What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2025-11-12 compared with 2025-08-12 · 124 added, 100 removed, 447 unchanged (33% of the section changed)

3 unchanged sentences

(In thousands, except share and per share amounts)

September 30,

2025 December 31,

1 unchanged sentence

Cash and cash equivalents $ 7,223 $ 4,666

Accounts receivable, net of allowance for credit losses of $ 100 at June 30, 2025 and December 31, 2024, respectively

Accounts receivable, net of allowance for credit losses of $ 104 at September 30, 2025 and $ 100 at December 31, 2024

Other current assets 995 571

16 unchanged sentences

30,000 shares authorized;

Series A convertible preferred stock, zero shares issued and outstanding at June 30, 2025 and December 31, 2024

Series A convertible preferred stock, zero shares issued and outstanding at September 30, 2025 and December 31, 2024

Common stock - $ 0.001 par value;

40,000,000 shares authorized;

20,025,843 and 19,782,311 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively

20,195,772 and 19,782,311 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively

Additional paid-in capital 153,649 152,211

5 unchanged sentences

CONDENSED STATEMENTS OF OPERATIONS

(In thousands, except shares and per share amounts)

Three months ended June 30, Six months ended June 30,

(In thousands, except share and per share amounts)

Three months ended September 30, Nine months ended September 30,

2025 2024 2025 2024

6 unchanged sentences

Total operating expenses 5,205 5,195 14,843 14,391

Loss from operations ( 298 ) ( 215 ) ( 646 ) ( 724 )

Income (loss) from operations 238 ( 910 ) ( 408 ) ( 1,634 )

OTHER INCOME AND EXPENSE

1 unchanged sentence

Total other income, net 52 73 129 230

Net loss before provision for income taxes ( 251 ) ( 127 ) ( 569 ) ( 567 )

Net income (loss) before provision for income taxes 290 ( 837 ) ( 279 ) ( 1,404 )

Provision for income taxes — — — 2

Net loss $ ( 251 ) $ ( 127 ) $ ( 569 ) $ ( 569 )

Net income (loss) $ 290 $ ( 837 ) $ ( 279 ) $ ( 1,406 )

PER SHARE INFORMATION

Loss per common share -

Income (loss) per common share -

Basic/Diluted $ 0.01 $ ( 0.04 ) $ ( 0.01 ) $ ( 0.07 )

Weighted average common shares used in computing per share amounts -

Basic/Diluted 19,795,189 19,460,351 19,357,364 19,380,605

Basic 20,136,539 19,499,174 19,917,413 19,390,258

Diluted 20,790,257 19,499,174 19,917,413 19,390,258

See accompanying notes to unaudited condensed financial statements.

2 unchanged sentences

(In thousands, except number of shares)

Three months ended June 30, 2025

Three months ended September 30, 2025

Common Stock Additional

3 unchanged sentences

Shares Amount

BALANCE, March 31, 2025 19,816,043 $ 19 $ 152,390 $ ( 134,801 ) $ 17,608

BALANCE, June 30, 2025 20,025,843 $ 20 $ 153,037 $ ( 135,052 ) $ 18,005

Stock-based compensation – – 204 – 204

3 unchanged sentences

restricted stock grants 11,428 – – – –

Net loss – – – ( 251 ) ( 251 )

BALANCE, June 30, 2025 20,025,843 $ 20 $ 153,037 $ ( 135,052 ) $ 18,005

Three months ended June 30, 2024

Net income – – – 290 290

BALANCE, September 30, 2025 20,195,772 $ 20 $ 153,649 $ ( 134,762 ) $ 18,907

Three months ended September 30, 2024

Common Stock Additional

3 unchanged sentences

Shares Amount

BALANCE, March 31, 2024 19,404,561 $ 19 $ 151,166 $ ( 134,007 ) $ 17,178

BALANCE, June 30, 2024 19,492,702 $ 19 $ 151,422 $ ( 134,134 ) $ 17,307

Stock-based compensation – – 265 – 265

4 unchanged sentences

Net loss – – – ( 837 ) ( 837 )

BALANCE, June 30, 2024 19,492,702 $ 19 $ 151,422 $ ( 134,134 ) $ 17,307

Six months ended June 30, 2025

BALANCE, September 30, 2024 19,550,965 $ 19 $ 151,687 $ ( 134,971 ) $ 16,735

Nine months ended September 30, 2025

Common Stock Additional

10 unchanged sentences

Net loss – – – ( 279 ) ( 279 )

BALANCE, June 30, 2025 20,025,843 $ 20 $ 153,037 $ ( 135,052 ) $ 18,005

Six months ended June 30, 2024

BALANCE, September 30, 2025 20,195,772 $ 20 $ 153,649 $ ( 134,762 ) $ 18,907

Nine months ended September 30, 2024

Common Stock Additional

10 unchanged sentences

Net loss – – – ( 1,406 ) ( 1,406 )

BALANCE, June 30, 2024 19,492,702 $ 19 $ 151,422 $ ( 134,134 ) $ 17,307

BALANCE, September 30, 2024 19,550,965 $ 19 $ 151,687 $ ( 134,971 ) $ 16,735

See accompanying notes to unaudited condensed financial statements.

2 unchanged sentences

(In thousands)

Six months ended June 30,

Nine months ended September 30,

CASH FLOWS FROM OPERATING ACTIVITIES:

3 unchanged sentences

Stock-based compensation 583 842

Credit loss expense 47 18

Allowance for credit losses 63 ( 31 )

Changes in assets and liabilities:

Decrease in accounts receivable 1,920 1,371

(Increase) Decrease in accounts receivable ( 1,670 ) 1,360

(Increase) Decrease in other current assets and other assets ( 229 ) 167

26 unchanged sentences

Intellicheck continues to develop and release innovative products based upon its rich patent portfolio consisting of ten ( 10) U.S.

and one Canadian patents.

For the six months ended June 30, 2025, the Company incurred a net loss of $( 569 ) and generated cash from operations of $ 3,884 .

As of June 30, 2025, the Company had cash and cash equivalents of $ 8,573 , working capital (defined as current assets minus current liabilities) of $ 7,082 and an accumulated deficit of $( 135,052 ).

Based on the Company’s business plan and cash resources, Intellicheck expects its existing cash and future resources and revenues generated from operations to satisfy its working capital requirements for at least the next 12 months from the date of filing.

and one Canadian patent.

For the nine months ended September 30, 2025, the Company incurred a net loss of $( 279 ) and generated cash from operations of $ 2,147 .

As of September 30, 2025, the Company had cash and cash equivalents of $ 7,223 , working capital (defined as current assets minus current liabilities) of $ 8,150 and an accumulated deficit of $( 134,762 ).

Reclassifications

5 unchanged sentences

Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements.

In the opinion of management, the unaudited interim financial statements furnished herein include all adjustments necessary for a fair presentation of the Company’s financial position at June 30, 2025, the results of operations, and stockholders’ equity for the three and six months ended June 30, 2025 and 2024 and cash flows for the six months ended June 30, 2025 and 2024.

In the opinion of management, the unaudited interim financial statements furnished herein include all adjustments necessary for a fair presentation of the Company’s financial position at September 30, 2025, the results of operations, and stockholders’ equity for the three and nine months ended September 30, 2025 and 2024 and cash flows for the nine months ended September 30, 2025 and 2024.

All such adjustments are of a normal and recurring nature.

Interim financial statements are prepared on a basis consistent with the Company’s annual financial statements.

Results of operations for the three and six month periods ended June 30, 2025, are not necessarily indicative of the operating results that may be expected for the year ending December 31, 2025.

Results of operations for the three and nine month periods ended September 30, 2025, are not necessarily indicative of the operating results that may be expected for the year ending December 31, 2025.

The condensed balance sheet as of December 31, 2024 has been derived from the audited financial statements at that date but does not include all of the information and notes required by GAAP for complete financial statements.

2 unchanged sentences

Recently Issued Accounting Pronouncements

In December 2023, the FASB issued Accounting Standards Update ("ASU") 2023-09, Improvements to Income Tax Disclosures (Topic 740), which establishes new income tax disclosure requirements in addition to modifying and

eliminating certain existing requirements.

In December 2023, the FASB issued Accounting Standards Update ("ASU") 2023-09, Improvements to Income Tax Disclosures (Topic 740) , which establishes new income tax disclosure requirements in addition to modifying and eliminating certain existing requirements.

The new guidance requires consistent categorization and greater disaggregation of information in the rate reconciliation, as well as further disaggregation of income taxes paid.

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The Company is in the process of evaluating the effect that the adoption of these standards will have on its financial statements.

In July 2025, the FASB issued ASU 2025-05, Financial Instruments-Credit Losses (Topic 326):

Measurement of Credit Losses for Accounts Receivable and Contract Assets." This standard allows entities to apply a practical expedient when estimating expected credit losses for current accounts receivable and current contract assets that arise from transactions accounted for under ASC 606, Revenue from Contracts with Customers .

The standard is effective for all the entities for fiscal years beginning after after December 15, 2025, including interim periods within those fiscal years.

Early adoption is permitted, and the standard is to be applied prospectively.

The Company is currently evaluating the impact of the adoption of this standard.

In September 2025, the FASB issued ASU 2025-06, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40) :

Targeted Improvements to the Accounting for Internal-Use Software, which modernizes the accounting for internal-use software by replacing the previous stage-based model and aligning the capitalization process with current development practices, especially agile and iterative methods.

ASU 2025-06 is effective for annual reporting periods beginning after December 15, 2027, and may be applied prospectively, retrospectively, or using a modified transition approach.

The Company is in process of evaluating the impact of the adoption of this ASU on its financial statements.

Use of Estimates

8 unchanged sentences

These money market funds are invested in cash, U.S.

Treasury bills, notes and other obligations issued or guaranteed as to principal and interest by the U.S.

Treasury bills, notes and other obligations issued or guaranteed as to

principal and interest by the U.S.

Treasury, and repurchase agreements secured by such obligations or cash.

2 unchanged sentences

The Company has not experienced any losses with regard to its bank accounts and other investments and believes it is not exposed to any risk of loss on its cash bank accounts or other investments.

Accounts Receivable

Accounts Receivable, Net

Accounts receivable are reported on the balance sheets at the outstanding principal amount adjusted for an allowance for credit losses and any charge offs.

2 unchanged sentences

The Company has applied a loss rate method which takes historical data as the basis for calculating the allowance amount, along with the aging out outstanding receivables and other factors like current and forecasted market conditions, and potential future impacts to the industry.

estimating whether accounts receivable will be collected, the Company performs evaluations of customers and continuously monitors collections and payments and estimates an allowance for credit losses.

In estimating whether accounts receivable will be collected, the Company performs evaluations of customers and continuously monitors collections and payments and estimates an allowance for credit losses.

Property and Equipment, Net

6 unchanged sentences

The Company performed its annual impairment test of goodwill in the fourth quarter for the year ended December 31, 2024.

For the three and six months ended June 30, 2025 and 2024, the Company determined no triggering events existed and as such no impairment charge was required.

For the three and nine months ended September 30, 2025 and 2024, the Company determined no triggering events existed and as such no impairment charge was required.

Intangible Assets, net

1 unchanged sentence

The Company amortizes these assets on a straight-line basis over their estimated useful lives, as it represents the pattern of economic benefits consumed.

There were no impairment charges recognized during the three and six months ended June 30, 2025 and 2024.

There were no impairment charges recognized during the three and nine months ended September 30, 2025 and 2024.

The Company capitalizes internal-use software costs which includes costs incurred in connection with the development of new software solutions and enhancements to existing software solutions that are expected to result in increased functionality.

5 unchanged sentences

The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of these assets may not be fully recoverable in accordance with ASC 350, Intangibles – Goodwill and Other, and ASC 360, Property, Plant and Equipment .

To determine recoverability of its long-lived assets, the Company evaluates the probability that future undiscounted net cash flows, without interest charges, will be less than the carrying amount of the assets.

To determine recoverability of its long-lived assets, the

Company evaluates the probability that future undiscounted net cash flows, without interest charges, will be less than the carrying amount of the assets.

Impairment is measured at fair value.

1 unchanged sentence

Advertising Costs

Advertising costs, which are expensed as incurred, were $ 46 and $ 183 for the six months ended June 30, 2025 and 2024, respectively.

Advertising costs were $ 21 and $ 105 for the three months ended June 30, 2025 and 2024, respectively These costs are recorded as a component of selling, general and administrative expenses within the condensed Statements of Operations.

Advertising costs, which are expensed as incurred, were $ 78 and $ 327 for the nine months ended September 30, 2025 and 2024, respectively.

Advertising costs were $ 32 and $ 99 for the three months ended September 30, 2025 and 2024, respectively.

These costs are recorded as a component of selling, general and administrative expenses within the condensed Statements of Operations.

Retirement Plan

2 unchanged sentences

The Company has elected to contribute a matching contribution equal to 50 % of the first 6 % of an eligible employee’s deferral election.

The Company’s matching contributions were $ 29 and $ 0 for the six months ended June 30, 2025 and 2024, respectively.

The Company’s matching contributions were $ 29 and $ 0 for the three months ended June 30, 2025 and 2024, respectively.

During the three and six months ended June 30, 2025 and 2024, funds from the Retirement Plan's forfeiture account were used to fund matching contributions in accordance with the terms of the Retirement Plan and as such, the Company recorded no expense in certain periods related to its retirement plans.

The Company’s matching contributions were $ 65 and $ 0 for the nine months ended September 30, 2025 and 2024, respectively.

The Company’s matching contributions were $ 36 and $ 0 for the three months ended September 30, 2025 and 2024, respectively.

During the three and nine months ended September 30, 2025 and 2024, funds from the Retirement Plan's forfeiture account were used to fund matching contributions in accordance with the terms of the Retirement Plan and as such, the Company recorded no expense in certain periods related to its retirement plans.

These costs are recorded as a component of selling, general and administrative expenses within the condensed Statements of Operations.

7 unchanged sentences

Deferred tax assets are recognized subject to management’s judgment that realization is more likely than not.

The Company has recorded a full valuation allowance against its net deferred tax assets as of June 30, 2025 and December 31, 2024, as it is more likely than not these assets may not be fully realized due to the uncertainty of the realizability of those assets.

The Company has recorded a full valuation allowance against its net deferred tax assets as of September 30, 2025 and December 31, 2024, as it is more likely than not these assets may not be fully realized due to the uncertainty of the realizability of those assets.

Fair Value of Financial Instruments

1 unchanged sentence

The Company’s financial instruments include cash and cash equivalents, accounts receivable, other current assets, accounts payable and accrued expenses.

At June 30, 2025 and December 31, 2024, the carrying value of the Company’s financial instruments approximated fair value, due to their short-term nature.

At September 30, 2025 and December 31, 2024, the carrying value of the Company’s financial instruments approximated fair value, due to their short-term nature.

FASB guidance specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable.

Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect market assumptions.

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement).

The hierarchy gives the highest priority to unadjusted quoted prices in

active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement).

The three levels of the fair value hierarchy are as follows:

1 unchanged sentence

Level 1 primarily consists of financial instruments whose value is based on quoted market prices such as exchange-traded instruments and listed equities.

The Company's Level 1 assets consisted primarily of cash and cash equivalents totaling $ 8,573 and $ 4,666 as of June 30, 2025 and December 31, 2024, respectively.

The Company's Level 1 assets consisted primarily of cash and cash equivalents totaling $ 7,223 and $ 4,666 as of September 30, 2025 and December 31, 2024, respectively.

• Level 2—Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly (e.g., quoted prices of similar assets or liabilities in active markets, or quoted prices for identical or similar assets or liabilities in markets that are not active).

Level 2 includes financial instruments that are valued using models or other valuation methodologies.

The Company had no Level 2 assets or liabilities as of June 30, 2025 and December 31, 2024.

The Company had no Level 2 assets or liabilities as of September 30, 2025 and December 31, 2024.

• Level 3—Unobservable inputs for the asset or liability.

Financial instruments are considered Level 3 when the fair values are determined using pricing models, discounted cash flows or similar techniques and at least one significant model assumption or input is unobservable.

The Company had no Level 3 assets or liabilities as of June 30, 2025 and December 31, 2024.

The Company had no Level 3 assets or liabilities as of September 30, 2025 and December 31, 2024.

Revenue Recognition and Deferred Revenue

16 unchanged sentences

The fixed and variable performance obligations are recognized monthly based on the contract terms.

The Company has an additional revenue model where customers purchase access to the Company's platform that includes a fixed, non-refundable annual access fee associated with a spend commitment that grants the customers stand-ready access to the platform.

Revenue for this access is recognized ratably over the contract term, consistent with the nature of the stand-ready service.

Invoicing is based on schedules established in customer contracts.

27 unchanged sentences

In the following tables, revenue is disaggregated by product and service and the timing of revenue recognition.

For the Three Months Ended June 30,

For the Three Months Ended September 30,

Products and services

6 unchanged sentences

$ 6,014 $ 4,709

For the Six Months Ended June 30,

For the Nine Months Ended September 30,

Products and services

7 unchanged sentences

Contract balances

The current portion of deferred revenue at June 30, 2025 and December 31, 2024 was $ 3,038 and $ 1,001 , respectively, and primarily consists of revenue recognized over time for software license contracts and hosted subscription services.

The current portion of deferred revenue at September 30, 2025 and December 31, 2024 was $ 4,192 and $ 1,001 , respectively, and primarily consists of revenue recognized over time for software license contracts and hosted subscription services.

The changes in these balances are related to purchases of a predetermined number of transactions, partially offset by the satisfaction or partial satisfaction of these contracts.

Of the December 31, 2024 balance, $ 1,000 was recognized as revenue in the six months ended June 30, 2025.

Of the December 31, 2023 balance, $ 2,130 was recognized as revenue in the six months ended June 30, 2024.

Accounts receivable, net of allowance for credit losses, at June 30, 2025 and December 31, 2024 was $ 2,676 and $ 4,675 , respectively.

The allowance for credit losses at June 30, 2025 and December 31, 2024 was $ 100 .

Of the December 31, 2024 balance, $ 1,001 was recognized as revenue in the nine months ended September 30, 2025.

Of the December 31, 2023 balance, $ 2,106 was recognized as revenue in the nine months ended September 30, 2024.

Accounts receivable, net of allowance for credit losses, at September 30, 2025 and December 31, 2024 was $ 6,282 and $ 4,675 , respectively.

The allowance for credit losses at September 30, 2025 and December 31, 2024 was $ 104 and $ 100 , respectively.

Transaction price allocated to the remaining performance obligations

2 unchanged sentences

SaaS $ 1,210 $ 2,981 $ — $ 4,191

Other 1 — — 1

$ 1,211 $ 2,981 $ — $ 4,192

7 unchanged sentences

The Company performs ongoing credit evaluations, generally does not require collateral, and establishes an allowance for credit losses based upon factors surrounding the credit risk of customers, historical trends, and other market and economic information.

During the six-month period ended June 30, 2025, the Company made sales to three customers that accounted for approximately 58 % of total revenues, 31 %, 18 % and 9 %, respectively, for each customer.

During the nine-month period ended September 30, 2025, the Company made sales to three customers that accounted for approximately 55 % of total revenues, 29 %, 17 % and 9 %, respectively, for each customer.

The revenue was primarily associated with commercial identity sales customers.

These three customers represented 42 % of total accounts receivable at June 30, 2025, 2 %, 34 %, and 6 %, respectively, for each customer.

During the six-month period ended June 30, 2024, the Company made sales to the same three customers that accounted for approximately 45 % of total revenues, 19 %, 14 % and 12 %, respectively.

These three customers, in addition with one other customer, represented 61 % of total accounts receivable at June 30, 2024, 37 %, 1 %, 12 %, and 11 %, respectively, for each customer.

Net Loss Per Share

Basic net loss per share is computed by dividing the net loss for the period by the weighted average number of common shares outstanding during the period.

Diluted net loss per share is computed by dividing the net loss for the period by the weighted average number of shares of common stock and potentially dilutive common stock equivalents outstanding during the period.

The dilutive effect of outstanding options and restricted stock is reflected in diluted earnings per share by

application of the treasury stock method.

These three customers represented 62 % of total accounts receivable at September 30, 2025, 41 %, 16 %, and 5 %, respectively, for each customer.

During the nine-month period ended September 30, 2024, the Company made sales to the same three customers that accounted for approximately 46 % of total revenues, 19 %, 15 % and 12 %, respectively for each customer.

These three customers, in addition with one other customer, represented 47 % of total accounts receivable at September 30, 2024, 30 %, 1 %, 6 %, and 10 %, respectively, for each customer.

Net Income (Loss) Per Share

Basic net income (loss) per share is computed by dividing the net income (loss) for the period by the weighted average number of common shares outstanding during the period.

Diluted net loss per share is computed by dividing the net income (loss) for the period by the weighted average number of shares of common stock and potentially dilutive common stock equivalents outstanding during the period.

The dilutive effect of outstanding options and restricted stock is

reflected in diluted earnings per share by application of the treasury stock method.

The calculation of diluted net loss per share excludes all anti-dilutive shares.

1 unchanged sentence

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

Net loss $ ( 251 ) $ ( 127 ) $ ( 569 ) $ ( 569 )

Net income (loss) $ 290 $ ( 837 ) $ ( 279 ) $ ( 1,406 )

Weighted average common shares –

Basic/Diluted 19,795,189 19,460,351 19,357,364 19,380,605

Loss per common share

Basic 20,136,539 19,499,174 19,917,413 19,390,258

Diluted 20,790,257 19,499,174 19,917,413 19,390,258

Income (loss) per common share

Basic/Diluted $ 0.01 $ ( 0.04 ) $ ( 0.01 ) $ ( 0.07 )

The following table summarizes the common stock equivalents excluded from loss per diluted share because their effect would be anti-dilutive:

The following table summarizes the common stock equivalents excluded from net income (loss) per diluted share because their effect would be anti-dilutive:

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

16 unchanged sentences

All short-term investments that the Company holds are classified as "held-to-maturity".

As of June 30, 2025

As of September 30, 2025

Amortized cost Gross unrealized holding gains Gross unrealized holding losses Estimated fair value

7 unchanged sentences

$ 4,666 $ — $ — $ 4,666

The Company did no t hold any securities that were in an unrealized loss position for more than 12 months as of June 30, 2025.

There were no material realized gains or losses on these specific short-term investments during the three months ended June 30, 2025.

The Company did no t hold any securities that were in an unrealized loss position for more than 12 months as of September 30, 2025.

There were no material realized gains or losses on these specific short-term investments during the three months ended September 30, 2025.

PROPERTY AND EQUIPMENT, NET

Property and equipment, net is summarized as follows:

September 30,

2025 December 31,

3 unchanged sentences

Less – Accumulated depreciation ( 2,307 ) ( 2,164 )

Depreciation expense for the six months ended June 30, 2025 and 2024 amounted to $ 95 and $ 92 , respectively.

Depreciation expense for the three months ended June 30, 2025 and 2024 amounted to $ 47 and $ 46 , respectively.

Depreciation expense for the nine months ended September 30, 2025 and 2024 amounted to $ 144 and $ 139 , respectively.

Depreciation expense for the three months ended September 30, 2025 and 2024 amounted to $ 49 and $ 47 , respectively.

INTANGIBLE ASSETS, NET

The changes in the carrying amount of intangible assets, net for the six months ended June 30, 2025 were as follows:

The changes in the carrying amount of intangible assets, net for the nine months ended September 30, 2025 were as follows:

Net balance at December 31, 2024 $ 2,374

1 unchanged sentence

Amortization expense ( 369 )

Net balance at June 30, 2025 $ 2,357

The following tables set forth the components of intangible assets as of June 30, 2025 and December 31, 2024:

As of June 30, 2025

Net balance at September 30, 2025 $ 2,218

The following tables set forth the components of intangible assets as of September 30, 2025 and December 31, 2024:

As of September 30, 2025

Life Adjusted

6 unchanged sentences

$ 3,442 $ ( 1,224 ) $ 2,218

The Company has capitalized $ 2,667 in software development costs as of June 30, 2025.

The Company has capitalized $ 210 in software development costs for the nine months ended September 30, 2025.

As of December 31, 2024

7 unchanged sentences

$ 3,230 $ ( 856 ) $ 2,374

The following summarizes amortization of intangible assets included in the accompanying statements of operations:

The Company has capitalized $ 2,048 in software development costs for the year ended December 31, 2024.

The following summarizes amortization of intangible assets included in the accompanying condensed statements of operations:

Three Months Ended

June 30, For the Six Months Ended June 30,

September 30, For the Nine Months Ended September 30,

2025 2024 2025 2024

1 unchanged sentence

Selling, general and administrative 3 3 7 8

Research and development — 57 — 57

140 84 369 136

The Company's estimated future amortization expense for intangible assets as of June 30, 2025 was as follows:

The Company's estimated future amortization expense for intangible assets as of September 30, 2025 was as follows:

Revolving Line of Credit

On February 6, 2019, the Company entered into a revolving credit facility with Citi Personal Wealth Management that allows for borrowings up to the lesser of (i) $ 2,000 or (ii) the collateralized balance in the Company’s existing fixed

income investment account with Citi Personal Wealth Management subject to certain limitations.

The facility bears interest at a rate consistent with Citi Personal Wealth Management’s Base Rate ( 9.00 % at June 30, 2025 and December 31, 2024) minus 2 %.

Interest is payable monthly and as of June 30, 2025 and December 31, 2024, there were no amounts outstanding and unused availability under this facility was $ 2,000 .

The facility bears interest at a rate consistent with Citi Personal Wealth Management’s Base Rate ( 8.75 % at September 30, 2025 and 9.00 % at December 31, 2024) minus 2 %.

Interest is payable monthly and as of September 30, 2025 and December 31, 2024, there were no amounts outstanding and unused availability under this facility was $ 2,000 .

The Company is not subject to any financial covenants related to this revolving line of credit.

2 unchanged sentences

Accrued expenses are comprised of the following:

September 30,

2025 December 31,

9 unchanged sentences

In addition to the NOLs, the Company has approximately $ 700 of research and development credits.

ASC 740 requires evaluation of uncertain tax positions and as of June 30, 2025 and December 31, 2024, the Company has no material uncertain tax positions.

ASC 740 requires evaluation of uncertain tax positions and as of September 30, 2025 and December 31, 2024, the Company had no material uncertain tax positions.

STOCKHOLDERS' EQUITY

7 unchanged sentences

The Company accounts for the issuance of stock-based awards to employees in accordance with ASC Topic 718, Compensation - Stock Compensation , which requires that the cost resulting from all stock-based compensation payment transactions be recognized in the financial statements.

This pronouncement establishes fair value as the measurement objective in accounting for stock-based compensation payment arrangements and requires all companies to apply a fair

value based measurement method in accounting for all stock-based compensation payment transactions with employees.

This pronouncement establishes fair value as the measurement

objective in accounting for stock-based compensation payment arrangements and requires all companies to apply a fair value based measurement method in accounting for all stock-based compensation payment transactions with employees.

All stock-based compensation is included in operating expenses as follows:

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

21 unchanged sentences

Exercised ( 339,757 ) $ 2.51 — —

Outstanding at June 30, 2025 1,500,749 $ 2.88 4.13 years $ 4,203

Exercisable at June 30, 2025 667,753 $ 3.41 2.28 years $ 1,717

The aggregate intrinsic value in the table above represents the total pretax intrinsic value (the difference between the Company’s closing stock price on the last trading day of the period and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had they all exercised their options on June 30, 2025.

Outstanding at September 30, 2025 1,295,752 $ 2.94 4.67 years $ 3,364

Exercisable at September 30, 2025 579,044 $ 3.53 2.76 years $ 1,407

This amount changes based upon the fair market value of the Company’s stock.

10 unchanged sentences

Vested and settled in shares ( 73,961 ) 3.08

Outstanding at June 30, 2025 11,428 $ 5.25

As of June 30, 2025, there was approximately $ 1,227 of total unrecognized compensation costs, related to all unvested stock options and RSUs.

Outstanding at September 30, 2025 9,135 $ 5.20

As of September 30, 2025, there was approximately $ 3,442 of total unrecognized compensation costs, related to all unvested stock options and RSUs.

These costs are expected to be recognized as compensation expense over a weighted-average period of approximately 2.19 years.

The Company had 2,000,000 shares available for future grants under the Company's equity compensation plans at June 30, 2025.

The Company had 1,990,865 shares available for future grants under the Company's equity compensation plans at September 30, 2025.

COMMITMENTS AND CONTINGENCIES

The Company leases an office in Melville, New York, on a month-to-month basis.

Rent expense, which includes utilities, was $ 7 and $ 11 for the three months ended June 30, 2025 and 2024, respectively, and $ 14 and $ 15 for the six months ended June 30, 2025 and 2024, respectively, and is included in selling, general and administrative expenses on the condensed Statements of Operations.

Rent expense, which includes utilities, was $ 4 and $ 8 for the three months ended September 30, 2025 and 2024, respectively, and $ 18 and $ 23 for the nine months ended September 30, 2025 and 2024, respectively, and is included in selling, general and administrative expenses on the condensed Statements of Operations.

Loss Contingencies and Legal Costs

9 unchanged sentences

If any unfavorable ruling was to occur in any specific period or if a loss becomes probable and estimable, there exists the possibility of a material adverse impact on the Company’s results of operations, financial position or cash flows.

As of June 30, 2025, no material amounts are recorded related to legal proceedings on the balance sheets.

As of September 30, 2025, no material amounts are recorded related to legal proceedings on the balance sheets.

Subsequent Events

1 unchanged sentence

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