Financial Analysis

Note 7. Contingencies and Commitments Legal Proceedings The Company is involved in legal proceedings in the ordinary course of its business. Although management of the Company cannot predict the ultimate outcome of these legal proceedings with certainty, it believes that the ultimate resolution of the Companys legal proceedings, including any amounts it may be required to pay, will not have a material effect on the Companys consolidated financial statements. …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Note 5 . Line of Credit On April 15, 2024, the Company entered into a Loan Agreement (the PNC Loan Agreement) with PNC Bank, National Association (PNC), as lender. Pursuant to the PNC Loan Agreement, the Company entered into a Revolving Line of Credit Note (the PNC Note) with PNC, which provides for a $500,000 secured revolving line of credit that matures on April 15, 2027 and bears interest annually at the daily SOFR rate plus 2.5%, with accrued interest due and payable monthly. The PNC Note contains customary events of default including, among other things, payment defaults, material misrepresentations, breaches of covenants, revocation of guarantee, certain bankruptcy and insolvency events. There were no outstanding borrowings under the line of credit as of June 30, 2026 and 2025, respectively. …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Year Ended June 30, 2026 2025 United States $ 27,231,305 56.4 % $ 28,213,701 57.5 % Europe 15,942,672 33.0 % 15,689,693 32.0 % Rest of World 5,132,980 10.6 % 5,154,587 10.5 % Total $ 48,306,957 100 % $ 49,057,981 100 % …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

Note 8. Income Taxes The components of income before provision of income taxes are as follows: Years Ended June 30, 2026 2025 United States $ 2,821,968 $ 1,299,850 Foreign 133,142 48,514 Total income before provision for income taxes $ 2,955,110 $ 1,348,364 The provision for income taxes consists of the following for the years ended June 30, 2026 and 2025: Years Ended June 30, 2026 2025 Current Federal $ $ State 86,990 33,613 Foreign 46,052 49,198 Deferred Federal State Foreign Provision for income tax expense $ 133,042 $ 82,811 The reconciliation from the federal statutory income tax rate to our effective income tax rate for the fiscal year ended June 30, 2026, applying ASU 2023-09 prospectively, is as follows: Amount % U.S. federal statutory income tax $ 620,573 21.0 % State tax, net of federal benefit 69,858 2.3 % Cross border laws 8,354 0.3 % Foreign tax effects 18,092 0.6 % Tax credits (120,343) (4.1) % Non-taxable or non-deductible items: Equity compensation 233,104 7.9 % Change in earnout 218,462 7.4 % Other 8,346 0.3 % Change in valuation allowance (923,404) (31.2) % Total $ 133,042 4.5 % The reconciliation from the federal statutory income tax rate to the effective income tax rate for the fiscal year ended June 30, 2025, applying ASC 740 prior to the adoption of AUS 2023-09, is as follows: % Federal income tax rate 21.0 % State tax, net of federal benefit 2.4 % Change in earnout 22.9 % Adjustment to prior year (157.2) % Executive compensation (11.6) % Other permanent …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Recently Issued Accounting Pronouncements In December 2023, the FASB amended ASC 740, Income Taxes (issued under Accounting Standards Update (ASU) 2023-09, Improvements to Income Tax Disclosures). This ASU requires additional disclosures related to the rate reconciliation, income taxes paid and other amendments intended to enhance effectiveness and comparability. The Company adopted this accounting pronouncement for the year ended June 30, 2026, using the prospective method of adoption. As a result, we have enhanced our income tax disclosures for the fiscal year ended June 30, 2026 and going forward. Because ASU 2023-09 relates solely to disclosure requirements, adoption did not have a material impact on the Companys consolidated financial position, results of operations, or cash flows. In November 2024, the FASB issued ASU No. 2024-03 Income Statement - Reporting Comprehensive Income- Expense Disaggregation Disclosures (Subtopic 220-40) which requires disclosure each reporting period, in the notes to the financial statements, of specified information about certain costs and expenses. The new requirements will be effective for the Company for annual periods beginning after December 15, 2026, and interim reporting periods within annual reporting periods beginning after December 15, 2027. The guidance will be applied on a prospective basis with the option to apply the standard retrospectively. Early adoption is permitted. The Company is currently evaluating the impact of the ad …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Note 2. Summary of Significant Accounting Policies Use of Estimates The preparation of consolidated financial statements in conformity with Generally Accepted Accounting Principles (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 revenue and expenses during the reporting periods. Actual results could differ from these estimates. These estimates and assumptions include estimates for reserves of uncollectible accounts, the valuation of goodwill and intangible assets related to the Companys acquisitions, accruals for contingent earnout liabilities, assumptions made in valuing equity instruments issued for services or acquisitions, and realization of deferred tax assets. Cash and Cash Equivalents The Company defines cash equivalents as all highly liquid debt instruments purchased with an original maturity of three months or less. In all periods presented, cash equivalents consist primarily of money market funds. Allowance for Credit Losses The Companys trade accounts receivable are recorded at amounts billed to customers and presented on the consolidated balance sheet net of the allowance for estimated credit losses, and typically due within 30 days. The Company evaluates the collectability of its trade accounts receivable based on a number of factors. In circumstances where the …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

Note 6. Stockholders Equity Stock Options In December 2007, we established the 2007 Equity Compensation Plan (the 2007 Plan) and in November 2017 we established the 2017 Omnibus Incentive Plan (the 2017 Plan), collectively (the Plans). The Plans were approved by our board of directors and stockholders. The purpose of the Plans is to grant stock and options to purchase our common stock, and other incentive awards, to our employees, directors and key consultants. On November 10, 2016, the maximum number of shares of common stock that may be issued pursuant to awards granted under the 2007 Plan increased from 5,000,000 to 7,000,000. On November 21, 2017, the Companys stockholders approved the adoption of the 2017 Plan (previously adopted by our board of directors on September 14, 2017), which authorized a maximum of 1,874,513 shares of common stock that may be issued pursuant to awards granted under the 2017 Plan. From November 2019 to November 2021, the Company's stockholders approved increases in the maximum number of shares of common stock that may be issued pursuant to awards granted under the 2017 Omnibus Incentive Plan from 1,874,513 to 6,874,513. Upon adoption of the 2017 Plan, we ceased granting incentive awards under the 2007 Plan and commenced granting incentive awards under the 2017 Plan. The shares of our common stock underlying cancelled and forfeited awards issued under the 2017 Plan may again become available for grant under the 2017 Plan. Cancelled and forfeited …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

Note 9. Subsequent Events Scite Earn-out On August 2, 2026, the Company completed the fifth installment payment of cash and common stock associated with the earnout for the former shareholders of Scite, which consisted of cash of $1.2 million and 329,118 shares of the Companys common stock being issued. …

SubsequentEventsTextBlock · excerpt; the full note is in the filing

Note 5. Contingencies Inflation Risk The Company does not believe that inflation has had a material effect on its operations to date, other than its impact on the general economy. However, there is a risk that the Companys operating costs could become subject to inflationary and interest rate pressures in the future, which would have the effect of increasing the Companys operating costs, and which would put additional stress on the Companys working capital resources. …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Note 3. Line of Credit On April 15, 2024, the Company entered into a Loan Agreement (the PNC Loan Agreement) with PNC Bank, National Association (PNC), as lender. Pursuant to the PNC Loan Agreement, the Company entered into a Revolving Line of Credit Note (the PNC Note) with PNC, which provides for a $500,000 secured revolving line of credit that matures on April 15, 2026 and bears interest annually at the daily SOFR rate plus 2.5%, with accrued interest due and payable monthly. The PNC Note contains customary events of default including, among other things, payment defaults, material misrepresentations, breaches of covenants, revocation of guarantee, certain bankruptcy and insolvency events. There were no outstanding borrowings under the line of credit as of December 31, 2025 and June 30, 2025, respectively. …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Three Months Ended December 31, 2025 2024 United States $ 6,698,701 56.8 % $ 6,932,120 58.2 % Europe 3,867,252 32.8 % 3,730,368 31.3 % Rest of World 1,226,698 10.4 % 1,251,731 10.5 % Total $ 11,792,651 100 % $ 11,914,219 100 % …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

Note 6. Income Taxes The effective tax rate for the three months ended December 31, 2025 and 2024 was 1.6% and (0.8)%, respectively. The effective tax rate for the six months ended December 31, 2025 and 2024 was 2.3% and (4.9)%, respectively. The Companys effective tax rate differs from the statutory tax rate primarily due to the reduction in the valuation allowance, which is reserving for net operating losses that are expected to be utilized when the tax returns are filed. …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Recently Issued Accounting Pronouncements In December 2023, the FASB amended ASC 740, Income Taxes (issued under Accounting Standards Update (ASU) 2023-09, Improvements to Income Tax Disclosures). This ASU requires additional disclosures related to the rate reconciliation, income taxes paid and other amendments intended to enhance effectiveness and comparability. The amendment is effective for the Company beginning with its fiscal year 2026 annual disclosures. The Company is currently evaluating the impact of the adoption of ASU 2023-09 on its annual disclosures. In November 2024, the FASB issued ASU No. 2024-03 Income Statement - Reporting Comprehensive Income- Expense Disaggregation Disclosures (Subtopic 220-40) which requires disclosure each reporting period, in the notes to the financial statements, of specified information about certain costs and expenses. The new requirements will be effective for the Company for annual periods beginning after December 15, 2026, and interim reporting periods within annual reporting periods beginning after December 15, 2027. The guidance will be applied on a prospective basis with the option to apply the standard retrospectively. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of ASU 2024-03 on its annual disclosures. Other recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities and …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Note 2. Summary of Significant Accounting Policies Use of Estimates The preparation of condensed consolidated financial statements in conformity with Generally Accepted Accounting Principles (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 condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from these estimates. These estimates and assumptions include estimates for reserves of uncollectible accounts, the valuation of goodwill and intangible assets related to the Companys acquisitions, accruals for contingent earnout liabilities, assumptions made in valuing equity instruments issued for services or acquisitions, and realization of deferred tax assets. Concentration of Credit Risk Financial instruments, which potentially subject the Company to concentrations of credit risk, consist of cash and cash equivalents and accounts receivable. The Company places its cash with high quality financial institutions and at times may exceed the FDIC $250,000 insurance limit. The Company does not anticipate incurring any losses related to these credit risks. The Company extends credit based on an evaluation of the customers financial condition, generally without collateral. Exposure to losses on receivables is principally dependent on each customers financ …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

Note 4. Stockholders Equity Stock Options In December 2007, we established the 2007 Equity Compensation Plan (the 2007 Plan) and in November 2017 we established the 2017 Omnibus Incentive Plan (the 2017 Plan), collectively (the Plans). The Plans were approved by our board of directors and stockholders. The purpose of the Plans is to grant stock and options to purchase our common stock, and other incentive awards, to our employees, directors and key consultants. On November 10, 2016, the maximum number of shares of common stock that may be issued pursuant to awards granted under the 2007 Plan increased from 5,000,000 to 7,000,000. On November 21, 2017, the Companys stockholders approved the adoption of the 2017 Plan (previously adopted by our board of directors on September 14, 2017), which authorized a maximum of 1,874,513 shares of common stock that may be issued pursuant to awards granted under the 2017 Plan. From November 2019 to November 2021, the Company's stockholders approved increases in the maximum number of shares of common stock that may be issued pursuant to awards granted under the 2017 Omnibus Incentive Plan from 1,874,513 to 6,874,513. Upon adoption of the 2017 Plan we ceased granting incentive awards under the 2007 Plan and commenced granting incentive awards under the 2017 Plan. The shares of our common stock underlying cancelled and forfeited awards issued under the 2017 Plan may again become available for grant under the 2017 Plan. Cancelled and forfeited a …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

Note 7. Subsequent Events On February 2, 2026, the Company completed the third installment payment of cash and common stock associated with the earnout for the former shareholders of Scite, which consisted of cash of $1.2 million and 252,146 shares of the Companys common stock being issued. …

SubsequentEventsTextBlock · excerpt; the full note is in the filing