Oblong, Inc.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025

Note1 - Business Description and Significant Accounting Policies

Business Description

Oblong, Inc. (“Oblong” or “we” or “us” or the “Company”) was formed as a Delaware corporation in* May 2000.*

Oblong is building a robust cryptocurrency treasury focused on decentralized artificial intelligence ("AI") and the acquisition of $TAO, the native cryptocurrency of Bittensor, a decentralized blockchain network for machine learning and AI. The Company also provides innovative video collaboration and network solutions, centered around our patented Mezzanine™ product line and managed services. In conjunction with Company's* June 2025private placement (see Note5* - Capital Stock for further detail), the Company has started to migrate its product focus from Mezzanine™ and related services to the AI and digital assets market.

Basis of Presentation

The Company’s fiscal year ends on* December 31of each calendar year. The accompanying interim Condensed Consolidated Financial Statements are unaudited and have been prepared on substantially the same basis as our annual Consolidated Financial Statements for the fiscal year ended December 31, 2024*. In the opinion of the Company’s management, these interim Condensed Consolidated Financial Statements reflect all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair statement of our financial position, results of operations, and cash flows for the periods presented. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the Condensed Consolidated Financial Statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from these estimates.

The* December 31, 2024* Condensed Consolidated Balance Sheet data in this document was derived from audited consolidated financial statements. The Condensed Consolidated Financial Statements and notes included in this quarterly report on Form10-Q donot include all disclosures required by U.S. generally accepted accounting principles and should be read in conjunction with the Company’s audited consolidated financial statements as of and for the year ended* December 31, 2024*, and notes thereto included in the Company’s fiscal2024 Annual Report on Form10-K, filed with the Securities and Exchange Commission (“SEC”) on* March**18,* 2025 (the “2024 Annual Report”).

On* August 23, 2024,the Company effected a1*-for-40 reverse stock split (the “Reverse Split”) for its common stock, par value $0.0001 (the "Common Stock"). All Common Stock share and per share data throughout these Condensed Consolidated Financial Statements have been retroactively adjusted to reflect the Reverse Split.

The results of operations and cash flows for the interim periods included in these Condensed Consolidated Financial Statements arenot necessarily indicative of the results to be expected for any future period or the entire fiscal year.

Principles of Consolidation

The Condensed Consolidated Financial Statements include the accounts of Oblong and our 100%-owned subsidiaries (i) GP Communications, LLC (“GP Communications”), whose business function is to provide interstate telecommunications services for regulatory purposes, and (ii) Oblong Industries, Inc. All inter-company balances and transactions have been eliminated in consolidation. The U.S. Dollar is the functional currency for all subsidiaries.

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Cash and Cash Equivalents

As of* June 30, 2025*, our total cash balance of $10,795,000 is available. Of this balance, $500,000 was held in short-term certificates of deposit with MidFirst Bank. As of* December 31, 2024*, our total cash balance of $4,965,000 was available, with $500,000 held in short-term certificates of deposit with MidFirst Bank. The Company considers highly liquid investments with original maturities ofthree months or less to be cash equivalents.

Segments

The Company currently operates intwo segments: (1) “Collaboration Products,” which represents the business surrounding our Mezzanine™ product offerings, and (2) “Managed Services,” which represents the business surrounding managed services for video collaboration and network solutions. The Company has included its digital asset operations in its non-segmented corporate activities.**See Note8 - Segment Reporting **for further discussion.

Use of Estimates

Preparation of the Condensed Consolidated Financial Statements in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual amounts could differ from the estimates made. We continually evaluate estimates used in the preparation of our consolidated financial statements for reasonableness. Appropriate adjustments, if any, to the estimates used are made prospectively based upon such periodic evaluation. The significant areas of estimation include determining the estimated credit losses, the inputs used in the fair value of equity-based awards, and the fair value of digital assets.

Significant Accounting Policies

The significant accounting policies used in the preparation of these Condensed Consolidated Financial Statements are disclosed in our2024 Annual Report, and, except as discussed below regarding the Company's digital assets, there have beenno changes to the Company’s significant accounting policies during thesix months ended* June 30, 2025*.

Digital Assets

In* December 2023,the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU")2023-08, Intangibles - Goodwill and Other - Crypto Assets (Subtopic350-60): Accounting for and Disclosure of Crypto Assets* ("ASU2023-08"). ASU2023-08 requires in-scope digital assets (including the Company's digital asset holdings) to be measured at fair value in the statement of financial position, with gains and losses from changes in the fair value of such digital assets recognized in net income each reporting period. ASU2023-08 also requires certain interim and annual disclosures for crypto assets within the scope of the standard. The Company has adopted this guidance during thethree months ended* June 30, 2025.*

Fair Value Measurement

The Company accounts for the fair value measurement of its digital assets in accordance with FASB Accounting Standards Codification ("ASC")820, Fair Value Measurement. ASC820 defines fair value as the price that would be received for an asset in a current sale, assuming an orderly transaction between market participants on the measurement date. Market participants are considered to be independent, knowledgeable, and willing and able to transact. It requires the Company to assume that its digital assets are sold in their principal market, or in the absence of a principal market, the most advantageous market. As a basis for considering such assumptions, there exists athree-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:

This hierarchy requires the Company to use observable market data when available and to minimize the use of unobservable inputs when determining fair value. Due to the availability of unadjusted quoted prices in active markets, the Company has determined that its digital assets are Level1.

The unrealized gains and losses resulting from remeasurement of digital assets are recorded in other income on the Condensed Consolidated Statement of Operations. The Company recorded an unrealized gain of $31,000 for thethree andsix months ended* June 30, 2025*.

BitGo secures the Company's digital assets in regulated, insured, cold storage with BitGo Trust Company, Inc., and facilitates the Company's acquisitions of $TAO through its affiliated platforms. BitGo serves as the principal market for the Company's digital assets. The fair value of digital assets is primarily determined based on pricing data obtained from BitGo.

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Accounting for Digital Assets

Fair Market Value

Digital assets are measured at their fair market values using the last close price of the day in the UTC time zone at each reporting period end on the balance sheet. The Company's digital assets are presented as current assets. The majority of the Company's digital assets are staked withno lock-up period, and are considered current assets in accordance with ASC210-10-20, Balance Sheet, due to the Company's ability to sell them in a liquid marketplace and with a reasonable expectation that they will be realized in cash during the normal operating cycle of our business to support operations if needed.

Cost Basis

The cost basis of the Company's digital assets is measured at fair value based on the spot price at the time of receipt if obtained through staking rewards, or the purchase price if obtained by cash, consistent with the applicable guidance under ASC350-60. The Company has elected to adopt the First-In, First-Out ("FIFO") method for determining the cost basis of digital assets disposed of. The method assumes that the assets that were acquiredfirst are disposed of first. Realized gains and losses from the disposal of digital assets are included in other income in the Condensed Consolidated Statements of Operations. The Company hadno realized gains or losses from the disposal of digital assets for thethree andsix months ended* June 30, 2025,and2024*.

Revenue Recognition - Digital Assets

The Company had staked $1,683,000 of digital assets as of* June 30, 2025.The Company’s ability to sell or transfer staked digital assets is subject to restrictions related to unbonding periods, which are based on network traffic on the respective blockchains. As of June 30, 2025,all staked digital assets could be unbonded immediately. The blockchain rewards generated from proprietary staking activities for thethree* andsix months ended* June 30, 2025,were $2,000. The Company stakes its $TAO directly from qualified custody with BitGo Trust, enabling a yield generation while maintaining the highest standards of security and regulatory compliance. As of June 30, 2025*, the Company's staked assets have immediate terms, meaning there isno lock-up period upon the asset being un-staked.

In exchange for staking the crypto assets on blockchain networks, the Company is entitled to a fractional share of the fixed digital asset award athird-party validator node receives for successfully validating or adding a block to the blockchain. This award is remitted in the native token of the validator node and is referred to as a staking reward. The Company’s staking reward received from delegating to athird-party validator node is proportionate to the digital assets staked by the Company compared to the total digital assets staked by all delegators to that node at that time. Token rewards earned from staking are calculated and distributed directly to Oblong's digital wallets by the blockchain networks as part of their consensus mechanisms.

The Company considers the provision of validating blockchain transactions an output of the Company’s ordinary activities, providing a service to the blockchain network, and accounts for the staking rewards under ASC606. Each separate validation under a smart contract with a network represents a performance obligation. The satisfaction of the performance obligation for processing and validating blockchain transactions occurs at a point in time when confirmation is received from the network indicating that the validation is complete, and the awards are available for transfer. At that point, the fair value of the staking reward is recognized and recorded as revenue. Once the Company has acquired the reward, the tokens are added to our digital asset holdings, and their fair value is accounted for in accordance with ASC820.

The following table identifies the digital assets earned from staking activities:

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Cost of Revenue

The Company’s cost of revenues related to its digital asset staking are primarily advisory fees incurred for the processing of the staking transactions and fees for BitGo (our cryptocurrency exchange). These costs are directly related to the production of digital asset staking revenues. Forthree andsix months ended* June 30, 2025*, the cost associated with the revenue recorded from digital asset staking is immaterial.

Recently Issued Accounting Pronouncements

In* December 2023,the FASB issued ASUNo.* 2023-09, Improvements to Tax Disclosures (Topic740*), to enhance the transparency and decision usefulness of income tax disclosures through changes to the rate reconciliation and income taxes paid information. This guidance is effective for fiscal years beginning after December 15, 2025,*with early adoption permitted. The Company is evaluating the impact of adopting this new accounting guidance on its Consolidated Financial Statements.

In* November 2024,the FASB issued ASUNo.* 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic220-40) Disaggregation of Income Statement Expenses, which requires public business entities to disclose additional information about certain expenses in the notes to the financial statements. This guidance is effective for annual reporting periods beginning after* December 15, 2026,and interim reporting periods beginning after December 15, 2027.*Early adoption is permitted. The Company is evaluating the impact of adopting this new accounting guidance on its Consolidated Financial Statements.

Note2 - Digital Assets

The Company accounts for its digital assets, which are comprised solely of $TAO tokens, as indefinite-lived intangible assets in accordance with ASC350. The Company’s digital assets are initially recorded at cost and are measured at fair value as of each reporting period. $TAO tokens are available as partial tokens. The Company shows its token holdings rounded to the nearestone-hundredth of a token.

The following table summarizes the Company's digital asset holdings as of* June 30, 2025*:

Less than0.01* tokens.

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The following table summarizes the Company's digital asset activity for thethree andsix months ended* June 30, 2025*, and the fair value is presented as of* June 30, 2025*:

The Company recorded unrealized gains of $31,000 in its Condensed Consolidated Statement of Operations for thethree andsix months ended* June 30, 2025*.

Subsequent to* June 30, 2025*, the Company purchased and staked more $TAO tokens. Please seeNote10 - Subsequent Events for further detail.

Note3 - Liquidity

As of* June 30, 2025*, we had $10,795,000 in cash and cash equivalents and working capital of $11,247,000. For thesix months ended* June 30, 2025*, we incurred a net loss of $1,277,000, financing activities provided $8,197,000 in net cash, and we used net cash of $717,000 in operating activities and $1,650,000 in investing activities.

We believe our existing cash and cash equivalents will be sufficient to fund our operations and meet our working capital requirements for at least the nexttwelve months from the date of this Report.

Note4 - Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consisted of the following (in thousands):

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As of* June 30, 2025*, and* December 31, 2024*, our Managed Services segment had accrued expenses and other current liabilities of $43,000 and $18,000, respectively. These expenses consisted primarily of accrued compensation expense and taxes and regulatory fees. The increase was primarily related to higher accrued compensation expense due to the timing of payroll for the period.

As of* June 30, 2025*, and* December 31, 2024*, accrued expenses and other current liabilities for our Collaboration Products segment were $280,000 and $252,000, respectively. These amounts primarily consist of rent expenses and customer deposits. The increase is related to higher customer deposits.

Unallocated accrued expenses were $1,336,000 and $861,000 as of* June 30, 2025*, and* December 31, 2024*, respectively. Unallocated accrued expenses consisted primarily of compensation expenses, professional service expenses, accrued dividends, and corporate franchise taxes. The increase was primarily related to higher accruals for compensation expense, corporate franchise tax, and financing costs.

Note5 - Capital Stock

Common Stock

The Company’s Common Stock is listed on the Nasdaq Capital Market (“Nasdaq”) under the ticker symbol “OBLG.” As of* June 30, 2025*, we had 150,000,000 shares of our Common Stock authorized, with 1,594,953 and 1,594,764 shares issued and outstanding, respectively.

On* August 23, 2024,the Company effected the Reverse Split. The Company’s shares of Common Stock began trading on a split-adjusted basis at the commencement of trading on August 26, 2024.Upon effectiveness, every 40 shares of Common Stock were converted into1* share of Common Stock. The number of authorized shares and the par value of each share remained unchanged.No fractional shares were issued as a result of the Reverse Split, and any fractional shares that would have otherwise resulted from the Reverse Split were rounded up to the nearest whole share.

On* April 17, 2025,the Company’s Board of Directors authorized a stock repurchase program (the “Stock Repurchase Program”) granting the Company authority to repurchase up to $500,000 of the Company’s Common Stock. Under the Company’s Stock Repurchase Program, repurchases of Common Stock maybe funded using the Company’s existing cash balance and/or future cash flows through repurchases made in the open market, in privately negotiated transactions, or pursuant to other means determined by the Company, in each case as permitted by securities laws and other legal requirements. The number of shares purchased under the Stock Repurchase Program and the timing of any purchases maybe based on many factors, including the level of the Company’s available cash, general business conditions, and the pricing of the Common Stock. The Stock Repurchase Program doesnot* obligate the Company to acquire a specific number of shares, and* maybe suspended, modified, or terminated at any time. All shares of Common Stock repurchased under the Stock Repurchase Program are recorded as treasury stock. The Stock Repurchase Program doesnot* have an expiration date. As of the filing of this Report, the Company hasnot repurchased any shares of Common Stock and has $500,000 remaining under the Stock Repurchase Program.

During thethree andsix months ended* June 30, 2025*,394,864 and 404,864 shares of the Company’s Common Stock were issued related to the exercise of 394,864 and 404,864 Common Warrants, respectively. There wereno Common Warrant exercises during thethree andsix months ended* June 30, 2024*.

During thethree andsix months ended* June 30, 2025*,45,163 shares of the Company's Common Stock were issued related to the conversion of 190 shares of Series F Preferred Stock, plus accrued dividends of approximately $19,000. During thethree andsix months ended* June 30, 2024*,198,894 and 288,947 shares of the Company’s Common Stock were issued related to the conversion of 2,111 and 3,033 shares of Series F Preferred Stock, plus accrued dividends of approximately $110,000 and $194,000, respectively.See Note6 - Preferred Stock for further details. Subsequent to the date of this report, shares of Common Stock were issued related to conversions of Series F Preferred Stock and the exercise of Common Warrants. Please seeNote10 - Subsequent Events for further detail.

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Common Stock activity for the year ended* December 31, 2024*, andsix months ended* June 30, 2025*, is presented below.

Common Stock Warrants and2023 Placement Agent Warrants**

On* March30,* 2023, the Company entered into a Securities Purchase Agreement (the “Purchase Agreement”) with certain accredited investors (the “Investors”), pursuant to which we issued and sold, in a private placement (the*“2023* Private Placement”) (i)6,550 shares of our newly designated Series F Preferred Stock, $0.0001 par value per share (the “Series F Preferred Stock”), (ii) preferred warrants (the “Preferred Warrants”) to acquire 32,750 shares of Series F Preferred Stock, and (iii) common warrants (“Common Warrants” and with the Preferred Warrants the “Investor Warrants”) to acquire up to 95,764 shares of Common Stock. Please refer toNote6 - Preferred Stock **for further discussion on the Series F Preferred Stock and Preferred Warrants.

In connection with the2023 Private Placement, pursuant to an engagement letter dated* March**30,* 2023 (the*“2023* Engagement Letter”), between the Company and Dawson James Securities, Inc. (the “Placement Agent”), the Company agreed to (i) pay the Placement Agent a cash fee equal to 8% of the aggregate gross proceeds raised in the Private Placement, and (ii) grant to the Placement Agent warrants (the*“2023* Placement Agent Warrants”) to purchase 7,663 shares of Common Stock.

On* March**31,* 2023, the Company issued the Common Warrants and the2023 Placement Agent Warrants to purchase an aggregate of 103,427 shares of the Company’s Common Stock. The Common Warrants and2023 Placement Agent Warrants have a term of5 years, commencingsix months andone day from the date of issuance, and were initially exercisable for $68.40 per share. The exercise price is subject to customary adjustments for stock splits, stock dividends, stock combination, recapitalization, or other similar transactions involving the Common Stock, 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 for the Common Warrants (subject to certain exceptions). The Common Warrants and2023 Placement Agent Warrants are exercisable for cash, provided that if there isno effective registration statement permitting the resale of the common shares, they* may*be exercised on a cashless basis. Exercise of the Common Warrants and Placement Agent Warrants is subject to certain limitations, including a 4.99% beneficial ownership limitation.

On* October 6, 2023,the Company and the Investors holding a majority of the outstanding shares of the Preferred Stock agreed to waive any and all provisions, terms, covenants and obligations in the Certificate of Designations or Common Warrants to the extent such provisions permit the conversion or exercise of the Preferred Stock and the Common Warrants, respectively, to occur at a price below $11.17 (the “Waiver”). Notwithstanding anything to the contrary in the Certificate of Designations, each of the “Alternate Conversion Price” and the “Floor Price” as set forth in the Certificate of Designations shall inno* event be less than $11.17 (as adjusted for stock splits, stock dividends, stock combinations, recapitalizations and similar events). On* September 13, 2024,*the Company and the Investors agreed to amend the waiver to remove the minimum price restriction on the exercise of Common Warrants.

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During the year ended* December 31, 2024*,24,104 Common Warrants were issued in accordance with the exercise provisions of the Preferred Warrants.See Note6 - Preferred Stock for additional details on the exercises of the Preferred Warrants. These Common Warrants were exercisable at an initial exercise price of $68.40 and have a term offive years.

Pursuant to Sections2(a) and2(c) of the Common Warrants (the “Make Whole Provision”), as a result of the Reverse Split, the exercise price of the Common Warrants and2023 Placement Agent Warrants were adjusted to $3.41 per share, and the number of Common Warrant shares that* maybe purchased upon exercise of the Common Warrants and the2023* Placement Agent Warrants were increased proportionately, so that after the exercise price adjustment the aggregate exercise price payable hereunder for the adjusted number of Common Warrant Shares was the same as the aggregate exercise price in effect immediately prior to the exercise price adjustment. These adjustments resulted in an aggregate of 2,401,047 Common Warrants and 153,470 2023 Placement Agent Warrants remaining outstanding following the Reverse Split. The additional warrants created by the Make Whole Provision resulted in an aggregate deemed dividend of $8,974,000, which reduced the net income available to common shareholders during the year ended* December 31, 2024*. Details of the Make Whole Provision transactions are presented below:

During thethree andsix months ended* June 30, 2025*,394,864 and 404,864 Common Warrants were exercised ata price of $3.41 per share for 394,864 and 404,864 shares of Common Stock, respectively. The Company received gross proceeds of $1,348,000 and$1,382,000, respectively, and net proceeds of $1,241,000 and$1,272,000, respectively. No Common Warrants were exercised during thethree months ended* June 30, 2024*. Subsequent to the date of this Report there were exercises of Common Warrants. There were also exercises of Series F Preferred Warrants resulting in the issuance of Common Warrants. Please seeNote10 - Subsequent Events for further detail.

One of our directors, Jonathan Schechter, is currently a partner at The Special Equities Group (“SEG”), a division of Dawson James Securities, Inc. (“Dawson James”). In* March 2023,prior to Mr. Schechter’s appointment to our board in May 2023and pursuant to our2023* Engagement Letter, Dawson James acted as placement agent in connection with our* March 30, 2023Purchase Agreement. During thethree* andsix months ended* June 30, 2025*, pursuant to the terms of the2023 Placement Agent Agreement, we paid Dawson James a cash fee equal to 8% of the aggregate gross proceeds raised from the exercise of the Common Stock Warrants. The fees were $108,000 and$110,000, respectively. Mr. Schechter didnot receive any of the fees paid.

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2025 Private Placement and Pre-Funded Warrants

On* June 6, 2025,we entered into a securities purchase agreement, dated as of June 5, 2025 (the“2025* Securities Purchase Agreement”), with certain accredited investors (the “Investors”), pursuant to which we issued and sold, in a private placement (the*“2025* Private Placement”), pre-funded warrants to acquire up to 1,989,392 shares of our Common Stock (the “Pre-Funded Warrants") in exchange for gross proceeds of approximately $7.5 million. Net proceeds to the Company were approximately $6,928,000, after deducting placement agent fees of $375,000 and other offering expenses of $197,000 payable by the Company. As of* June 30, 2025,*no Pre-Funded Warrants have been exercised.

The exercise price upon exercise of each Pre-Funded Warrant is $0.0001 per share of Common Stock, with an aggregate exercise price of $3.77 per share of Common Stock, of which $3.7699 per share of Common Stock was paid by the holders at the closing on* June 10, 2025.The exercise price of the Pre-Funded Warrants is subject to appropriate adjustment in the event of stock dividends, subdivisions, stock splits, stock combinations, cash distributions, reclassifications, exchanges, combinations or substitutions affecting our Common Stock. In lieu of making the cash payment otherwise contemplated to be made to us upon such exercise in payment of the aggregate exercise price, the holders of Pre-Funded Warrants may*elect instead to receive upon such exercise the net number of shares of Common Stock determined according to a formula set forth in the Pre-Funded Warrants.

The Pre-Funded Warrants are exercisable immediately upon issuance, subject to the conditions and limitations on exercise set forth in each Pre-Funded Warrant. A holder of the Pre-Funded Warrants* may**not* exercise any portion of such holder’s Pre-Funded Warrants to the extent that the holder, together with its affiliates, would beneficially own more than 4.99% (or, at the election of the holder,9.99%) of the Company’s outstanding shares of Common Stock immediately after exercise, except that upon at least61 days’ prior notice from the holder to the Company, the holder* may*increase the beneficial ownership limitation to up to 9.99% of the number of shares of Common Stock outstanding immediately after giving effect to the exercise.

Pursuant to the2025 Private Placement, the Company agreed to prepare and file a registration statement with the Securities and Exchange Commission (the “SEC”) registering the resale of the shares of Common Stock underlying the Pre-Funded Warrantsno later than15 days after the date of the Purchase Agreement, and to use commercially reasonable efforts to have the registration statement declared effective within60 days following the date of the Purchase Agreement (or90 days following the date of the Purchase Agreement in the event of a “full review” by the SEC). The Company filed the registration statement on* June 20, 2025,and it was made effective August 1, 2025.*

The Private Placement is exempt from the registration requirements of the Securities Act of1933, as amended (the “Securities Act”) pursuant to the exemption for transactions by an issuernot involving any public offering under Section4(a)(2) of the Securities Act and Rule506 of Regulation D of the Securities Act and in reliance on similar exemptions under applicable state laws. Each of the Investors has represented to the Company that it is an accredited investor within the meaning of Rule501(a) of Regulation D and that it is acquiring the securities for investment only andnot with a view towards, or for resale in connection with, the public sale or distribution thereof. The Pre-Funded Warrants are being offered without any general solicitation by the Company or its representatives.

Subject to applicable laws and the restriction on transfer set forth in the Pre-Funded Warrants, the Pre-Funded Warrants* maybe transferred. Upon the consummation of a fundamental transaction (as described in the Pre-Funded Warrants, and generally including any reorganization, recapitalization or reclassification of our common stock, the sale, transfer or other disposition of all or substantially all of our assets, our consolidation or merger with or into another person in which we arenot* the surviving entity, the acquisition of more than 50% of our outstanding common stock, or any person or group becoming the beneficial owner of 50% of the voting power of our outstanding common stock), a holder of the Pre-Funded Warrants will be entitled to receive, upon exercise of the Pre-Funded Warrants, the same kind and amount of securities, cash or other property that such holder would have received had they exercised the Pre-Funded Warrants immediately prior to such fundamental transaction, without regard to any limitations on exercise contained in the Pre-Funded Warrants. Except for the right to participate in certain dividends and distributions and as otherwise provided in the Pre-Funded Warrants or by virtue of a holder’s ownership of our Common Stock, the holders of the Pre-Funded Warrants donot have the rights or privileges of holders of our Common Stock, including any voting rights, until they exercise their Pre-Funded Warrants.No term of the Pre-Funded Warrants* may*be amended or waived without the written consent of the holder of such Pre-Funded Warrants.

Subsequent to* June 30, 2025*, there were exercises of Pre-Funded Warrants. Please seeNote10 - Subsequent Events for further detail.

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2025 Placement Agent Warrants

Dawson James again served as the Company’s exclusive Placement Agent in connection with the2025 Private Placement, pursuant to that engagement letter, dated as of* June 4, 2025,as amended, between the Company and Placement Agent (the“2025* Engagement Letter”). Pursuant to the2025 Engagement Letter, the Company paid the Placement Agent (i) a total cash fee equal to 5% of the aggregate gross proceeds raised in the2025 Private Placement and (ii) up to $50,000 for fees and expenses of legal counsel and other out-of-pocket expenses. In addition, the Company issued to the Placement Agent or its designees warrants (the*“2025* Placement Agent Warrants”) to purchase up to an aggregate of 99,470 shares of Common Stock. The Placement Agent Warrants are exercisable immediately upon issuance. The terms of the Placement Agent Warrants are substantially the same as those of the Pre-Funded Warrants, except that the Placement Agent Warrants will expire on* June 10, 2030,are initially exercisable at a price of $4.7125 per share of Common Stock, mayonly be exercised a cashless basis if there isno* effective registration statement registering the underlying shares, and in the event of a Fundamental Transaction as defined in the Placement Agent Warrants, warrant holders* mayrequire the company to purchase the remaining unexercised portion of a Placement Agent Warrant for an amount equal to the Black-Scholes Value of that portion, as of the date of the Fundamental Transaction, unless the Fundamental Transaction isnot* within the Company’s control, as described in the Placement Agent Warrants. There isno established public trading market for the Placement Agent Warrants, and we donot intend to list the Placement Agent Warrants on any national securities exchange or nationally recognized trading system

The2025 Placement Agent Warrants were issued on* June 10, 2025,and as of June 30, 2025*, no 2025 Placement Agent Warrants have been exercised.

As discussed above,one of our directors is currently a partner at SEG, a division of Dawson James. During thethree andsix months ended* June 30, 2025*, pursuant to the terms of the2025 Placement Agent Agreement, we paid Dawson James a cash fee equal to $375,000 (or 5% of the aggregate gross proceeds raised from the2025 Private Placement), and $50,000 in fee and expenses. Mr. Schechter didnot receive any of the fee paid, nor were any of the2025 Placement Agent Warrants issued to him.

Advisor Warrants

On* June 5, 2025,the Company issued warrants to acquire up to 100,000 shares of our Common Stock (the "Advisor Warrants") to Brandon Sofer, our advisory agent (in such capacity, the "Advisory Agent") in connection with the Advisory Agent's provision of certain treasury advisory services. The terms of the Advisor Warrants are identical to those of the Placement Agent Warrants, except that the Advisor Warrants will expire on June 5, 2028,are initially exercisable in part beginning on July 7, 2025at a price of $3.77 per share of Common Stock, and will vest in equal installments at a rate of1/12th* (8.33%) per month, beginning on thethirty day anniversary of the issue date, fortwelve month. As of* June 30, 2025*, none of the Advisor Warrants had vested. Subsequent to the date of this Report,two installments of vesting have occurred. Please seeNote10 - Subsequent Events for further detail.

Outstanding warrants for the Company's Common Stock, as of* June 30, 2025*, are as follows:

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Common warrant activity for the year ended* December 31, 2024*, and thesix months ended* June 30, 2025*, is presented below.

Treasury Shares

The Company maintains treasury stock for the Common Stock shares repurchased when withholding shares to cover taxes on transactions related to equity awards. There wereno treasury stock transactions during thethree andsix months ended* June 30, 2025*, or the year ended* December 31, 2024*.

Note6 - Preferred Stock

Our Certificate of Incorporation authorizes the issuance of up to 5,000,000 shares of preferred stock. As of* June 30, 2025*, we had 1,983,250 designated shares of preferred stock and 355 shares of preferred stock issued and outstanding.

Series F Preferred Stock

The terms of the Series F Preferred Stock are as set forth in the Certificate of Designations of Series F Preferred Stock of Oblong, Inc. (the “Certificate of Designations”), which was filed and became effective with the Secretary of State of the State of Delaware on* March31,* 2023. The2023 Private Placement closed on* March31,* 2023, in exchange for gross and net proceeds of $6,386,000 and $5,364,000, respectively. The financing fees associated with the Purchase Agreement were $1,022,000.

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The shares of Series F Preferred Stock are convertible into fully paid and non-assessable shares of the Company’s Common Stock at the election of the holder at any time at an initial conversion price of $68.40 (the “Conversion Price”). The holders of the Series F Preferred Stock* mayalso elect to convert their shares at an alternative conversion price equal to the lower of (i)80% of the applicable Conversion Price as in effect on the date of the conversion, (ii)80% of the closing price on the trading day immediately preceding the delivery of the conversion notice, and (iii) the greater of (a) the Floor Price (as defined in the Certificate of Designations) and (b) the quotient of (x) the sum of thefive* lowest Closing Bid Prices (as defined in the Certificate of Designations) for trading days in the30 consecutive trading day period ending and including the trading day immediately preceding the delivery of the applicable Conversion Notice, divided by (y) five. The Conversion Price is subject to customary adjustments for stock splits, stock dividends, stock combination recapitalization, or other similar transactions involving the Common Stock, and subject to price-based adjustment, on a full ratchet basis, in the event of any issuances of our common stock, or securities convertible, exercisable or exchangeable for Common Stock, at a price below the then-applicable Conversion Price (subject to certain exceptions).

On* October 6, 2023,the Company and Investors holding a majority of the outstanding shares of the Series F Preferred Stock agreed to waive any and all provisions, terms, covenants and obligations in the Certificate of Designations to the extent such provisions permit the conversion or exercise of the Series F Preferred Stock to occur at a price below $11.17. Notwithstanding anything to the contrary in the Certificate of Designations, each of the “Alternate Conversion Price” and the “Floor Price” as set forth in the Certificate of Designations shall inno* event be less than $11.17 (as adjusted for stock splits, stock dividends, stock combinations, recapitalizations and similar events).

Following the2025 Private Placement, in accordance with the terms of the Certificate of Designations, the Conversion Price was adjusted to $3.77 per share.

Under the Certificate of Designations, shares of the Series F Preferred Stock have an initial stated value of $1,000 per share (the “Stated Value”). The holders of Series F Preferred Shares are entitled to dividends of 9% per annum, which will be payable in arrears quarterly. Accrued dividends* maybe paid, at our option, in cash, and ifnot* paid, shall increase the stated value of the Series F Preferred Stock. Upon the occurrence and during the continuance of a Triggering Event (as defined in the Certificate of Designations), the Series F Preferred Stock will accrue dividends at the rate of 20% per annum (the “Default Rate”). Shares of Series F Preferred Stock haveno voting rights, other than with respect to certain matters affecting the rights of the Series F Preferred Stock. On matters with respect to which the holders of the Series F Preferred Stock have a right to vote, holders of the Series F Preferred Stock will have voting rights on an as-converted basis.

Our ability to settle conversions is subject to certain limitations set forth in the Certificate of Designations. Further, the Certificate of Designations contains a certain beneficial ownership limitation after giving effect to the issuance of shares of common stock issuable upon conversion of the Series F Preferred Stock.

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The Certificate of Designations includes certain Triggering Events (as defined in the Certificate of Designations), including, among other things, (i) the failure to file and maintain an effective registration statement covering the sale of the holder’s securities registrable pursuant to the Registration Rights Agreement, (ii) the failure to pay any amounts due to the holders of the Series F Preferred Stock when due, and (iii) if Peter Holst ceases to be the chief executive officer of the Company other than because of his death, and a qualified replacement, reasonably acceptable to a majority of the holders of the Series F Preferred Stock, isnot appointed withinthirty (30) business days. In connection with a Triggering Event, the Default Rate is triggered. We are subject to certain affirmative and negative covenants regarding the incurrence of indebtedness, acquisition transactions, the existence of liens, the repayment of indebtedness, the payment of cash in respect of dividends (other than dividends pursuant to the Certificate of Designations), maintenance of properties and the transfer of assets, among other matters.

During thethree andsix months ended* June 30, 2024*,2,111 and 3,033 shares of Series F Preferred Stock, plus accrued dividends of $110,000 and $194,000, were converted into 198,894 and 288,947 shares of the Company’s Common Stock, respectively. During thethree andsix months ended* June 30, 2025*,190 shares of Series F Preferred Stock, plus accrued dividends of $19,000 were converted into 45,163 shares of the Company's Common Stock. As of* June 30, 2025*, there were 355 shares of Series F Preferred Stock outstanding and accrued dividends of $35,000 as of* June 30, 2025*. Subsequent to the date of this Report, additional Series F Preferred Stock were converted. Please seeNote10 - Subsequent Events for further detail.

Series F Preferred Stock transactions are summarized in the table below:

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Series F Preferred Stock Warrants

The Preferred Warrants are exercisable for Series F Preferred Stock at an exercise price of $975. The exercise price is subject to customary adjustments for stock splits, stock dividends, stock combination recapitalizations, or other similar transactions involving the Common Stock. The Preferred Warrants expire three years from the date of issuance and are exercisable for cash. For each Preferred Warrant exercised, the Investors shall receive Common Warrants to purchase a number of shares of Common Stock equal to 100% of the number of shares of Common Stock the Investors would receive if the Series F Preferred Shares issuable upon exercise of such Warrant were converted at the applicable Conversion Price. The fair value of the Preferred Warrants was recorded within additional paid-in capital upon issuance.

During thesix months ended* June 30, 2025*, no Preferred Warrants were exercised. During thesix months ended* June 30, 2024* 1,648 Preferred Warrants were exercised into 1,648 shares of Series F Preferred Stock for gross and net proceeds of $1,607,000 and $1,478,000, respectively. As of* June 30, 2025*,31,102 Preferred Warrants remained outstanding. Subsequent to the date of this Report, Preferred Warrants were exercised. Please seeNote10 - Subsequent Events for further detail.

As discussed in Note6 - Capital Stock,one of our directors is currently a partner at SEG, a division of Dawson James. During thethree andsix months ended* June 30, 2024*, pursuant to the terms of the2023 Placement Agent Agreement, we paid Dawson James a cash fee equal to 8% of the aggregate gross proceeds raised from the exercise of the Preferred Stock Warrants. The fee was $129,000. Mr. Schechter didnot receive any of the fee paid.

Note7 - Net Loss Per Share

Basic net loss per share is computed by dividing net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. The weighted-average number of shares of common stock outstanding doesnot include any potentially dilutive securities or unvested Restricted Stock.

Diluted net loss per share is computed by giving effect to all potential shares of common stock, including stock options, preferred stock, warrants, and unvested Restricted Stock, to the extent they are dilutive. For thethree andsix months ended* June 30, 2025,and2024*, all such common stock equivalents have been excluded from diluted net loss per share as the effect to net loss per share would be anti-dilutive (due to the net loss).

The following table sets forth the computation of the Company’s basic and diluted net loss per share (in thousands, except share and per share data):

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The following table represents the potential shares that were excluded from the computation of weighted-average number of shares of common stock in computing the diluted net loss per share for the periods presented because including them would have had an anti-dilutive effect (due to the net loss):

Note8 - Segment Reporting

The Company currently operates intwo segments for purposes of segment reporting: (1) “Collaboration Products,” which represents the Oblong Industries business surrounding our Mezzanine™ product offerings, and (2) “Managed Services,” which represents the Oblong business surrounding managed services for network solutions and video collaboration. The revenue recorded from the Company's digital assets for thethree andsix months ended* June 30, 2025*, is immaterial and included in Corporate. The Company will continue to monitor the digital asset activity and create a new segment if it is deemed appropriate.

In2024, the Company adopted ASU2023-07. ASU2023-07 created certain additional disclosure requirements, including, among other requirements, disclosure of the Company’s Significant Segment Expenses (“SSEs”) regularly provided to the Company’s Chief Operating Decision Maker (“CODM”) included within each reported measure of segment profit or loss, a required disclosure for other segment items and a narrative description of such items, a disclosure of the title and the position of the CODM and a narrative disclosure describing how the CODM uses the reported segment profit or loss measures to assess segment performance and allocate resources.

The CODM for both segments for thethree months ended* June 30, 2025*, and2024, was Pete Holst, the Company’s President and Chief Executive Officer. As part of the adoption of ASU2023-07, management reviewed the information provided to the CODM and updated the presentation of such information, including SSEs, to better align with the requirements of ASU2023-07. Certain prior period segment information has been recast to conform with current-period presentation requirements, including the allocation methodology of bad debt expense, labor and labor-related costs, and certain other segment items to segments. The CDOM reviews assets as a whole entity for decision making.

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Certain information concerning the Company’s segments for thethree andsix months ended* June 30, 2025*, and2024 is presented in the following tables (in thousands):

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The Company’s SSEs for each segment include direct labor costs and segment-based management expenses (collectively, “labor and labor related”), costs to purchase, store, and ship inventory, and inventory impairments (inventory and inventory related), circuit and network cost of revenue, other non-inventory cost of revenue, research and development costs, and bad debt recovery, as these are specific costs regularly provided to the CODM and used to evaluate segment performance. Other segment items include expenses recorded within cost of revenue and operating expenses, which arenot regularly provided to the CODM. The CODM evaluates segment profit each period against historical results, factoring in macroeconomic factors such as the cost of labor and supplies, to assess segment performance.

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For thethree andsix months ended* June 30, 2025*, and2024,no material revenue was attributable to any individual foreign country. Approximately 1% of foreign revenue is billed in foreign currency, and foreign currency gains and losses arenot material. Revenue by geographic area is allocated as follows (in thousands):

The Company considers a significant customer to beone that comprises more than10% of the Company’s consolidated revenues or accounts receivable. The loss of or a reduction in sales or anticipated sales to our most significant or several of our smaller customers could have a material adverse effect on our business, financial condition, and results of operations.

Concentration of consolidated revenues was as follows:

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Concentration of consolidated accounts receivable was as follows:

Note9 - Commitments and Contingencies

From time to time, we are subject to various legal proceedings arising in the ordinary course of business, including proceedings for which we have insurance coverage. As of the date hereof, we arenot party to any legal proceedings that we currently believe will have a material adverse effect on our business, financial position, results of operations, or liquidity.

Note10 - Subsequent Events

Digital Asset Activity

In* Julyand August**2025,* the Company purchased 8,496.99 $TAO tokens for an aggregate of $6,346,000. The majority of these tokens have been staked and are earning rewards. As of* August 12, 2025,*the Company holds 21,648.76 $TAO tokens with a fair value of $7,793,338.

Capital and Preferred Stock Activity

In* July 2025,*116,861 Common Warrants were exercised, at a price of $3.41 per share, for 116,861 shares of Common Stock. The Company received gross and net proceeds of $399,000 and $367,000, respectively.

In* July**2025,* 780 shares of Series F Preferred Stock, plus accrued dividends of $21,000, were converted into 212,454 shares of the Company’s Common Stock.

In* July 2025,*575 Preferred Warrants were exercised, at a price of $975 per share, for 575 shares of the Company's Series F Preferred Stock. In accordance with the Preferred Warrant Agreement,152,519 Common Warrants were issued as a result of these exercises. The Company received gross and net proceeds of $561,000 and $516,000, respectively.

On* July 5, 2025,thefirst* 8.33% of the Advisor Warrant vested, and on* August 5, 2025,thesecond* 8.33% of the Advisor Warrant vested. As of* August 12, 2025,*1,666 of the 100,000 warrant shares were vested and exercisable.

In* August 2025,*426,228 Pre-Funded Warrants were exercised, at a price of $0.0001 per share, for 426,228 shares of Common Stock. The proceeds from these exercises were immaterial.

As of* August 12, 2025*, the Company had 2,350,307 shares of Common Stock,150 shares of Series F Preferred Stock,3,665,631 warrants for Common Stock, and 30,527 warrants for Preferred Stock outstanding.

In* July 2025,* pursuant to the terms of the2023 Placement Agent Agreement, we incurred a cash fee equal to 8% of the aggregate gross proceeds raised from the exercise of the Common Stock Warrants and the Preferred Stock Warrants, payable to Dawson James. The fees total $77,000; Mr. Schechter willnot receive any of the fee paid.

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