QumulusAI, Inc.

In November 2023, the FASB issued ASU No. 2023-07,Improvements to Reportable Segment Disclosures (Topic 280). This ASU updates reportable segment disclosure requirements by requiring disclosures of significant reportable segment expenses that are regularly provided to the Chief Operating Decision Maker (“CODM”) and included within each reported measure of a segment's profit or loss. This ASU also requires disclosure of the title and position of the individual identified as the CODM and an explanation of how the CODM uses the reported measures of a segment’s profit or loss in assessing segment performance and deciding how to allocate resources. The ASU is effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Adoption of the ASU should be applied retrospectively to all prior periods presented in the consolidated financial statements. Early adoption was permitted.

The Company adopted this ASU for the year ended December 31, 2024. In adopting, the Company has disclosed how the CODM utilizes the key measures of segment profitability as well as how these measures are disclosed and quantified, and key segment expenses are disclosed and reconciled to consolidated loss before income taxes. See Note 20 - Segment Reporting** **for all segment disclosures the years ended December 31, 2024 and 2023.