Financial Analysis

COMMITMENTS AND CONTINGENT LIABILITIES Capital Expenditures At September 28, 2025, we had construction and equipment purchase commitments totaling approximately $1.7 million. Income Taxes Commitments exclude unrecognized tax benefits to be recorded in accordance with ASC Topic 740, Income Taxes. We are unable to reasonably estimate the ultimate amount or timing of cash settlements with the respective taxing authorities for such matters. See Note 13. We file income tax returns with the Internal Revenue Service and various state tax jurisdictions. From time to time, we are subject to routine audits by those agencies, and those audits may result in proposed adjustments. We have considered the alternative interpretations that may be assumed by the various taxing agencies, believe our positions taken regarding our filings are valid, and that adequate tax liabilities have been recorded to resolve such matters. However, the actual outcome cannot be determined with certainty and the difference could be material, either positively or negatively, to the Consolidated Statements of (Loss) Income and Comprehensive Income (Loss) in the periods in which such matters are ultimately determined. We do not believe the final resolution of such matters will be material to our consolidated financial position or cash flows. We have various income tax examinations ongoing and at various stages of completion, but generally our income tax returns have been audited or closed to audit through 2014. Lega …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

"DEBT On March 16, 2020 concurrent with closing the acquisition of BH Media Group, Inc. and The Buffalo News, Inc., we completed a comprehensive refinancing of our debt (the ""2020 Refinancing""). The 2020 Refinancing consists of the Credit Agreement and Term Loan. The proceeds of the Term Loan were used, along with cash on hand, to refinance our outstanding debt at the time of $431.5 million as well as to fund the acquisition of BH Media Newspaper Business assets and the stock of Buffalo News for $140.0 million in cash. With the closing of this transaction, BH Finance became our sole lender. Proceeds of the Term Loan were used to finance the acquisition of BH Media Group, Inc. and The Buffalo News, Inc., and refinance all of our outstanding debt at par. The Term Loan matures in March 2045. Our debt is collateralized by all Company assets. As of September 28, 2025 and September 29, 2024, we have $455.5 million and $445.9 million, respectively in aggregate principal debt outstanding under the Term Loan. The debt has a fixed interest rate of 9.0%. During the year ended September 28, 2025, Net Cash Proceeds, as defined in our Credit Agreement, from non-core asset sales totaled $6.5 million of which we remitted $1.8 million as principal debt payments and the remaining net cash proceeds remain payable to BH Finance. Future payments are contingent on our ability to generate future excess cashflow, as defined in the Credit Agreement. In February 2025, in an effort to provide short-t …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following table presents our revenue disaggregated by source: (Thousands of Dollars) 2025 2024 2023 Operating revenue: Print advertising revenue 69,168 81,488 125,804 Digital advertising and marketing services revenue 183,823 194,213 193,173 Advertising and marketing services revenue 252,991 275,701 318,977 Print subscription revenue 164,172 197,584 252,591 Digital-only subscription revenue 94,242 84,331 60,700 Subscription Revenue 258,414 281,915 313,291 Print other revenue 30,861 33,257 39,508 Digital other revenue 20,075 20,507 19,362 Other revenue 50,936 53,764 58,870 Total operating revenue 562,341 611,380 691,138

DisaggregationOfRevenueTableTextBlock

STOCK OWNERSHIP PLANS Total non-cash stock compensation expense is $1.8 million, $1.8 million. and $1.8 million, in 2025, 2024, and 2023, respectively. At September 28, 2025, we have reserved 496,136 shares of Common Stock for issuance to employees under an incentive and non-statutory stock option and restricted stock plan approved by stockholders. Stock Options Options are granted at a price equal to the fair market value on the date of the grant and are exercisable, upon vesting, over a ten-year period. A summary of stock option activity is as follows: (Thousands of Shares) 2025 2024 2023 Outstanding, beginning of year Granted 40 Exercised Canceled (8) Outstanding, end of year 32 Exercisable, end of year 32 Options were valued using the Black Scholes valuation model and the following assumptions: Expected Volatility 58 % Risk Free Rate 4.05 % Expected Term (in years) 2.83 years The weighted average grant date fair value of options granted during the year was $2.18 and the unrecognized compensation is $0.1 million. Restricted Common Stock A summary of restricted Common Stock activity is as follows: (Thousands of Shares) 2025 2024 2023 Outstanding, beginning of year 219 162 165 Granted 40 93 69 Vested (97) (35) (62) Forfeited (19) (1) (10) Outstanding, end of year 143 219 162 Weighted average grant date fair values of restricted Common Stock are as follows: (Dollars) 2025 2024 2023 Outstanding, beginning of year 17.74 21.14 21.21 Granted 16.36 9.56 17.87 Vested 24.76 11.79 17 …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

FAIR VALUE OF FINANCIAL INSTRUMENTS The following methods and assumptions are used to estimate the fair value of each class of financial instruments for which it is practicable to estimate value. The carrying amounts of cash equivalents, accounts receivable, and accounts payable approximate fair value because of the short maturity of those instruments. Certain other investments totaling $4.4 million, including our 16.7% ownership of the non-voting common stock and 0.7% of the voting common stock of TCT, which represents 8.7% of total TCT stock, are carried at cost. Certain other investments totaling $1.7 million, which include securities held in trust under a deferred compensation arrangement, are carried at fair value with gains and losses reported in earnings. These represent Level 2 fair value measurements. At September 28, 2025, we had no floating rate debt. Our fixed rate debt consists of $455.5 million principal amount of the Term Note. At September 28, 2025 the fair value is $387.9 million, representing a Level 2 fair value measurement, which are fair values estimated using significant other observable inputs for similar instruments. The inputs used in this measurement include the 20 year treasury rate as the risk free interest rate and a US high yield index option-adjusted spread. There has been no changes in the valuation approach and technique from prior periods.

FairValueDisclosuresTextBlock

GOODWILL AND OTHER INTANGIBLE ASSETS Changes in the carrying amount of goodwill are as follows: (Thousands of Dollars) 2025 2024 Goodwill, gross amount 1,616,769 1,618,233 Accumulated impairment losses (1,288,729) (1,288,729) Goodwill, beginning of year 328,040 329,504 Disposal (4,182) (1,464) Goodwill, end of year 323,858 328,040 Identified intangible assets related to continuing operations consist of the following: (Thousands of Dollars) September 28 2025 September 29 2024 Non-amortized intangible assets: Mastheads 3,946 10,917 Amortizable intangible assets: Customer and newspaper subscriber lists 262,146 262,242 Less accumulated amortization (214,166) (203,084) 47,980 59,158 Identified intangible assets 51,926 70,075 As discussed in Note 1, we review goodwill and non-amortized intangible assets for impairment annually on the first day of the fourth quarter, or more frequently if events or changes in circumstances indicate that an asset may be impaired in accordance with ASC Topic 350. All of our goodwill is attributed to the single reporting unit, which has a negative carrying value as of September 28, 2025. When evaluating these assets for impairment, we may first perform a qualitative assessment to determine whether it is more likely than not that a reporting unit is impaired, known as Step 0. If we do not perform a qualitative assessment, or if we determine that it is not more likely than not that the fair value of the reporting unit exceeds its carrying amount, we woul …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

"INCOME TAXES Income tax benefit consists of the following: (Thousands of Dollars) 2025 2024 2023 Current Taxes: Federal (9) 2,430 4,528 State 20 488 (336) 11 2,918 4,192 Deferred Taxes: Federal (3,605) (9,388) (4,973) State (3,309) (1,140) 432 (6,914) (10,528) (4,541) Income tax benefit (6,903) (7,610) (349) Income tax benefit related to operations differs from the amounts computed by applying the U.S. federal income tax rate to loss before income taxes. The reasons for these differences are as follows: (Percent of Loss Before Income Taxes) 2025 2024 2023 Computed expected income tax expense 21.0 21.0 21.0 State income tax benefit, net of federal tax benefit 6.3 3.8 (5.4) Net income of associated companies 1.3 2.3 31.2 Resolution of tax matters 0.2 1.8 69.7 Remeasurement due to state rate changes (0.7) 2.5 (84.0) Non-deductible expenses (3.1) (3.6) (28.5) Valuation allowance (7.4) (2.4) 28.8 State net operating loss expiration (4.6) (3.0) (12.8) Recognition of basis differences 3.5 1.6 7.5 Other (0.2) 0.4 (16.2) 16.3 24.4 11.3 Net deferred income tax liabilities consist of the following components: (Thousands of Dollars) September 28 2025 September 29 2024 Deferred income tax liabilities: Property and equipment (3,468) (5,327) Identified intangible assets (13,065) (15,097) ASC 842 - Leases DTL (6,357) (8,308) Other (1,091) (1,738) Investments (29,144) (31,150) (53,125) (61,619) Deferred income tax assets: Pension and postretirement benefits 1,460 3,839 Interest deduction lim …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

"LEASES We lease certain real estate, vehicles, and equipment. Our leases have remaining lease terms of 1 to 40 years, some of which may include options to extend the leases, and some of which may include options to terminate the leases. The exercise of lease renewal options and terminations are at our sole discretion. The depreciable lives of assets and leasehold improvements are limited by the expected lease term unless there is a transfer of title or purchase option reasonably certain of exercise. We entered into a lease agreement between BH Media, as Landlord, and we, as Tenant, provide for the leasing of approximately 70 properties and related fixtures (including production equipment) used in the BH Media Newspaper Business (""BH Lease""). The BH Lease commenced on March 16, 2020. The BH Lease requires us to pay annual rent of $8.0 million, payable in equal payments, as well as all operating costs relating to the properties (including maintenance, repairs, property taxes and insurance). Rent payments are subject to a Rent Credit (as defined in the Lease) equal to 8.00% of the net consideration for any leased real estate sold by BH Media during the term of the lease. As of September 28, 2025, we have earned monthly rent credits of $0.3 million, making current annual rent of $4.7 million. Total lease expense consists of the following: (Thousands of Dollars) 2025 2024 2023 Operating lease costs 11,069 11,925 12,688 Variable lease costs 1,023 996 1,175 Short-term lease costs …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

"Recent accounting pronouncements adopted In November 2023, the FASB issued Accounting Standards Update (""ASU"") 2023-07 - Segment Reporting to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses . This pronouncement is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Our adoption of this guidance did not have an impact on the Consolidated financial statements except the disclosure in Note 5. New accounting pronouncements not yet adopted In November 2023, the FASB issued guidance, ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures which enhances annual income tax disclosures. ASU 2023-09 requires disaggregated information about a reporting entity's effective tax rate reconciliation as well as information on income taxes paid. ASU 2023-09 will be effective for annual periods beginning after December 15, 2024. We are currently evaluating the provisions of the updated guidance and assessing the impact on the Consolidated Financial Statements. In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40) - Disaggregation of Income Statement Expenses (ASU 2024-03), and in January 2025, the FASB issued ASU 2025-01, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subto …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

"DEFINED BENEFIT PENSION PLAN We are the sponsor of one single-employer defined benefit plan, which provide benefits to our certain current and former employees. On October 22, 2025, we notified plan participants that we intend to terminate the Lee Enterprises, Incorporated Pension Plan (""the Plan"") on December 28, 2025. Terminating the plan creates an opportunity for plan participants to receive a one-time lump sum payout. It also eliminates pension cost uncertainty for us and allows us to focus on our core business.The termination is planned to be accomplished through a combination of lump-sum payouts to eligible participants and the purchase of a group annuity contract from an insurance company, which irrevocably transferred the pension obligation for the remaining participants. During the year ended September 29, 2024, we offered a voluntary lump sum payment of future benefits to terminated vested participants in the defined benefit pension plan. The offer was accepted by 522 participants, representing a $22.6 million settlement of related pension plan liability. In 2024, we recognized a non-cash settlement gain of $2.4 million, which is reflected within ""Curtailment/Settlement gains"" on the Consolidated Statements of (Loss) Income and Comprehensive (Loss) Income. Pension plan assets and liabilities were reduced by $22.6 million. The net periodic (benefit) cost components of our pension plan is as follows: (Thousands of Dollars) 2025 2024 2023 Service cost for benefit …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

REVENUE Revenue is recognized when control of the promised goods or services is transferred to customers, in an amount that reflects the consideration we expect to be entitled to in exchange for goods or services. Revenues are recognized as performance obligations are satisfied either at a point in time, such as when an advertisement is published, or over time, such as audience subscription revenue. No single customer represented 10% or more of our net revenue in any fiscal period presented. Advertising and marketing services revenue Print advertising revenue includes amounts charged to customers for retail, national, or classified advertising space purchased in our newspapers, advertising marketing services and other print advertising products such as preprint inserts and direct mail. Digital advertising revenue includes amounts for advertisements placed on our digital platforms, amounts charged to customers for digital marketing services which include: audience extension, search engine optimization, search engine marketing, web and mobile production, social media services and reputation monitoring and management. Payments for print and digital advertising revenue are due upon completion of our performance obligations at previously agreed upon rates. In instances where the timing of revenue recognition differs from the timing of invoicing, such timing differences are not large. As a result, we have determined that our contracts do not include a significant financing componen …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

SEGMENT REPORTING We operate as a single operating and reportable segment. The Chief Executive Officer (CEO) serves as our Chief Operating Decision Maker (CODM) and is responsible for evaluating financial performance and allocating resources. The CODM reviews financial information and makes operating decisions on a consolidated basis. Our operations are organized into Strategic Business Units (SBUs) based on market. The SBUs generally include one or more daily newspapers, several nondaily publications as well as the related digital operations. SBUs are internal, location-based operating components used for management purposes and do not represent separate operating or reportable segments. Separate operating results for each SBU are not reviewed by the CODM when assessing performance or making operating decisions. The CODM reviews our consolidated statements of (loss) income and balance sheets on a monthly basis and makes key decisions regarding resource allocation, including operating expenses and capital expenditures, primarily focusing on consolidated net (loss) income and consolidated total assets. These consolidated statements are used by the CODM to monitor budget versus actual results and evaluate the return on assets. Significant segment expenses are separately disclosed and presented in the Consolidated Statements of Loss (Income) and Comprehensive Loss (Income). The measure of segment assets is reported on the Consolidated Balance Sheets as Total Assets. The accounti …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

COMMITMENTS AND CONTINGENT LIABILITIES Legal Proceedings We are involved in a variety of legal actions that arise in the normal course of business. Insurance coverage mitigates potential loss for certain of these matters. While we are unable to predict the ultimate outcome of these legal actions, it is our opinion that the disposition of these matters will not have a material adverse effect on our Consolidated Financial Statements, taken as a whole. Stoudemire et al. v. Lee Enterprises, Incorporated (Video Privacy Claim) . On December 19, 2022, named Plaintiffs filed a Complaint in the U.S. District Court for the Southern District of Iowa alleging our news websites violate the Video Privacy Protection Act by disclosing to third parties certain data about users video-watching habits. In particular, the Complaint alleged the websites use Facebook Pixel, a technology that allegedly links a users Facebook profile to videos the user watches on our website. The claimants are asserting class action claims and allege statutory damages of $2,500 per class member, punitive damages, and attorneys fees. In July 2023, the Court denied our Motion to Dismiss. This claim was submitted for coverage under the our media insurance policy. The parties successfully mediated the case on November 5, 2024, and the court granted final approval of the class action settlement on August 14, 2025. The entire $9.5 million settlement amount was paid by our insurance carriers in October 2025. Fetes et al. v. …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

DEBT We have debt consisting of a single 25-year term loan with BH Finance LLC, with an aggregate principal balance of $455.5 million at a 9% annual fixed rate and maturing on March 16, 2045 (referred to herein as Credit Agreement and Term Loan). On December 28, 2025, the fair value was $387.9 million, representing a Level 2 fair value measurement, which are fair values estimated using significant other observable inputs. During the three months ended December 28, 2025, we had no Net Cash Proceeds, as defined in our Credit Agreement, from asset sales and did not make any principal debt payments as a result of non-core asset sales. Future payments are contingent on our ability to generate future excess cash flow, as defined in the Credit Agreement. As of December 28, 2025, there was no Excess Cash payment due as we did not generate the defined level of excess cash flow. In February 2025, in an effort to provide short-term liquidity to fund the Cyber Incident's remediation efforts and other operations, BH Finance LLC waived the interest expense payment and BH Media Group, Inc. waived the lease payment due March 1, 2025, April 1, 2025, and May 1, 2025. As of September 28, 2025, the waivers increased the outstanding debt balance by $11.3 million and was treated as non-cash activity within the statement of cash flows. These waivers were treated as modifications to the existing Credit Agreement. In addition, the May 2025 waiver was accompanied by an amendment to the Credit Agreemen …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following table presents our revenue disaggregated by source: Three months Ended (Thousands of Dollars) December 28, 2025 December 29, 2024 Operating revenue: Print advertising revenue 17,191 19,861 Digital advertising and marketing services revenue 42,795 46,729 Advertising and marketing services revenue 59,986 66,590 Print subscription revenue 34,996 43,432 Digital subscription revenue 22,706 21,565 Subscription revenue 57,702 64,997 Print other revenue 7,546 7,888 Digital other revenue 4,828 5,087 Other revenue 12,374 12,975 Total operating revenue 130,062 144,562

DisaggregationOfRevenueTableTextBlock

GOODWILL AND OTHER INTANGIBLE ASSETS All of our goodwill is attributed to a single reporting unit. Goodwill and identified intangible assets consist of the following: (Thousands of Dollars) December 28, 2025 September 28, 2025 Goodwill, beginning of period 323,858 328,040 Allocated to sold operations (4,182) Goodwill, end of period 323,858 323,858 Non-amortized intangible assets: Mastheads 3,946 3,946 Amortizable intangible assets: Customer and newspaper subscriber lists 262,146 262,146 Less accumulated amortization (215,943) (214,166) 46,203 47,980 Total intangibles, net 374,007 375,784 The weighted average amortization period for amortizable assets is approximately nine years. …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

INCOME TAXES We recorded an income tax expense of $0.9 million related to loss before taxes of $4.2 million for the three months ended December 28, 2025. We recorded an income tax expense of $3.2 million related to loss before taxes of $13.0 million for the three months ended December 29, 2024. The effective income tax rate for the three months ended December 28, 2025, was (21.4)% . The effective income tax rate for the three months ended December 29, 2024, was (25.0)%. The primary differences between these rates and the U.S. federal statutory rate of 21% are because of state taxes, non-deductible expenses, increase in valuation allowance, and adjustments to reserves for uncertain tax positions, including any related interest. We are evaluating the income tax impacts of the private placement financing and Second Amendment to the Credit Agreement as related to the subsequent events disclosed in Note 12.

IncomeTaxDisclosureTextBlock

"New accounting pronouncements not yet adopted In December 2025, the Financial Accounting Standards Board (""FASB"") issued Accounting Standards Update (""ASU"") 2025-11 which focuses on various interim reporting improvements. The ASU is effective for interim periods within fiscal years beginning after December 15, 2027. We are still evaluating the guidance but we do not expect it will fundamentally change our interim reporting. In December 2025, the Financial Accounting Standards Board FASB issued ASU 2025-12 which the FASB's ""Codification Improvements"" update, making various technical corrections and clarifications to existing United States Generally Accepted Accounting Principles (""GAAP""), improving consistency and usability for preparers by refining guidance and making standards easier to apply. The ASU is effective for annual periods beginning after December 15, 2026. We are currently evaluating the updated guidance and assessing the impact on the Consolidated Financial Statements. In November 2023, the FASB issued guidance, ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures which enhances annual income tax disclosures. ASU 2023-09 requires disaggregated information about a reporting entity's effective tax rate reconciliation as well as information on income taxes paid. ASU 2023-09 will be effective for annual periods beginning after December 15, 2024. We are currently evaluating the guidance and assessing the impact on the Consolidated Fin …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

"PENSION, POSTRETIREMENT AND POSTEMPLOYMENT DEFINED BENEFIT PLANS We are the sponsor of one single-employer defined benefit pension plan, the Lee Enterprises, Incorporated Pension Plan (""the Plan""). As previously announced to participants on October 22, 2025, we are executing a strategic termination of our fully funded benefit pension Plan, eliminating the long-term volatility tied to interest rate movement, mortality assumptions and asset performance, while preserving participant benefits and improving balance sheet flexibility. We terminated the Plan on December 28, 2025 and submitted a request for a determination of the Plan's qualified status to the United States Internal Revenue Service. We expect to complete the termination process, including payout, in late 2026. Additionally, we provide retiree medical and life insurance benefits under postretirement plans at several of our operating locations. Through December 28, 2025, our liability and related expense for benefits under the plans are recorded over the service period of employees based upon annual actuarial calculations. The net periodic pension and postretirement cost (benefit) components for our plans are as follows: PENSION PLAN Three months ended (Thousands of Dollars) December 28, 2025 December 29, 2024 Service cost for benefits earned during the period 1 1 Interest cost on projected benefit obligation 1,977 2,034 Expected return on plan assets (2,467) (2,319) Amortization of prior service benefit 212 212 Net …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

"REVENUE The following table presents our revenue disaggregated by source: Three months Ended (Thousands of Dollars) December 28, 2025 December 29, 2024 Operating revenue: Print advertising revenue 17,191 19,861 Digital advertising and marketing services revenue 42,795 46,729 Advertising and marketing services revenue 59,986 66,590 Print subscription revenue 34,996 43,432 Digital subscription revenue 22,706 21,565 Subscription revenue 57,702 64,997 Print other revenue 7,546 7,888 Digital other revenue 4,828 5,087 Other revenue 12,374 12,975 Total operating revenue 130,062 144,562 Recognition principles Revenue is recognized when control of the promised goods or services is transferred to customers, in an amount that reflects the consideration we expect to be entitled to in exchange for goods or services. Revenues are recognized as performance obligations are satisfied either at a point in time, such as when an advertisement is published, or over time, such as audience subscription revenue. Advertising and marketing services revenue Print advertising revenue includes amounts charged to customers for retail, national, or classified advertising space purchased in our newspapers, advertising marketing services and other print advertising products such as preprint inserts and direct mail. Digital advertising revenue includes amounts for advertisements placed on our digital platforms, amounts charged to customers for digital marketing services which include: audience extension, sea …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

SEGMENTS We operate as a single operating and reportable segment. The Chief Executive Officer (CEO) serves as our Chief Operating Decision Maker (CODM) and is responsible for evaluating financial performance and allocating resources. The CODM reviews financial information and makes operating decisions on a consolidated basis. Our operations are organized into Strategic Business Units (SBUs) based on market. The SBUs generally include one or more daily newspapers, several nondaily publications as well as the related digital operations. SBUs are internal, location-based operating components used for management purposes and do not represent separate operating or reportable segments. Separate operating results for each SBU are not reviewed by the CODM when assessing performance or making operating decisions. The CODM reviews our consolidated statements of (loss) income and balance sheets on a monthly basis and makes key decisions regarding resource allocation, including operating expenses and capital expenditures, primarily focusing on consolidated net (loss) income and consolidated total assets. These consolidated statements are used by the CODM to monitor budget versus actual results and evaluate the return on assets. Significant segment expenses are separately disclosed and presented in the Consolidated Statements of Loss (Income) and Comprehensive Loss (Income). The measure of segment assets is reported on the Consolidated Balance Sheets as Total Assets. The accounting polici …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

"SUBSEQUENT EVENTS PRIVATE PLACEMENT FINANCING AND RELATED AGREEMENTS On February 5, 2026, we issued an aggregate of 16,000,000 shares of Common Stock, consisting of 15,384,615 shares of Common Stock to certain investors and 615,385 shares of Common Stock to service providers as reimbursement for certain expenses incurred by certain investors, at a price of $3.25 per share in a private placement pursuant to the private placement agreement by and among the Company and the investors. The aggregate gross proceeds from the private placement were approximately $50.0 million before deducting offering expenses. We expect to use the net proceeds for working capital and for other general corporate purposes. The investors have also agreed to a lock-up with respect to the shares for a period of 180 days and standstill period of twelve months, subject to certain exceptions. With respect to the standstill, certain investors are each able to purchase up to 600,000 shares of Common Stock during the standstill period. Further, in connection with the closing of the private placement, we amended our Certificate of Incorporation, increasing the number of authorized shares from 12,000,000 to 40,000,000. Registration Rights Agreement We entered into a registration rights agreement pursuant to which we will agree to provide certain customary registration rights, including the registration of the Shares for resale. We are required to use commercially reasonable efforts to file a registration statem …

SubsequentEventsTextBlock · excerpt; the full note is in the filing