Index
| PART I - FINANCIAL INFORMATION |
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| Item 1. Financial Statements | 1 |
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| Condensed Consolidated Balance Sheets at June 30, 2025 (unaudited) and December 31, 2024 | 1 |
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| Unaudited Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2025, and 2024 | 2 |
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| Unaudited Condensed Consolidated Statements of Changes in Stockholders’ Equity for the three and six months ended June 30, 2025, and 2024 | 3 |
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| Unaudited Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2025, and 2024 | 4 |
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| Notes to unaudited Condensed Consolidated Financial Statements | 5 |
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| Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations | 28 |
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| Item 3. Quantitative and Qualitative Disclosures About Market Risk | 36 |
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| Item 4. Controls and Procedures | 37 |
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| PART II - OTHER INFORMATION |
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| Item 1. Legal Proceedings | 37 |
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| Item 1A. Risk Factors | 37 |
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| Item 2. Unregistered Sales of Equity Securities and Use of Proceeds | 49 |
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| Item 3. Defaults Upon Senior Securities | 49 |
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| Item 4. Mine Safety Disclosures | 49 |
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| Item 5. Other Information | 49 |
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| Item 6. Exhibits | 50 |
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| Signatures | 51 |
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CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This quarterly report on Form 10-Q (this“Report”) contains statements that are considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and its rules and regulations (the“Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended, and its rules and regulations (the“Exchange Act”). These forward-looking statements include, but are not limited to, statements about the plans, objectives, expectations and intentions of Oblong, Inc. (“Oblong”* or*“we”* or*“us”* or the*“Company”). All statements other than statements of current or historical fact contained in this Report, including statements regarding Oblong’s future financial position, business strategy, budgets, projected costs and plans and objectives of management for future operations, are forward-looking statements. The words“anticipate,”* “believe,” “estimate,” “expect,” “intend,” “may,” “plan,” and similar expressions, as they relate to Oblong, are intended to identify forward-looking statements. These statements are based on Oblong*’s current plans, and Oblong’s actual future activities and results of operations may be materially different from those set forth in the forward-looking statements. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the statements made. Any or all of the forward-looking statements in this Report may turn out to be inaccurate. Oblong has based these forward-looking statements largely on its current expectations and projections about future events and financial trends that it believes may affect its financial condition, results of operations, business strategy, and financial needs. The forward-looking statements can be affected by inaccurate assumptions or by known or unknown risks, uncertainties, and assumptions. There are important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements, including our plans, objectives, expectations and intentions and other factors that are discussed under the section entitled“Part I. Item 1A. Risk Factors”* and in our consolidated financial statements and the footnotes thereto for the fiscal year ended December 31, 2024**, each included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024**, filed with the Securities and Exchange Commission (the*“SEC”) on March 18, 2025, as well as under“Part II. Item 1A. Risk Factors”* in this report. Oblong undertakes no obligation to publicly revise these forward-looking statements to reflect events occurring after the date hereof. All subsequent written and oral forward-looking statements attributable to Oblong or persons acting on its behalf are expressly qualified in their entirety by the cautionary statements contained in this Report. Forward-looking statements in this Report include, among other things: the Company's plans to explore partnerships within the Bittensor ecosystem to potentially develop technology offerings, demand for our product offerings, future revenues, expenses, capital expenditures and cash flows; our ability to fund operations and continue as a going concern; our liquidity projection; expectations regarding adjustments to our cost of revenue and other operating expenses; the future exercise of warrants; our ability to raise capital through sales of additional equity or debt securities and/or loans from financial institutions; our beliefs about the ongoing performance of our Managed Services business; statements relating to market need and evolution of the industry, our solutions and our service platforms; and the adequacy of our internal controls. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, those summarized below:*
| • | our ability to raise capital in one or more debt and/or equity offerings in order to fund operations or any growth initiatives, and our ability to continue as a going concern; |
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| • | the impact of conversions of our Series F Preferred Stock to Common Stock, exercises of the Series F Preferred Stock warrants and Common Warrants, Pre-Funded Warrants, and sales of the underlying conversion shares; |
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| • | the rewards and costs of staking transactions on blockchains; |
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| • | fluctuations in the price of our digital assets; |
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| • | potential decreases in the value of our digital assets and rewards; |
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| • | risks related to the loss or theft of private withdrawal keys resulting in the complete loss of digital assets and rewards; |
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| • | customer demand and renewal rates for our collaboration products and services and network services; |
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| • | the ongoing performance of our Managed Services business; |
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| • | our ability to maintain and protect our proprietary rights; |
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| • | actions by our competitors, including price reductions for their competitive services; |
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| • | our ability to grow revenue; |
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| • | risks related to the concentration of our customers and the degree to which our sales, now or in the future, depend on certain large client relationships; |
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| • | increases in material, labor, or other manufacturing-related costs; |
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| • | our ability to attract and retain highly skilled personnel; |
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| • | our reliance on open-source software and technology; |
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| • | use of cash related to potential repurchases under our Stock Repurchase Program; |
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| • | the costs, disruption, and diversion of management’s attention associated with campaigns commenced by activist investors; and |
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| • | our management’s ability to execute its plans, strategies, and objectives for future operations. |
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