Beam Global

Previous wording

You should not rely upon forward-looking statements as predictions of future events. We have based the forward-looking statements contained in this Form 10-Q primarily on our current expectations and projections about future events and trends that we believe may affect our business, financial condition, results of operations and prospects. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties and other factors described in the section titled "Risk Factors" and elsewhere in this Form 10-Q and the factors discussed in Part I, “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this Form 10-Q. We cannot assure you that the results, events and circumstances reflected in the forward-looking statements will be achieved or occur, and actual results, events or circumstances could differ materially from those described in the forward-looking statements.

Current wording

You should not rely upon forward-looking statements as predictions of future events. We have based the forward-looking statements contained in this Form 10-Q primarily on our current expectations and projections about future events and trends that we believe may affect our business, financial condition, results of operations and prospects. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties and other factors described in the section titled "Risk Factors" and elsewhere in this Form 10-Q and the factors discussed in Part I, “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025. Moreover, we operate in a competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this Form 10-Q. We cannot assure you that the results, events and circumstances reflected in the forward-looking statements will be achieved or occur, and actual results, events or circumstances could differ materially from those described in the forward-looking statements.

Previous wording

Beam is a sustainable technology innovation company headquartered in San Diego, California with offices in the U.S. in San Diego, California and Broadview, Illinois; in Europe in Belgrade and Kraljevo, Serbia; and in Abu Dhabi, United Arab Emirates (“UAE”). We develop, design, engineer, manufacture, and sell high-quality, rapidly-deployed and autonomous infrastructure products for electric vehicle (“EV”) and autonomous vehicle (“AV”) charging, energy security and disaster preparedness and highly energy-dense battery solutions in safe, compact, unique and bespoke form-factors which we believe are ideal for the rapidly growing mobile and stationary equipment product market which often requires electrical energy without being connected to the electrical grid. Additionally, we manufacture structures with integrated intelligence and electronics such as streetlighting, cell towers and energy infrastructure products for Smart Cities (the interconnected physical and digital elements within a city that utilize technology to enhance efficiency, sustainability, and quality of life for residents). We further design, engineer and manufacture specialized power electronics including inverters, charge controllers, power supplies and LED lighting.

Current wording

Beam is a sustainable technology innovation company headquartered in San Diego, California with offices in the U.S. in San Diego, California, Yuma, Arizona, and Broadview, Illinois; in Europe in Belgrade and Kraljevo, Serbia; and in Abu Dhabi, United Arab Emirates (“UAE”). We develop, design, engineer, manufacture, and sell high-quality, rapidly-deployed and autonomous infrastructure products for electric vehicle (“EV”) and autonomous vehicle (“AV”) charging, energy security and disaster preparedness and highly energy-dense battery solutions in safe, compact, unique and bespoke form-factors which we believe are ideal for the rapidly growing mobile and stationary equipment product market which often requires electrical energy without being connected to the electrical grid. Additionally, we manufacture structures with integrated intelligence and electronics such as streetlighting, cell towers and energy infrastructure products for Smart Cities (the interconnected physical and digital elements within a city that utilize technology to enhance efficiency, sustainability, and quality of life for residents). We further design, engineer and manufacture specialized power electronics including inverters, charge controllers, power supplies and LED lighting.

Previous wording

Revenues for the three months ended March 31, 2026 were $3.1 million, a decrease of $3.2 million, compared to $6.3 million for the three months ended March 31, 2025. The Company believes the decline is primarily a function of order timing rather than a fundamental change in demand for its products. Historically, the first quarter is the Company’s lowest revenue period, as customer procurement processes, government budget cycles, and project approval timelines tend to be concentrated in later quarters.

Current wording

Revenues for the three months ended June 30, 2026 were $8.6 million, an increase of $1.5 million, compared to $7.1 million for the three months ended June 30, 2025. Revenues for the six months ended June 30, 2026 were $11.7 million, a decrease of $1.7 million compared to $13.4 million for the six months ended June 30, 2025. The Company believes the decline in revenue during the six months ended June 30, 2026, compared to the prior year, is primarily a function of order timing rather than a fundamental change in demand for its products.

Previous wording

As of March 31, 2026, the Company's backlog was approximately $9.0 million, an increase of $3.0 million from $6.0 million as of December 31, 2025. More than half of the backlog is attributable to our Smart Cities products, approximately one-third to its energy storage products, and the balance to EV ARC™ and related products. Management believes the strength of the current backlog is indicative of continued demand which we believe will lead to an improvement in revenue in subsequent quarters.

Current wording

As of June 30, 2026, the Company's backlog was approximately $5.4 million, a decrease of $3.6 million from $9.0 million as of March 31, 2026. Despite the decrease in the Company's backlog from prior quarter, Management believes the current backlog continues to be indicative of demand, which we believe will lead to an improvement in revenue in subsequent quarters.

Previous wording

The composition of revenue shifted meaningfully during the period compared to the prior year period. International customers comprised 51% of revenue for the three months ended March 31, 2026 compared to 25% for the same period in 2025 as a result of our continued integration of our Serbian acquisitions.

Current wording

The composition of revenue shifted meaningfully during the period compared to the prior year period. International customers comprised 48% of revenue for the six months ended June 30, 2026 compared to 37% for the same period in 2025 as a result of our continued success of our European expansion strategy.

Previous wording

Revenues from non-government commercial entities as a percentage of total revenue increased 48% year-over-year and represented 78% of total revenues for the three months ended March 31, 2026. Sales to federal, state and local governments represented 22% of revenues for the three months ended March 31, 2026 compared to 47% for the same period in 2025.

Current wording

Revenues from non-government commercial entities as a percentage of total revenue increased 7 percentage points year-over-year and represented 67% of total revenues for the six months ended June 30, 2026. Sales to the U.S. federal government represented less than 1% of revenues while state and local governments represented 33% of revenues for the six months ended June 30, 2026 compared to 40% for the same period in 2025.

Previous wording

The Company believes that as electric vehicle adoption continues to expand and its products reach a larger international audience, the impact of period-to-period order timing variability on reported revenues will diminish over time.

Current wording

The Company believes that as its geographic and product diversification strategy matures and its products reach a larger and broader international audience, the impact of period-to-period order timing variability on reported revenues will diminish over time.

Previous wording

We continue to invest in sales personnel, marketing resources, and new product development, while also expanding our geographic footprint, with the goal of reducing reliance on large individual orders of our EV ARC™ product from federal agencies, while continuing to pursue those opportunities.

Current wording

We continue to invest in sales personnel, marketing resources, and new product development, while also expanding our geographic footprint, with the goal of replacing reliance on large individual orders of our EV ARC™ product from federal agencies, while continuing to pursue those opportunities.

Previous wording

We have a Multiple Award Schedule Contract with the General Services Administration (GSA) that helps streamline purchases from Federal agencies and state and local governments. In addition, the GSA awarded Beam Global a federal blanket purchase agreement in April 2022 which provides federal agencies a streamlined procurement process for procuring EV ARC™ systems. In Q2 2025, the contract was extended until October 31, 2030. Although this purchasing contract is not being regularly used by U.S. Federal government agencies, we have made sales to other non-Federal government entities in the U.S. using this contract vehicle and we believe that having this contract extended through 2030 and also having it made available to non-Federal government agencies has assisted us in closing sales in 2025 and will continue to assist in streamlining our selling processes in 2026. To the extent the federal government resumes procurement of electric vehicles and EV charging infrastructure, we believe this contract provides a streamlined and efficient channel to sell to the federal government, which operates the largest fleet in the world.

Current wording

We have a Multiple Award Schedule Contract with the General Services Administration (GSA) that helps streamline purchases from Federal agencies and state and local governments. In addition, the GSA awarded Beam Global a federal blanket purchase agreement in April 2022 which provides federal agencies a streamlined procurement process for procuring EV ARC™ systems. In Q2 2025, the contract was extended until October 31, 2030. Although this purchasing contract is not currently being regularly used by U.S. Federal government agencies, we have made sales to other non-Federal government entities in the U.S. using this contract vehicle and we believe that having this contract extended through 2030 and also having it made available to non-Federal government agencies has assisted us in closing sales in 2025 and will continue to assist in streamlining our selling processes in 2026. To the extent the federal government resumes procurement of electric vehicles and EV charging infrastructure, we believe this contract provides a streamlined and efficient channel to sell to the federal government, which operates the largest fleet in the world.

Previous wording

On November 12, 2025, the Company announced being awarded a cooperative purchasing contract by Sourcewell, expanding it's offerings to U.S. military, state and local government agencies, and higher education institutions across North America. Sourcewell combines the purchasing power of over 50,000 participating public agencies, offering hundreds of awarded supplier contracts across public sector and educational organizations to procure the Company's sustainable infrastructure and energy storage solutions through a ready-to-use, negotiated, Sourcewell-vetted contract, streamlining the public purchasing process.

Current wording

On November 12, 2025, the Company was awarded a cooperative purchasing contract by Sourcewell, expanding its offerings to U.S. military, state and local government agencies, and higher education institutions across North America. Sourcewell combines the purchasing power of over 50,000 participating public agencies, offering hundreds of awarded supplier contracts across public sector and educational organizations to procure the Company's sustainable infrastructure and energy storage solutions through a ready-to-use, negotiated, Sourcewell-vetted contract, streamlining the public purchasing process.

Previous wording

Our commercial, non-government, revenues increased as a percentage of our revenues from 53% to 78% from the first three months of 2025 compared to the first three months of 2026. Our geographic expansion into Europe and our additional business development activities in the Middle East and Africa are, we believe, also providing opportunities for growth which are not dependent on, or impacted by, shifts in U.S. government zero emission vehicle policies. The new products we have brought to market offer values, which are also not dependent upon U.S. federal government investment.

Current wording

Our commercial, non-government, revenues increased as a percentage of our revenues from 60% to 67% from the first six months of 2025 compared to the first six months of 2026. Our geographic expansion into Europe and our additional business development activities in the Middle East and Africa are, we believe, also providing opportunities for growth which are not dependent on, or impacted by, shifts in U.S. government zero emission vehicle policies. The new products we have brought to market offer values, which are also not dependent upon U.S. federal government investment.

Previous wording

We expect the electric vehicle market to continue to experience significant growth globally over the next decade, which will in turn increase demand for additional EV charging infrastructure. We believe we are positioned to benefit significantly from this growth. Additionally, we are in compliance with the Build America, Buy America Act (BABA), which ensures that our U.S. products are manufactured for our U.S. customers in the United States using a sufficient amount of domestically sourced materials. Furthermore, we have obtained the CE mark (Conformité Européenne) for our EV ARC™, BeamBike™, BeamWell™ and BeamPatrol™ products, indicating that those products comply with applicable European Union health, safety and environmental protection requirements and may be freely traded within the European Economic Area. We believe these certifications strengthen our credibility, consumer trust, and increase demand for our products, particularly among federal, state, and local government agencies. We also manufacture many products which are not related to EV charging such as our batteries, energy security and smart cities products. Although current federal policy priorities have reduced support for transportation electrification, the Company believes that domestic manufacturing, energy storage and energy security remain areas of potential federal and commercial demand. The Company believes its compliance with BABA may continue to support its competitive position as customers place greater emphasis on U.S.-manufactured critical infrastructure products.

Current wording

We expect the electric vehicle market to continue to experience significant growth globally over the next decade, which will in turn increase demand for additional EV charging infrastructure. We believe we are positioned to benefit significantly from this growth. Additionally, we are in compliance with the Build America, Buy America Act (BABA), which ensures that our U.S. products are manufactured for our U.S. customers in the United States using a sufficient amount of domestically sourced materials. In Europe, we have obtained the CE mark (Conformité Européenne) for our EV ARC™, BeamBike™, BeamWell™ and BeamPatrol™ products, indicating that those products comply with applicable European Union health, safety and environmental protection requirements and may be freely traded within the European Economic Area. We believe these certifications strengthen our credibility, consumer trust, and increase demand for our products, particularly among federal, state, and local government agencies. We also manufacture many products which are not related to EV charging such as our batteries, energy security and smart cities products. Although current federal policy priorities have reduced support for transportation electrification, the Company believes that domestic manufacturing, energy storage and energy security remain areas of potential federal and commercial demand. The Company believes its compliance with BABA may continue to support its competitive position as customers place greater emphasis on U.S.-manufactured critical infrastructure products.

Previous wording

With our acquisitions of Amiga and Telcom, we now have facilities in Europe that can manufacture and sell Beam Global products for the European market. Europe is the largest market in the world for EVs and is a strong proponent of clean energy. We believe there is a lot of potential for growth in this region. We also expect the EV market to continue to experience significant growth over the next decade which will require additional EV charging infrastructure. We believe our products are uniquely positioned to benefit from this growth. Our geographic expansion into Europe and our additional business development activities in the Middle East and Africa are, we believe, also providing opportunities for growth which are not dependent on, or impacted by, shifts in US government and zero emission vehicle strategies. The new products we have brought to market offer values which are also not dependent upon US federal government investment. The EU has mandated a transition to zero emission vehicles by 2035 and they are heavily focused on green and sustainable energy. An increase in electric vehicles adoptions will increase the demand for charging infrastructure. We believe that our sustainably energized EV ARCTMand BeamSpot™ products can play a major role in the provision of EV charging infrastructure in Europe.

Current wording

With our acquisitions of Amiga and Telcom, we have facilities in Europe that can manufacture and sell Beam Global products for the European market. Europe is the largest market in the world for EVs and is a strong proponent of clean energy. We believe there is a lot of potential for growth in this region. The EU has mandated a transition to zero emission vehicles by 2035 and they are heavily focused on green and sustainable energy. An increase in electric vehicles adoptions will increase the demand for charging infrastructure. We believe that our sustainably energized EV ARCTMand BeamSpot™ products can play a major role in the provision of EV charging infrastructure in Europe.

Previous wording

We are in development on our newest patented products which include- BeamSpot™, BeamFlight™ and others, which we expect will continue to expand our product offerings leveraging the same proprietary technology as our current products and allow us to expand into new markets. Amiga, now Beam Europe, is one of Europe’s largest manufacturers of streetlights and has a team of qualified structural, electrical and civil engineers who are experts in the field of development and deployment of streetlighting. They are working with our engineers in San Diego and Broadview to continually improve the engineering and development of our new BeamSpot™ product. We believe that BeamSpot™ may become our largest selling product when available for sale. BeamSpot™ is currently in the process of being installed and we received our first order for that product within two months of it being launched.

Current wording

We are in development on our newest patented products which include- BeamSpot™, BeamFlight™ and others, which we expect will continue to expand our product offerings leveraging the same proprietary technology as our current products and allow us to expand into new markets. Beam Europe, is one of Europe’s largest manufacturers of streetlights and has a team of qualified structural, electrical and civil engineers who are experts in the field of development and deployment of streetlighting. They are working with our engineers in San Diego and Broadview to continually improve the engineering and development of our new BeamSpot™ product. We believe that BeamSpot™ may become our largest selling product.

Previous wording

In June 20, 2025, Beam entered into a joint venture agreement with the Platinum Group L.L.C, a diversified, multi-billion-dollar conglomerate operating in energy, real estate, finance and investing, healthcare, information technology, sports and entertainment, food services and legal services in the Emirate of Abu Dhabi, United Arab Emirates. Chaired by His Royal Highness, Sheikh Mohammed Sultan Bin Khalifa Al-Nahyan, the Platinum Group UAE is recognized for its well-established and trusted relationships across government and industry. Beam Global and the Platinum Group has formed a new entity, Beam Middle East LLC, a limited liability company in Abu Dhabi which will sell and manufacture Beam Global’s patented sustainable infrastructure solutions for transportation electrification, energy storage, energy security, and smart city development across the Middle East and African regions. We believe this joint venture marks a significant milestone in our global expansion strategy and positions us to capture growth in a region projected to invest over $1 trillion in renewable energy by 2030. Beam Middle East is headquartered in Masdar City, a pioneering sustainable urban community and world-class business and technology hub. Masdar City is located in Abu Dhabi, the capital of the United Arab Emirates, strategically positioned at the center of the country’s drive toward a net-zero greenhouse-gas emissions by 2050.

Current wording

On June 20, 2025, Beam entered into a joint venture agreement with the Platinum Group L.L.C, a diversified, multi-billion-dollar conglomerate operating in energy, real estate, finance and investing, healthcare, information technology, sports and entertainment, food services and legal services in the Emirate of Abu Dhabi, United Arab Emirates. Chaired by His Royal Highness, Sheikh Mohammed Sultan Bin Khalifa Al-Nahyan, the Platinum Group UAE is recognized for its well-established and trusted relationships across government and industry. Beam Global and the Platinum Group has formed a new entity, Beam Middle East LLC, a limited liability company in Abu Dhabi which will sell and manufacture Beam Global’s patented sustainable infrastructure solutions for transportation electrification, energy storage, energy security, and smart city development across the Middle East and African regions. We believe this joint venture marks a significant milestone in our global expansion strategy and positions us to capture growth in a region projected to invest over $1 trillion in renewable energy by 2030. Beam Middle East is headquartered in Masdar City, a pioneering sustainable urban community and world-class business and technology hub. Masdar City is located in Abu Dhabi, the capital of the United Arab Emirates, strategically positioned at the center of the country’s drive toward a net-zero greenhouse-gas emissions by 2050.

Previous wording

*Revenues.*For the three months ended March 31, 2026, our revenues decreased 51% to $3.1 million compared to $6.3 million for the same period in 2025. Revenues derived from non-government, commercial entities represented 78% of total revenues for the three months ended March 31, 2026 compared to 53% for the three months ended March 31, 2025. During the three months ended March 31, 2026, $0.7 million, or 22% of product sales, were to federal, state and local government customers compared to 47% for the three months ended March 31, 2025.

Current wording

*Revenues.*For the three months ended June 30, 2026, our revenues increased 21% to $8.6 million compared to $7.1 million for the same period in 2025. Revenues derived from non-government, commercial entities represented 62% of total revenues for the three months ended June 30, 2026 compared to 66% for the three months ended June 30, 2025. During the three months ended June 30, 2026, 38% of product sales, were to state and local government customers compared to 32% for the three months ended June 30, 2025.

Previous wording

The Company continues to invest in sales, marketing personnel, resources and programs to raise awareness of the benefits and value of its products. The receipt of orders may continue to be uneven due to customer procurement processes, project approval timelines and government budget cycles. However, the Company believes that continued growth in EV adoption, energy security requirements, Smart Cities infrastructure needs and infrastructure funding may reduce the impact of period-to period variations in individual order timing over time.

Current wording

The Company continues to invest in sales, marketing personnel, resources and programs to raise awareness of the benefits and value of its products. The receipt of orders may continue to be uneven due to customer procurement processes, project approval timelines and government and commercial budget cycles. However, the Company believes that continued growth in EV adoption, energy storage and security requirements, Smart Cities infrastructure needs and infrastructure funding may reduce the impact of period-to period variations in individual order timing over time.

Previous wording

The Company continues to seek to broaden its revenue base by expanding its customer mix, geographic reach and product applications beyond U.S. federal government sales. The Company believes its rapidly deployable infrastructure solutions may be well-positioned to address customer needs in these markets; however, there can be no assurance that these opportunities will offset reduced U.S. federal customer demand or that U.S. federal customer demand will return to prior levels.

Current wording

The Company continues to seek to broaden its revenue base by expanding its customer mix, geographic reach and product applications beyond U.S. federal government sales. The Company believes its solutions may be well-positioned to address customer needs in global markets; however, there can be no assurance that these opportunities will offset reduced U.S. federal customer demand or that U.S. federal customer demand will return to prior levels.

Previous wording

*Gross Loss (Profit).*The Company reported a gross loss of $0.4 million, representing a negative gross margin of 13.3% for the three months ended March 31, 2026, compared to a gross profit of $0.5 million, or a positive gross margin of 7.9% for the same period in 2025. Gross results for the three months ended March 31, 2026 included non-cash charges of $0.5 million for depreciation and $0.2 million for amortization of intangible assets arising from the All-Cell acquisition. Gross results for the three months ended March 31, 2025 included non-cash charges of $0.6 million for depreciation and $0.2 million for amortization of intangible assets. The Company expects gross margins to improve as revenues grow and fixed overhead absorption increases.

Current wording

*Gross Profit.*The Company reported a gross profit of $1.5 million, representing a gross margin of 17.8% for the three months ended June 30, 2026, compared to a gross profit of $1.4 million, or a gross margin of 20.3% for the same period in 2025. Gross results for the three months ended June 30, 2026 and 2025 included non-cash charges of $0.5 million for depreciation and $0.2 million for amortization of intangible assets arising from the All-Cell acquisition for both periods. The Company expects gross margins to improve as revenues grow and fixed overhead absorption increases.

Previous wording

Adjusted operating expenses increased by approximately $1.0 million for the three months ended March 31, 2026 compared to the same period in 2025. The increase was primarily attributable to a $1.6 million increase in the provision for credit losses, partially offset by reductions in salaries and benefits, facilities, and other general and administrative expenses. The $1.6 million increase in the provision for credit losses relates to a single customer balance that became subject to reserve in accordance with the Company's policy.

Current wording

Operating Expenses. Total operating expenses were $10.8 million for the six months ended June 30, 2026, compared to $22.0 million for the same period in 2025. The prior period included a non-cash goodwill impairment charge of $10.8 million and a stock grant of $1.4 million, while no such charges were recorded for the three months ended June 30, 2026. The decrease was primarily attributable to a $1.6 million increase in the provision for credit losses, partially offset by reductions in salaries and benefits, facilities, and other general and administrative expenses. The $1.6 million increase in the provision for credit losses relates to a single customer balance that became subject to reserve in accordance with the Company's policy. The Company maintains a positive working relationship with the single customer and will continue to work with the customer to collect the outstanding balance and create new revenue opportunities.

Previous wording

At March 31, 2026, we had cash of $2.0 million, compared to $1.0 million at December 31, 2025. We have historically met our cash needs through equity financings and through cash flow from operations. Our cash requirements are generally for operating activities and acquisitions.

Current wording

At June 30, 2026 and December 31, 2025 we had cash balance of $1.0 million. We have historically met our cash needs through equity financings and through cash flow from operations. Our cash requirements are generally for operating activities and acquisitions.

Previous wording

Management believes the Company’s present cash flows will enable it to meet its obligations for twelve months from the date of these financial statements. Management will continue to assess its operational needs and seek additional financing as needed to fund its operations.

Current wording

Based on our current operating plan, we estimate that we will require approximately $3.0 million of cash to fund our operations and meet our obligations during the twelve months following the date these financial statements are issued. We expect to fund these requirements primarily from cash on hand and from cash generated by operations, including collection of our accounts receivable and sale of our existing inventory. At June 30, 2026, our working capital was $5.5 million. Management believes the Company’s present cash flows will enable it to meet its obligations for twelve months from the date of these financial statements. Management will continue to assess its operational needs and seek additional financing as needed to fund its operations.

Previous wording

For the three months ended March 31, 2026, our cash used in operating activities was $2.3 million compared to $1.8 million for the three months ended March 31, 2025. Cash used in operations included a $0.1 million increase in prepaid expenses and other current assets, $0.8 million increase in inventory, $0.3 million decrease in operating lease liability, $0.1 million decrease in sales tax payable, and $0.2 million decrease in other long-term liabilities. In addition, cash provided by operations included $1.7 million increase in accounts receivable, $0.4 million increase in accounts payable, $0.2 million increase in accrued expenses and $0.2 million in deferred revenue.

Current wording

For the six months ended June 30, 2026, our cash used in operating activities was $4.8 million compared to $2.1 million for the six months ended June 30, 2025. Cash used in operations in the six months ended June 30, 2026 included a $0.4 million increase in accounts receivable, excluding the provision for credit losses, $0.6 million decrease in deferred revenue, $0.7 million decrease in operating lease liability and $0.3 million decrease in other long-term liabilities. Cash provided by operations included $0.2 million decrease in prepaid and other current assets, $1.2 million decrease in inventory, $0.1 million increase in accounts payable, $0.6 million increase in accrued expenses and $0.1 million in sales tax payable.

Previous wording

Cash used in investing activities in the three months ended March 31, 2026 was $47 thousand related to purchase of property and equipment. Cash used in investing activities during thethree months ended March 31, 2025 of$70 thousand was primarily related to $54 thousand of equipment purchases, with remainder related to funding of patent costs.

Current wording

Cash used in investing activities in the six months ended June 30, 2026 was $181 thousand and June 30, 2025 was $838 thousand mainly related to purchase of property and equipment in both years, with the remainder related to funding of patent costs.

Previous wording

For the three months ended March 31, 2026, cash provided by our financing activities was$3.4 million related to sale of common stock underthe Sales Agreement with B. Riley. Cash used in financing activities during thethree months ended March 31, 2025 of $15 thousand was related to repayments of a note payable of a vehicle lease.

Current wording

For the six months ended June 30, 2026, and 2025, cash provided by our financing activities was$5.2 million and $2.2 million, respectively, mainly related to sale of common stock underthe Sales Agreement with B. Riley.

Previous wording

Current assets decreased to $19.2 million at March 31, 2026 from $21.0 million at December 31, 2025, primarily due to a decrease of $3.5 million in accounts receivable which includes an $1.8 million increase in the reserve for credit losses partially offset by a $1.0 million increase in cash. Current liabilities increased to $13.0 million at March 31, 2026 from $12.1 million at December 31, 2025, due to increases of$0.3 million in accounts payable, $0.2 million in accrued expenses, $0.3 million in deferred revenue, and $0.2 million in operating lease liabilities partially offset by $0.1 million decrease in sales tax payable.

Current wording

Current assets decreased to $17.7 million at June 30, 2026 from $21.0 million at December 31, 2025, primarily due to a $1.5 million decrease in accounts receivable, which reflects $1.8 million increase in reserve for credit losses, a $1.5 million decrease in inventory and a $0.4 million decrease in prepaid expenses and other current assets, partially offset by a $0.1 million increase in cash.

Previous wording

As a result, our working capital decreased $2.7 million to $6.2 million at March 31, 2026 from $8.9 million at December 31, 2025. The Company notes that $1.8 million of this decrease is attributable to the non-cash increase in the reserve for credit losses related to a single customer balance reserved in accordance with the Company's policy.

Current wording

As a result, our working capital decreased $3.4 million to $5.5 million at June 30, 2026 from $8.9 million at December 31, 2025. The Company notes that $1.8 million of this decrease is attributable to the non-cash increase in the reserve for credit losses related to a single customer balance reserved in accordance with the Company's policy.

Previous wording

On April 11, 2025, we entered into an At Market Issuance Sales Agreement (the “Sales Agreement”) with B. Riley Securities, Inc. (“B. Riley”), pursuant to which we may issue and sell shares of our common stock from time to time, at our option, through B. Riley as our sales agent, subject to certain terms and conditions. Upon our delivery and B. Riley’s acceptance of a placement notice, B. Riley will use commercially reasonable efforts to sell shares, consistent with its normal trading and sales practices, in transactions deemed to be “at the market” offerings as defined in Rule 415 of the Securities Act of 1933, as amended, including by means of ordinary brokers’ transactions at market prices, in block transactions or as otherwise agreed by B. Riley and us. B. Riley may also sell the shares of common stock in negotiated transactions, subject to our prior approval. Any shares sold will be sold pursuant to our effective shelf registration statement on Form S-3 (File No. 333-272396), as supplemented by a prospectus supplement dated April 11, 2025 and November 13, 2025, which allows us to sell up to $15.6 million in shares of our common stock (the “ATM Prospectus Supplement”). We will pay B. Riley a commission of up to 2.5% of the gross proceeds of the sale of any shares sold through B. Riley. As of March 31, 2026, the Company has $11.9 million remaining available for issuance and sale under the ATM Prospectus Supplement to the Company’s effective shelf registration statement on Form S-3.

Current wording

On April 11, 2025, the Company entered into an At Market Issuance Sales Agreement (the “Sales Agreement”) with B. Riley Securities, Inc. (“B. Riley”), pursuant to which it may issue and sell shares of its common stock from time to time, at its option, through B. Riley as its sales agent, subject to certain terms and conditions. Upon its delivery and B. Riley’s acceptance of a placement notice, B. Riley will use commercially reasonable efforts to sell shares, consistent with its normal trading and sales practices, in transactions deemed to be “at the market” offerings as defined in Rule 415 of the Securities Act of 1933, as amended, including by means of ordinary brokers’ transactions at market prices, in block transactions or as otherwise agreed by B. Riley and the Company. B. Riley may also sell the shares of common stock in negotiated transactions, subject to the Company's prior approval. Any shares sold will be sold pursuant to the Company's effective shelf registration statement on Form S-3 (File No. 333-272396), as supplemented by a prospectus supplement dated April 11, 2025, and November 14, 2025, which allows the Company to sell up to $15.6 million in shares of its common stock (the “ATM Prospectus Supplement”). The Company will pay B. Riley a commission of up to 3% of the gross proceeds of the sale of any shares sold through B. Riley. As of June 30, 2026, the Company has $10.0 million remaining available for issuance and sale under the ATM Prospectus Supplement.