Nixxy, Inc.
For the period ended Mar 31, 2026. Filed May 13, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed May 13, 2026
NIXX$0.21+2.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-11-13.
0001683168-25-008338
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-13.
0001683168-26-003816
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 97 previous paragraphs and 97 current paragraphs.
20 unchanged; 11 reworded; 66 added; 65 removed; 1 previous and 0 current paragraphs rearranged.
Tables are not compared: 6 previous and 11 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (66)
Current report
During the three months ended March 31, 2026, the Company continued to execute its strategic transformation into a communications and data infrastructure platform. The Company’s operating focus is centered on scaling its telecommunications revenue base, improving operating efficiency through automation and AI-enabled routing, and expanding into higher-value infrastructure and software-driven applications.
Current report
The Company’s telecommunications platform has experienced significant growth in traffic volumes and revenue run-rate, supported by expanded carrier relationships, improved routing performance, and increased operational scale. Based on internal management estimates and prior disclosures, the Company’s telecommunications business has reached an annualized revenue run-rate of approximately $150 million to $180 million as of late 2025, although such run-rate may not be indicative of future results.
Current report
Revenue Growth and Communications Platform Scaling
Current report
The Company’s revenue growth has been primarily driven by:
Current report
Management believes that the Company’s communications platform represents a scalable and repeatable revenue engine, where incremental traffic can be added with limited proportional increases in operating overhead. Revenue is largely usage-based and may fluctuate based on traffic volumes, routing decisions, customer demand, and market pricing conditions.
Current report
Margin Expansion and Traffic Mix Optimization
Current report
A core component of the Company’s strategy is the improvement of unit economics through a combination of traffic mix optimization and operational automation.
Current report
Key drivers of margin expansion include:
Current report
Management believes that these initiatives support a disciplined margin expansion framework, although realized margins may vary depending on market conditions, pricing dynamics, and traffic composition.
Current report
Operating Efficiency and Automation
Current report
The Company has invested in AI-enabled systems designed to:
Current report
These capabilities are intended to improve operating efficiency, reduce manual overhead, and enhance consistency across the Company’s telecommunications operations. As the platform scales, management expects automation to play an increasing role in supporting operational leverage; however, the timing and extent of such benefits remain dependent on execution and market conditions.
Current report
Expansion into Infrastructure and Software
Current report
In addition to its core telecommunications operations, the Company has made investments in infrastructure and software assets intended to support higher-value applications, including:
Current report
These initiatives are intended to enable the Company to process communications and related data within controlled infrastructure environments and to support the development of software-based offerings over time.
Current report
Leadnova.ai is currently in user acceptance testing, with a targeted commercial beta planned for 2026, subject to execution.
Current report
Telco + Fintech Convergence Initiatives
Current report
The Company is pursuing opportunities at the intersection of telecommunications and financial technology, leveraging its communications infrastructure to support transaction-enabled workflows.
Current report
These initiatives include:
Current report
The Company is developing these capabilities in part through strategic partnerships, including collaboration with PayToMe, which provides development resources and fintech platform capabilities.
Current report
PayToMe.co is a Silicon Valley–based AI-native financial technology platform enabling embedded payments and cross-border transaction workflows across global markets.
Current report
Management believes that integrating communications and transaction workflows may represent a significant long-term opportunity; however, these initiatives are in development, and their timing, adoption, and financial impact remain uncertain and subject to execution and regulatory considerations.
Current report
Liquidity and Capital Strategy
Current report
The Company continues to evaluate capital allocation strategies to support:
Current report
Management expects that continued revenue growth and operational improvements may support progress toward improved cash flow performance; however, the Company may require additional capital to execute its growth strategy.
Current report
Key Business Drivers and Outlook
Current report
Management believes that the Company’s future performance will be influenced by:
Current report
While management believes the Company is positioned to benefit from these trends, actual results may differ materially due to market conditions, competition, regulatory factors, and execution risks.
Current report
Operating expenses, excluding cost of revenue described above, were approximately $1.2 million for the three-month period ended March 31, 2026, compared to $3.8 million for the corresponding three-month period in 2025, a decrease of $2.6 million or 67%. This decrease was due to a decrease in general and administrative expenses of $2.5 million.
Current report
Sales and marketing expense was approximately $0 for the three-month period ended March 31, 2026, compared to $549 thousand for the corresponding three-month period in 2025, a decrease of $549 thousand. The decrease was primarily attributable to reduced marketing expenditures as part of the Company’s cost management initiatives focused on improving operating margins.
Current report
General and administrative expenses consist primarily of compensation-related costs for personnel performing corporate, finance, and administrative functions, as well as legal, audit, tax, consulting, and other professional fees and general corporate expenses.
Current report
Net Income (Loss)
Current report
Liquidity and Capital Resou rces
Current report
Operating Activities
Current report
Net cash used in operating activities was approximately $384 thousand for the three months ended March 31, 2026, compared to $1.8 million for the three months ended March 31, 2025.
Current report
For the three months ended March 31, 2026, the Company reported a net income from continuing operations and discontinued operations of $537. The net loss includesnon-cash expenses, including:
Current report
For the three months ended March 31, 2025, net loss from continuing operating operations was $3.7 million and net loss from discontinued operations was $845 thousand. The 2025 net loss included significant non-cash charges, including:
Current report
The decrease in cash used in operating activities during 2026 was primarily attributable to lower expenses and collections of accounts receivable.
Current report
Investing Activities
Current report
Net cash used in investing activities was approximately $0 for the three months ended March 31, 2026, compared to $400 thousand for the three months ended March 31, 2025.
Showing the first 40 of 66 passages. Open the source sections for the rest.
Removed paragraphs (65)
Previous report
Nixxy, Inc., a Nevada corporation (along with its subsidiaries, “we”, “the Company”, “us”, and “our”), is a holding company that, through its subsidiaries, operates recruitment and career-related software platforms. Historically, the Company offered additional recruitment-related services, including on-demand contract recruitment and staffing.
Previous report
We have eight subsidiaries, Recruiter.com, Inc., Nixxy, LLC, VocaWorks, Inc. (“VocaWorks”), Recruiter.com Scouted Inc. (“Scouted”), Recruiter.com Upsider Inc. (“Upsider”), Recruiter.com OneWire Inc. (“OneWire”), and Recruiter.com Consulting, LLC (“Recruiter.com Consulting”), and Auralink AI, Inc. (“Auralink”). Additionally, the Company owns a controlling interest in CognoGroup, Inc., a Colorado company that is traded on the OTC Markets (OTC: CGNO).
Previous report
The Company is currently undergoing a strategic transformation, having sold its staffing business in 2023 and sold its Recruiter.com website in Q3 of 2024. The Company has announced plans to shift its focus, along with its license agreement with GoLogiq, and spin out the recruitment-related businesses to CognoGroup. There can be no assurance that the Company will be able to complete its planned spin-out and strategic transformation.
Previous report
Operating Businesses and Revenue
Previous report
We generate revenue or have generated from the following activities:
Previous report
Marketplace advertising revenues are recognized on a gross basis when the advertising is placed and displayed or when lead generation activities and online publications are completed, which is the point at which the performance obligations are satisfied. Payments for marketing and publishing are typically due within 30 days of completion of services. Job posting revenue is recognized at the end of the period the job is posted. Marketplace career services revenues are recognized on a gross basis upon distribution of resumes or completion of training courses, which is the point at which the performance obligations are satisfied. Payments for career services are typically due upon distribution or completion of services.
Previous report
Consulting and Staffing Services revenues represent services rendered to customers less sales adjustments and allowances. Reimbursements, including those related to travel and out-of-pocket expenses, are also included in the net service revenues and equivalent amounts of reimbursable expenses are included in costs of revenue. We record substantially all revenue on a gross basis as a principal versus on a net basis as an agent in the presentation of this line of revenues and expenses. We have concluded that gross reporting is appropriate because we have the task of identifying and hiring qualified employees, and our discretion to select the employees and establish their compensation and duties causes us to bear the risk for services that are not fully paid for by customers. Consulting and staffing revenues are recognized when the services are rendered by the temporary employees. We assume the risk of the acceptability of the employees to customers. Payments for consulting and staffing services are typically due within 90 days of completion of services.
Previous report
Auralink’s primary performance obligations consist of SMS and VoiceIP transmission services. Each message or call is a distinct transaction, and revenue is recognized at the point in time when delivery is confirmed by the recipient carrier’s platform. These services are priced using dynamic Rate Decks, which vary by destination and time. The transaction price is allocated to each message or call based on its standalone selling price as reflected in the applicable Rate Deck. Auralink acts as principal in these transactions, as it controls the routing infrastructure, sets pricing, assumes delivery risk, and bears responsibility for service quality. Accordingly, revenue is recognized on a gross basis.
Previous report
Deferred revenue results from transactions in which we have been paid for services by customers, but for which all revenue recognition criteria have not yet been met. Once all revenue recognition criteria have been met, the deferred revenues are recognized.
Previous report
Quarter Overview
Previous report
In the third quarter, ending September 30, 2025, the Company continued to focus on finalizing strategic transactions critical to its transformation. Following a significant reduction in its operating footprint, the Company is now concentrating primarily on strategic financial initiatives and core data center growth. Preparations also advanced for the planned spin-out of certain operating assets to its Atlantic Energy Solutions subsidiary, which is being renamed CognoGroup, a Nevada corporation (“CognoGroup”). CognoGroup is expected to hold the Company’s recruitment-related technology assets, including Mediabistro—a leading job board for the media industry—as well as other assets and projects such as the AI-enabled CandidatePitch software and RecruitingClasses.com.
Previous report
Building on this strategic focus, the Company reported strong commercial momentum and balance sheet flexibility throughout the quarter. In late July, management guided the Company to approximately $13.3 million in Q2 revenue and highlighted July’s $7.5 million and August’s $10 million run-rate trajectory as early proof points that the telecom engine is scaling as intended. On August 13, the Company completed the acquisition of Everythink Innovations’ carrier and edge data center assets in Vancouver and Fremont, adding Tier-3, AI-ready capacity and an estimated $48 million of ARR exposure into NIXXY CORE™ while accelerating time-to-market for private LLM and data services.
Previous report
In September, the Company secured a $2.0 million revolving growth facility with a fixed $2.00/share conversion feature—structured at a premium to market—to fund disciplined expansion without compromising shareholder alignment. The same update reaffirmed August revenue above $10 million. Significant development progress was made on the Leadnova platform, which entered User Acceptance Testing in Q4, with commercial launch targeted for early 2026. The quarter concluded with a Shareholder Update on September 30, noting continued integration progress, capacity expansion, and September revenue expected to exceed $14 million—underscoring a durable ramp toward margin expansion and breakeven as NIXXY CORE™ scales.
Previous report
We had total operating expenses of $34.1 million for the three-month period ended September 30, 2025, compared to $5.6 million for the corresponding three-month period in 2024, an increase of $28.5 million or 505%. This increase was due to increases in amortization of intangibles, cost of revenue, sales and marketing, and product development expenses of $0.5 million, $31.8 million, $0.1 million, and $0.2 million respectively. The increases were partially offset by a decrease in general and administrative expenses of $4.1 million.
Previous report
Our sales and marketing expense for the three-month period ended September 30, 2025, was $56 thousand compared to $15 thousand for the corresponding three-month period in 2024, an increase of $41 thousand, which reflects the increase in marketing ventures related to the marketplace solutions revenue stream.
Previous report
Net Loss
Previous report
Nine Months Ended September 30, 2025, Compared to Nine Months Ended September 30, 2024:
Previous report
Revenue
Previous report
We had revenue of $46.8 million for the nine-month period ended September 30, 2025, as compared to $0.5 million for the nine-month period ended September 30, 2024, representing an increase of $46.3 million or 9416%. The increase resulted primarily due to the increase in telecommunication services of $46.4 million.
Previous report
Cost of Revenue
Previous report
Cost of revenue was $46.4 million for the nine-month period ended September 30, 2025, compared to $3 thousand for the corresponding nine-month period in 2024, representing an increase of $46.4 million. This increase resulted primarily from the increase in revenue generating operations during the quarter.
Previous report
Operating Expenses
Previous report
We had total operating expenses of $56.4 million for the nine-month period ended September 30, 2025, compared to $8.0 million for the corresponding nine-month period in 2024, an increase of $48.4 million or 604%. This increase was due to increases in general and administrative, sales and marketing, cost of revenue, product development, and amortization of intangibles of $0.4 million, $0.7 million, $46.4 million, $0.2 million, and $0.8 million respectively.
Previous report
Sales and Marketing
Previous report
Our sales and marketing expense for the nine-month period ended September 30, 2025, was $0.8 million compared to $0.1 million for the corresponding nine-month period in 2024, an increase of $0.7 million, which reflects the increase in revenue generating activities.
Previous report
Product Development
Previous report
Our product development expense for the nine-months ended September 30, 2025, increased to $229 thousand from $32 thousand for the corresponding period in 2024 due to an increase in hosting and data expense.
Previous report
Amortization of Intangibles
Previous report
For the nine-month period ended September 30, 2025, we incurred a non-cash amortization charge of $1.6 million as compared to $0.8 million for the corresponding period in 2024. The amortization expense in 2025 and 2024 relates to the intangible assets acquired from Genesys (now our Nixxy, LLC division), Scouted, Upsider, OneWire, Parrut Novo Group, GOLQ, Aqua Software, Wizco, Savitr Tech, NexGenAI, and Everythink.
Previous report
General and Administrative
Previous report
Other Income (Expense)
Previous report
Other income (expense) for the nine-month period ended September 30, 2025, was expense of $1.3 million compared to expense of $7.6 million in the corresponding 2024 period. Loss on debt extinguishment of $8.5 million was the primary driver in the decrease.
Previous report
Net Loss
Previous report
For the nine-months ended September 30, 2025, we had a net loss from continuing operations of $2.2 million compared to a net loss of $11.0 million during the corresponding nine-month period in 2024.
Previous report
Non-GAAP Financial Measures
Previous report
The following discussion and analysis includes both financial measures in accordance with Generally Accepted Accounting Principles, or GAAP, as well as non-GAAP financial measures. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position or cash flows that either excludes or includes amounts that are not normally included or excluded in the most directly comparable measure calculated and presented in accordance with GAAP. Non-GAAP financial measures should be viewed as supplemental to, and should not be considered as alternatives, to net income, operating income, and cash flow from operating activities, liquidity or any other financial measures. They may not be indicative of our historical operating results nor are they intended to be predictive of potential future results. Investors should not consider non-GAAP financial measures in isolation or as substitutes for performance measures calculated in accordance with GAAP.
Previous report
Our management uses and relies on EBITDA and Adjusted EBITDA, which are non-GAAP financial measures. We believe that both management and shareholders benefit from referring to the following non-GAAP financial measures in planning, forecasting and analyzing future periods. Our management uses these non-GAAP financial measures in evaluating its financial and operational decision making and as a means to evaluate period-to-period comparison. Our management recognizes that the non-GAAP financial measures have inherent limitations because of the described excluded items.
Previous report
We define Adjusted EBITDA as earnings (or loss) from continuing operations before the items in the table below. Adjusted EBITDA is an important measure of our operating performance because it allows management, investors and analysts to evaluate and assess our core operating results from period-to-period after removing the impact of items of a non-operational nature that affect comparability.
Previous report
We have included a reconciliation of our non-GAAP financial measures to the most comparable financial measure calculated in accordance with GAAP. We believe that providing the non-GAAP financial measures, together with the reconciliation to GAAP, helps investors make comparisons between us and other companies. In making any comparisons to other companies, investors need to be aware that companies use different non-GAAP measures to evaluate their financial performance. Investors should pay close attention to the specific definition being used and to the reconciliation between such measure and the corresponding GAAP measure provided by each company under applicable SEC rules.
Previous report
The following table presents a reconciliation of net loss to Adjusted EBITDA:
Showing the first 40 of 65 passages. Open the source sections for the rest.
Reworded paragraphs (11)
Previous wording
The following discussion and analysis should be read in conjunction with our unaudited interim condensed consolidated financial statements and related notes appearing elsewhere in this Quarterly Report on Form 10-Q (this “Quarterly Report”). In addition to historical information, this discussion and analysis contains forward-looking statements that involve risks, uncertainties, and assumptions. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of certain factors, including but not limited to those set forth under “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2024, as filed with the SEC on March 31, 2025.
Current wording
The following discussion and analysis should be read in conjunction with the Company's unaudited interim condensed consolidated financial statements and related notes appearing elsewhere in this Quarterly Report on Form 10-Q (this “Quarterly Report”). In addition to historical information, this discussion and analysis contains forward-looking statements that involve risks, uncertainties, and assumptions. Actual results may differ materially from those anticipated in these forward-looking statements as a result of certain factors, including but not limited to those set forth under “Risk Factors” in the Company's Annual Report on Form 10-K for the year ended December 31, 2025, as filed with the SEC on April 15, 2026.
Previous wording
We had revenue of $31.9 million for the three-month period ended September 30, 2025, as compared to $0.1 million for the three-month period ended September 30, 2024, representing an increase of $31.8 million or 23387%. The increase resulted primarily due to the increase in telecommunication services of $31.8 million.
Current wording
Revenue was approximately $29,094.0 million for the three-month period ended March 31, 2026, as compared to $1,262.0 million for the three-month period ended March 31, 2025, representing an increase of $27,832.0 million or 2205%. The increase resulted primarily due to the expansion of the Company's telecommunication services business.
Previous wording
Cost of revenue was $31.8 million for the three-month period ended September 30, 2025, compared to $0 for the corresponding three-month period in 2024, representing an increase of $31.8 million. This increase resulted primarily from the increase in revenue generating operations during the quarter.
Current wording
Cost of revenue was $29.0 million for the three-month period ended March 31, 2026, compared to $1.3 million for the corresponding three-month period in 2025, representing an increase of $27.8 million or 2202%. This increase resulted primarily from the increase in revenue generating operations from the expansion to the telecommunication services business.
Previous wording
Our product development expense for the three-months ended September 30, 2025, increased to $186 thousand from $15 thousand for the corresponding period in 2024 due to an increase in hosting, data, technology, and design expense in the period.
Current wording
Product development expense for the three-months ended March 31, 2026, decreased to $1 thousand from $14 thousand for the corresponding period in 2025 due to a large focus on product development in the prior period.
Previous wording
For the three-month period ended September 30, 2025, we incurred a non-cash amortization charge of $748 thousand as compared to $236 thousand for the corresponding period in 2024. The amortization expense in 2025 and 2024 relates to the intangible assets acquired from Genesys (now our Nixxy, LLC division), Scouted, Upsider, OneWire, Parrut Novo Group, GOLQ, Aqua Software, Wizco, Savitr Tech, NexGenAI, and Everythink.
Current wording
For the three-month period ended March 31, 2026, the Company incurred a non-cash amortization charge of $710 thousand as compared to $162 thousand for the corresponding period in 2025. The increase in amortization expense was primarily attributable to intangible assets acquired in connection with the Company’s 2025 telecommunications-related acquisitions.
Previous wording
General and administrative expense for the three-month period ended September 30, 2025, includes compensation-related costs for our employees dedicated to general and administrative activities, legal fees, audit and tax fees, consultants and professional services, and general corporate expenses. For the three-month period ended September 30, 2025, our general and administrative expenses were $1.3 million, including $0.3 million of non-cash stock-based compensation. In 2024, for the corresponding period, our general and administrative expenses were $5.4 million, including $4.8 million of non-cash stock-based compensation. Non-cash stock-based compensation increases our GAAP general and administrative expenses and, consequently, our operating loss, but it does not reduce cash flows. As a result, while operating loss may appear higher, our actual cash outflows for general and administrative activities are lower than the GAAP expense
Current wording
For the three-month period ended March 31, 2026, general and administrative expenses were $568 thousand, including $83 thousand of non-cash stock-based compensation. In 2025, for the corresponding period, general and administrative expenses were $3.1 million, including $1.8 million of non-cash stock-based compensation. Non-cash stock-based compensation increases GAAP general and administrative expenses and, consequently, operating loss, but it does not reduce cash flows. As a result, while operating loss may appear higher, actual cash outflows for general and administrative activities are lower than the GAAP expense
Previous wording
Other income (expense) for the three-month period ended September 30, 2025, was expense of $34 thousand compared to expense of $7.8 million in the corresponding 2024 period. Loss on debt extinguishment of $9.1 million in the corresponding 2024 period was the primary driver in the decrease.
Current wording
Other income (expense) for the three-month period ended March 31, 2026, was income of $1.8 million compared to expense of $(128) thousand in the corresponding 2025 period. This increase is attributable to the increase in Gain on change on fair value of marketable securities of $1.8 million.
Previous wording
For the three-months ended September 30, 2025, we had a net loss from continuing operations of $2.2 million compared to a net loss of $13.3 million during the corresponding three-month period in 2024.
Current wording
For the three-months ended March 31, 2026, the Company had a net income from continuing operations of $537 thousand compared to a net loss from continuing operations of $(3.7) million during the corresponding three-month period in 2025.
Previous wording
The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States (“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 results and outcomes may differ from management’s estimates and assumptions. Critical accounting estimates are the fair value of intangible assets and goodwill, and valuation of stock based compensation expense.
Current wording
The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect reported amounts of assets and liabilities, disclosure of contingent assets and liabilities, and reported revenues and expenses. Actual results may differ from those estimates.
Previous wording
The Company recognizes revenue in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 606, “Revenue from Contracts with Customers” (“ASC 606”). Revenues are recognized when control is transferred to customers in amounts that reflect the consideration the Company expects to be entitled to receive in exchange for those goods. Revenue recognition is evaluated through the following five steps: (i) identification of the contract, or contracts, with a customer; (ii) identification of the performance obligations in the contract; (iii) determination of the transaction price; (iv) allocation of the transaction price to the performance obligations in the contract; and (v) recognition of revenue when or as a performance obligation is satisfied. We generate revenue from the following activities:
Current wording
The Company recognizes revenue in accordance with ASC 606, Revenue from Contracts with Customers. Revenue is recognized when control of the promised services is transferred to customers in an amount that reflects the consideration the Company expects to receive.
Previous wording
In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40), which requires entities to provide more detailed disaggregation of expenses in the income statement, focusing on the nature of the expenses rather than their function. The new disclosures will require entities to separately present expenses for significant line items, including but not limited to, depreciation, amortization, and employee compensation. Entities will also be required to provide a qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively, disclose the total amount of selling expenses and, in annual reporting periods, provide a definition of what constitutes selling expenses. This pronouncement is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted. The Company does not expect the adoption of this new guidance to have a material impact on the consolidated financial statements.
Current wording
In November 2024, the FASB issued ASU 2024-03 (Expense Disaggregation Disclosures), effective for fiscal years beginning after December 15, 2026. The Company is currently evaluating the impact of this standard.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
General and administrative expense for the nine-month period ended September 30, 2025, includes compensation-related costs for our employees dedicated to general and administrative activities, legal fees, audit and tax fees, consultants and professional services, and general corporate expenses. For the nine-month period ended September 30, 2025, our general and administrative expenses were $7.5 million, including $3.6 million of non-cash stock-based compensation. In 2024, for the corresponding period, our general and administrative expenses were $7.1 million, including $5.1 million of non-cash stock-based compensation. Non-cash stock-based compensation increases our GAAP general and administrative expenses and, consequently, our operating loss, but it does not reduce cash flows. As a result, while operating loss may appear higher, our actual cash outflows for general and administrative activities are lower than the GAAP expense would suggest.