Financial Analysis

The following table sets forth the Companys revenue disaggregated based on the method of revenue recognition for the three months ended March 31, 2026 and 2025: Three Months Ended March 31, (Amounts in thousands) 2026 2025 Revenue recognized at a point in time $ 2,727 $ 1,007 Revenue recognized over time 11 Total revenue $ 2,738 $ 1,007 …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

Recent Accounting Pronouncements The Company considers the applicability and impact of all Accounting Standards Updates (ASUs) issued by the Financial Accounting Standards Board (FASB). Previously identified ASUs that are also currently applicable or material to the Companys future consolidated financial statements are discussed in Note 3 of the Companys consolidated financial statements included in the Annual Report on Form 10-K. …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Note 9. Related Party Transactions and Balances Transactions with the Sponsor and its affiliates Sales Partner Referral Agreement On June 30, 2025, the Company entered into a Sales Partner Referral Agreement (the Referral Agreement) with Burkhan LLC (the Sales Partner), an affiliate of BurTech LP, LLC (the Sponsor). The Referral Agreement has an initial approved customer of BurTech Systems Tech LLC (BST), an affiliate of the Sales Partner. Under the agreement, BST will purchase, subject to the issuance of purchase orders, up to $56.5 million of the Companys products on behalf of a certain unaffiliated end user. The Sales Partner will receive a commission from the Company of up to 10%, depending on the Companys gross margins under the purchase order. The sales commission is payable in cash, or, partially, at the Companys discretion, in shares of the Companys common stock. The commission is payable to BST once the Company receives cash from these sales. During the three months ended March 31, 2026, the Company recognized $2.6 million in revenue from the Referral Agreement, inclusive of sales commissions of $0.3 million, which was reported as a reduction of revenue, and paid fully in cash. Other earnout shares - related party A portion of the other earnout shares were issued to an affiliate of the Sponsor at the time of the Merger. See Note 6 Common Stock, Currently Outstanding Warrants to Purchase Common Stock, and Earnout Shares. The fair value of these other earnout shares as …

RelatedPartyTransactionsDisclosureTextBlock · excerpt; the full note is in the filing

Note 3. Revenue and Accounts Receivable Revenue The following table sets forth the Companys revenue disaggregated by geographical location, determined by reference to the customers shipping location for the three months ended March 31, 2026 and 2025: Three Months Ended March 31, (Amounts in thousands, except for percentages) 2026 % 2025 % United States $ 2,597 94.9% $ % China % 960 95.3% Other 141 5.1% 47 4.7% Total revenue $ 2,738 $ 1,007 The following table sets forth the Companys revenue disaggregated based on the method of revenue recognition for the three months ended March 31, 2026 and 2025: Three Months Ended March 31, (Amounts in thousands) 2026 2025 Revenue recognized at a point in time $ 2,727 $ 1,007 Revenue recognized over time 11 Total revenue $ 2,738 $ 1,007 Customer concentrations in revenue The following table sets forth a summary of the Companys revenue concentration by customer for the three months ended March 31, 2026 and 2025: Three Months Ended March 31, (Amounts in thousands, except for percentages) 2026 % 2025 % Customer A (1) $ 2,597 94.9% $ % Customer B % 960 95.3% Others (2) 141 5.1% 47 4.7% Total revenue $ 2,738 $ 1,007 (1) Customer A is a related party. (2) Each of the customers within Others comprised less than 10% of revenue each. Constrained revenue and variable consideration During each of the three months ended March 31, 2026 and 2025, the Company had no revenue that was subject to constraint or variable consideration. Other revenue-related ma …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

Note 8. Segment Reporting The Company operates as a single operating and reportable segment. Operating segments are defined as components of the Company that engage in business activities with distinct financial information that is evaluated regularly by the chief operating decision maker (CODM) in deciding how to allocate resources and assess performance. The Companys CODM is its chief executive officer, who regularly reviews financial information presented on a consolidated basis for the purpose of making decisions and assessing financial performance, as the Companys products and services have similar economic characteristics. The financial information received by the CODM focuses primarily on total available cash and cash equivalents, total revenue, significant expenses, net loss, and earnings before interest, tax, depreciation and amortization (EBITDA), and EBITDA as further adjusted for certain non-cash items and other adjustments that the CODM does not consider in their evaluation of ongoing operating performance from period to period (Adjusted EBITDA), to make decisions regarding the Companys strategy, including the allocation of resources, as well as the Companys assessment of operating performance. As the Company operates as a single operating segment, the measures of total available cash and cash equivalents, total revenue and net loss, as reviewed by the CODM, are set forth on the condensed consolidated financial statements, as well as in certain notes to the conde …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Note 6. Common Stock, Currently Outstanding Warrants to Purchase Common Stock, and Earnout Shares Common stock The Company has authorized 600 million shares of common stock with a par value of $0.0001 per share. The Company has only one class of common stock authorized and issued. Holders of the Companys common stock are entitled to one vote for each share held of record on all matters submitted to a vote of stockholders and there are no cumulative voting rights. The Companys common stock has no preemptive, redemption, conversion, or subscription rights. The Company has not previously paid cash dividends on its common stock. Any future dividend payments are subject to the discretion of the Companys board of directors (the Board or Board of Directors). The following table sets forth the changes in shares of the Companys common stock from December 31, 2025 through March 31, 2026: Common stock outstanding as of December 31, 2025 122,043,966 Release of restricted stock units 653,589 Exercise of stock options 49,202 Common stock outstanding as of March 31, 2026 122,746,757 Subsequent to March 31, 2026, the Company issued 18,918,918 shares of common stock in an underwritten stock offering and granted a 30-day option pursuant to which the Company may issue up to 2,837,837 additional shares of common stock. See Note 10 Subsequent Events. Currently Outstanding Warrants to Purchase Common Stock During the period ended March 31, 2026, there were no changes to the Companys outstanding wa …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

Note 10. Subsequent Events The Company has evaluated subsequent events through the date of issuance of these condensed consolidated financial statements. On May 5, 2026, the Company entered into an underwriting agreement (the Underwriting Agreement) with Northland Securities, Inc., as representative of the several underwriters named therein (the Underwriters), relating to the May 6, 2026 issuance and sale (the Offering) of 18,918,918 shares (the Base Shares) of the Companys common stock to the public at a price of $1.85 per share. Pursuant to the Underwriting Agreement, the Company granted the Underwriters a 30-day option to purchase up to 2,837,837 additional shares of common stock (the Option Shares and, together with the Base Shares, the Shares) at the public offering price. The net proceeds to the Company from the Offering for the Base Shares were approximately $32.8 million after deducting underwriting discounts and offering expenses paid by the Company. If the Option Shares are fully exercised, the Company would receive aggregate gross proceeds of approximately $40.25 million, before deducting underwriting discounts and other offering expenses. On May 5, 2026, the Company entered into Amendment No. 1 to Common Stock Purchase Warrants with the holders of the Polar warrants, amending the outstanding Polar warrants to adjust the exercise price from $5.00 per share to $3.00 per share. …

SubsequentEventsTextBlock · excerpt; the full note is in the filing