Financial Analysis

7. COMMITMENTS AND CONTINGENCIES Leases The Company leases certain offices, facilities and equipment under operating and financing leases. The Companys leases have remaining terms ranging from less than 1 year to 5 years, some of which contain options to extend up to 3 years. As of December 31, 2025, and 2024, assets recorded under finance leases were $ 643 and $ 455 , respectively, and accumulated amortization associated with finance leases were $ 311 and $ 234 , respectively. As of December 31, 2025, and 2024, assets recorded under operating leases were $ 1,273 and $ 995 , respectively, and accumulated amortization associated with operating leases were $ 129 and $ 465 , respectively. During the year ended December 31, 2025, the Company executed a third amendment to its operating lease for its corporate offices in Fort Lee, New Jersey, extending the lease term through January 2029. The Company accounted for the lease extension as a modification in which the modified lease classification remained an operating lease. The related right-of-use asset and lease liability were remeasured as a result of the lease modification, for which the Company recorded an increase of approximately $ 265 in right-of-use assets and $ 265 in lease liabilities. Additionally, during the year ended December 31, 2025, the Company executed a first amendment to its operating lease for its facility in Champlin, Minnesota, extending the lease term through March 2031. The Company accounted for the lease ex …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

The following table presents the Companys revenues disaggregated by revenue discipline: SCHEDULE OF REVENUE DISAGGREGATED For the Year Ended December 31, 2025 2024 Revenues - ASC 606 Products $ 13,914 $ 12,262 Services 9,442 8,690 Total revenues - ASC 606 23,356 20,952 Revenues - ASC 842 Sales-type lease revenue 2,860 - Operating lease revenue 1,411 1,927 Total revenues - ASC 842 4,271 1,927 Total revenue $ 27,627 $ 22,879 The following table presents future sales-type lease payments to be received as of December 31, 2025: SCHEDULE OF FUTURE SALES TYPE LEASE PAYMENTS For the Years Ending December 31, Total 2026 $ 349 2027 349 2028 349 2029 349 2030 349 Thereafter 1,650 Total undiscounted lease payments 3,395 Less: imputed interest (578 ) Net investment in sales-type leases $ 2,817 …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

9. STOCK-BASED COMPENSATION Stock-Based Compensation On October 13, 2021, the Companys board of directors adopted the 2021 Long-Term Incentive Plan (the 2021 Plan), subject to stockholder approval, which was obtained on November 11, 2021. The 2021 Plan supplemented the 2011 Long-Term Incentive Plan (2011 Plan), which expired on May 11, 2021, and which replaced and superseded the 2009 Equity Incentive Plan (2009 Plan), as noted above. The Companys outside directors and its employees, including the principal executive officer, principal financial officer and other named executive officers, and certain contractors are all eligible to participate in the 2021 Plan. The 2021 Plan allows for the granting of incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock, restricted stock units, performance awards, dividend equivalent rights, and other awards, which may be granted singly, in combination, or in tandem, and upon such terms as are determined by the Board or a committee of the board that is designated to administer the 2021 Plan. Subject to certain adjustments, the maximum number of shares of the Companys common stock that may be delivered pursuant to awards under the 2021 Plan is 900,000 shares plus any increase by any Prior Plan Awards (as defined in the 2021 Plan) eligible for reuse ( 700,000 shares) as of December 31, 2025, of which one hundred percent ( 100 %) may be delivered pursuant to incentive stock options. As of December 31, …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

10. INCOME TAXES The components of loss before income taxes related to continuing operations are summarized below: SCHEDULE OF LOSS BEFORE INCOME TAXES For the Year Ended December 31, 2025 2024 Loss before income taxes U.S. operations $ (6,374 ) $ (4,767 ) Loss from continuing operations $ (6,374 ) $ (4,767 ) The components of the income tax expense (benefit) related to continuing operations were as follows : SCHEDULE OF INCOME TAX PROVISION For the Year Ended December 31, 2025 2024 Current Federal $ 69 $ (1,128 ) State 5 (290 ) Income tax expense (benefit) $ 74 $ (1,418 ) A reconciliation from the statutory U.S. income tax rate and the Companys effective income tax rate for continuing operations, as computed on loss before taxes, is as follows: SCHEDULE OF INCOME TAX RATE RECONCILIATION For the Year Ended December 31, 2025 2024 Federal income tax at statutory rate (1,338 ) 21.0 % (1,001 ) 21.0 % State and local income tax, net 172 (2.8 )% (214 ) 4.5 % Non-deductible executive compensation - - 85 (1.8 )% Other permanent items 72 (1.1 )% 36 (0.8 )% Expired foreign tax credits 135 (2.1 )% 652 (13.7 )% Valuation Allowance 878 (13.8 )% (1,025 ) 21.5 % True-up 153 (2.4 )% 49 (1.0 )% Other 2 - - - Total 74 (1.2 )% (1,418 ) 29.7 % The Companys provision for income taxes reflects an effective tax rate on loss before income taxes of (1.2) % in 2025, as compared to 29.7 % in 2024. The decrease in the Companys effective tax rate during 2025 primarily reflects the increase in valuation a …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Recently Issued Accounting Pronouncements In December 2023, the FASB issued ASU 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures related to improvements to income tax disclosures. The amendments in this update require enhanced jurisdictional and other disaggregated disclosures for the effective tax rate reconciliation and income taxes paid. The amendments in this update were adopted for the year ended December 31, 2025 on a retrospective basis and were effective for fiscal years beginning after December 15, 2024. These updates did not have a significant impact on the Companys consolidated financial statements. In November 2024, the FASB issued ASU 2024-03 Disaggregation of Income Statement Expenses, which requires public business entities to disclose additional information about specific expense categories in the notes to financial statements at interim and annual reporting periods. The amendments in ASU 2024-03 are effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is currently assessing the impact that adoption of this new accounting guidance will have on its consolidated financial statements and footnote disclosures. In September 2025, the FASB issued ASU 2025-06, IntangiblesGoodwill and OtherInternal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. This ASU modernizes the …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

3. REVENUES Nature of the Companys products and services The Companys principal products and services include electric power systems and equipment, distributed energy resources, power generation equipment and mobile electric vehicle charging solutions. The Companys principal products and services are primarily sold in the United States. See Note 13 Business Segment, Geographic and Customer Information, for additional information. Products The Companys Electrical Infrastructure business (included in discontinued operations; see Note 11 Discontinued Operations for details) provided electric power systems and equipment and distributed energy resources that helped customers effectively and efficiently protect, control, transfer, monitor and manage their electric energy needs. The Companys Critical Power business provides customers with power generation equipment and the Companys suite of mobile e-Boost electric vehicle charging solutions. Services Power generation systems represent considerable investments that require proper maintenance and service in order to operate reliably during a time of emergency. The Companys power maintenance programs provide preventative maintenance, repair and support service for the Companys customers power generation systems. The timing of revenue recognition, customer billings and cash collections results in accounts receivable and deferred revenue at the end of each reporting period. Contract assets include unbilled amounts typically resulting fro …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

13. BUSINESS SEGMENT, GEOGRAPHIC AND CUSTOMER INFORMATION The CEO, as the Chief Operating Decision Maker (CODM), organizes the Company, manages resource allocations and measures performance of the Companys single operating segment, Critical Power Solutions. The Critical Power Solutions reportable segment is the Companys Titan Energy Systems, Inc. business unit. The Critical Power Solutions segment provides mobile high capacity charging equipment, power generation equipment and aftermarket field-services in order to help customers secure fast vehicle charging where fixed charging infrastructure does not exist, and additionally to ensure smooth, uninterrupted power to operations during times of emergency. The CODM assesses the Companys performance and decides how to allocate resources based on consolidated net income (loss) in the consolidated statements of operations, which is assessed to be the segment measure of profit or loss. This measure is used to monitor actual results to evaluate the performance of the segment versus the forecasted targets. The segment assets are equal to total assets presented in the consolidated balance sheets. The significant expenses that are regularly provided to the CODM, which include costs of goods sold, selling, general and administrative expenses and research and development expenses, are disclosed in the consolidated statements of operations as a part of the consolidated net income (loss). Other segment items regularly provided to the CODM i …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Use of Estimates The preparation of consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. The consolidated financial statements include estimates based on currently available information and managements judgment as to the outcome of future conditions and circumstances. Significant estimates in these consolidated financial statements include, but are not limited to, measurement of revenue for contracts accounted for over time, revenue recognition of and the net investment in sales-type leases, allowance for expected credit losses, inventory valuation, useful lives and impairment of long-lived assets, equity-method investment, consideration to buyer, stock-based compensation and the valuation allowance related to the Companys deferred tax assets. Changes in the status of certain facts or circumstances could result in material changes to the estimates used in the preparation of the consolidated financial statements and actual results could differ from the estimates and assumptions. Revenue Recognition from Contracts with Customers Revenue is recognized when (1) a contract with a customer exists, (2) performance obligations promised …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

8. STOCKHOLDERS EQUITY Common Stock The Company had 11,095,266 and 11,120,266 shares of common stock, $ 0.001 par value per share, outstanding as of December 31, 2025, and 2024, respectively. On November 12, 2024, the board of directors declared a one-time special cash dividend of $ 1.50 per share, or $ 16,665 in the aggregate, to shareholders of record as of December 17, 2024. The dividend was paid on January 7, 2025. Preferred Stock The board of directors is authorized, subject to any limitations prescribed by law, without further vote or action by the shareholders, to issue from time to time up to 5,000,000 shares of preferred stock, $ 0.001 par value, in one or more series. Each such series of preferred stock shall have such number of shares, designations, preferences, voting powers, qualifications, and special or relative rights or privileges as shall be determined by the board of directors, which may include, among others, dividend rights, voting rights, liquidation preferences, conversion rights and preemptive rights. …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

15. SUBSEQUENT EVENTS The Company has evaluated subsequent events through the date the financial statements were issued. Based on this review, the Company concluded that no events occurred during the period subsequent to the balance sheet date that would require recognition in or disclosure within the accompanying consolidated financial statements.

SubsequentEventsTextBlock