Financial Analysis

Note 11: Commitments and Contingencies Lease We lease office facilities and retail space under noncancelable operating lease agreements. Following the purchase of the new corporate headquarters in April 2025, the existing facilities at 4175 Cameron St, Las Vegas, Nevada, continue to be leased and are now utilized for dedicated Research and Development (R&D) laboratory space and overflow administrative support. We closed our second office space in Austin, Texas, in April 2024. The total operating lease liabilities primarily relate to the Cameron Street R&D facility and the Clouffee & Tea retail space (Town Square Las Vegas). The components of leases and lease costs are as follows (in thousands): Operating leases As of September 30, 2025 As of September 30, 2024 Operating lease right-of use assets $ 731 $ 506 Operating lease liabilities, current portion $ 301 $ 150 Operating lease liabilities, non-current portion 429 356 Total operating lease liabilities $ 730 $ 506 Future minimum lease payments under these leases as of September 30, 2025, are approximately as follow: Fiscal Year Amount 2026 303 2027 262 2028 54 2029 56 2030 14 Total future minimum lease payments $ 690

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Note 9: Fair Value of Financial Instruments ASC 820, Fair Value Measurements (ASC 820) states that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. The three-tiered fair value hierarchy, which prioritizes which inputs should be used in measuring fair value, is comprised of: (Level I) observable inputs such as quoted prices in active markets; (Level II) inputs other than quoted prices in active markets that are observable either directly or indirectly and (Level III) unobservable inputs for which there is little or no market data. The fair value hierarchy requires the use of observable market data when available in determining fair value. Our assets and liabilities that were measured at fair value on a recurring basis were as follows: September 30, 2025 September 30, 2024 Fair Value Level I Level II Level III Fair Value Level I Level II Level III U.S. government securities $ 17,000 $ - $ 17,000 $ - $ - $ - $ - $ - Certificates of deposit 41,308 - 41,308 - 15,940 - 15,940 - Money market funds 5,518 5,518 - - - - - - Total $ 63,826 $ 5,518 $ 58,308 $ - $ 15,940 $ - $ 15,940 $ - Our U.S. government securities and certificates of deposit are classified within Level II of the fair value h …

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NOTE 8: Income Taxes The Companys financial statements include a total state tax expense of $2 on a loss before income taxes of approximately $15,754 for the years ended September 30, 2025. A reconciliation of the difference between the (expense)/benefit for income taxes and income taxes at the statutory U.S. federal income tax rate is as follows (in thousands, except amounts pertaining to rate which are shown as a percentage): Year ended September 30, 2025 Federal Statutory Rate 21.00 % Effect of: Change in Valuation Allowance -23.20 % RTP & Deferred True-up -0.03 % Change in Rate 0.22 % State Tax Benefit (Net of Fed) 2.09 % M&E -0.10 % TX Franchise tax 0.00 % Others 0.00 % Total provision effective rate -0.01 % The components of deferred tax assets and liabilities are as follows (in thousands): September 30, 2025 Deferred tax assets relating to: Net Operating loss carryforwards $ 4,254 Research & development tax credit carryforward 7 174 Expenses 889 Right of Use Liability 169 Other deferred tax assets 364 Total gross deferred tax assets 5,683 Deferred tax liabilities relating to: Right of Use Asset 169 Fixed Asset 13 Other deferred tax liabilities - Total Gross deferred tax liabilities 182 Deferred assets less liabilities 5,501 Less: valuation allowance (5,501 ) Net deferred tax asset (liability) $ - In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets …

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Recent Accounting Pronouncements In February 2016, the FASB issued Accounting Standards Update (ASU) 2016-02, Leases (Topic 842). The guidance in this ASU supersedes the leasing guidance in Topic 840, Leases . Under the new guidance, lessees are required to recognize lease assets and lease liabilities on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the statement of operations. The standard is effective for public business entities for fiscal years beginning after December 15, 2018. As an emerging growth company, we adopted the new standard on January 1, 2022 for our years ended September 30, 2024 and 2025. We had operating leases for which we were required to recognize a right-of-use asset and lease liability. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes , which amends the approaches and methodologies in accounting for income taxes during interim periods and makes changes to certain income tax classifications. The new standard allows certain exceptions, including an exception to the use of the incremental approach for intra-period tax allocation, when there is a loss from continuing operations and income or a gain from other items, and to the general methodology for calculating income taxes in an interim period, when a year-to-date loss exceeds the anticipated …

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NOTE 3: Revenue For the fiscal year ended September 30, 2025, total net revenue was $5,045 thousand, representing a 19.0% increase over the $4,240 thousand generated in 2024. The Companys revenue is derived from multiple revenue streams that reflect differences in the nature of the underlying goods and services. The revenue stream was led by revenue from Robots-as-a-Service (RaaS) arrangements, which contributed $692 thousand. Product revenue from robotic sales accounted for $2,309 thousand, while leasing/service/rental arrangements generated $1,429 thousand. The remaining revenue was derived from other retail and management services $615 thousand. Revenue is recognized when control of the promised goods or services is transferred to the customer. …

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NOTE 2: Summary of Significant Accounting Policies Basis of Presentation These financial statements and accompanying notes have been prepared in accordance with accounting principles generally accepted in the United States (GAAP), pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). All intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Segment Reporting Operating segments are identified as components of an enterprise about which separate financial information is available for evaluation by the chief operating decision-maker in making decisions regarding resource allocation and assessing performance. We view our operations and manage our business as one operating segment. Cash and Cash Equivalents We consider all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. We place our cash and cash equivalents in highly liquid instruments with, and in the custody of, financial institutions with high credit ratings. Investments Investments may be comprised of a combination of marketable securities, includi …

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Note 10: Stockholders Equity As of September 30, 2025 and 2024, the Company had 154,656,592 shares issued and outstanding of class B common stock, as of September 30, 2025, and 53,795,254 shares issued and outstanding of class B common stock, as of September 30, 2024. The Company had 39,934,846 shares for 2025 and 2024, respectively of Class A common stock issued and outstanding. During the fiscal year ended September 30, 2025, the Company issued an aggregate of 100,861,338 shares of Class B common stock and no shares of Class A common stock. A description of all material issuances of the Companys Class B common stock is set forth below. On November 21, 2023, the Company issued an aggregate of 2,100,000 shares of Class B common stock, at a price of $5.00 per share, in connection with the closing of its initial public offering. On December 22, 2023, the Company issued an additional 42,563 shares of Class B common stock, at a price of $5.00 per share, pursuant to the partial exercise of the underwriters over-allotment option. On February 15, 2024, the Company entered into a Standby Equity Purchase Agreement (the SEPA) with YA II PN, Ltd. (Yorkville), pursuant to which Yorkville agreed to purchase up to $50 million of the Companys shares of Class B common stock over the course of 24 months after the date of the SEPA. The price of shares to be issued under the SEPA would be 96% of the lowest volume weighted average price (the VWAP) of the Companys Class B common stock for the thr …

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Note 12: Subsequent Events Between October 1, 2025 and January 15, 2025, the Company issued an aggregate of 19,642,631 shares of Class B common stock, as detailed below: - The Company issued an aggregate of 4,485,946 shares of Class B common stock upon the exercise of Common Warrants, generating total proceeds of $9,813,400.08 before deducting financial advisory fees. - The Company issued an aggregate of 15,156,685 shares of Class B common stock under the At-The-Market program generating gross proceeds of $71,622,886.31. - On December 5, 2025, the Company announced the resignation of Matthew Casella as President, effective December 2, 2025. In connection with his departure, the Company entered into a separation agreement pursuant to which the Company will provide: (i) a cash payment of $32 thousand for severance and accrued obligations, (ii) a $35 thousand performance bonus, and (iii) 60,000 restricted shares of Class B common stock. Additionally, Mr. Casella will continue to provide consulting services for 12 months in exchange for 50,000 restricted shares of Class B common stock, payable quarterly through December 2026. - On November 10, 2025, we filed an Articles of Amendment to our Articles of Incorporation, as amended, with the Nevada Secretary of State to effect an increase the number of shares of Class B common stock that we are authorized to issue from 200,000,000 to 1,000,000,000, effective upon filing. (2) Financial Statement Schedules All financial statement schedu …

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