Financial Analysis

NOTE 10: COMMITMENTS AND CONTINGENCIES Commitments to Purchase Inventory The Company uses contract manufacturers for its manufacturing operations. Under these arrangements, the contract manufacturer procures inventory to manufacture products based upon its forecast of customer demand. The Company has similar arrangements with certain other suppliers. The Company is responsible for the financial impact on the supplier or contract manufacturer of any reduction or product mix shift in the forecast relative to materials that the third party had already purchased under a prior forecast. Such a variance in forecasted demand could require a cash payment for inventory in excess of current customer demand or for costs of excess or obsolete inventory. As of March 31, 2026, the Company had issued non-cancelable commitments for $76.8 million to purchase inventory from its contract manufacturers and suppliers. Legal Proceedings From time to time, we are a party to various legal proceedings and claims arising from the normal course of business activities. Based on current available information, we do not expect that the ultimate outcome of any additional currently pending unresolved matters, individually or in the aggregate, will have a material adverse effect on our results of operations, cash flows or financial position. Litigation Shareholder Litigation On September 4, 2025, a shareholder class action complaint was filed in the United States District Court for the District of Colorado. …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

"NOTE 4: DEBT The following table summarizes the Company's borrowing as of the dates presented (in thousands): Year Ended March 31, 2026 2025 Term Loan $ 55,906 $ 102,507 Convertible Note 90,034 PNC Credit Facility 26,600 Less: current portion (54,811) (123,086) Less unamortized debt issuance costs (1) (1,095) (6,021) Long-term debt, net $ 90,034 $ (1) The unamortized debt issuance costs related to the Term Loan are presented as a reduction of the carrying amount of the corresponding debt balance on the accompanying consolidated balance sheets. Unamortized debt issuance costs related to the PNC Credit Facility are presented within other assets on the accompanying consolidated balance sheets. On August 5, 2021, the Company entered into a Term Loan Credit and Security Agreement (the Term Loan Credit Agreement), pursuant to which a senior secured term loan was issued (the 2021 Term Loan), maturing on August 5, 2026. The Company also entered into an Amended and Restated Revolving Credit and Security Agreement on December 27, 2018 (the PNC Credit Facility and, together with the Term Loan Credit Agreement, the Credit Agreements), which, per its terms, was maturing on August 5, 2026 and provided for borrowings up to a maximum principal amount of the lesser of: (a) $40.0 million or (b) the amount of the borrowing base, as defined in the PNC Credit Facility agreement. On June 1, 2023, the Company entered into amendments to the Credit Agreements (the June 2023 Amendment) which, among o …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

"COMMON STOCK In the fiscal year ended March 31, 2023, the Companys stockholders approved an increase in its authorized shares of common stock from 125 million to 225 million. Long-Term Incentive Plan The Company maintains the 2023 Long-Term Incentive Plan (the 2023 LTIP) which provides for grants of performance share units, restricted stock units and stock options. On August 15, 2024, the stockholders of the Company approved an additional 250,000 shares of Common Stock under the 2023 LTIP for future issuance and on December 16, 2025, the Companys stockholders approved an amendment to (i) increase the number of shares of the Companys common stock reserved for issuance thereunder by 1,400,000 shares and (ii) remove the individual annual award limits for employees and consultants. Equity awards typically vest between one and four years. Stock options, performance shares and restricted stock grants to non-employee directors typically vest over one year. The term of each stock option under the 2023 Plan will not exceed seven years. Stock options, performance share units and restricted stock units granted under the 2023 Plan are subject to forfeiture if employment terminates. The 2023 Plan has 2.2 million shares authorized for issuance of new shares, with 0.5 million performance shares and restricted shares outstanding, 0.1 million stock options outstanding, and 1.6 million shares available for future issuance under the Plan as of March 31, 2026. 2021 Inducement Plan The Company's …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

FAIR VALUE OF FINANCIAL INSTRUMENTS The Company follows the guidance in ASC 820, Fair Value Measurement, for its financial assets and liabilities that are re-measured and reported at fair value at each reporting period and non-financial assets and liabilities that are re-measured and reported at fair value at least annually. The Company has certain non-financial assets that are measured at fair value on a non-recurring basis when there is an indicator of impairment, and they are recorded at fair value only when an impairment is recognized. These assets include property and equipment and amortizable intangible assets. The Company did not record impairments to any non-financial assets in the fiscal years ended March 31, 2026 and 2025. The fair value of the Companys financial assets and liabilities reflects managements estimate of amounts that the Company would have received in connection with the sale of the assets or paid in connection with the transfer of the liabilities in an orderly transaction between market participants at the measurement date. In connection with measuring the fair value of its assets and liabilities, the Company seeks to maximize the use of observable inputs (market data obtained from independent sources) and to minimize the use of unobservable inputs (internal assumptions about how market participants would price assets and liabilities). The following fair value hierarchy is used to classify assets and liabilities based on the observable inputs and unob …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

NOTE 9: INCOME TAXES Pre-tax loss reflected in the consolidated statements of operations and comprehensive loss for the years ended March 31, 2026 and 2025 is as follows (in thousands): Year Ended March 31, 2026 2025 U.S. $ (98,392) $ (112,416) Foreign (1,646) (1,854) Total $ (100,038) $ (114,270) Income tax provision consists of the following (in thousands): Year Ended March 31, 2026 2025 Current tax expense Federal $ $ State 19 36 Foreign 1,312 741 Total current tax expense 1,331 777 Deferred tax expense (benefit) Federal 19 20 State 7 37 Foreign (349) (13) Total deferred tax expense (benefit) (323) 44 Income tax provision $ 1,008 $ 821 Income taxes paid, net of refunds received (in thousands): For the year ended March 31, 2026 Federal $ State (52) Foreign Belgium 116 France 77 India 149 Israel 449 Italy 93 Malaysia 79 Mexico 80 United Kingdom 103 Other Foreign Jurisdictions 100 Total Foreign 1,246 Total Income Taxes paid, net of refunds received $ 1,194 Beginning with 2026 annual reporting, the Company adopted ASU 2023-09, Improvements to Income Tax Disclosures , prospectively as described in Note 9. In FY26, state and local income taxes in California, South Carolina, Minnesota, and New Jersey comprise the majority of the state and local income taxes, net of federal effect category. A reconciliation of the federal statutory income tax rate of 21% to the effective tax rate pursuant to the disclosure requirements of ASU 2023-09 for the year ended March 31, 2026 was as follow …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 5: LEASES Supplemental consolidated balance sheets information related to leases is as follows (in thousands): Year Ended March 31, Operating leases 2026 2025 Operating lease right-of-use assets $ 7,416 $ 8,580 Operating lease liability, current - included in other accrued liabilities $ 799 $ 856 Operating lease liability 8,172 8,934 Total operating lease liabilities $ 8,971 $ 9,790 The components of lease expense were as follows (in thousands): Year Ended March 31, Lease expense 2026 2025 Operating lease expense $ 2,190 $ 2,895 Variable lease expense 251 263 Short-term lease expense 426 48 Total lease expense $ 2,867 $ 3,206 Maturity of Lease Liabilities Operating Leases Fiscal year ending March 31, 2027 $ 1,964 2028 1,606 2029 1,234 2030 1,237 2031 1,285 Thereafter 9,569 Total lease payments 16,895 Less: Imputed interest (7,924) Present value of lease liabilities $ 8,971 Lease Term and Discount Rate March 31, 2026 2025 Weighted average remaining operating lease term (years) 10.16 10.53 Weighted average discount rate for operating leases 12.67 % 12.64 % Operating cash outflows related to operating leases totaled $2.2 million and $2.8 million for the fiscal years ended March 31, 2026 and March 31, 2025, respectively.

LesseeOperatingLeasesTextBlock

"Recently Adopted Accounting Pronouncements In December 2023, the Financial Account Standards Board (""FASB"") issued Accounting Standards Update (""ASU"") 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which includes amendments that further enhance income tax disclosures, primarily through standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. The amendments are effective for annual periods beginning on or after December 15, 2024, and may be applied either prospectively or retrospectively. In fiscal 2026, Quantum revised its tax footnote disclosures upon the adoption of ASU 2023-09. The Company now applies a consistent approach to categorizing and presenting the information and provides enhanced disaggregation within the rate reconciliation. Additionally, the footnote disclosure provides further disaggregation of income taxes paid in foreign jurisdictions. The adoption of ASU 2023-09 did not have a material impact on the Company's consolidated financial statements for the fiscal year ended March 31, 2026. The Company adopted the standard on a prospective basis. Recent Accounting Pronouncements Not Yet Adopted In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income -Expense Disaggregation Disclosures (Subtopic220-40): Disaggregation of Income Statement Expenses , which requires additional disclosures of specific expense categories included within each exp …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

NOTE 6: RESTRUCTURING CHARGES During fiscal years 2026 and 2025, the Company approved certain restructuring plans to improve operational efficiencies and rationalize its cost structure. All restructuring activities from 2025 fiscal year were completed by the fourth quarter of fiscal 2026. During fiscal year 2026, all employees were notified; however, due to local requirements, not all employees had left employment by the end of the fiscal year. No asset impairments occurred in fiscal year 2026 or in fiscal year 2025. The following tables show the activity for accrued restructuring (in thousands): Severance and benefits Balance as of March 31, 2024 $ Restructuring charges 4,090 Cash payments (3,266) Other non-cash (38) Balance as of March 31, 2025 786 Restructuring charges 8,112 Cash payments (8,363) Other non-cash 31 Balance as of March 31, 2026 $ 566 …

RestructuringAndRelatedActivitiesDisclosureTextBlock · excerpt; the full note is in the filing

REVENUE Contract Balances The following table presents the Companys contract assets and liabilities together with certain information related to this balance as of March 31, 2026 (in thousands): March 31, 2026 March 31, 2025 March 31, 2024 Accounts receivable, net $ 69,650 $ 52,502 $ 67,788 Contract assets (in Other current assets) $ 351 $ 278 $ 501 Deferred revenue $ 114,684 $ 113,923 $ 116,687 Revenue recognized in the period from amounts included in contract liabilities at the beginning of the period $ 77,996 $ 74,048 $ 76,304 Remaining Performance Obligations Total remaining performance obligations (RPO) which are contracted but not recognized into revenue was $163.2 million as of March 31, 2026. RPO consists of both deferred revenue, which is included in the consolidated balance sheets, and non-cancelable amounts from contracts that will be invoiced and are not included in the consolidated balance sheets. These amounts exclude variable consideration related to sales-based royalties. Remaining performance obligations consisted of the following (in thousands): Current Non-Current Total As of March 31, 2026 $ 123,962 $ 39,271 $ 163,233 Deferred revenue primarily consists of amounts invoiced and paid but not recognized as revenue including performance obligations pertaining to subscription services. The table below reflects our deferred revenue as of March 31, 2026 (in thousands): Deferred revenue by period Current Non-current Total Service revenue $ 62,897 $ 29,252 $ 92,149 …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

SEGMENT INFORMATION Disaggregation of Revenue The following table depicts the disaggregation of revenue by geographic areas and major product offerings and geographies and is consistent with how the Company evaluates its financial performance (in thousands): Year Ended March 31, 2026 % 2025 % Americas 1 Product revenue $ 90,053 $ 82,772 Service and subscription 56,816 59,277 Total revenue 146,869 52.5 % 142,049 51.8 % EMEA Product revenue 62,714 53,742 Service and subscription 34,128 40,818 Total revenue 96,842 34.6 % 94,560 34.5 % APAC Product revenue 19,618 17,668 Service and subscription 8,282 10,563 Total revenue 27,900 10.0 % 28,231 10.3 % Consolidated Product revenue 172,385 154,182 Service and subscription 99,226 110,658 Royalty 2 7,970 2.9 % 9,218 3.4 % Total revenue $ 279,581 100 % $ 274,058 100 % 1 Revenue for Americas geographic region outside of the United States is not significant. 2 Royalty revenue is not allocable to geographic regions. Revenue by Solution Year Ended March 31, 2026 % 2025 % Primary storage systems $ 44,252 16 % $ 58,127 21 % Secondary storage systems 100,865 36 % 73,772 27 % Device and media 40,448 14 % 34,352 13 % Service 86,046 31 % 98,589 36 % Royalty 7,970 3 % 9,218 3 % Total revenue 1 $ 279,581 100 % $ 274,058 100 % 1 Subscription revenue of $13.2 million and $12.1 million allocated to Primary and Secondary storage systems for the fiscal years ended 2026 and 2025, respectively. Net Loss The following table shows reported segment revenue, s …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

SUBSEQUENT EVENTS Private Placement On June 1, 2026, the Company entered into Securities Purchase Agreements (the Purchase Agreement) with certain accredited investors (the Investors), pursuant to which the Company, in a private placement (the Private Placement), agreed to issue and sell to the Investors an aggregate of 10,615,712 shares of the Companys common stock, par value $0.01 per share, at a price of $9.42 per share, for aggregate gross proceeds to the Company of $100.0 million. After deducting placement agent fees and other offering expenses payable by the Company, the Company received net proceeds of approximately $94.7 million. The Private Placement closed June 4, 2026 (the Closing). Amendment to Term Loan On June 1, 2026, the Company entered into a Sixteenth Amendment (the Sixteenth Amendment) to its Term Loan Credit Agreement. Pursuant to the Sixteenth Amendment, among other things, the maturity date of the loans under the Term Loan Credit Agreement was extended to September 2028 and a portion of the proceeds of future equity issuances by the Company are allowed to be retained by the Company rather than 100% of the net proceeds having to be used to mandatorily prepay loans under the Term Loan Credit Agreement. In addition, the Sixteenth Amendment clarifies that, following the conversion or exchange of the Convertible Notes (as described below), the liens securing the Convertible Notes, and the intercreditor agreement governing the priority of those liens vis-a-vis …

SubsequentEventsTextBlock · excerpt; the full note is in the filing

COMMITMENTS AND CONTINGENCIES Commitments to Purchase Inventory The Company uses contract manufacturers for its manufacturing operations. Under these arrangements, the contract manufacturer procures inventory to manufacture products based upon the Companys forecast of customer demand. The Company has similar arrangements with certain other suppliers. The Company is responsible for the financial impact on the supplier or contract manufacturer of any reduction or product mix shift in the forecast relative to materials that the third party had already purchased under a prior forecast. Such a variance in forecasted demand could require a cash payment for inventory in excess of current customer demand or for costs of excess or obsolete inventory. As of September 30, 2025, the Company had issued non-cancelable commitments for $45.0 million to purchase inventory from its contract manufacturers and suppliers. Litigation On September 4, 2025, a shareholder class action complaint was filed in the United States District Court for the District of Colorado. The complaint identifies Seung Lee as the plaintiff and names Quantum Corporation and James J. Lerner, Kenneth P. Gianella, and Laura Nash as defendants. It alleges certain violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and SEC Rule 10b-5 related to certain disclosures made in the Companys quarterly and annual reports regarding its financial reporting for the third quarter of the Companys fiscal year 2025 …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

"DEBT The Companys debt consisted of the following (in thousands): September 30, 2025 March 31, 2025 Term Loan $ 106,086 $ 102,507 PNC Credit Facility 26,600 Less: current portion (99,634) (123,086) Less: unamortized debt issuance costs (1) (6,452) (6,021) Long-term debt, net $ $ (1) The unamortized debt issuance costs related to the Term Loan are presented as a reduction of the carrying amount of the corresponding debt balance on the accompanying condensed consolidated balance sheets. Unamortized debt issuance costs related to the PNC Credit Facility are presented within other assets on the accompanying condensed consolidated balance sheets. On August 5, 2021, the Company entered into a Term Loan Credit and Security Agreement (the Term Loan Credit Agreement), pursuant to which a senior secured term loan was issued (the 2021 Term Loan), maturing on August 5, 2026. The Company also entered into an Amended and Restated Revolving Credit and Security Agreement on December 27, 2018 (the PNC Credit Facility and, together with the Term Loan Credit Agreement, the Credit Agreements), which, per its terms, was maturing on August 5, 2026 and provided for borrowings up to a maximum principal amount of the lesser of: (a) $40.0 million or (b) the amount of the borrowing base, as defined in the PNC Credit Facility agreement. On June 1, 2023, the Company entered into amendments to the Credit Agreements (the June 2023 Amendment) which, among other things, provided an advance of $15.0 million …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

FAIR VALUE OF FINANCIAL INSTRUMENTS The Companys assets measured and recorded at fair value on a recurring basis may consist of money market funds, which are included in cash and cash equivalents in the condensed consolidated balance sheets. These instruments are valued using quoted market prices in active markets (Level 1 fair value measurements) at the respective balance sheet dates. No impairment charges were recognized for non-financial assets for the three and six months ended September 30, 2025 and 2024. The Company has no non-financial liabilities measured and recorded at fair value on a non-recurring basis. Long-Term Debt The Companys financial liabilities were comprised primarily of long-term debt as of September 30, 2025. The carrying amounts of the Companys debt instruments are recorded at amortized cost. The fair value of the Companys long-term debt is disclosed for informational purposes only and is not recognized in the condensed consolidated balance sheets. The fair value of the Companys debt was estimated using a discounted cash flow approach based on the Companys current borrowing rates for similar types of debt instruments, adjusted for credit and nonperformance risk. The Company uses significant other observable market data and assumptions (Level 2 inputs, as defined in ASC 820, Fair Value Measurement) that it believes market participants would use in pricing such debt. The carrying value and estimated fair value of the Companys long-term debt were as follo …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

INCOME TAXES The effective tax rate for the three months and six months ended September 30, 2025 and 2024 was (0.4)% and (0.6)%, as compared to (2.3)% and (1.6)% respectively. The effective tax rates differed from the federal statutory tax rate of 21% during each of these periods due primarily to unbenefited losses experienced in jurisdictions with valuation allowances on deferred tax assets as well as the forecasted mix of earnings in domestic and international jurisdictions. As of September 30, 2025, including interest and penalties, the Company had $83.6 million of unrecognized tax benefits, $74.4 million of which, if recognized, would favorably affect the effective tax rate without consideration of the valuation allowance. As of September 30, 2025, the Company had accrued interest and penalties related to these unrecognized tax benefits of $1.3 million. The Company recognizes interest and penalties related to income tax matters in the income tax provision in the condensed consolidated statements of operations. As of September 30, 2025, $76.0 million of unrecognized tax benefits were recorded as a contra deferred tax asset in other long-term assets in the condensed consolidated balance sheets and $7.6 million (including interest and penalties) were recorded in other long-term liabilities in the condensed consolidated balance sheets. During the next 12 months, it is reasonably possible that approximately $5.3 million of tax benefits, inclusive of interest and penalties, tha …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

LEASES Supplemental balance sheet information related to leases is as follows (in thousands): Operating Leases September 30, 2025 March 31, 2025 Operating lease right-of-use asset $ 7,983 $ 8,580 Operating lease liability within other accrued liabilities $ 702 $ 856 Operating lease liability, net 8,602 8,934 Total operating lease liabilities $ 9,304 $ 9,790 Components of lease cost were as follows (in thousands): Three Months Ended September 30, Six Months Ended September 30, Lease Cost 2025 2024 2025 2024 Operating lease cost $ 472 $ 779 $ 1,141 $ 1,491 Variable lease cost 36 82 75 152 Total lease cost $ 508 $ 861 $ 1,216 $ 1,643 Maturity of Lease Liabilities Operating Leases Remainder of fiscal year 2026 $ 1,099 2027 1,852 2028 1,625 2029 1,247 2030 1,244 Thereafter 10,855 Total lease payments 17,922 Less: imputed interest (8,618) Present value of lease liabilities $ 9,304 Lease Term and Discount Rate September 30, 2025 March 31, 2025 Weighted average remaining operating lease term (years) 10.21 10.19 Weighted average discount rate for operating leases 12.6 % 12.59 % Operating cash outflows related to operating leases each totaled $1.1 million and $1.4 million for the six months ended September 30, 2025 and 2024, respectively.

LesseeOperatingLeasesTextBlock

"Accounting Pronouncement Recently Adopted In December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which required greater disaggregation of tax information in rate reconciliation and income taxes paid by jurisdiction. ASU 2023-09 was adopted beginning April 1, 2025, with no material impact. Recent Accounting Pronouncement Not Yet Adopted 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 , which requires additional disclosures of specific expense categories included within each expense caption presented on the Statements of Operations. The new standard can be applied on either a fully retrospective or prospective basis ASU 2024-03 will be effective for our fiscal year beginning April 1, 2027, and interim periods within our fiscal year beginning April 1, 2028, with early adoption permitted. The Company is currently evaluating the impact of this new standard on its financial statement disclosures. In July 2025, the FASB issued ASU 2025-05, ""Financial InstrumentsCredit Losses (Topic 326): Measurements of Credit Losses for Accounts Receivable and Contract Assets"" (""ASU 2025-05""). The amendments in this update provide a practical expedient related to the estimation of expected credit losses for current account …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

RESTRUCTURING CHARGES During the quarters ended September 30, 2025 and 2024, the Company had certain approved restructuring plans to improve operational efficiencies and rationalize its cost structure. During the quarter ended September 30, 2025, the Company recognized $3.2 million of restructuring charges primarily related to employee severance and other termination benefits. These charges are presented within restructuring charges in the Condensed Consolidated Statements of Operations. The Company expects to recognize additional restructuring charges in future periods, primarily related to severance and termination benefits, and is expected to be substantially complete by the end of the fourth quarter of fiscal year 2026, which is subject to change. The following tables present the activity and the estimated timing of future payouts for accrued restructuring included in other current liabilities in the condensed consolidated balance sheets (in thousands): Severance and Benefits Balance as of March 31, 2024 $ Restructuring charges 1,571 Cash payments (1,511) Other non-cash (2) Balance as of September 30, 2024 $ 58 Balance as of March 31, 2025 $ 786 Restructuring charges 5,616 Cash payments (5,599) Other non-cash 52 Balance as of September 30, 2025 $ 855 During the three and six months ended September 30, 2025, the Company recognized approximately $0.2 million and $0.3 million in forfeitures of unvested restricted stock units (RSUs) in connection with workforce reductions and …

RestructuringAndRelatedActivitiesDisclosureTextBlock · excerpt; the full note is in the filing

REVENUE Contract Balances The following table presents the Companys receivables and contract liabilities and certain information related to this balance as of September 30, 2025, March 31, 2025 and March 31, 2024 (in thousands): September 30, 2025 March 31, 2025 March 31, 2024 Accounts receivable $ 43,934 $ 52,502 $ 67,788 Deferred revenue $ 101,902 $ 113,923 $ 116,687 Revenue recognized in the period from amounts included in contract liabilities at the beginning of the period $ 48,123 $ 74,048 $ 76,304 Remaining Performance Obligations Total remaining performance obligations (RPO) representing contracted but not recognized revenue was $130.3 million as of September 30, 2025. RPO consists of both deferred revenue and uninvoiced, non-cancelable contracts that are expected to be invoiced and recognized as revenue in future periods and excludes variable consideration related to sales-based royalties. RPO consisted of the following (in thousands): Current Non-Current Total As of September 30, 2025 $ 92,504 $ 37,803 $ 130,307 …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

SEGMENT INFORMATION Our chief operating decision maker (CODM), the Chief Executive Officer, manages business activities as a single operating and reportable segment at the consolidated level. The CODM reviews and utilizes consolidated financial information, including revenue, gross profit, operating loss and net loss as reported on the condensed consolidated statements of operations, to assess performance and allocate resources to support strategic priorities. Condensed consolidated net loss is our segments primary measure of profit or loss. The measure of segment assets is reported on the condensed consolidated balance sheets as total consolidated assets. Our CODM reviews the following significant segment expenses, which are each separately disclosed and presented in the condensed consolidated statements of operations: cost of revenue for product, cost of revenue for subscription services, research and development expenses, sales and marketing expenses, and general and administrative expenses. Other segment items within condensed consolidated net loss include restructuring and impairment expenses, other income (expense), net and income tax provision. Other significant noncash segment expenses include stock-based compensation, depreciation and amortization and fair value adjustments on warrant liabilities. Disaggregation of Revenue The following table depicts the disaggregation of revenue by geographic areas and major product offerings and geographies and is consistent with h …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

SUBSEQUENT EVENTS During the period from October 1, 2025 through November 10, 2025, the Company issued approximately 0.3 million shares of Common Stock under the SEPA for net proceeds of approximately $2.8 million.

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