating plans may require substantial additional financing to support data center facilities, computing hardware and related infrastructure as we continue to scale the Corvex AI cloud computing business.

Current wording

We also expect to incur additional legal, accounting, audit, insurance, regulatory and compliance costs associated with operating as a public company. In addition, our current operating plans may require substantial additional financing to support computing hardware and related infrastructure as we continue to scale the Corvex AI cloud computing business.

Previous wording

In preparing financial statements in conformity with GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates used in the preparation of these financial statements include but are not limited to the following: fair value of stock options, recognition of intangible assets in a business combination. Actual results could differ from those estimates.

Current wording

In preparing financial statements in conformity with GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates used in the preparation of these financial statements include but are not limited to the following: stock-based compensation, recognition of intangible assets in a business combination, leases, income taxes, and impairment of long-lived assets. Actual results could differ from those estimates.

Previous wording

Trade name intangible assets are valued using the relief-from-royalty method, which estimates the value of the asset by calculating the present value of hypothetical royalty payments that would be avoided through ownership of the trade name. This method requires assumptions related to royalty rates, revenue growth, and discount rates.

Current wording

Tradename intangible assets are valued using the relief-from-royalty method, which estimates the value of the asset by calculating the present value of hypothetical royalty payments that would be avoided through ownership of the Tradename. This method requires assumptions related to royalty rates, revenue growth, and discount rates.

Previous wording

The Company accounts for income taxes using the asset and liability method. Under this method, deferred tax assets and liabilities are determined based on differences between the financial statement and tax basis of assets and liabilities and net operating loss and credit carryforwards using enacted tax rates in effect for the year in which the differences are expected to reverse. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be realized. As the Company maintained a full valuation allowance against its deferred tax assets, the changes resulted in no provision or benefit from income taxes during the three months ended March 31, 2026 and 2025, respectively.

Current wording

The Company accounts for income taxes using the asset and liability method. Under this method, deferred tax assets and liabilities are determined based on differences between the financial statement and tax basis of assets and liabilities and net operating loss and credit carryforwards using enacted tax rates in effect for the year in which the differences are expected to reverse. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be realized. As the Company maintained a full valuation allowance against its deferred tax assets, the changes resulted in no provision or benefit from income taxes during the three and six months ended June 30, 2026 and 2025, respectively.

Previous wording

The Company reviews long-lived assets, including intangible assets subject to amortization and property and equipment subject to depreciation, for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. The recoverability of long-lived assets is assessed by comparing the undiscounted future cash flows expected to be generated by the asset to its carrying value. If the carrying amount of a long-lived asset exceeds the expected undiscounted cash flows, an impairment loss is recognized in an amount equal to the excess of the asset’s carrying value over its fair value. Fair value is determined using valuation techniques such as discounted cash flow models, market comparisons, and, where applicable, independent third-party appraisals. No impairment losses were recorded during the three months ended March 31, 2026 and 2025.

Current wording

The Company reviews long-lived assets, including intangible assets subject to amortization and property and equipment subject to depreciation, for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. The recoverability of long-lived assets is assessed by comparing the undiscounted future cash flows expected to be generated by the asset to its carrying value. If the carrying amount of a long-lived asset exceeds the expected undiscounted cash flows, an impairment loss is recognized in an amount equal to the excess of the asset’s carrying value over its fair value. Fair value is determined using valuation techniques such as discounted cash flow models, market comparisons, and, where applicable, independent third-party appraisals. No impairment losses were recorded during the three and six months ended June 30, 2026 and 2025.