PHUN 10-K & 10-Q changes, risk factors and insider trading

We have incurred significant losses in each fiscal year since our inception. We experienced a consolidated net loss for the years ended December 31, 20242025 and December 31, 2023.2024. These losses were due to (i.) both a decline in platform revenue in 20232024 and 2024,2025, as compared to previous years, goodwill impairment in 2023,(ii.) investments we made to build our products and services, grow and maintain our business, (iii.) attempts to acquire new customers and service(iv.) ourgeneral variousand debtadministrative obligations.expenses, including legal and professional fees for litigation. You should not consider our historical revenue levels or operating expenses prior to recent periods as indicative of our future performance. Key elements of our growth strategy include acquiring new customers and continuing to innovate and expand our product offerings. As a result, our operating expenses may continue to increase in the future due to expected increased sales and marketing expenses, operating costs, research and development costs and general and administrative costs and, therefore, our operating losses may continue or even potentially increase for the foreseeable future. In addition, as a public company we incur significant legal, accounting and other expenses, including, but not limited to additional costs in resolving our existing legal matters. Furthermore, to the extent that we are successful in increasing our customer base, we may also incur increased expenses because costs associated with generating and supporting customer agreements are generally incurred up front. Revenue recognition may not occur during the same the same period in which we incur costs associated with our agreements. Our efforts to grow our business may be costlier than we expect and we may not be able to increase our revenue enough to offset our higher operating expenses. We may incur significant losses in the future for many reasons, including the other risks described in this Annual Report and unforeseen expenses, difficulties, complications and delays and other unknown events. You should not rely upon future bookings we may announce or revenue growth as indicative of our future performance. We cannot assure you that we will reach profitability in the future or at any specific time in the future or that, if and when we do become profitable, that we will sustain profitability. If we are ultimately unable to generate sufficient revenue to meet our financial targets, become profitable and have sustainable positive cash flows, investors could lose their investment.

Our future performance also will continue to depend on the services and contributions of our other senior management and key employees and their abilities to execute on our business plan and strategy and to identify and pursue new opportunities asand wellinnovations asfor serviceour products and product innovations.services. These interim chief executive changes, and any future changes,changes in our operations andsenior management team could be disruptive to our operations. Further, if the Interim Chief Executive Officer formulates different or changed views, the future strategy and plans of our business may differ materially from those of the past.

The Company is party to litigation with Wild Basin Investments, LLC and other parties as further described in this Annual Report as well as arbitration with Wilson Sonsini Goodrich & Rosati, Professional Corporation, as further described in this Annual Report. We and our officers and directors,directors are or may become subject to other legal proceedings in ourthe ordinary course of business. We cannot predict with certainty the outcome of these legal proceedings. The outcome of theseany or futuresuch legal proceedings could require us to take, or refrain from taking, actions which could negatively affect our operations. Such legal proceedings may involve substantial costs, including the costs associated with investigation, litigation, arbitration and possible settlement, award, judgment, penalty, or fine. As a smaller company, the collective costs of litigation and arbitrationlegal proceedings may represent a drain on our cash resources, and require an inordinate amount of our management’s and board of directors' time and attention. An adverse ruling with respect to our current or any othersuch litigationlegal proceeding could have a material adverse effect on our results of operations and financial condition. Negative publicity surrounding such legal proceedings may also harm our reputation and adversely impact our business and results.financial condition.

The actual market for our products and services could be significantly smaller than estimates of total potential market opportunityopportunity, and if customer demand for our products and services does not meet expectations, our ability to generate revenue and meet our financial targets could be adversely affected.

While we expect growth in the markets for our products, it is possible that the growth in some or all of these markets may not meet our expectations,expectations or materialize at all. The methodology on which our estimate of our total potential market opportunity is based includes several key assumptions based on our industry knowledge and customer experience. If any of these assumptions proves to be inaccurate, then the actual market for our solutions could be significantly smaller than our estimates of our total potential market opportunity. If the customer demand for our products or services or the adoption rate in our target markets does not meet our expectations, our ability to generate revenue from customers and meet our financial targets could be adversely affected.

We have made, and expect to continue making, investments in the integration of AI into our platforms, products and services. However, AI presents various risks, challenges, and potential unintended consequences that could disrupt our ability to effectively integrate and leverage these technologies. The process of refining and expanding our AI-driven platforms and offerings may involve significant costs, and there can be no assurance that our efforts will ultimately succeed.

the amount and timing of non-cash expenses, including stock-based compensation, goodwill impairments and other non-cash charges;

We have sold and may sell additional equity or debt securities or enter into other arrangements to fund our operations, which may result in dilution to our stockholders and impose restrictions or limitations on our business. Future sales or issuances of our common stock, or the perception that such sales could occur, could depress the trading price of our common stock.

We have, in the past, received notices from the Nasdaq Stock Market LLC (“Nasdaq”) indicating that the Company was not in compliance with the rules for continued listing, all of which have been remediated. If we fail to satisfy the continued listing requirements of Nasdaq Capital Market, such as corporate governance requirements or the minimum bid requirement,Nasdaq, Nasdaq may take steps to delist our common stock. Such a delisting would likely have a negative effect on the price of our common stock and would impair our stockholders' ability to sell or purchase shares of our common stock when they wish to do so. In the event of a delisting, we can provide no assurance that any action taken by us to restore compliance with listing requirements would allow our common stock to be listed again, stabilize the market price or improve the liquidity of our common stock, prevent our common stock from dropping below the Nasdaq minimum bid price requirement or prevent future non-compliance with Nasdaq listing requirements.

We are continually examining the risks and rewards of our bitcoin and other digital assets acquisition strategy.strategy, and we only held approximately $96 thousand in bitcoin and other digital assets as of December 31, 2025. This strategy has not been tested over time or under various market conditions. Some investors and other market participants may disagree with this strategy or actions we undertake to implement it. If the price of bitcoindigital assets we hold falls or our bitcoindigital assets acquisition strategy otherwise proves unsuccessful, it wouldcould adversely impact our financial condition, results of operations, and the market price of our common stock.

The further development and acceptance of blockchain networks, which are part of a new and rapidly changing industry, are subject to a variety of factors that are difficult to evaluate. The slowing or stopping of the development or acceptance of blockchain technology, networks and blockchaindigital assets could have a material adverse effect on our business plans, which may have a material adverse effect on the Company and our stockholders.

The growth of the blockchain industrytechnology in general, as well as the networks on which we will rely to consummate the Token Generation Event,Event and develop the Token Ecosystem, is subject to a high degree of uncertainty. TheBlockchain digital assetnetworks and digital asset industriesassets as a whole have been characterized by rapid changes and innovations and are constantly evolving. The slowing or stopping of the development, general acceptance and adoption and usage of blockchain networks and digital assets may materially adversely affect our business plans to launch and maintain PhunCoin, sell PhunToken and continue to developdevelop, launch and maintain the Token Ecosystem. For example, given the regulatory complexity and uncertainty with respect to digital assets, complying with such laws and regulations, which could change in the future or be subject to new interpretations, could have a material and adverse effect on our ability to develop, launch and continue to operatedevelop, launch and maintain PhunCoin, PhunToken and the Token Ecosystem. In addition, the tax and accounting consequences to us of the Token Generation Event, PhunCoin, PhunToken and the Token Ecosystem could lead to incorrect reporting, classification or liabilities. If the Token Generation Event occurs and PhunCoin is launched and developed and PhunToken is further developed, the structural foundation of PhunCoin and PhunToken, and the software applications and other interfaces or applications upon which PhunCoin, PhunToken and the Token Ecosystem rely or on which PhunCoin, PhunToken and the Token Ecosystem may rely in the future, are and will be unproven. There can be no assurances that PhunCoin or PhunToken will be fully secure, which may result in impermissible transfers, a complete loss of users’ PhunCoin or PhunToken, or an unwillingness of users to access, adopt and utilize PhunCoin or PhunToken or the Token Ecosystem, whether through system faults or malicious attacks. Any such faults or attacks on PhunCoin or PhunToken may materially and adversely affect our business.

Because our tokens will be digital assets built and transacted initially on top of existing third-party blockchain technology,technology and networks, Phunware is reliant on anotherother blockchain network,networks, and users could be subject to the risk of wallet incompatibility and blockchain protocol risks.

Some of our Token Ecosystem code and protocols rely on open-source code which is publicly available. The open-source structure of some of the Token Ecosystem protocols means that the Token Ecosystem may be susceptible to developments or changes by users or contributors that could damage the Token Ecosystem and our reputation and could affect the sale and utilization of PhunCoin, PhunToken and the Token Ecosystem.

The open-source nature of the Token Ecosystem protocol also means that it may be difficult for the Company or contributors maintain or develop the Token Ecosystem and the Company may not have adequate resources to address emerging issues or malicious programs that develop within the Token Ecosystem or expand functionality of the Token Ecosystem adequately or in a timely manner. Third parties not affiliated with us may introduce weaknesses or bugs into the core infrastructure elements of the Token Ecosystem and open-source code which may negatively impact the Token Ecosystem. Such events may result in a loss of trust in the security and operation of the Token Ecosystem and a decline in user activity and could negatively impact the sale and utilization of and development, acceptancelaunch and adoption of the Token Ecosystem, PhunCoin and PhunToken.

Open-source software is generally freely accessible, usable and modifiable. Certain open-source licenses may, in certain circumstances, require us to offer the components of our Token Ecosystem that incorporate the open-source software for no cost, that we make available source code for modifications or derivative works we create based upon, incorporating or using the open-source software and that we license such modifications or derivative works under the terms of the particular open-source license. If an author or other third party that distributes open-source software we use were to allege that we had not complied with the conditions of one or more of these licenses, we could be required to incur significant legal expenses defending against such allegations and could be subject to significant damages, including being enjoined from the offering of the components of our Token Ecosystem that contained the open-source software and being required to comply with the foregoing conditions, which could disrupt our ability to offer the affected software. We could also be subject to suitslegal proceedings by parties claiming ownership of what we believe to be open-source software. Litigation could be costly for us to defend, have a negative effect on our operating results and financial condition and require us to devote additional research and development resources to change our products.

The Token Ecosystem is designed to distribute PhunCoin or PhunToken to consumers who provide certain personal information to us. Providing this data to us exposes us to risks of privacy data breach and loss and cybersecurity attacks.

WeThe Token Ecosystem is designed to utilize a substantial amount of electronic information.information, This includesincluding transaction information and sensitive personal information of the users of the Token Ecosystem. The service providers used by us, may also use, store, and transmit such information. We intend to implement detailed privacy and cybersecurity policies and procedures and an incident response plan designed to protect such sensitive personal information and prevent data loss and security breaches.

There can be no assurances that PhunCoin, PhunToken or a user’s data will be fully secure, which may result in impermissible transfer, a complete loss of users’ PhunCoin, PhunToken or data on the Token Ecosystem, whether through system faults or malicious attacks, or an unwillingness of users to access, adopt and utilize PhunCoin and PhunToken. Any such faults or attacks on PhunCoin, PhunToken or users’ data may materially and adversely affect PhunCoin, PhunToken and the Token Ecosystem. There are a number of data protection, security, privacy and other government- and industry-specific requirements, including those that require companies to notify individuals of data security incidents involving certain types of personal data. Security compromisesbreaches could harm the Token Ecosystem’s reputation, erode user confidence in the effectiveness of its security measures, negatively impact its ability to attract new users, or cause existing users to stop using the Token Ecosystem, or purchasing and using or consuming PhunCoin and PhunToken. We may be compelled to disclose personal information about a user or users of the Token Ecosystem to federal or state government regulators or taxation authorities. Accordingly, certain information concerning users may be shared outside Phunware.

A cloud-based application framework vertical solution license for iOS and Android-based mobile experiences, enabling customers to deploy, manage and extend functionality across mobile applications (apps).and connected environments. We have focused a majority of our recent sales efforts on addressing the patient experience for healthcare and the luxury guest experience for hospitality.hospitality and the patient experience for healthcare. However, our product and service capabilities also serve the employee experience in the workplace, the shopper experience for retail, the fan experience for sports, the traveler experience for aviation, the luxury resident experience for real estate and the student experience for education.

Development services for customers who wish to have to have a customized application experience; and In-app advertising services for mobile audience building, user acquisition, application discovery, audience engagement and monetization.

GenerativeThe AI Toolstechnology forwe Internalhave Systems.initially used in the context of our platform is generative AI. We actively utilize generative AI tools to streamline internal processes and workflows for mobile app creation and development. We also plan to use predictive and agentic AI tools in the future to further enhance these processes. By applying these technologies, we expect to improve the quality and personalization of our mobile apps for customers and drastically reduce the time required to adapt our mobile app development framework to meet specific customer needs. We anticipate that these efficiencies will enable the Company to reduce mobile app development costs significantly and make high-quality customized mobile apps more accessible and affordable for small to medium sized businesses ("SMBs") and enterprises.

AI Features and Functionalities for Engagement and Monetization. We arerecently alsodeveloped developingan AI Personal Concierge featuresgenerative andAI product feature with functionalities to serve as a human-like interface in our mobile apps for our customers and users thereof to enhance customer engagement with users and provide our customers with innovative opportunities to further monetize their products and services with users. We are currently pilot testing the AI Concierge with existing customers as a new feature in their existing mobile applications.

We intend to continue investing for long-term growth. We have also invested and expect to continue investing in the expansion of our ability to market, sell and provide our current and future products and services to customers globally. We also expectplan to continue investing in the development and improvement of new and existing products and services to address customers’ needs. We currently do not expect to be profitable in the near future.

Our management regularly monitors certain financial measures to track the progress of our business against internal goals and targets. We believe that the most important of these measures include bookings, backlog and deferred revenue.

Backlog represents future amounts to be invoiced under our active contracts. At any point in the contract term, there can be amounts that we have not yet been contractually able to invoice. Until such time as these amounts are invoiced, they are not recorded in revenue, deferred revenue, accounts receivable or elsewhere in our consolidated financial statements and are considered by us to be backlog. We expect backlog to fluctuate up or down from period to period for several reasons, including the timing and duration of customer contracts, varying billing cycles and the timing and duration of customer renewals. We reasonably expect approximately 42%59% of our backlog as of December 31, 20242025 will be invoiced during the subsequent 12-month period, primarily due to timing and amount of invoicing of existing contracts and the fact that our contracts are typically one to three years in length.

Adjusted gross profit and adjusted gross margin are non-GAAP financial measures. We believe that adjusted gross profit and adjusted gross margin provide supplemental information with respect to gross profit and gross margin regarding ongoing performance. We define adjusted gross profit as net revenues less cost of revenue, adjusted to exclude one-time revenue adjustments,adjustments and stock-based compensation and amortization of intangible assets.compensation. We define adjusted gross margin as adjusted gross profit as a percentage of net revenues.

Adjusted EBITDA is a non-GAAP financial measure. We believe adjusted EBITDA provides helpful information with respect to operating performance as viewed by management, including a view of our business that is not dependent on (i) the impact of our capitalization structure and (ii) items that are not part of day-to-day operations. We define adjusted EBITDA as net loss plus (or (minus) (i) interest expense (income),depreciation, (ii) income taxinterest expense, (iii) depreciation,(interest income), (iv) income tax (benefit) or expense, and further adjusted for (iv) non-cash impairment, (v) valuationstock-based compensation expense, (vi) one-time adjustments and (vivii) stock-basednon-cash compensationimpairment expense.and valuation adjustments.

Research and Development Expense. Research and development expenses consist primarily of employee compensation costs, contractor costs and overhead allocation. We believe that continued investment in our platform is important for our growth. As a result, our research and development expenses may increase in absolute dollars as our business grows but may fluctuate as a percentage of revenue from period to period.

During 2024, interest expense included interest related to our outstanding debt, including amortization of discounts and deferred issuance costs. We also may seek additional debt financingsfinancing to fund the expansion of our business or to finance strategic acquisitions in the future, which may have an impact on our interest expense.

Software and subscriptions revenue decreasedincreased $1.3$0.4 million, or (39.6%),19.1%, for the year ended December 31, 20242025 compared to the corresponding period in 2023,2024, as a result of development fees and additional customer reimbursable costsincrease in 2023.development services revenue in 2025.

Advertising revenue decreased by $0.4$1.0 million, or (23.5%78.0%),,as a result of a decrease in advertising campaigns mainly due to decreasedsoftening levelmarket ofdemand from advertising campaigns.agency partners.

Software gross profit increased $0.1$0.5 million, or (7.5%),78.5%, for the year ended December 31, 20242025 compared to the corresponding period in 2023,2024, as a result of lowerdelivery costs associated withof customer projects duein to2025 thewhich deliverywere of a large customer projectbooked in 2023. Advertising gross profit decreased $0.2 million, or (18.1%), as a result of decreased revenue noted above.2024.

Sales and marketing expense decreasedincreased $0.7 million, or (21.7%),28.7%, for the year ended December 31, 20242025 compared to the corresponding period of 2023,2024, primarily due to aan decreaseincrease in marketing consultants and marketing spend, as well as payroll and related expenses asin aour resultsales of lower headcount.function.

Research and development expense decreasedincreased $2.2$0.9 million, or (49.1%)39.6% for the year ended December 31, 2024,2025, compared to the corresponding period of 2023,2024, primarily due to aan decreaseincrease in payrollconsulting spend in our engineering and relatedtechnical expenses as a result of lower headcount.teams.

During 2024,2025, we recorded other income of $3.6$9.1 million,million primaryprimarily as a result of a $1.7$4.3 million of interest income from earned from our cash and equivalents,equivalents $1.4and $4.9 million as a result of writeoffs of aged accounts payable and $0.5 million of a gain on the extinguishmentsprimarily related to ourthe 2022settlement Promissoryof Notelitigation (definedand elsewherearbitration herein).proceedings. Refer to Note 87 "DebtCommitments and Contingencies" of the notes to the consolidated financial statements included in Part II, Item 8 of this Annual Report on Form 10-K for further discussion on the 2022litigation Promissory Note. These items were partially offset by a $0.4 million loss on disposal of subsidiary.settlement.

Although we expect to generate operating losses and negative operating cash flows in the future, based on the financing events described above, management believes it has sufficient cash on hand for at least one year following the filing date of this Annual Report on Form 10-K.

Our primary source of cash from operating activities is receipts sales for our various product and service offerings as further described elsewhere in this Annual Report. Our primary uses of cash from operating activities are payments to employees for compensation and related expenses, publishers and other vendors for the purchase of digital media inventory and related costs, sales and marketing expenses,expenses and general operating expenses and employee and material costs for Lyte Technology, Inc. ("Lyte") in discontinued operations.expenses.

We utilized $13.3$12.5 million of cash from operating activities during 20242025 resulting from a net loss of $10.3$11.4 million. The net loss included non-cash chargesgain of $0.9$0.4 million, primarily consistingfrom a $1.0 million gain from stock-basedlitigation compensationsettlements that was partially offset by a$0.5 non-cash writeoffsmillion of accountsstock-based payable.compensation. In addition, changes in our operating assets and liabilities amounted to cash decreases resulting inof approximately $3.8$0.7 million, mainly attributable to lease liability payments and a decrease in accounts payable relatedand accrued expenses. Refer to a partial legal settlement as further detailed in the subsection "Litigation" in Note 10,7, "Commitments and Contingencies" of the notes to the consolidated financial statements included in Part II, Item 8 of this Annual Report on Form 10-K andfor leasefurther liabilitydiscussion payments.on our litigation settlements.

We utilized $18.4$13.3 million of cash from operating activities during 20232024 resulting from a net loss from continuing operations of $41.9$10.3 million. The net loss included non-cash charges of $26.9$0.9 million, primarily consisting from an impairment of goodwill, amortization of debt issuance costs primarily related to our 2022 Promissory Note, and stock-based compensation,compensation offset by anon-cash gain in the salewriteoffs of ouraged digitalaccounts assets.payable. In addition, certain changes in our operating assets and liabilities resultedamounted in significantto cash decreases asof follows:approximately $1.6$3.8 millionmillion, frommainly attributable to a combined decrease in accounts payable and accrued expenses and lease liability payments, $1.3 million from the discontinued operation of Lyte, as well as $0.4 million from other working capital changes, primarily related to a decreasepartial inlegal deferred revenue. revenuesettlement and lease liability payments.

We recently developed an AI Concierge generative AI product feature with functionalities to serve as a human-like interface in our mobile apps for hospitality customers to enhance customer engagement with guests and other visitors and provide customers with innovative opportunities to further monetize their products and services with those users. We are selling this AI product feature to current and existing customers. We also designed and demonstrated, at a major hospitality conference, an agentic AI hospitality-related product feature with functionalities to interact with and perform tasks for customer guests and are further developing this type of AI product feature and related functionalities as part of our platform for current and existing customers.platform. For instance, we anticipate this type of AI product feature will be able to provide information about and book reservations for guests at restaurants located on customer properties and for other events. Our agentic AI product feature is still in the development and testing phase.

We intend to continue investing in AI,AI and continue innovating and evolving our platforms, products and services,services for long-term growth and enterprise value. We have also invested and expect to continue investing in the expansion of our ability to market, sell and provide our current and future products and services to customers globally. We plan to continue investing in the development and improvement of new platforms, products and services to address customers’ needs. We currently do not expect to be profitable in the near future.

Backlog represents future amounts to be invoiced under our active contracts. At any point in the contract term, there can be amounts that we have not yet been contractually able to invoice. Until such time as these amounts are invoiced, they are not recorded in revenue, deferred revenue, accounts receivable or elsewhere in our condensed consolidated financial statements and are considered by us to be backlog. We expect backlog to fluctuate up or down from period to period for several reasons, including the timing and duration of customer contracts, varying billing cycles and the timing and duration of customer renewals. We reasonably expect approximately 75%71% of our backlog as of MarchJune 31,30, 2026 will be invoiced during the subsequent 12-month period.

Net revenue decreasedincreased by approximately $0.15$0.3 million, or (21.2%),75.6%, for the three months ended MarchJune 31,30, 2026, compared to the corresponding period in 2025, as a result of a decreasecustomer-initiated in development fees related to customerearly contract deliveries.termination.

Total gross profit increased minimally by approximately $0.03$0.4 million, or 7.0%,190.0%, for the three months ended MarchJune 31,30, 2026, and $0.4 million, or 70.3%, for the six months ended June 30, 2026, compared to the corresponding periodperiods in 2025. Cost of revenue decreased and gross margin percentage increased2025 as a result of fewerthe employeescustomer workingcontract ontermination customer-relatedmentioned projects.above.

Sales and marketing expense decreasedincreased approximately $0.07$0.6 million, or (7.9%)85.9% for the three months ended MarchJune 31,30, 2026, compared to the corresponding period in 2025, due to a $0.4 million increase in marketing spend, mainly for conferences and $0.4 million increase for marketing related consultants. These increases are partially offset by a $0.2 million decrease in full-time headcount, offset by an increase in sales and marketing related consultants.headcount.

General and administrative expense decreasedincreased approximately $0.76$1.1 million, or (22.0%),38.5%, for the three months ended MarchJune 31,30, 2026, compared to the corresponding period in 2025, primarily due to a decrease$0.7 million increase in legal expenses related to our ongoing litigation matter and other$0.4 professionalmillion fees.in stock-based compensation.

Research and development expense increased approximately $0.07$0.5 million, or 8.0%,49.8%, for the three months ended MarchJune 31,30, 2026, compared to the corresponding period in 2025, primarily due to headcountincrease beingin dedicatedAI toproduct, more researchdata and developmenttechnology projects.headcount and consultants for the Company's 2.0 strategy.

Other Income (Expense)

As of MarchJune 31,30, 2026, we held total cash of approximately $97.9$92.1 million, all of which was held in the United States. We have a history of operating losses and negative operating cash flows. As we continue to focus on growing our revenues, we expect these trends to continue into the foreseeable future.

Our future capital requirements will depend on many factors, including our pace of growth, subscription renewal activity, the timing and extent of spending to support development efforts, additional investments in AI technology platform andplatforms, systems and infrastructure, the expansion of sales and marketing activities and the market acceptance of our products and services. We believe that it is likely we will in the future enter into arrangements to acquire or invest in additional companies and assets, technologies, intellectual property rights, digital assets and build and develop additional platforms and systems for our products and services and create new products and services. We may be required to seek additional equity or debt financings. In the event that additional financing is required from outside sources, we may not be able to raise it on terms acceptable to us, or at all. If we are unable to raise additional capital when desired and/or on acceptable terms, our business, operating results and financial condition could be adversely affected.

We utilized $3.3$8.5 million of cash from operating activities during the threesix months ended MarchJune 31,30, 2025,2026, resulting in a net loss of $3.7$8.4 million. The net loss included non-cash charges of $0.2$0.8 million, primarily consisting of stock-based compensation. In addition, certain changes in our operating assets and liabilities resulted in a cash increasedecrease of $0.2$0.9 million, primarilymainly relatingrelated to anthe increasepayment in accounts payable andof accrued expensesexpenses, partially offset by an increase in accounts receivable.payable, and a decrease in deferred revenue.

We did not have any investing activities during the threesix months ended MarchJune 31,30, 2026 and 2025.

We did not have any financing activities during the threesix months ended MarchJune 31,30, 2026. Our financing activities during the threesix months ended MarchJune 31,30, 2025 consisted of sales of our common stock. Refer to the notes to the condensed consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for information on the Company's financing activities.

Through MarchJune 31,30, 2026, we did not have any off-balance sheet arrangements, as defined in Item 303(a)(4)(ii) of SEC Regulation S-K, such as the use of unconsolidated subsidiaries, structured finance, special purpose entities or variable interest entities.