Financial Analysis

BUSINESS COMBINATIONS AND ASSET ACQUISITIONS 2026 Asset Acquisitions During the six months ended June 30, 2026, we completed one customer relationship asset acquisition. The total purchase price of this acquisition was $6,175, which consisted of $4,730 of cash paid during the six months ended June 30, 2026 , $121 of cash to be paid over the next 12 months, the delivery of promissory notes in the amount of $879, net of discounts, and the delivery of 49 shares of Asure common stock, which had an aggregate fair value of $445 at the acquisition dates. The acquired customer relationships are recorded as intangible assets and are being amortized on a straight-line basis over eight years. 2025 Business Combinations Effective July 1, 2025, we acquired 100% of the membership interests of Lathem Time 2025 LLC (f/k/a Lathem Time Corporation, Lathem), whose technology will be used to expand the capabilities of our broader suite of HR solutions, specifically in time and attendance systems. The aggregate purchase price that we paid for the membership interests was $39,497, consisting of $37,500 paid in cash on hand and the remaining $2,221 in the form of a promissory note ($1,997 net of discount). The following table summarizes the amounts of assets acquired and liabilities assumed at the acquisition date, valued at their estimated acquisition-date fair value: Acquisition Date Fair Value Accounts receivable $ 2,020 Inventory 3,380 Prepaid expenses and other current assets 177 Property and …

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COMMITMENTS AND CONTINGENCIES Lease Commitments We have entered into office space lease agreements, which qualify as operating leases under ASC 842 (Leases). Under such leases, we have commitments to pay annual minimum (base) rent. The leases have original terms (excluding extension options) ranging from one to ten years. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. We record base rent expense under the straight-line method over the term of the lease. In the accompanying Condensed Consolidated Statements of Comprehensive Loss, rent expense is included in operating expenses under general and administrative expenses. Rent expense was as follows for the periods presented below (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Rent expense $ 643 $ 520 $ 1,290 $ 1,054 For purposes of calculating the lease assets and lease liabilities, extension options are not included in the lease term unless it is reasonably certain we will exercise the option, or the lessor has the sole ability to exercise the option. The weighted average discount rate of our operating leases is 10% as of June 30, 2026, and December 31, 2025. The weighted average remaining lease term for our operating leases is three years as of June 30, 2026 and December 31, 2025. Supplemental cash flow information related to leases are as follows for the periods presented below (in thousands): Six Months Ended June 30, 202 …

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NOTES PAYABLE The following table summarizes our outstanding debt as of the dates indicated (in thousands): Maturity Cash Interest Rate June 30, 2026 December 31, 2025 Notes Payable Acquisitions (1) 08/01/26 - 07/01/29 2.00% - 4.00% $ 11,395 $ 10,775 Notes Payable Senior Credit Facility 04/30/30 8.99% 60,000 60,000 Gross Notes Payable $ 71,395 $ 70,775 (1) See Note 3 Business Combinations and Asset Acquisitions and Notes Payable - Acquisitions section below for further discussion regarding the notes payable related to acquisitions. The following table summarizes the debt issuance costs as of the dates indicated (in thousands): Gross Notes Payable Debt Issuance Costs and Debt Discount Net Notes Payable June 30, 2026 Current portion of notes payable $ 6,980 $ (315) $ 6,665 Notes payable, net of current portion 64,415 (2,181) 62,234 Total $ 71,395 $ (2,496) $ 68,899 December 31, 2025 Current portion of notes payable $ 4,834 $ (490) $ 4,344 Notes payable, net of current portion 65,941 (2,659) 63,282 Total $ 70,775 $ (3,149) $ 67,626 The following table summarizes the future principal payments related to our outstanding debt as of June 30, 2026 (in thousands): 2026 (Remaining) $ 5,760 2027 4,635 2028 2029 46,000 2030 15,000 Total $ 71,395 Notes Payable - Acquisitions As of June 30, 2026, we have nine promissory notes related to acquisitions that occurred during the six months ended June 30, 2026, and prior years with a combined outstanding principal balance of $11,395 and maturity …

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SHARE-BASED COMPENSATION We have one active equity plan, the 2018 Incentive Award Plan (the 2018 Plan). The 2018 Plan, approved by our stockholders, replaced our 2009 Equity Incentive Plan, as amended (the 2009 Plan); however, the terms and conditions of the 2009 Plan will continue to govern any outstanding awards granted thereunder. The number of shares reserved for issuance under the 2018 Plan is 6,998 shares. We have an aggregate of 2,175 options, restricted stock units (RSUs) and performance stock units (PSUs) granted and outstanding pursuant to the 2018 Plan as of June 30, 2026. As of June 30, 2026, the number of shares available for future grant under the 2018 Plan is 2,067. Share-based compensation for our stock option plans for the three and six months ended June 30, 2026, was $2,131 and $4,281 , respectively, and for the three and six months ended June 30, 2025, was $1,891 and $3,754 , respectively . Issuance of common stock related to the exercise of stock options and the vesting of restricted stock units (including restricted stock units that converted from performance stock units) are as follows for the period presented below (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Common stock issued - options (1) 317 296 348 365 Common stock issued - RSU (1)(2) 97 73 638 455 (1) Included in these amounts are 276 and 336 shares withheld for taxes or in connection with a cashless exercise of options during the three and six months …

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INVESTMENTS AND FAIR VALUE MEASUREMENTS Accounting Standards Codification (ASC) 820 Fair Value Measurement (ASC 820) defines fair value, establishes a framework for measuring fair value under U.S. GAAP and enhances disclosures about fair value measurements. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. ASC 820 describes a fair value hierarchy based on the following three levels of inputs that may be used to measure fair value, of which the first two are considered observable and the last unobservable: Level 1: Quoted prices in active markets for identical assets or liabilities; Level 2: Quoted prices in active markets for similar assets or liabilities; quoted prices in markets that are not active for identical or similar assets or liabilities; and model-driven valuations whose significant inputs are observable; and Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The following table presents the fair value hierarchy for our financial assets and liabilities measured at fair value on a recurring basis for the peri …

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GOODWILL AND OTHER INTANGIBLE ASSETS December 31, 2025 Acquisitions June 30, 2026 Goodwill $ 115,759 $ $ 115,759 We believe significant synergies are expected to arise from our strategic acquisitions and their assembled work forces. This factor contributed to a purchase price that was in excess of the fair value of the net assets acquired and, as a result, we recorded goodwill for each acquisition. A portion of acquired goodwill will be amortizable for tax purposes. As of June 30, 2026, there has been no impairment of goodwill based on the qualitative assessments we have performed. Gross Intangible Assets December 31, 2025 Acquisitions June 30, 2026 Customer relationships $ 182,024 $ 6,003 $ 188,027 Developed technology 19,501 19,501 Trade names 880 880 Non-compete agreements 1,032 1,032 Total $ 203,437 $ 6,003 $ 209,440 The gross carrying amount and accumulated amortization of our intangible assets are as follows for the periods presented below (in thousands, except weighted average periods): Weighted Average Amortization Period (in Years) Gross Intangible Assets Accumulated Amortization Net Intangible Assets June 30, 2026 Customer relationships 8.4 $ 188,027 $ (110,998) $ 77,029 Developed technology 6.6 19,501 (13,075) 6,426 Trade names 4.3 880 (880) Non-compete agreements 5.2 1,032 (961) 71 8.2 $ 209,440 $ (125,914) $ 83,526 December 31, 2025 Customer relationships 8.5 $ 182,024 $ (101,343) $ 80,681 Developed technology 6.6 19,501 (12,348) 7,153 Trade names 4.3 880 (880) N …

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RECENT ACCOUNTING PRONOUNCEMENTS In July 2025, the FASB issued ASU No. 2025-05, Measurement of Credit Losses for Accounts Receivable and Contract Assets, which provides a practical expedient to assume that, for estimating expected credit losses, current conditions as of the balance sheet date will remain constant through the remaining life of the assets. The practical expedient is available to all entities. The standard becomes effective for all entities for annual periods beginning after December 15, 2025. We adopted this standard prospectively for the annual period ending December 31, 2026. This guidance did not have an impact on our financial position, results of operations, or cash flows.

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CONTRACTS WITH CUSTOMERS AND REVENUE CONCENTRATION Receivables Receivables from contracts with customers, net of allowance for credit losses of $9,717, were $13,120 at June 30, 2026. Receivables from contracts with customers, net of allowance for credit losses of $7,206, were $15,859 at December 31, 2025. We had a provision for expected losses of $14, write-offs charged against the allowance for credit losses of $37, and recoveries on previously written off receivables of $2,540 during the six months ended June 30, 2026. We had a provision for expected losses of $20, write-offs charges against the allowance for credit losses of $69, and recoveries on previously written off receivables of $1,000 during the six months ended June 30, 2025. As of June 30, 2026, we had one customer that accounted for $2,158 or 15%, of our net accounts receivable balance. The receivable balance is not collateralized, and thus the entire $2,158 is at risk of loss. As of December 31, 2025, we had one customer that accounted for $1,879 or 13% of our net accounts receivable balance. Contract Assets Costs to Fulfill Contracts Contract assets from contracts with customers were $6,487 and $3,747 at June 30, 2026 and December 31, 2025 , respectively . Costs to Obtain Contracts Deferred commission costs from contracts with customers w ere $15,590 and $14,721 at June 30, 2026 and December 31, 2025 , respectively. The amount of amortization recognized for the three and six months ended June 30, 2026 was $1,00 …

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SEGMENT INFORMATION We manage our business activities on a consolidated basis and operate as one reportable segment. Our chief operating decision maker (CODM) is the Chairman and Chief Executive Officer, who reviews financial information presented on a consolidated basis. The CODM uses consolidated net loss, as reported on our Consolidated Statements of Comprehensive Loss, to assess financial performance and allocate resources. These financial metrics are used by the CODM to make key operating decisions, such as the allocation of budget between cost of sales, sales and marketing, general and administrative, and research and development expenses. The CODM does not review assets in evaluating the results of the segment, and therefore, such information is not presented. The operating financial results of our single reportable segment for three and six months ended June 30, 2026 and 2025, are as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Total revenues $ 37,113 $ 30,124 $ 79,870 $ 64,978 Significant segment expenses Compensation 23,536 22,180 47,453 44,968 Non-compensation 10,635 8,560 21,675 18,172 Deferred software and commission costs (3,789) (4,044) (7,544) (7,416) Amortization, depreciation, and other noncash expenses 9,589 8,920 18,957 17,048 Other segment expenses (income) (1) 1,585 631 3,147 727 Total expenses 41,556 36,247 83,688 73,499 Net loss $ (4,443) $ (6,123) $ (3,818) $ (8,521) (1) Other segment expenses inclu …

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SIGNIFICANT ACCOUNTING POLICIES REPORTABLE SEGMENTS Our chief operating decision maker is our Chairman and Chief Executive Officer, Patrick Goepel, who reviews financial information presented on a company-wide basis. Thus, in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 280, we determined that we have a single reportable segment that primarily derives our revenue in the United States by providing payroll services to customers. USE OF ESTIMATES Preparation of the Condensed Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of the assets and liabilities, the disclosure of contingent assets and liabilities at the date of the Condensed Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period. These estimates are subjective in nature and involve judgments. The more significant estimates made by management include the valuation allowance for the gross deferred tax assets, the determination of the fair value of our long-lived assets, and the fair value of assets acquired, and liabilities assumed during acquisitions. We base our estimates on historical experience and on various other assumptions management believes reasonable under the given circumstances. These estimates could be materially different under different conditions and assumptions. CASH AND CASH EQUIVALENTS We consi …

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