Financial Analysis

Commitments and Contingencies Royalty Commitments The Company has entered into various exclusive technology licensing agreements and other software licensing agreements. The terms of the agreements require the Company to make annual royalty payments in fixed amounts as well as certain milestone and revenue-based payments. The revenue- based royalty percentage is in the low single digits, subject to reductions and offsets in certain circumstances with a minimum royalty commitment of $50,000 annually. Future minimum royalty commitments due under the terms of these exclusive agreements as of June 30, 2025 are as follows (in thousands): June 30, 2025 Minimum Royalty Commitments: 2025 ................................................................................................................................................. $ 2026 ................................................................................................................................................. 50 2027 ................................................................................................................................................. 50 2028 ................................................................................................................................................. 50 2029 ................................................................................................................................................. 50 Thereafter .................................... …

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Term Loan Initial Term Loan On January 19, 2021 , the Company entered into a Credit Agreement with Hayfin Services, LLP (Hayfin) for total borrowings of up to $70.0 million (the Initial Term Loan). The Company received net cash proceeds of $68.1 million , after deducting $1.3 million of lender fees as a discount to the debt, and $629,000 of debt issuance costs. The Company also issued a warrant to the lender to purchase a total of 108,154 shares of its common stock. The fair value of the warrant was $4.3 million as of the issuance date, which was accounted for as a debt discount. Refer to Note 12 for additional information. New Money Term Loan On March 17, 2022 , the Company entered into Amendment No. 1 to the Credit Agreement with Hayfin for an additional $50.0 million term loan (the New Money Term Loan), collectively with the Initial Term Loan, (the Term Loan). Additionally, certain terms of the Initial Term Loan were amended. The Company received net cash proceeds of $49.2 million , after deducting $820,000 of lender fees as a discount to the debt. The Company also issued an additional warrant to the lender to purchase a total of 77,253 shares of common stock. The fair value of the warrant was $3.5 million as of the issuance date, which was accounted for as a debt discount. Refer to Note 12 for additional information. Other Amendments The Company entered into Amendments No. 2 and No. 3 to the Credit Agreement in September 2022 and December 2022 , respectively, which enable …

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Equity Incentive Plan In 2009, the Company adopted its 2009 Equity Incentive Plan (the Plan) which provides for the grant of stock options to the Companys employees, members of the Board of Directors and consultants. Options granted under the Plan may be either incentive stock options (ISOs) or nonqualified stock options (NSOs). ISOs may be granted only to employees. NSOs, Stock Appreciation Rights, Restricted Stock, and Restricted Stock Units may be granted to employees, members of the Board of Directors and consultants. As of June 30, 2025 , the Company reserved 10,885,987 shares for issuance under the Plan. Options under the Plan have a term of ten years from the grant date. The option exercise price will be determined by the Board of Directors, but will be no less than 100% of the fair market value per share on the date of grant. In addition, in the case of an ISO granted to an employee who owns stock representing more than 10% of the voting power of all classes of stock of the Company, the per share exercise price will be no less than 110% of the fair market value per share on the date of grant. Through June 30, 2025 and December 31, 2024 , options granted generally vest over (i) four years with 25% vesting on the first anniversary of the issuance date and 1/48th per month thereafter or (ii) vesting monthly in equal installments over four years . Stock option activity under the Companys 2009 Equity Incentive Plan is set forth below (in thousands, except share and per sha …

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Fair Value Measurement The following table summarizes the Companys financial assets and liabilities measured at fair value on a recurring basis by level within the fair value hierarchy (in thousands): June 30, 2025 Level 1 Level 2 Level 3 Total Assets Money market funds included in cash and cash equivalents ............................................... $ 51,886 $ $ $ 51,886 Total .................................................................... $ 51,886 $ $ $ 51,886 Liabilities Common stock warrant liability ...................... $ $ $ 23,304 $ 23,304 Derivative liability .............................................. 29,407 29,407 Total .................................................................... $ $ $ 52,711 $ 52,711 December 31, 2024 Level 1 Level 2 Level 3 Total Assets Money market funds included in cash and cash equivalents ............................................... $ 36,882 $ $ $ 36,882 Total .................................................................... $ 36,882 $ $ $ 36,882 Liabilities Common stock warrant liability ...................... $ $ $ 20,835 $ 20,835 Total .................................................................... $ $ $ 20,835 $ 20,835 The following tables present a reconciliation of the Companys financial liabilities measured at fair value as of June 30, 2025 and December 31, 2024 using significant unobservable inputs (Level 3), and the change in fair value (in thousands): Common Stock Warrant Liability Fair value as of Ja …

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Income Taxes The Company had an effective tax rate of 0% for both the three and six months ended June 30, 2025 and 2024 . The Company continues to incur operating losses. During the three and six months ended June 30, 2025 and 2024 , the Company has evaluated all available evidence, both positive and negative, including historical levels of income, expectations and risks associated with estimates of future taxable income and has determined that it is more likely than not that its net deferred tax assets will not be realized. Due to uncertainties surrounding the realization of the deferred tax assets, the Company continues to maintain a full valuation allowance against its net deferred tax assets. On July 4, 2025, the One Big Beautiful Bill Act was signed into law in the United States which contains a broad range of tax reform provisions affecting businesses. The Company is currently assessing the impact on its condensed consolidated financial statements.

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Leases The Company leases office space in Mountain View, California, Santa Rosa, California, Austin, Texas, and Tokyo, Japan. Mountain View, California In August 2021 , the Company entered into a facility lease agreement with MV Campus Owner, LLC (the Landlord) for approximately 61,000 rentable square feet in Mountain View, California through August 2030 . In connection with the lease, the Company established a standby letter of credit for the benefit of the Landlord in the amount of $4.3 million in August 2021 , which is classified as non-current restricted cash on the condensed consolidated balance sheets as of June 30, 2025 and December 31, 2024 . Santa Rosa, California In October 2024 , the Company entered into an agreement to sublease approximately 4,000 rentable square feet of office space in Santa Rosa, California for 29 months commencing on November 1, 2024 . In connection with this sublease, the Company paid a security deposit of $8,000 and recorded an ROU asset and lease liability of $169,000 . Austin, Texas In January 2023 , the Company amended its facility lease agreement in Austin, Texas, which provides for approximately 26,000 square feet of space, to extend the lease term which expired in November 2023 with a five -year renewal option to December 2025 with no renewal option . In June 2025 , the Company amended the lease for its Austin, Texas facility to extend the lease term an additional 12 months through December 2026 and recorded an ROU asset and lease liabi …

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Recent Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (FASB) or other standard setting bodies and adopted by the Company as of the specified effective date. The Company qualifies as an emerging growth company as defined in the Jumpstart Our Business Startups Act of 2012 and has elected not to opt out of the extended transition related to complying with new or revised accounting standards, which means that when a standard is issued or revised and it has different application dates for public and nonpublic companies, the Company will adopt the new or revised standard at the time nonpublic companies adopt the new or revised standard and will do so until such time that the Company either (i) irrevocably elects to opt out of such extended transition period or (ii) no longer qualifies as an emerging growth company. The Company may choose to early adopt any new or revised accounting standards whenever such early adoption is permitted for nonpublic companies. Recent Accounting Pronouncements Not Yet Adopted In December 2023 , the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which requires enhanced income tax disclosures, including specific categories and disaggregation of information in the effective tax rate reconciliation, disaggregated information related to income taxes paid, income or loss from continuing operations before income tax expense or benefi …

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Revenue and Contract Balances Disaggregation of Revenue The following table summarizes total revenue from customers by geographic region (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 United States ............................................................... $ 39,987 $ 28,406 $ 74,285 $ 52,800 United Kingdom ........................................................... 1,562 1,291 3,014 2,501 Japan ............................................................................. 1,527 1,012 2,721 1,991 Rest of Europe ............................................................. 348 345 609 605 Total revenue ............................................................... $ 43,424 $ 31,054 $ 80,629 $ 57,897 Revenues by geography are determined based on the region of the Company's contracting entity, which may be different than the region of the customer. Contract Balances Unbilled receivables included within accounts receivable on the condensed consolidated balance sheets as of June 30, 2025 and December 31, 2024 was $820,000 and $574,000 , respectively. The following table provides the breakdown of capitalized contract costs on the condensed consolidated balance sheets (in thousands): Six Months Ended June 30, Year Ended December 31, 2025 2024 Balance at beginning of period .......................................................... $ 6,154 $ 2,941 Contract costs capitalized ................................................................ …

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Summary of Significant Accounting Policies Basis of Presentation The accompanying condensed consolidated financial statements include the accounts of the Company as well as its wholly owned subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). All significant intercompany balances and transactions have been eliminated in consolidation. The unaudited interim condensed consolidated financial statements have been prepared on the same basis as the annual consolidated financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary to a fair statement of the Companys consolidated financial position as of June 30, 2025 , and the results of its operations for the three and six months ended June 30, 2025 and 2024 and cash flows for the six months ended June 30, 2025 and 2024 . The condensed consolidated balance sheet at December 31, 2024, was derived from audited annual consolidated financial statements but does not contain all of the footnote disclosures from the annual financial statements. These interim financial results are not necessarily indicative of results expected for the full fiscal year or for any subsequent interim period and should be read in conjunction with the annual consolidated financial statements included in the Companys registration statement on Form S-1 (File No. 333-288733), which became effective on …

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Redeemable Convertible Preferred Stock Redeemable convertible preferred stock consists of the following as of June 30, 2025 and December 31, 2024 (in thousands, except share amounts): June 30, 2025 and December 31, 2024 Series Number of Shares Authorized Number of Shares Issued and Outstanding Carrying Value Liquidation Value Series A .................................................... 4,082,965 4,082,965 $ 2,041 $ 2,041 Series B-1 ................................................ 1,954,846 1,954,846 6,940 6,940 Series B-2 ................................................ 2,848,263 2,848,263 10,111 10,111 Series C ................................................... 11,343,434 11,343,434 104,378 193,167 Series D ................................................... 7,151,873 7,151,873 110,756 110,854 Series E ................................................... 12,040,980 12,040,980 304,197 305,018 Series F .................................................... 61,344,029 61,344,029 168,957 262,295 Series F-1 ................................................ 21,465,064 21,465,064 61,186 61,491 Total ......................................................... 122,231,454 122,231,454 $ 768,566 $ 951,917 The significant rights and obligations of the Companys redeemable convertible preferred stock are as follows: Dividends The holders of Series A, Series B-1, Series B-2, Series C, Series D, Series E, Series F and Series F-1 redeemable convertible preferred stock are entitled, on a pro rata …

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Subsequent Events For the interim condensed consolidated financial statements as of June 30, 2025 , and for the three and six months then ended, the Company has evaluated events through September 18, 2025, which is the date the unaudited interim condensed consolidated financial statements were available to be issued. 2025 Facility Lease On July 2, 2025 , the Company entered into a facility lease agreement for approximately 8,100 rentable square feet of office space in San Francisco, California for 39 months through November 30, 2028, with the option to extend for one additional three -year period. In connection with the lease, the Company paid a security deposit of $90,000 . The average monthly lease payments are approximately $40,000 per month during the lease term. Amended and Restated Certificate of Incorporation Effective August 11, 2025, the Company filed an amended and restated certificate of incorporation that authorizes 250,000,000 shares of common stock, $0.001 par value per share, and 50,000,000 shares of preferred stock, $0.001 par value per share. Grant of Options and Restricted Stock Units Subsequent to June 30, 2025 , the Company granted options for 1,826,899 shares of common stock, subject to service-based vesting conditions, with an exercise price equal to the IPO price of $19.00 per share to employees and the Board of Directors and awarded 814,209 restricted stock units subject to service-based vesting conditions to employees under the 2025 Performance Incent …

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