Financial Analysis

Note 13. Commitments and Contingencies Litigation From time to time, the Company may become involved in various lawsuits and legal proceedings, which arise in the ordinary course of business. We are currently not aware of any such legal proceedings or claims that will have, individually or in aggregate, a material adverse effect on our business, financial condition, or operating results. License Agreement The consolidated financial statements include Aurea Alas Limited, which is a variable interest entity of which we are the primary beneficiary (see Note 3). On August 18, 2020, Aurea entered into a license agreement with a third-party vendor (the Vendor), whereby they licensed the rights to use certain available radio frequency spectrum for satellite communications. The Company shall pay an annual Reservation Fee of $ 120,000 while the Company pursues up to four (4) NGSO satellite filing(s) via the Vendor. The Reservation Fee is levied on the date the filing(s) is received at the International Telecommunication Union (ITU). The Reservation Fee is payable annually at the anniversary of the date of receipt, as long as the customer retains the NGSO filing(s). The Reservation Fee payment continues to be payable until any of the frequency assignments of the NGSO filing(s) are brought into use. Upon the submission to the ITU to bring into use any of the frequency assignments of a given fleet, an annual License Fee of $ 120,000 shall be paid in lieu of the Reservation Fee. On Februa …

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Note 11. Notes Payable Decathlon Note On December 3, 2021, we entered into a Loan Assignment and Assumption Agreement, or Loan Assignment, with Decathlon Alpha IV, L.P., or Decathlon and CTC pursuant to which we assumed the Decathlon Note. In connection with our assumption of the Decathlon Note, CTC reduced the principal of the Note Payable related party by $ 1.4 million for an aggregate principal balance of $ 2.6 million. The Company recorded a reclassification of $ 1,106,164 from Note Payable related party to Note payable non- current (Decathlon note) and recorded forgiveness of note payable related party of $ 293,836 . Management believes that the assumption of the Decathlon Note from CTC was in our best interests because in connection therewith, Decathlon released us from a cross-collateralization agreement it was a party to with CTC for a loan of a greater amount. Also in connection with the Loan Assignment on December 3, 2021, we entered into a Revenue Loan and Security Agreement, or RLSA, with Decathlon and our CEO, Carol Craig, pursuant to which we pay interest based on a minimum rate of one (1) times the amount advanced and make monthly payments based on a percentage of our revenue calculated as an amount equal to the product of (i) all revenue for the immediately preceding month multiplied by (ii) the Applicable Revenue Percentage, defined as 4 % of revenue for payments due during any month. The Decathlon Note was amended November 16, 2023. The maturity date was ext …

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Note 15. Income tax The Company has not made a provision for income taxes for the years ended December 31, 2025 and 2024, since the Company has the benefit of net operating losses in these periods and the Company changed from a limited liability partnership to a C corporation during 2021. Due to uncertainties surrounding the Companys ability to generate future taxable income to realize deferred income tax assets arising as a result of net operating losses carried forward, the Company has not recorded any deferred income tax assets as of December 31, 2025. The Company has incurred a net operating loss of $ 20,563,749 . The net operating loss carry forwards can offset 80 percent of future taxable income and carryforward indefinitely as determined by respective tax regulating authorities. The Companys net operating loss carry forwards may be subject to annual limitations, which could eliminate, reduce or defer the utilization of the losses because of an ownership change as defined in Section 382 of the Internal Revenue Code U.S. federal tax returns are closed by statute for years through 2014. The status of state and non-U.S. tax examinations varies due to the numerous legal entities and jurisdictions in which the Company operates. A reconciliation between expected income taxes, computed at the federal income tax rate of 21 % applied to the pretax accounting loss, and our blended state income tax rate of 5.5 % in 2025 and 2024, and the income tax net expense included in the cons …

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Note 10. Leases Operating lease We have a new lease contract entered June 1, 2025 which includes both our office facility and warehouse space that expires May 31, 2028. The monthly Base Rent is $ 12,232 and $ 13,150 . The Base Rent is increased by 3.0 % each year. We had a lease contract entered June 1, 2024 which includes both our office facility and warehouse space that expired May 31, 2025. The monthly Base Rent was $ 11,876 and $ 12,767 . We recognized total lease expense, primarily related to our operating leases, on a straight-line basis in accordance with ASC 842. As of December 31, 2025 and 2024, the Company recorded a refundable security deposit of $ 10,000 for its warehouse space and is included in other assets on the balance sheet. The operating lease expense were as follows: Schedule of Operating Lease Expense 2025 2024 Years ended December 31, 2025 2024 Lease cost Operating lease cost $ 416,786 $ 384,237 Supplemental balance sheet information related to operating leases was as follows: Summary of Supplemental Balance Sheet Information December 31, December 31, 2025 2024 Operating lease right-of-use assets at inception $ 856,787 $ 284,861 Accumulated amortization (153,931 ) (163,316 ) Total operating lease right-of-use assets $ 702,856 $ 121,545 Operating lease liabilities - current $ 273,545 $ 121,544 Operating lease liabilities - non-current 434,695 - Total operating lease liabilities $ 708,240 $ 121,544 Right-of-use assets obtained in exchange for new operating …

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Recent Accounting Pronouncements In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires public entities, on an annual basis, to provide disclosure of specific categories in the rate reconciliation, as well as disclosure of income taxes paid disaggregated by jurisdiction. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company adopted ASU 2023-09 for the year ended December 31, 2025, and applied the new disclosure requirements prospectively to the current annual period. 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, requiring public entities to disclose additional information about specific expense categories in the notes to the financial statements on an interim and annual basis. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, and for interim periods beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the impact of adopting ASU 2024-03. In July 2025, the FASB issued ASU No. 2025-05, Financial InstrumentsCredit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets. The amendments in this update provide a practical expedient permitting an entity to assume that conditions at the balan …

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Note 12. Related Party Transactions Revenue and Accounts Receivable The Company recognized revenue of $ 1,607,014 and $ 798,942 for the years ended December 31, 2025 and 2024 and accounts receivable of $ 1,727,939 and $ 641,376 and contract asset of $ 209,673 and $ 46,953 and contract liability of $ 0 and $ 46,953 as of December 31, 2025 and 2024, respectively, from contracts entered into by CTC, a principal stockholder, and subcontracted to the Company for four customers. Accounts Payable As of December 31, 2025 and 2024, the Company owed $ 876,007 and $ 581,243 to related parties of which $ 527,476 in both periods relates to advances from CTC which are unsecured, due on demand and non-bearing-interest. See Note 18 for subsequent events related to these advances. As of December 31, 2025 and 2024, the Company recorded accounts payable of $ 75,006 and $ 92,759 , respectively, related to Q4 2025 and Q4 2024 Board of Director compensation payments. Cost of Revenue and Operating expenses For the years ended December 31, 2025 and 2024, the Company recorded cost of revenue to CTC of $ 1,619,275 and $ 712,669 , and general and administrative expense of $ 0 and $ 93,476 , respectively. Professional Service Agreements A Professional Services Agreement, effective November 15, 2021, was made, between the Company and CTC. The period of performance for this Agreement was December 1, 2021, through November 30, 2022. The agreement was amended and the term of agreement was extended to June 3 …

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Note 16. Segment The Company operates as one operating segment. The Companys chief operating decision maker (CODM) is its chief executive officer, who reviews financial information presented on a consolidated basis. The CODM uses consolidated operating margin and net income to assess financial performance and allocate resources. These financial metrics are used by the CODM to make key operating decisions, such as the determination of the rate at which the Company seeks to grow global operating margin and the allocation of budget between cost of revenues, sales and marketing, technology and development, and general and administrative expenses. The following table presents selected financial information with respect to the Companys single operating segment for the years ended December 31, 2025 and 2024: Schedule of Operating Segment 2025 2024 Change % Years Ended December 31, 2025 2024 Change % Revenue $ 3,383,878 $ 4,672,646 $ (1,288,768 ) (28 )% Cost of revenue 9,076,445 6,141,657 2,934,788 48 % Gross Profit (Loss) (5,692,567 ) (1,469,011 ) (4,223,556 ) 288 % Gross Profit Percentage (168 )% (31 )% (137 )% 435 % Operating expense 22,315,569 14,249,870 8,065,699 57 % Other expense (1,466,168 ) (1,805,175 ) 339,007 (19 )% Net loss $ (29,474,304 ) $ (17,524,056 ) $ (11,950,248 ) 68 % 2025 2024 Change % Years Ended December 31, 2025 2024 Change % Operating expenses Payroll expenses $ 9,967,506 $ 6,978,930 $ 2,988,576 43 % Sales and marketing expenses 160,426 193,942 (33,516 ) (17 …

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Note 2. Summary of Significant Accounting Policies Basis of Presentation The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America (GAAP) and are presented in US dollars. The Company uses the accrual basis of accounting and has adopted a December 31 fiscal year end. Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on the reported results of operations. Principles of Consolidation The consolidated financial statements include the variable interest entity (VIE), Aurea Alas Limited (Aurea), of which we are the primary beneficiary. Aurea is a Limited company organized in the Isle of Man, which entered into a license agreement with a third-party vendor, whereby Aurea licensed the rights to use certain available radio frequency spectrum for satellite communications. All intercompany transactions and balances have been eliminated on consolidation. For entities determined to be VIEs, an evaluation is required to determine whether the Company is the primary beneficiary. The Company evaluates its economic interests in the entity specifically determining if the Company has both the power to direct the activities of the VIE that most significantly impact the VIEs economic performance (the power) and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the …

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Note 14. Stockholders Equity Authorized Capital Stock The Company has authorized 5,000,000 shares of preferred stock with a par value of $ 0.0001 . The Company has authorized 210,000,000 shares of common stock with a par value of $ 0.0001 , consisting of 200,000,000 shares of Class A Common Stock and 10,000,000 shares of Class B Common Stock. The Class B Common Stock is entitled to 10 votes for every 1 vote of the Class A Common Stock. Series A Convertible Preferred Stock During the year ended December 31, 2024, 372 shares of Series A convertible preferred stock issued in fiscal year 2023 and a related dividend of $ 27,374 were converted into 106,748 shares of Class A common stock. The Company had no shares of Series A Convertible preferred stock issued and outstanding as of December 31, 2025 and 2024. Class A Common Stock The Company had 65,324,055 and 15,956,816 shares of Class A common stock issued and outstanding as of December 31, 2025 and 2024, respectively. Fiscal year 2025 July 2025 Public Offering On July 29, 2025, the Company completed an underwritten public offering of 7,143,000 shares of Class A common stock at a public offering price of $ 1.05 per share, for approximately $ 6.7 million of net proceeds. September 2025 Public Offering On September 14, 2025, the Company completed an underwritten public offering of 9,800,000 shares of Class A common stock at a public offering price of $ 1.00 per share, for approximately $ 8.8 million of net proceeds. December 2025 Pu …

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Note 18. Subsequent events In January 2026, the Company issued 1,095,797 shares of Class A common stock upon the exercise of warrants from the November and December 2024 capital raises, for proceeds of approximately $ 1.7 million. The Company also paid off the outstanding asset-based loan balance in full in January 2026. In February 2026, the Company repaid the $ 527,476 in advances owed to CTC. Management evaluated all other events subsequent to the balance sheet date and through the date the financial statements were available to be issued and determined there have been no additional events that would require adjustment to or additional disclosure in the consolidated financial statements.

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