What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2026-08-07 compared with 2026-05-08 · 239 added, 230 removed, 729 unchanged (39% of the section changed)

3 unchanged sentences

(in thousands except share amounts)

March 31, 2026

June 30, 2026

September 30, 2025

2 unchanged sentences

$ 2,833 $ 26,338

Restricted cash

Trade accounts and financing receivables, net

53 unchanged sentences

Three Months Ended

Six Months Ended

March 31, 2026

March 31, 2025

March 31, 2026

March 31, 2025

$ 18,964 $ 18,708 $ 43,353 $ 51,353

778 ( 685 ) 1,975 3,893

Nine Months Ended

June 30, 2026

June 30, 2025

June 30, 2026

June 30, 2025

Total revenue

19,742 18,023 45,328 55,246

Cost of revenue:

17,072 13,747 37,903 28,016

1,976 2,528 4,035 5,333

Total cost of revenue

19,048 16,275 41,938 33,349

694 1,748 3,390 21,897

Operating expenses:

Selling, general and administrative

7,358 6,775 15,637 14,195

Research and development

4,774 5,235 9,263 10,129

Change in fair value of contingent consideration

( 48 ) — 148 —

Provision for credit losses

Total operating expenses

12,113 12,029 25,056 24,343

Loss from operations

( 11,419 ) ( 10,281 ) ( 21,666 ) ( 2,446 )

Gain on disposal of property:

Income (loss) from operations

Other income (expense):

Interest expense

( 35 ) ( 43 ) ( 72 ) ( 87 )

Interest income

616 693 1,250 1,438

Foreign currency transaction losses, net

( 197 ) ( 255 ) ( 194 ) ( 269 )

( 25 ) ( 38 ) ( 62 ) ( 71 )

Foreign currency transaction gains (losses), net

Total other income, net

359 357 922 1,011

Loss before income taxes

( 11,060 ) ( 9,924 ) ( 20,744 ) ( 1,435 )

Income (loss) before income taxes

Income tax expense (benefit)

( 12 ) ( 126 ) 69 ( 13 )

$ ( 11,048 ) $ ( 9,798 ) $ ( 20,813 ) $ ( 1,422 )

Loss per common share:

$ ( 0.86 ) $ ( 0.77 ) $ ( 1.62 ) $ ( 0.11 )

Net income (loss)

Income (loss) per common share:

Weighted average common shares outstanding:

12,914,318 12,792,803 12,881,604 12,772,981

The accompanying notes are an integral part of the consolidated financial statements.

GEOSPACE TECHNOLOGIES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(in thousands)

Three Months Ended

Six Months Ended

March 31, 2026

March 31, 2025

March 31, 2026

March 31, 2025

$ ( 11,048 ) $ ( 9,798 ) $ ( 20,813 ) $ ( 1,422 )

Nine Months Ended

June 30, 2026

June 30, 2025

June 30, 2026

June 30, 2025

Net income (loss)

Other comprehensive income (loss):

Change in unrealized losses on available-for-sale securities, net of tax

— ( 14 ) — ( 57 )

Foreign currency translation adjustments

( 22 ) 65 ( 2 ) ( 334 )

Total other comprehensive income (loss)

( 22 ) 51 ( 2 ) ( 391 )

Total comprehensive loss

$ ( 11,070 ) $ ( 9,747 ) $ ( 20,815 ) $ ( 1,813 )

Total comprehensive income (loss)

The accompanying notes are an integral part of the consolidated financial statements.

1 unchanged sentence

CONSOLIDATED STATEMENTS OF STOCKHOLDERS ’ EQUITY

FOR THE six months ended March 31, 2026 and 2025

FOR THE nine months ended June 30, 2026 and 2025

(in thousands, except share amounts)

10 unchanged sentences

Balance at March 31, 2026

Other comprehensive income

Issuance of common stock pursuant to the vesting of restricted stock units

Common stock exchanged for withholding taxes on stock-based compensation

Stock-based compensation

Balance at June 30, 2026

Balance at October 1, 2024

9 unchanged sentences

Balance at March 31, 2025

Other comprehensive income

Issuance of common stock pursuant to the vesting of restricted stock units

Stock-based compensation

Balance at June 30, 2025

The accompanying notes are an integral part of the consolidated financial statements.

2 unchanged sentences

(in thousands)

Six Months Ended

March 31, 2026

March 31, 2025

Nine Months Ended

June 30, 2026

June 30, 2025

Cash flows from operating activities:

10 unchanged sentences

Gross loss (profit) from sale of rental equipment

(Gain) loss on disposal of property, plant and equipment

Loss (gain) on disposal of property, plant and equipment

Realized gain on investments

Change in fair value of contingent consideration

Effects of changes in operating assets and liabilities:

Trade accounts and notes receivable

Trade accounts and financing receivables

Accounts payable trade

Other liabilities

Fair value of contingent consideration

Net cash used in operating activities

9 unchanged sentences

Taxes payments on stock-based compensation for exchange of common stock

Debt issuance costs

Purchase of treasury stock

1 unchanged sentence

Effect of exchange rate changes on cash

(Decrease) increase in cash and cash equivalents

Cash and cash equivalents, beginning of period

(Decrease) increase in cash, cash equivalents and restricted cash

Cash, cash equivalents and restricted cash, beginning of period

Cash, cash equivalents and restricted cash, end of period

restricted cash

Cash and cash equivalents, end of period

1 unchanged sentence

Cash paid for income taxes

Non-cash investing and financing activities:

Financing receivables related to sale of rental equipment

6 unchanged sentences

The consolidated balance sheet of Geospace Technologies Corporation and its subsidiaries (the “Company”) at September 30, 2025 , was derived from the Company’s audited consolidated financial statements at that date.

The consolidated balance sheet at March 31, 2026 and the consolidated statements of operations, comprehensive loss, stockholders’ equity and cash flows for the three and six months ended March 31, 2026 and 2025 were prepared by the Company without audit.

The consolidated balance sheet at June 30, 2026 and the consolidated statements of operations, comprehensive income (loss), stockholders’ equity and cash flows for the three and nine months ended June 30, 2026 and 2025 were prepared by the Company without audit.

In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary to present fairly the consolidated financial position, results of operations and cash flows were made.

All significant intercompany balances and transactions have been eliminated.

The results of operations for the three and six months ended March 31, 2026 , are not necessarily indicative of the operating results for a full year or of future operations.

The results of operations for the three and nine months ended June 30, 2026 , are not necessarily indicative of the operating results for a full year or of future operations.

Certain information and footnote disclosures normally included in financial statements presented in accordance with accounting principles generally accepted in the United States of America ("U.S.

11 unchanged sentences

Such reclassifications had no effect on our previously reported net loss, stockholders' equity or cash flows.

Cash and Cash Equivalents

Cash, Cash Equivalents and Restricted Cash

The Company considers all highly liquid investments purchased with an original or remaining maturity at the time of purchase of three months or less to be cash equivalents.

At March 31, 2026 and September 30, 2025 , cash and cash equivalents included $ 0.6 million and $ 0.8 million, respectively, held by the Company’s foreign subsidiaries and branch offices.

At June 30, 2026 and September 30, 2025 , cash and cash equivalents included $ 0.7 million and $ 0.8 million, respectively, held by the Company’s foreign subsidiaries and branch offices.

At June 30, 2026 , the Company's restricted cash of $ 2.0 million consisted of cash pledged with Woodforest National Bank as security on its credit agreement.

Concentration of Credit Risk

8 unchanged sentences

Receivables are charged off against the allowance whenever it is probable that the balance will not be recoverable.

The Company had trade accounts and notes receivable from two customers of $ 15.5 million and $ 5.9 million, respectively at March 31, 2026 .

The Company recognized revenue from these two customers of $ 3.6 million and $ 27,000 , respectively, for the three months ended March 31, 2026, and revenue of $ 14.2 million and $ 49,000 , respectively, for the six months ended March 31, 2026 .

The Company recognized revenue from these two customers of zero and $ 44,000 , respectively, for the three months ended March 31, 2025, and revenue of zero and $ 0.1 million, respectively, for the six months ended March 31, 2025 .

These receivables and revenue are related to the Company's Energy Solutions segment.

The Company had trade accounts and notes receivable from one customer of $ 14.7 million at June 30, 2026 .

The Company recognized revenue from this customer for the three months and nine months ended June 30, 2026 of $ 35,000 and $ 14.2 million.

This receivable and revenue are related to the Company's Energy Solutions segment.

The Company had no revenue from this customer for the three and nine months ended June 30, 2025.

Impairment of Long-lived Assets

2 unchanged sentences

If the carrying value of the asset group exceeds the expected future cash flows, an impairment loss is recognized to the extent that the carrying value of the asset group exceeds its fair value.

During the quarter ended March 31, 2026 , no events or changes in circumstances were identified indicating the carrying value of any of the Company's asset groups may not be recoverable.

During the quarter ended June 30, 2026 , no events or changes in circumstances were identified indicating the carrying value of any of the Company's asset groups may not be recoverable.

The Company conducts its evaluation of goodwill at the reporting unit level on an annual basis as of September 30 and more frequently if events or circumstances indicate that the carrying value of a reporting unit exceeds its fair value.

2 unchanged sentences

However, if the Company concludes otherwise, then it performs a quantitative assessment.

If, based on the quantitative assessment, the Company determines that the fair value of a reporting unit is less that its carrying amount, a goodwill impairment is recognized equal to the difference between the carrying amount of the reporting unit and its fair value, not to exceed the carrying amount of the goodwill.

If, based on the quantitative assessment, the Company determines that the fair value of a reporting unit is less than its carrying amount, a goodwill impairment is recognized equal to the difference between the carrying amount of the reporting unit and its fair value, not to exceed the carrying amount of the goodwill.

Business Acquisitions

2 unchanged sentences

The Company uses multiple valuation methods to determine the fair value of assets and liabilities acquired, including discounted cash flows, external market values, valuations on recent transactions or a combination thereof, and believes that it uses the most appropriate measure or a combination of measures to value each asset or liability.

The Company utilized the excess earnings method to value its fourth quarter fiscal year 2025 acquisition of Geovox Securities, Inc.

The Company utilized the excess earnings method to value its fourth quarter fiscal year 2025 acquisition of Geovox Security, Inc.

The Company recognizes measurement-period adjustments in the reporting period in which the adjustment amounts are determined.

12 unchanged sentences

Research and development expense includes personnel costs of the Company's engineers, project expenditures, on-going product maintenance and improvements to our existing products, as well as general and administrative expenses associated with the engineering department.

Research and development expense for the three and six months ended March 31, 2026 was $ 4.8 million and $ 9.3 million, respectively.

Research and development expense for the three and six months ended March 31, 2025 was $ 5.2 million and $ 10.1 million, respectively.

Research and development expense for the three and nine months ended June 30, 2026 was $ 3.9 million and $ 13.1 million, respectively.

Research and development expense for the three and nine months ended June 30, 2025 was $ 4.2 million and $ 14.4 million, respectively.

Recently Issued Accounting Pronouncements

18 unchanged sentences

The Company’s products are generally sold without any customer acceptance provisions, and the Company’s standard terms of sale do not allow customers to return products for credit.

The Company also recognizes subscription and support revenue from the sales of its subscription and support-based Heartbeat Detector®.

Subscription and support contracts are typically for one to five years.

Subscriptions and support revenue is recognized over time as the services are performed.

The Company occasionally recognizes revenue from contracts throughout the manufacturing or service process, even prior to delivery of the completed product or service to the customer.

This overtime recognition of revenue requires that either (i) the customer simultaneously receives and consumes the economic benefits the Company provides, (ii) the Company creates or enhances an asset controlled by the customer or (iii) the Company’s performance does not create an asset for which the it has an alternative use and has an enforceable right to payment for performance completed to date.

This overtime recognition of revenue requires that either (i) the customer simultaneously receives and consumes the economic benefits the Company provides, (ii) the Company creates or enhances an asset controlled by the customer or (iii) the Company’s performance does not create an asset for which it has an alternative use and has an enforceable right to payment for performance completed to date.

Revenue from engineering services is recognized as services are rendered over the duration of a project, or as billed on a per hour basis.

17 unchanged sentences

Any future cash received from this customer will be recognized as rental revenue.

At March 31, 2026 and September 30, 2025 , the Company had deferred contract liabilities of $ 13.0 million and zero , respectively.

At March 31, 2026 and September 30, 2025 , the Company had no deferred contract assets.

During the three and six months ended March 31, 2026 and 2025, no revenue or cost of revenue was recognized from deferred contract costs or deferred contract asset.

At March 31, 2026 and October 1, 2025, the Company had accounts receivable from contracts with customers of $ 5.3 million and $ 11.4 million, respectively.

At March 31, 2025 and October 1, 2024, the Company had accounts receivable from contracts with customers of $ 13.2 million and $ 12.6 million, respectively.

At June 30, 2026 , and September 30, 2025, the Company had deferred contract liabilities and deferred contract assets of $ 11.4 million and zero , respectively.

The Company had no deferred contract liabilities or deferred contract assets at September 30, 2025 and October 1, 2024.

During the three and nine months ended June 30, 2026 and 2025, no revenue or cost of revenue was recognized from deferred contract costs or deferred contract asset.

At June 30, 2026 and October 1, 2025, the Company had accounts receivable from contracts with customers of $ 5.7 million and $ 11.4 million, respectively.

At June 30, 2025 and October 1, 2024, the Company had accounts receivable from contracts with customers of $ 12.4 million and $ 12.6 million, respectively.

Accounts receivable from contracts with customers exclude accounts receivable from rental contracts.

For the three and six months ended March 31, 2026 revenue of $ 3.6 million and $ 4.0 million, respectively, was recognized from contracts with customers satisfied over-time, which was from the Company's Energy Solutions segment.

For the three and six months ended March 31, 2025 no revenue was recognized from contracts with customers satisfied over-time.

At March 31, 2026 , the aggregate amount of transaction price allocation to unsatisfied performance obligations on contracts with a duration in excess of one year was approximately $ 89 million.

For the three and nine months ended June 30, 2026 revenue of $ 2.1 million and $ 6.1 million, respectively, was recognized from contracts with customers satisfied over-time, which was from the Company's Energy Solutions segment.

For the three and nine months ended June 30, 2025 revenue of $ 0.5 million and $ 0.7 million, respectively, was recognized from contracts with customers satisfied over-time.

At June 30, 2026 , the aggregate amount of transaction price allocation to unsatisfied performance obligations on contracts with a duration in excess of one year was approximately $ 98 million.

The majority of these unsatisfied performance obligations are expected to be fulfilled by the third quarter of fiscal year 2027.

4 unchanged sentences

Three Months Ended

Six Months Ended

March 31, 2026

March 31, 2025

March 31, 2026

March 31, 2025

Nine Months Ended

June 30, 2026

June 30, 2025

June 30, 2026

June 30, 2025

$ 4,622 $ 10,518 $ 14,106 $ 27,278

8 unchanged sentences

Three Months Ended

Six Months Ended

March 31, 2026

March 31, 2025

March 31, 2026

March 31, 2025

Nine Months Ended

June 30, 2026

June 30, 2025

June 30, 2026

June 30, 2025

Asia (including Russian Federation)

16 unchanged sentences

The following tables present the fair value of the Company’s recurring contingent consideration (in thousands):

As of March 31, 2026

As of June 30, 2026

Contingent consideration liabilities:

12 unchanged sentences

The maximum amount of contingent payments is $ 3.3 million.

The following table summarizes the changes in the fair value of the contingent consideration during the six months ended March 31, 2026 :

The following table summarizes the changes in the fair value of the contingent consideration during the nine months ended June 30, 2026 :

Balance at October 1, 2024

Acquisition of Geovox

Balance at September 30, 2025

Fair value adjustments

Balance at March 31, 2026

Balance at June 30, 2026

Less current portion

Non-current balance at March 31, 2026

The Company had no contingent consideration during the six months ended March 31, 2025 .

Non-current balance at June 30, 2026

Trade Accounts and Financing Receivables

Trade accounts receivable, net, reflected in the following table (in thousands):

March 31, 2026

June 30, 2026

September 30, 2025

9 unchanged sentences

Three Months Ended

Six Months Ended

March 31, 2026

March 31, 2025

March 31, 2026

March 31, 2025

Nine Months Ended

June 30, 2026

June 30, 2025

June 30, 2026

June 30, 2025

Allowance for credit losses:

3 unchanged sentences

( 11 ) ( 3 ) ( 50 ) ( 3 )

Charge-offs, net

— 2 ( 44 ) ( 1 )

2 unchanged sentences

Financing receivables, net, are reflected in the following table (in thousands):

March 31, 2026

June 30, 2026

September 30, 2025

29 unchanged sentences

In November 2024, the Company entered into a sales-type lease with a customer on ocean bottom equipment from its rental fleet.

The lease, which matured in October 2025, had a remaining unpaid principal balance of $ 1.0 million at March 31, 2026.

The lease, which matured in October 2025, had a remaining unpaid principal balance of $ 1.0 million at June 30, 2026.

Ownership of the equipment will transfer to the customer when the unpaid principal has been paid.

Interest income recognized on the lease for the fiscal year ended September 30, 2025 and for the six months ended March 31, 2026 was $ 0.6 million and $ 6,000 , respectively.

Interest income recognized on the lease for the fiscal year ended September 30, 2025 and for the nine months ended June 30, 2026 was $ 0.6 million and $ 6,000 , respectively.

In August 2024, the Company entered into a $ 9.4 million promissory note with a customer related to a product sale.

10 unchanged sentences

Inventories consist of the following (in thousands):

March 31, 2026

June 30, 2026

September 30, 2025

11 unchanged sentences

$ 11,141 $ 17,113

Inventory obsolescence expense for the three and six months ended March 31, 2026 was $ 1.3 million and $ 1.8 million, respectively.

Inventory obsolescence expense for the three and six months ended March 31, 2025 was $ 0.4 million and $ 0.9 million, respectively.

Raw materials include semi-finished goods and component parts that totaled approximately $ 10.1 million and $ 9.1 million at March 31, 2026 and September 30, 2025 , respectively.

Inventory obsolescence expense for the three and nine months ended June 30, 2026 was $.0.6 million and $ 2.3 million, respectively.

Inventory obsolescence expense for the three and nine months ended June 30, 2025 was $ 0.2 million and $ 1.1 million, respectively.

Raw materials include semi-finished goods and component parts that totaled approximately $ 9.3 million and $ 9.1 million at June 30, 2026 and September 30, 2025 , respectively.

Property, Plant and Equipment

Property, plant and equipment consist of the following (in thousands):

March 31, 2026

June 30, 2026

September 30, 2025

13 unchanged sentences

$ 22,759 $ 23,244

Property, plant and equipment depreciation expense for the three and six months ended March 31, 2026 was $ 1.3 million and $ 2.5 million, respectively.

Property, plant and equipment depreciation expense for the three and six months ended March 31, 2025 was $ 0.9 million and $ 1.8 million, respectively.

On August 3, 2026, the Company sold its warehouse in Bogotá, Colombia.

The property was owned by a wholly-owned subsidiary of the Company and represented substantially the Company's entire investment in the subsidiary.

In connection with sale, the Company will derecognize the subsidiary’s cumulative translation losses currently included as a component of other comprehensive loss.

A loss on the derecognition of the group of assets, which is estimated to be approximately $ 2.5 million, will be included in the Company’s statements of operations in the fourth quarter of fiscal year 2026.

Property, plant and equipment depreciation expense for the three and nine months ended June 30, 2026 was $ 1.3 million and $ 3.7 million, respectively.

Property, plant and equipment depreciation expense for the three and nine months ended June 30, 2025 was $ 0.9 million and $ 2.7 million, respectively.

Rental Equipment

5 unchanged sentences

The Company suspends revenue recognition when the collectability of amounts due are no longer probable and concurrently records a direct write-off of the lease receivable to rental revenue and limits future rental revenue recognition to cash received.

At March 31, 2026 and September 30, 2025, the Company’s trade accounts receivable included lease receivables of $ 0.9 million and $ 1.0 million, respectively.

At March 31, 2026 , the Company had no future minimum lease obligations due from leasing customers on operating leases.

At June 30, 2026 and September 30, 2025, the Company’s trade accounts receivable included lease receivables of $ 0.9 million and $ 1.0 million, respectively.

At June 30, 2026 , the Company had future minimum lease obligations due from leasing customers on operating leases of $ 1.2 million.

Rental equipment consisted of the following (in thousands):

March 31, 2026

June 30, 2026

September 30, 2025

4 unchanged sentences

$ 4,560 $ 8,120

Rental equipment depreciation expense for the three and six months ended March 31, 2026 was $ 1.3 million and $ 2.5 million, respectively.

Rental equipment depreciation expense for the three and six months ended March 31, 2025 was $ 1.5 million and $ 3.4 million, respectively.

Rental equipment depreciation expense for the three and nine months ended June 30, 2026 was $ 1.3 million and $ 3.7 million, respectively.

Rental equipment depreciation expense for the three and nine months ended June 30, 2025 was $ 1.4 million and $ 4.8 million, respectively.

Long-Term Debt

The Company had no long-term debt outstanding at March 31, 2026 or September 30, 2025.

The Company had no long-term debt outstanding at June 30, 2026 or September 30, 2025.

On August 29, 2025, the Company amended and restated its credit agreement (“the Agreement”) with Woodforest National Bank.

The Agreement extended the Company’s revolving loan agreement, dated as of July 26, 2023, with Woodforest.

The Agreement is for a three -year term and provides a revolving credit facility with a maximum availability of $ 25 million.

The Agreement is for a three -year term expiring August 29, 2028 and provides a revolving credit facility with a maximum availability of $ 25 million.

Interest shall accrue on outstanding borrowings at 30 Day Term SOFR plus a margin equal to 2.75 % per annum.

4 unchanged sentences

Effective December 31, 2025, the Company entered into a limited waiver agreement with Woodforest which waived its springing minimum interest coverage ratio through February 16, 2027.

At March 31, 2026 , the Company was in compliance with all covenants under the Agreement.

At June 30, 2026 , the Company was in compliance with all covenants under the Agreement.

On May 5, 2026, the Company entered into an amendment to its Agreement which removed the springing minimum interest coverage requirement.

This amendment requires the Company to maintain a $ 2.0 million cash reserve pledged to Woodforest and is primarily secured by the Company's Pinemont facility.

The Company incurred debt issuance costs of $ 0.1 million for the nine months ended June 30, 2026 related to the amendment.

Stock-Based Compensation

During the six months ended March 31, 2026 , the Company issued 147,250 restricted stock units (“RSUs”) under its 2014 Long Term Incentive Plan, as amended.

During the nine months ended June 30, 2026 , the Company issued 147,250 restricted stock units (“RSUs”) under its 2014 Long Term Incentive Plan, as amended.

The RSUs issued include both time-based and performance-based vesting provisions.

2 unchanged sentences

Each RSU represents a contingent right to receive one share of the Company’s common stock upon vesting.

As of March 31, 2026 , there were 300,512 RSUs outstanding.

For the three and six months ended March 31, 2026 , stock-based compensation expense was $ 0.3 million and $ 0.7 million, respectively.

For the three and six months ended March 31, 2025 stock-based compensation expense was $ 0.5 million and $ 0.9 million, respectively.

As of June 30, 2026 , there were 283,134 RSUs outstanding.

For the three and nine months ended June 30, 2026 , stock-based compensation expense was $ 0.3 million and $ 1.0 million, respectively.

For the three and nine months ended June 30, 2025 stock-based compensation expense was $ 0.3 million and $ 1.2 million, respectively.

The Company accounts for forfeitures as they occur and records compensation costs under the assumption that the holder will complete the requisite service period.

As of March 31, 2026 , the Company had unrecognized compensation expense of $ 2.7 million relating to RSUs that is expected to be recognized over the next four years.

Loss Per Common Share

The following table summarizes the calculation of net loss and weighted average common shares and common equivalent shares outstanding for purposes of the computation of loss per share (in thousands, except share and per share data):

As of June 30, 2026 , the Company had unrecognized compensation expense of $ 2.2 million relating to RSUs that is expected to be recognized over the next four years.

Income (Loss) Per Common Share

The following table summarizes the calculation of net loss and weighted average common shares and common equivalent shares outstanding for purposes of the computation of income (loss) per share (in thousands, except share and per share data):

Three Months Ended

Six Months Ended

March 31, 2026

March 31, 2025

March 31, 2026

March 31, 2025

Nine Months Ended

June 30, 2026

June 30, 2025

June 30, 2026

June 30, 2025

Net income (loss)

$ ( 9,708 ) $ 760 $ ( 30,521 ) $ ( 662 )

Weighted average number of common share equivalents:

Common shares used in basic loss per share

Common shares used in basic income (loss) per share

12,934,962 12,805,414 12,899,390 12,783,832

Common share equivalents outstanding related to RSUs

Total weighted average common shares and common share equivalents used in diluted loss per share

Total weighted average common shares and common share equivalents used in diluted income (loss) per share

12,934,962 12,805,414 12,899,390 12,783,832

Loss per share:

Income (loss) per share:

$ ( 0.75 ) $ 0.06 $ ( 2.37 ) $ ( 0.05 )

For the calculation of diluted loss per share for each of the three and six months ended March 31, 2026 , there were 300,512 non-vested RSU's excluded from the calculation of weighted average shares outstanding since their impact on diluted loss per share was antidilutive.

For the calculation of diluted loss per share for each of the three and six months ended March 31, 2025 , there were 354,965 non-vested RSU's excluded from the calculation of weighted average shares outstanding since their impact on diluted loss per share was antidilutive.

For the calculation of diluted income (loss) per share for each of the three and nine months ended June 30, 2026 , there were 283,134 non-vested RSU's excluded from the calculation of weighted average shares outstanding since their impact on diluted loss per share was antidilutive.

For the calculation of diluted income (loss) per share for each of the three and nine months ended June 30, 2025 , there were 350,318 non-vested RSU's excluded from the calculation of weighted average shares outstanding since their impact on diluted income (loss) per share was antidilutive.

Commitments and Contingencies

33 unchanged sentences

Three Months Ended

Six Months Ended

March 31, 2026

March 31, 2025

March 31, 2026

March 31, 2025

Nine Months Ended

June 30, 2026

June 30, 2025

June 30, 2026

June 30, 2025

$ 4,622 $ 10,518 $ 14,106 $ 27,278

12 unchanged sentences

44 38 103 101

15,308 17,304 57,246 50,653

Gross profit (loss):

5 unchanged sentences

41 44 151 137

496 7,539 3,886 29,436

Operating expenses:

6 unchanged sentences

10,634 11,786 35,690 36,129

Gain on disposal of property

— 4,616 — 4,616

Income (loss) from operations:

16 unchanged sentences

Intelligent Industrial

40 44 112 131

Depreciation and amortization expenses:

7 unchanged sentences

Inventory obsolescence and stock-based compensation expenses:

177 17 361 23

Energy Solutions

10 unchanged sentences

Three Months Ended

Six Months Ended

March 31, 2026

March 31, 2025

March 31, 2026

March 31, 2025

Nine Months Ended

June 30, 2026

June 30, 2025

June 30, 2026

June 30, 2025

United States

6 unchanged sentences

Three Months Ended

Six Months Ended

March 31, 2026

March 31, 2025

March 31, 2026

March 31, 2025

Nine Months Ended

June 30, 2026

June 30, 2025

June 30, 2026

June 30, 2025

Asia (including Russian Federation)

12 unchanged sentences

Long-lived asset balances are as follows (in thousands):

March 31, 2026

June 30, 2026

September 30, 2025

3 unchanged sentences

$ 56,318 $ 64,537

Consolidated income tax expense (benefit) for the three and six months ended March 31, 2026 was $( 12,000 ) and $ 69,000 , respectively.

Consolidated income tax benefit for the three and six months ended March 31, 2025 was $( 126,000 ) and $( 13,000 ), respectively.

Consolidated income tax expense (benefit) for the three and nine months ended June 30, 2026 was $( 1,000 ) and $ 68,000 , respectively.

Consolidated income tax expense for the three and nine months ended June 30, 2025 was $ 68,000 and $ 55,000 , respectively.

The primary difference between the Company's effective tax rate and the statutory rate is adjustments to the valuation allowance against deferred tax assets.

2 unchanged sentences

This plan will result in an approximate 20 % reduction in Company's global workforce, and together with cost-containment measures are expected to produce approximately $ 10 million of annualized cash savings.

In connection with the workforce reduction, the Company incurred $ 0.7 million of termination costs in its second quarter of fiscal year 2026 and expects to incur $ 0.7 million of termination costs in its third quarter of fiscal year 2026.

In connection with the workforce reduction, the Company incurred $ 1.1 million of termination costs for the nine months ended June 30, 2026.

These charges primarily relate to employee transition, severance payments, and employee benefits.

At March 31, 2026, the Company had liabilities related to the termination costs of $ 0.7 million.

At June 30, 2026, the Company had liabilities related to the termination costs of $ 0.1 million.

Management ’ s Discussion and Analysis of Financial Condition and Results of Operations

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Three Months Ended

Six Months Ended

March 31, 2026

March 31, 2025

March 31, 2026

March 31, 2025

Nine Months Ended

June 30, 2026

June 30, 2025

June 30, 2026

June 30, 2025

Product revenue

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Total revenue

Loss from operations

Income (Loss) from operations

Intelligent Industrial

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Rental revenue

Loss from operations

Income (loss) from operations

Consolidated Totals

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Total revenue

Loss from operations

Income (loss) from operations

Business Overview

Our Smart Water segment has experienced a decline in sales in fiscal year 2026, however we believe this decline is temporary, largely due to overstocking by our customers in the prior fiscal year.

Our Smart Water segment has experienced a decline in sales in fiscal year 2026, due to a decrease in demand for our Hydroconn® products.

Growing industry acceptance of our water meter cables and connectors provides a strong enabler for additional revenue from our Smart Water segment.

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Revenue from this contract is being recognized in our Energy Solutions segment over the duration of the contract.

We continue to maintain a strong balance sheet with no debt.

Our current liquidity enables our ability to seek out business acquisitions and allows us to continue investments in capital assets and product research and development, which have historically driven revenue growth.

Three and six months ended March 31, 2026 compared to the three and six months ended March 31, 2025

Consolidated revenue for the three months ended March 31, 2026, was $19.7 million, an increase of $1.7 million, or 9.5%, from the corresponding period of the prior fiscal year.

The increase for the three months ended March 31, 2026 was primarily due to higher revenue from our Energy Solutions segment, which included initial revenue of $3.6 million recognized on our PRM contract.

The increase was largely offset by lower demand for our Hydroconn® cable and connector products from our Smart Water segment.

Furthermore, during the second quarter of the prior fiscal year, we determined the collectability of a receivable from an ocean bottom rental customer was less than probable.

As a result of this determination, the rent receivable balance due from this customer of $2.2 million was reversed against rental revenue.

As a result of reversal, our consolidated rental revenue for the three months ended March 31, 2025 was in a negative position ($0.7 million).

Consolidated revenue for the six months ended March 31, 2026, was $45.3 million, a decrease of $9.9 million, or 18.0%, from the corresponding period of the prior fiscal year.

The decrease for the six months ended March 31, 2026 was primarily due to lower demand for our Hydroconn® cable and connector products from our Smart Water segment.

The decrease in consolidated revenue was also due to lower revenue from our Energy Solutions segment attributable to a $17 million sale of ocean bottom nodes in the first quarter of fiscal year 2025, which was largely offset by an increase in demand for our wireless land-based Pioneer™.

Consolidated gross profit for the three months ended March 31, 2026, was $0.7 million, compared to $1.7 million from the corresponding period of the prior fiscal year.

The decrease for the three months ended March 31, 2026 was primarily due to the decrease in revenue and related gross profits from our Smart Water segment.

Consolidated gross profit for the six months ended March 31, 2026, was $3.4 million, compared to $21.9 million from the corresponding period of the prior fiscal year.

The decrease in gross profit for the six months ended March 31, 2026 was primarily due to (i) a high gross margin on our $17 million sale of ocean bottom nodes in the first quarter of fiscal year 2025 and (ii) the decrease in revenue and gross profits from our Smart Water segment.

The decrease in gross profit for both three and six months ended March 31, 2026 was also attributable to an increase in tariffs on the raw materials we purchase.

Consolidated operating expenses for the three months ended March 31, 2026, were $12.1 million, an increase of $0.1 million, or 0.7%, from the corresponding period of the prior fiscal year.

Consolidated operating expenses for the six months ended March 31, 2026, were $25.1 million, an increase of $0.7 million, or 2.9% from the corresponding period of the prior fiscal year.

The increase for both periods was primarily due to (i) an increase in sales and marketing costs, (ii) higher professional fees and (iii) severance costs.

The increase in operating expenses six months ended March 31, 2026 was partially offset by a decrease in research and development expenses, primarily personnel costs and project expenditures.

Consolidated other income was unchanged for the three months ended March 31, 2026 and 2025.

Consolidated other income for the six months ended March 31, 2026, decreased $0.1 million, or 8.8% from the corresponding period of the prior fiscal year.

The decrease was principally due to (i) a decrease in interest income on short-term investments and (ii) a decrease in foreign exchange transaction losses.

Three and nine months ended June 30, 2026 compared to the three and nine months ended June 30, 2025

Consolidated revenue for the three months ended June 30, 2026, was $15.8 million, a decrease of $9.0 million, or 36.4%, from the corresponding period of the prior fiscal year.

The decrease for the three months ended June 30, 2026 was primarily due to lower demand for our Hydroconn® cable and connector products from our Smart Water segment.

The decrease was also due to lower revenue from our Energy Solutions segment, primarily due to a sale of our marine recovery device in the corresponding period in the prior fiscal year.

The decrease was partially offset by revenue recognized on our PRM contract.

The decrease for the nine months ended June 30, 2026 was primarily due to lower demand for our Hydroconn® cable and connector products from our Smart Water segment.

Consolidated gross profit for the three months ended June 30, 2026, was $0.5 million, compared to $7.5 million from the corresponding period of the prior fiscal year.

The decrease for the three months ended June 30, 2026 was primarily due to the decrease in revenue and related gross profits from our Smart Water segment.

Consolidated gross profit for the nine months ended June 30, 2026, was $3.9 million, compared to $29.4 million from the corresponding period of the prior fiscal year.

The decrease was also attributable to a high gross profit on the sale of our marine recovery device in the corresponding period of the prior fiscal year.

The decrease in gross profit for the nine months ended June 30, 2026 was primarily due to (i) a high gross margin on our $17 million sale of ocean bottom nodes in the first quarter of fiscal year 2025 and (ii) the decrease in revenue and gross profits from our Smart Water segment.

The decrease in gross profit for both three and nine months ended June 30, 2026 was also attributable to an increase in tariffs on the raw materials we purchase.

Consolidated operating expenses for the three months ended June 30, 2026, were $10.6 million, a decrease of $1.2 million, or 9.8%, from the corresponding period of the prior fiscal year.

The decrease for the three months ended June 30, 2026 was largely due to (i) a decrease personnel costs, (ii) agent commissions and (iii) lower legal and professional fees incurred during the period.

Consolidated operating expenses for the nine months ended June 30, 2026, were $35.7 million, a decrease of $0.4 million, or 1.2% from the corresponding period of the prior fiscal year.

The decrease for the nine months ended June 30, 2026 was primarily due to (i) a decrease in research and development costs, primarily personnel costs and project costs and (ii) agent commission.

In June 2025, we sold our property located at 4318 Northfield Lane in Houston, Texas.

The 17.3-acre property served as additional parking for our main campus and contained legacy structures used to support our manufacturing and warehousing operations.

We recognized a gain on disposal of property of $4.6 million during the third quarter of fiscal year 2025.

The gain is included as a component of income (loss) from operations.

Consolidated other income was unchanged for the three months ended June 30, 2026 compared to the corresponding period of the prior fiscal year.

Consolidated other income for the

nine months ended June 30, 2026 decreased

$0.1 million, or

8.1%, from the corresponding period of the prior fiscal year.

The decrease was principally due to a decrease in interest income on short-term investments.

Segment Results of Operations

Revenue from our Smart Water segment for the three months ended March 31, 2026, decreased $5.7 million, or 60.6%, from the corresponding period of the prior fiscal year.

Revenue from our Smart Water segment for the six months ended March 31, 2026, decreased $7.3 million, or 43.4%, from the corresponding period of the prior fiscal year.

Revenue from our Smart Water segment for the three months ended June 30, 2026, decreased $5.9 million, or 56.1%, from the corresponding period of the prior fiscal year.

Revenue from our Smart Water segment for the nine months ended June 30, 2026, decreased $13.2 million, or 48.3%, from the corresponding period of the prior fiscal year.

The decrease for both periods was primarily due to a decrease in demand for our Hydroconn® cable and connector products.

We believe this decline is temporary due to overstocking by our customers in the prior fiscal year.

Operating Income (Loss)

Operating loss from our Smart Water segment for the three months ended March 31, 2026, was $(1.6) million, in comparison to operating income of $1.4 million from the corresponding period of the prior fiscal year.

Operating loss from our Smart Water segment for the six months ended March 31, 2026, was $(2.4) million, in comparison to operating income of $1.8 million from the corresponding period of the prior fiscal year.

The decrease for both periods was primarily due the decrease in revenue and related gross profits.

The decrease for the six months ended March 31, 2026 was also attributable to higher research and development expense, largely personnel costs.

Operating loss from our Smart Water segment for the three months ended June 30, 2026, was $(0.9) million, in comparison to operating income of $2.2 million from the corresponding period of the prior fiscal year.

Operating loss from our Smart Water segment for the nine months ended June 30, 2026, was $(3.4) million, in comparison to operating income of $4.0 million from the corresponding period of the prior fiscal year.

The decrease for both periods was primarily due the decrease in revenue and related gross profits, in addition to agent commissions.

The decrease for the nine months ended June 30, 2026 was also attributable to higher research and development expense, largely personnel costs.

Energy Solutions

Revenue from our Energy Solutions segment for the three months ended March 31, 2026, increased $7.0 million, or 272.1%, from the corresponding period of the prior fiscal year.

Revenue from our Energy Solutions segment for the six months ended March 31, 2026, decreased $2.6 million, or 9.7%, from the corresponding period of the prior fiscal year.

The components of this changes were as follows:

Product Revenue – For the three months ended March 31, 2026, product revenue increased $5.6 million, or 164.1%, from the corresponding period of the prior fiscal year.

The increase for the three months ended March 31, 2026 was primarily due (i) an increase in demand for our wireless land-based Pioneer™ and (ii) initial revenue of $3.6 million recognized on our PRM contract.

For the six months ended March 31, 2026, product revenue decreased $0.7 million, or 2.9%, from the corresponding period of the prior fiscal year.

Revenue for the six months ended March 31, 2025 included a $17 million sale of ocean bottom nodes.

The decrease for the six months ended March 31, 2026 was partially offset by an increase in demand for our wireless land-based Pioneer™.

Rental Revenue – For the three months ended March 31, 2026, rental revenue from our ocean bottom nodes was $0.7 million, compared to a negative position ($0.8 million) for the corresponding period of the prior fiscal year.

For the six months ended March 31, 2026, rental revenue from our ocean bottom nodes was $1.7 million, a decrease of $1.9 million, or 52.9%, in comparison to the corresponding period of the prior fiscal year.

Revenue from our Energy Solutions segment for the three months ended June 30, 2026, decreased $2.3 million, or 27.8%, from the corresponding period of the prior fiscal year.

Revenue from our Energy Solutions segment for the nine months ended June 30, 2026, decreased $4.9 million, or 13.9%, from the corresponding period of the prior fiscal year.

The components of these decreases were as follows:

Product Revenue – For the three months ended June 30, 2026, product revenue decreased $1.2 million, or 18.5%, from the corresponding period of the prior fiscal year.

The decrease for the three months ended June 30, 2026 was primarily due our sale of a marine recovery device in the third quarter of fiscal year 2025.

The decrease was partially offset by revenue of $1.4 million recognized on our PRM contract during the three months ended June 30, 2026.

For the nine months ended June 30, 2026, product revenue decreased $1.9 million, or 6.4%, from the corresponding period of the prior fiscal year.

Revenue for the nine months ended June 30, 2025 included a $17 million sale of ocean bottom nodes.

The decrease for the nine months ended June 30, 2026 was partially offset by revenue of $5.0 million recognized on our PRM contract.

Rental Revenue – For the three months ended June 30, 2026, rental revenue from our ocean bottom nodes was $0.5 million, compared to $1.5 million from the corresponding period of the prior fiscal year.

For the nine months ended June 30, 2026, rental revenue from our ocean bottom nodes was $2.2 million, a decrease of $3.0 million, or 57.6%, in comparison to the corresponding period of the prior fiscal year.

During the second quarter of the prior fiscal year, we determined the collectability of a receivable from an ocean bottom rental customer was less than probable.

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Operating Income (Loss)

Operating loss associated with our Energy Solutions segment for the three months ended March 31, 2026, was $(4.8) million, compared $(6.7) million for the corresponding period of the prior fiscal year.

The decrease in operating loss was primarily due to the increase in revenue and related gross profits.

Operating loss for the six months ended March 31, 2026, was $(8.2) million, compared to operating income of $6.6 million for the corresponding period of the prior fiscal year.

This decrease was primarily attributable to the decrease in revenue, largely rental revenue, coupled by a high gross margin on our $17 million sale of ocean bottom nodes in the first quarter of fiscal year 2025.

Operating loss associated with our Energy Solutions segment for the three months ended June 30, 2026, was $(4.6) million, compared to $(1.2) million for the corresponding period of the prior fiscal year.

The increase in operating loss was primarily due to the decrease in revenue and related gross profits.

Operating loss for the nine months ended June 30, 2026, was $(12.8) million, compared to operating income of $5.4 million for the corresponding period of the prior fiscal year.

This decrease was primarily attributable to the decrease in revenue due to (i) a high gross margin on our $17 million sale of ocean bottom nodes in the first quarter of fiscal year 2025 and (ii) lower utilization of our ocean bottom rental fleet.

Intelligent Industrial

Revenue from our Intelligent Industrial segment for the three months ended March 31, 2026, increased $0.4 million, or 7.1%, from the corresponding period of the prior fiscal year.

The increase was primarily due to an increase in demand for our contract manufacturing services.

Revenue from our Intelligent Industrial segment for the six months ended March 31, 2026, decreased $0.1 million, or 0.4%, from the corresponding period of the prior fiscal year.

The decrease in revenue for the six months ended March 31, 2026, was primarily due to a decrease in demand for our industrial sensor products, largely offset by increased demand for our contract manufacturing services.

Revenue from our Intelligent Industrial segment for the three months ended June 30, 2026, decreased $0.9 million, or 14.5%, from the corresponding period of the prior fiscal year.

Revenue from our Intelligent Industrial segment for the nine months ended June 30, 2026, decreased $0.9 million, or 5.3%, from the corresponding period of the prior fiscal year.

The decrease for both periods was primarily due to a decrease in demand for our industrial sensor products.

The decrease for the three months ended June 30, 2026 was also due to a decrease in demand for our contract manufacturing services.

At the end of our third quarter of fiscal year 2027, we received a $10.8 million contract to deliver a seismic acoustic detection system to the U.S.

The contract is expected to be completed by the end of the first quarter of fiscal year 2028.

Revenue from the contract is expected to be recognized over the duration of the contract.

Operating Loss

Operating loss from our Intelligent Industrial segment for the three months ended March 31, 2026 decreased $0.7 million, or 54.4%, from the corresponding period of the prior fiscal year.

The decrease in operating loss for the three months ended March 31, 2026 was primarily due to the increase in revenue and related gross profits.

Operating loss for the six months ended March 31, 2026 decreased $0.8 million, or 37.1%, from the corresponding period of the prior fiscal year.

The decrease in operating loss for the six months ended March 31, 2026 was primarily due to lower research and development expense, principally personnel costs.

Operating loss from our Intelligent Industrial segment for the three months ended June 30, 2026 decreased $0.6 million, or 55.4%, from the corresponding period of the prior fiscal year.

Operating loss for the nine months ended June 30, 2026 decreased $1.4 million, or 43.0%, from the corresponding period of the prior fiscal year.

The decrease in operating loss for both periods was primarily due to lower research and development expense, principally personnel costs.

Liquidity and Capital Resources

At March 31, 2026, we had $13.4 million in cash and cash equivalents.

For the six months ended March 31, 2026, we used $16.7 million of cash from operating activities.

Uses of cash included (i) our net loss of $20.8 million, offset by non-cash charges of $7.7 million resulting from deferred income taxes, depreciation, amortization, accretion, inventory obsolescence, stock-based compensation and provision for credit losses, a (ii) $2.8 million increase in inventories largely due to material purchases for use in our PRM contract, (iii) $2.4 million increase in notes receivable on product sales, (iv) $5.2 million decrease in trade accounts payable primarily due the timing of payments and (v) $2.6 million increase in other assets, primarily due to prepaid product purchases related to our PRM contract.

At June 30, 2026, we had $4.8 million in cash, cash equivalents and restricted cash.

For the nine months ended June 30, 2026, we used $27.3 million of cash from operating activities.

Uses of cash included (i) our net loss of $30.5 million, offset by non-cash charges of $11.2 million resulting from deferred income taxes, depreciation, amortization, accretion, inventory obsolescence, stock-based compensation and provision for credit losses, a (ii) $5.4 million increase in inventories largely due to material purchases for use in our PRM contract, (iii) $1.5 million increase in notes receivable on product sales, (iv) $4.1 million decrease in trade accounts payable primarily due the timing of payments and (v) $3.3 million increase in other assets, primarily due to (i) prepaid product purchases related to our PRM contract and (ii) prepaid insurance related to the renewal of our insurance policies.

These uses of cash were partially offset by a $5.8 million increase in other liabilities, primarily deferred contract liabilities related to our PRM contract.

For the six months ended March 31, 2026, we generated cash of $4.0 million in investing activities.

For the nine months ended June 30, 2026, we generated cash of $6.2 million in investing activities.

Sources of cash included $9.4 million of proceeds from the sale of rental equipment, partially offset by $3.3 million used for additions to our property, plant and equipment.

We do not expect significant cash investments in property, plant and equipment or our rental fleet for the remainder of fiscal year 2026.

For the six months ended March 31, 2026, we used $0.3 million from financing activities for tax payments on stock-based compensation for the exchange of common stock.

For the nine months ended June 30, 2026, we used $0.4 million from financing activities primarily for tax payments on stock-based compensation for the exchange of common stock.

On August 29, 2025, we amended and restated our credit agreement (“the Agreement”) with Woodforest National Bank.

The Agreement extended our revolving loan agreement, dated as of July 26, 2023, with Woodforest.

The Agreement is for a three-year term and provides a revolving credit facility with a maximum availability of $25 million.

The Agreement is for a three-year term expiring August 29, 2028 and provides a revolving credit facility with a maximum availability of $25 million.

Interest shall accrue on outstanding borrowings at 30 Day Term SOFR plus a margin equal to 2.75% per annum.

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Effective December 31, 2025, we entered into a limited waiver agreement with Woodforest which waived our springing minimum interest coverage ratio through February 16, 2027.

At March 31, 2026 we were in compliance with all financial and non-financial covenants under the Agreement.

We had no debt outstanding at March 31, 2026 and had a borrowing availability of $25 million.

On May 5, 2026, we entered into an amendment to our Agreement which removed the springing minimum interest coverage requirement.

At June 30, 2026 we were in compliance with all financial and non-financial covenants under the Agreement.

We had no debt outstanding at June 30, 2026 and had a borrowing availability of $25 million.

On May 5, 2026, we entered into an amendment the Agreement which removed the springing minimum interest coverage requirement.

This amendment requires us to maintain a $2 million cash reserve pledged to Woodforest and is primarily secured by our Pinemont facility.

Our available cash and cash equivalents decreased $13 million during the first six months of fiscal year 2026, largely due to the decrease in revenue across all of our segments.

Our available cash and cash equivalents decreased $24 million during the first nine months of fiscal year 2026, largely due to the decrease in revenue across all of our segments.

At the end of the second quarter of fiscal year 2026 we implemented an organizational change plan, which included a voluntary early retirement plan available to eligible qualifying employees as well as a reduction in force.

This plan will result in an approximate 20% reduction our global workforce, and together with cost-containment measures are expected to produce approximately $10 million of annualized cash savings.

We anticipate receiving our next installment payment from our PRM customer of approximately $35 million by the end of the calendar year.

In the absence of future profitable results of operations, we may need to rely on other sources of liquidity to fund our future operations, including our backlog, executed rental contracts, available borrowings under the Agreement through its expiration in July 2028, sales or leveraging real estate assets, sales of rental assets and other liquidity sources which may be available to us.

We currently believe that our cash, and amounts available under the Agreement if needed, will be sufficient to finance any future operating losses and planned capital expenditures through the next twelve months.

We anticipate receiving our next installment payment from our PRM customer of approximately $35 million between the second and third quarters of fiscal year 2027.

In July 2026, we funded $5 million from the Agreement and may require additional fundings to bridge the gap until the next PRM installment payment is received.

In the absence of future profitable results of operations, we may need to rely on other sources of liquidity to fund our future operations, including our backlog, available borrowings under the Agreement through its expiration in July 2028, sales or leveraging real estate assets, sales of rental assets and other liquidity sources which may be available to us.

We currently believe that our cash, and amounts available under the Agreement, will be sufficient to finance any future operating losses and planned capital expenditures through the next twelve months.

We do not have any obligations which meet the definition of an off-balance sheet arrangement, and which have or are reasonably likely to have a current or future effect on our financial statements or the items contained therein that are material to investors.

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Critical Accounting Estimates

During the six months ended March 31, 2026, there has been no material change to our critical accounting estimates discussed in Item 7 of our Annual Report on Form 10-K for the fiscal year ended September 30, 2025.

During the nine months ended June 30, 2026, there has been no material change to our critical accounting estimates discussed in Item 7 of our Annual Report on Form 10-K for the fiscal year ended September 30, 2025.

Recent Accounting Pronouncements

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements