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, 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 June 30, 2025 and 2024, respectively. …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Year Ended June 30, 2025 2024 United States $ 28,213,701 57.5 % $ 26,481,085 59.3 % Europe 15,689,693 32.0 % 13,962,285 31.3 % Rest of World 5,154,587 10.5 % 4,180,529 9.4 % Total $ 49,057,981 100 % $ 44,623,899 100 % …

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Note 8. Income Taxes The components of income (loss) before provision of income taxes are as follows: Years Ended June 30, 2025 2024 United States $ 1,299,850 $ (3,819,973) Foreign 48,514 146,447 Total income (loss) before provision for income taxes $ 1,348,364 $ (3,673,526) The provision for income taxes consists of the following for the years ended June 30, 2025 and 2024: Years Ended June 30, 2025 2024 Current Federal $ $ State 33,613 21,143 Foreign 49,198 91,928 Deferred Federal State Foreign Provision for income tax expense $ 82,811 $ 113,071 The reconciliation of the effective income tax rate to the federal statutory rate is as follows: Years Ended June 30, 2025 2024 Federal income tax rate 21.0 % 21.0 % State tax, net of federal benefit 2.4 % 1.7 % Change in earnout 22.9 % % Adjustment to prior year (157.2) % % Executive compensation (11.6) % % Other permanent differences 3.1 % (70.5) % Foreign rate differential 2.9 % % Tax credits (15.3) % % Change in valuation allowance 137.9 % 44.9 % Effective income tax rate 6.1 % (2.9) % For the year ended June 30, 2025, the majority of the adjustment to the prior year, primarily offset by the change in valuation allowance, was due to recording additional federal and state net operating losses (NOL) from stock acquisitions in prior years. This was precipitated by the finalization of a study to determine the amount of NOLs available after the change in ownership under Internal Revenue Code Section 382. Deferred income taxes reflect …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Recently Issued Accounting Pronouncements In November 2023, the FASB amended ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. This ASU expands annual and interim segment disclosure requirements by requiring disclosure of significant segment expenses that are regularly provided to the CODM and are included in each reported measure of segment profit or loss. The amendments also require disclosure of an amount for other segment items and additional interim information about segment profit or loss and assets. The Company has a single reportable segment. Upon adoption of ASU 2023-07, the Company is required to provide annual and interim disclosures of significant expense categories such as cost of goods sold, selling and general and administrative expenses when those amounts are regularly provided to the CODM, as well as a description of other segment items. The amendments are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with retrospective application to all prior periods presented. The Company adopted this accounting pronouncement for the year ended June 30, 2025. Because ASU 2023-07 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 December 2023, the FASB amended ASC 740, Income Taxes (issued under Accounting Standards Up …

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Note 2. Summary of Significant Accounting Policies Use of Estimates The preparation of 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 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. Fair Value of Financial Instruments Under Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 820, Fair Value Measurements and Disclosures , fair value is defined as the price at which an asset could be exchanged or a liability transferred in a transaction between knowledgeable, willing parties in the principal or most advantageous market for the asset or lia …

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 a …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

Note 10. Subsequent Events Stock Options On August 1, 2025, the Company issued 9,905 shares of common stock upon the exercise of stock options underlying 15,000 shares of common stock on a cashless basis. On August 15, 2025, the Company issued 8,351 shares of common stock upon the exercise of stock options underlying 23,500 shares of common stock on a cashless basis. Restricted Common Stock On August 5, 2025, the Company issued 95,000 shares of restricted stock to an employee. These shares vest over a three year period, with a one year cliff vesting period, and remain subject to forfeiture if vesting conditions are not met. The aggregate value of the stock award was $247,950 based on the market price of our common stock of $2.61 per share on the date of grant, which will be amortized over the three-year vesting period. Scite Earn-out On July 2, 2025, the Company finalized the calculation of the earnout for former shareholders of Scite at $15.4 million. The earnout is comprised of a mix of cash and stock, with 62% of the earnout to be paid in cash and 38% in the Companys common stock. The first of eight quarterly installment payments was disbursed in August 2025, with subsequent payments scheduled to continue quarterly until the final payment in May 2027. The first installment payment of common stock, resulted in 264,924 shares of the Companys common stock being issued in August 2025. Income Taxes On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was enacted and includes …

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 % …

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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