What changed in this filing

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Item 2. Management’s Discussion and Analysis

2026-08-06 compared with 2026-05-08 · 139 added, 52 removed, 191 unchanged (50% of the section changed)

12 unchanged sentences

• our dependence on a small number of customers for a substantial portion of our revenues;

• our ability to compete in the market for wireless broadband data access products, wireless modem products, and telematics products and services;

• our ability to compete in the market for wireless broadband data access and wireless modem products and services;

• our ability to successfully develop and introduce new products and services;

53 unchanged sentences

On April 30, 2026, the Company entered into an Asset Purchase Agreement (the “Purchase Agreement”) with Nokia Solutions and Networks Oy (“Nokia”), pursuant to which Inseego has agreed to purchase substantially all of the assets (the “Purchased Assets”) comprising Nokia’s fixed wireless access business (the “Nokia FWA Business”).

Under the Purchase Agreement and subject to the terms and conditions set forth therein, at the closing (the “Closing”) of the transactions contemplated by the Purchase Agreement (collectively, the “Transaction”), Inseego will purchase the Purchased Assets from Nokia for a purchase price consisting of (i) 1,163,693 shares (the “Shares”) of Inseego’s common stock (“Common Stock”), (ii) warrants to purchase an aggregate of 521,139 shares of Common Stock, at an exercise price of $12.89 per share and (iii) the assumption of certain liabilities relating to the Nokia FWA Business (the “Transaction”).

The warrants will be exercisable for a period of four years following the Closing and will be exercisable on a cash basis.

19 unchanged sentences

Fixed Wireless Access Solutions :

Our fixed wireless access solutions are deployed by enterprise and SMB customers for their distributed sites and employees as a fully secure and corporate managed wireless WWAN solution.

Our fixed wireless access solutions are deployed by enterprise and SMB customers for their distributed sites and employees as a secure and corporate managed wireless WWAN solution.

The portfolio consists of indoor, outdoor and industrial routers and gateways supported by our cloud offering – Inseego Connect – for device management.

16 unchanged sentences

Results of Operations

Three Months Ended March 31, 2026 Compared to Three Months Ended March 31, 2025

Revenues for the three months ended March 31, 2026 were $34.3 million, compared to $31.7 million for the same period in 2025.

Three Months Ended June 30, 2026 Compared to Three Months Ended June 30, 2025

Revenues for the three months ended June 30, 2026 were $44.0 million, compared to $40.2 million for the same period in 2025.

The following table summarizes revenues by category (in thousands):

Three Months Ended

March 31, Change

June 30, Change

Product Category 2026 2025 $ %

5 unchanged sentences

Mobile solutions.

The $1.1 million decrease in mobile solutions revenues is primarily due to decreased sales with one of our carrier partners due to promotional activity in the prior period.

The $3.6 million increase in mobile solutions revenues is primarily due to sales to a new carrier partner during the three months ended June 30, 2026, who was not a customer during the comparable prior period.

This increase was partially offset by the impact of the late-quarter launch of our current generation of mobile solutions products, which limited revenue contribution from the new product line during the three months ended June 30, 2026.

Fixed wireless access solutions.

The $3.4 million increase in fixed wireless access solutions revenues is primarily due to the launch of our current generation indoor FWA solution that began selling in the second quarter of 2025.

The $0.1 million decrease in fixed wireless access solutions revenues reflects overall consistent demand for our fixed wireless access products period over period.

The modest decrease was primarily driven by a shift in the customer mix, as revenues concentrated with a key carrier partner in the prior period were largely replaced by revenues from a new carrier partner during the three months ended June 30, 2026, resulting in only a negligible net change in total fixed wireless access revenues.

Software services and other.

The $0.4 million increase in software services and other revenues is primarily due to increased revenue from Inseego Connect.

The $0.3 million increase in software services and other revenues is primarily due to increased revenue from Inseego Connect, primarily on our fixed wireless access devices.

Cost of revenues.

Cost of revenues for the three months ended March 31, 2026 was $17.7 million, or 51.7% of revenues, compared to $16.7 million, or 52.7% of revenues, for the same period in 2025.

Cost of revenues for the three months ended June 30, 2026 was $29.1 million, or 66.2% of revenues, compared to $23.7 million, or 58.9% of revenues, for the same period in 2025.

The following table summarizes cost of revenues by category (in thousands):

Three Months Ended

March 31, Change

June 30, Change

Product Category 2026 2025 $ %

2 unchanged sentences

Total cost of revenues $ 29,138 $ 23,708 $ 5,430 22.9

The $1.0 million increase in product cost of revenues is primarily due to increased product revenues.

The $5.4 million increase in product cost of revenues is primarily due to increased product revenues, increased component costs, specifically memory costs, and lower margin on the current year’s generation of products in comparison to the prior year period.

Software services and other.

The $0.1 million increase in software services and other cost of revenues is primarily due to increased Inseego Connect services and the related costs of performing those services.

The increase in software services and other cost of revenues is consistent with the increase in software services and other revenues over the same period, as the underlying cost drivers — primarily personnel costs related to Inseego Subscribe and Inseego Connect — remained relatively stable period over period.

The largely fixed cost structure of the Company's software and services operations meant that the change in revenue activity did not require a meaningful change in the resources required to deliver those services.

Gross profit.

Gross profit for the three months ended March 31, 2026 was $16.6 million, or a gross margin of 48.3%, compared to $15.0 million, or a gross margin of 47.3%, for the same period in 2025.

The increase in both gross profit and gross margin is primarily due to an increased proportion of higher margin service and FWA revenues as a percentage of total revenues.

Gross profit for the three months ended June 30, 2026 was $14.8 million, or a gross margin of 33.8%, compared to $16.5 million, or a gross margin of 41.1%, for the same period in 2025.

The decrease in both gross profit and gross margin is primarily due to increased product component costs, specifically memory costs, and lower margin on the current year’s generation of mobile and fixed wireless access products in comparison to the prior year.

Operating costs and expenses.

The following table summarizes operating costs and expenses (in thousands):

Three Months Ended March 31, Change

Three Months Ended

June 30, Change

Operating costs and expenses 2026 2025 $ %

6 unchanged sentences

Research and development expenses.

Research and development expenses for the three months ended March 31, 2026 were $5.8 million, or 16.9% of revenues, compared to $4.5 million, or 14.3% of revenues, for the same period in 2025.

The increase in research and development expenses was primarily due to increased compensation costs due to increased headcount and increased outside services costs related to the Company’s increased development efforts for its next line of products.

Research and development expenses for the three months ended June 30, 2026 were $5.3 million, or 12.1% of revenues, compared to $4.8 million, or 12.0% of revenues, for the same period in 2025.

The increase in research and development expenses was primarily due to increased compensation costs due to increased headcount related to the Company’s development efforts for its next line of products, partially offset by decreased annual incentive bonus accruals.

Sales and marketing expenses.

Sales and marketing expenses for the three months ended March 31, 2026 were $5.6 million, or 16.4% of revenues, compared to $3.9 million, or 12.4% of revenues, for the same period in 2025.

The increase in sales and marketing expenses was primarily due to increased compensation costs due to increased headcount and increased share-based compensation expense related to equity awards granted in late 2025.

Sales and marketing expenses for the three months ended June 30, 2026 were $6.4 million, or 14.6% of revenues, compared to $4.0 million, or 9.8% of revenues, for the same period in 2025.

The increase in sales and marketing expenses was primarily due to increased marketing spend on demo units, increased compensation costs due to increased headcount, increased share-based compensation expense related to equity awards granted in late 2025, and increased commissions expense related to higher sales during the period, partially offset by decreased annual incentive bonus accruals.

General and administrative expenses.

General and administrative expenses for the three months ended March 31, 2026 were $6.9 million, or 20.2% of revenues, compared to $4.5 million, or 14.2% of revenues, for the same period in 2025.

The increase in general and administrative expense was primarily due to non-recurring transaction costs related to the Preferred Stock Exchange Agreement and Purchase Agreement for Nokia’s FWA business and increased share-based compensation expense related to equity awards granted in late 2025.

General and administrative expenses for the three months ended June 30, 2026 were $7.8 million, or 17.6% of revenues, compared to $4.7 million, or 11.7% of revenues, for the same period in 2025.

The increase in general and administrative expense was primarily due to non-recurring transaction costs related to the Purchase Agreement for Nokia’s FWA business and increased share-based compensation expense related to equity awards granted in late 2025, partially offset by decreased annual incentive bonus accruals.

Depreciation and amortization expenses .

Depreciation and amortization expenses for the three months ended March 31, 2026 were $1.8 million, or 5.2% of revenues, compared to $2.1 million, or 6.5% of revenues, for the same period in 2025.

The decrease in depreciation and amortization expenses was primarily due to capitalized costs on various development projects being capitalized during three months ended March 31, 2026 but not amortizable until future quarters when they go to market and the ending of useful life of certain amortizable purchased intangibles.

Depreciation and amortization expenses for the three months ended June 30, 2026 were $2.2 million, or 5.1% of revenues, compared to $1.8 million, or 4.4% of revenues, for the same period in 2025.

The increase in depreciation and amortization expenses was primarily due higher capitalized software balances being amortized in the current period related to significant development efforts relating to our current generation of mobile and fixed wireless products, as well as efforts related to further development of our software services.

Impairment of capitalized software.

For the three months ended March 31, 2026 and 2025, we recorded impairments of $0.0 million and $0.4 million, respectively.

For the three months ended June 30, 2026 and 2025, we recorded impairments of $0.3 million and $0.0 million, respectively.

Other (expense) income.

The following table summarizes other (expense) income (in thousands):

Three Months Ended March 31, Change

Three Months Ended

June 30, Change

Other (expense) income 2026 2025 $ %

4 unchanged sentences

Interest expense.

The change in interest expense is due to the offsetting impacts of the $8.0 million increase in 2029 Senior Secured Notes principal during the three months ended March 31, 2026 as part of the Preferred Stock Exchange Agreement and the repayment of the 2025 Convertible Notes in May 2025.

The increase in interest expense is primarily due to the $8.0 million increase in 2029 Senior Secured Notes principal in January 2026 as part of the Preferred Stock Exchange Agreement and drawn balances on the Working Capital Facility that was executed in August 2025, partially offset by the repayment of the 2025 Convertible Notes in May 2025.

Other income (expense), net.

Other income (expense), net for the three months ended March 31, 2026 and 2025 was $0.1 million and $0.3 million, respectively.

Other income (expense), net for the three months ended June 30, 2026 and 2025 was less than $0.1 million and $0.2 million, respectively.

The decrease in other income, net was primarily due to lower interest bearing cash balances in the current quarter.

Income tax provision (benefit).

Income tax provision (benefit) was less than $0.1 million for both the three months ended March 31, 2026 and 2025.

Income tax provision (benefit) was less than $0.1 million for both the three months ended June 30, 2026 and 2025.

Preferred stock dividends.

During the three months ended June 30, 2025, we recorded dividends of $0.9 million.

There were no preferred stock dividends during the three months ended June 30, 2026 as all outstanding preferred stock was surrendered and forfeited by the Preferred Stock Holder as part of the Preferred Stock Exchange Agreement on January 14, 2026.

Six Months Ended June 30, 2026 Compared to Six Months Ended June 30, 2025

Revenues for the six months ended June 30, 2026 were $78.3 million, compared to $71.9 million for the same period in 2025.

The following table summarizes revenues by our two product categories (in thousands):

Six Months Ended

June 30, Change

Product Category 2026 2025 $ %

Mobile solutions $ 33,979 $ 31,462 $ 2,517 8.0 %

Fixed wireless access solutions 19,677 16,414 3,263 19.9

Product 53,656 47,876 5,780 12.1

Software services and other 24,666 24,020 646 2.7

Total revenues $ 78,322 $ 71,896 $ 6,426 8.9

Mobile solutions.

The $2.5 million increase in mobile solutions revenues is primarily due to sales to a new carrier partner during the six months ended June 30, 2026, who was not a customer during the comparable prior period.

This increase was partially offset by the impact of the launch of our current generation of mobile solutions products late in the current period, which limited revenue contribution from the new product line during the six months ended June 30, 2026.

Fixed wireless access solutions.

The $3.3 million increase in fixed wireless access solutions revenues is primarily due to decreased sales with one of our carrier partners during the first three months of 2025 as we transitioned to our next generation of fixed wireless access products that launched during the second quarter of 2025.

Software services and other The $0.6 million increase in software services and other revenues is primarily due to increased revenue from Inseego Connect, primarily on our fixed wireless access devices.

Cost of revenues.

Cost of revenues for the six months ended June 30, 2026 was $46.9 million, or 59.9% of revenues, compared to $40.4 million, or 56.2% of revenues, for the same period in 2025.

The following table summarizes cost of revenues by category (in thousands):

Six Months Ended

June 30, Change

Product Category 2026 2025 $ %

Product $ 44,138 $ 37,761 $ 6,377 16.9 %

Software services and other 2,741 2,637 104 3.9

Total cost of revenues $ 46,879 $ 40,398 $ 6,481 16.0

The $6.4 million increase in product cost of revenues is primarily due to increased product revenues, increased component costs, specifically memory costs, and lower margin on the current year’s generation of products in comparison to the prior year period.

Software services and other.

Gross profit.

Gross profit for the six months ended June 30, 2026 was $31.4 million, or a gross margin of 40.1%, compared to $31.5 million, or a gross margin of 43.8%, for the same period in 2025.

Operating costs and expenses.

The following table summarizes operating costs and expenses (in thousands):

Six Months Ended

June 30, Change

Operating costs and expenses 2026 2025 $ %

Research and development $ 11,111 $ 9,355 $ 1,756 18.8 %

Sales and marketing 12,063 7,885 4,178 53.0

General and administrative 14,693 9,193 5,500 59.8

Depreciation and amortization 4,037 3,825 212 5.5

Impairment of capitalized software 341 384 (43) (11.2)

Total $ 42,245 $ 30,642 $ 11,603 37.9

Research and development expenses.

Research and development expenses for the six months ended June 30, 2026 were $11.1 million, or 14.2% of revenues, compared to $9.4 million, or 13.0% of revenues, for the same period in 2025.

The increase in research and development expenses was primarily due to increased compensation costs due to increased headcount and increased prototype costs related to the Company’s development efforts for its next line of products, partially offset by decreased annual incentive bonus accruals.

Sales and marketing expenses.

Sales and marketing expenses for the six months ended June 30, 2026 were $12.1 million, or 15.4% of revenues, compared to $7.9 million, or 11.0% of revenues, for the same period in 2025.

The increase in sales and marketing expenses was primarily due to increased compensation costs due to an increase in overall headcount, increased share-based compensation expense related to equity awards granted in late 2025, increased marketing spend on demo units, and increased commissions expense related to higher sales during the period, partially offset by decreased annual incentive bonus accruals.

General and administrative expenses.

General and administrative expenses for the six months ended June 30, 2026 were $14.7 million, or 18.8% of revenues, compared to $9.2 million, or 12.8% of revenues, for the same period in 2025.

Depreciation and amortization expenses .

Depreciation and amortization expenses for the six months ended June 30, 2026 were $4.0 million, or 5.2% of revenues, compared to $3.8 million, or 5.3% of revenues, for the same period in 2025.

Impairment of capitalized software.

For the six months ended June 30, 2026 and 2025, we recorded impairments of $0.3 million and $0.4 million, respectively.

Other (expense) income.

The following table summarizes other (expense) income (in thousands):

Six Months Ended

June 30, Change

Other (expense) income 2026 2025 $ %

Interest expense $ (2,271) $ (1,959) $ (312) 15.9

Other income (expense), net 168 485 (317) (65.4)

Total $ (2,103) $ (1,474) $ (629) 42.7

* Percentage not meaningful

Interest expense.

The $0.3 million increase in interest expense for the six months ended June 30, 2026 over the same period in 2025 was primarily due to the repayment of the 2025 Convertible Notes in May 2025, partially offset by the impact of the $8.0 million increase in 2029 Senior Secured Notes principal in January 2026 as part of the Preferred Stock Exchange Agreement.

Other income (expense), net.

Other income (expense), net for the six months ended June 30, 2026 and 2025 was $0.2 million and $0.5 million, respectively.

The decrease in other income, net was primarily due to lower interest bearing cash balances in the current period.

Income tax provision (benefit).

Income tax provision (benefit) for the six months ended June 30, 2026 and 2025 was a provision of $0.1 million and $0.0 million, respectively.

Income (loss) from discontinued operations, net of tax.

Income (loss) from discontinued operations, net of tax for the three months ended March 31, 2025 was $0.4 million.

There was no income (loss) from discontinued operations during the three months ended March 31, 2026 as the Telematics Business was sold in November 2024.

Income (loss) from discontinued operations, net of tax for the six months ended June 30, 2025 was $(0.4) million.

There was no income (loss) from discontinued operations during the six months ended June 30, 2026 as the Telematics Business was sold in November 2024.

Preferred stock dividends.

During the three months ended March 31, 2025, we recorded dividends of $0.9 million.

There were no preferred stock dividends during the three months ended March 31, 2026 as all outstanding preferred stock was surrendered and forfeited by the Preferred Stock Holder as part of the Preferred Stock Exchange Agreement on January 14, 2026.

During the six months ended June 30, 2025, we recorded dividends of $1.7 million.

There were no preferred stock dividends during the six months ended June 30, 2026 as all outstanding preferred stock was surrendered and forfeited by the Preferred Stock Holder as part of the Preferred Stock Exchange Agreement on January 14, 2026.

Liquidity and Capital Resources

As of March 31, 2026, the Company had available cash and cash equivalents totaling $19.3 million and maintained positive working capital of $1.1 million.

The Company had positive cash flows from operations of $1.7 million for the three months ended March 31, 2026.

As of June 30, 2026, the Company had available cash and cash equivalents totaling $1.9 million and maintained positive working capital of $3.8 million.

The Company had negative cash flows from operations of $22.1 million for the six months ended June 30, 2026.

On August 5, 2025, the Company entered into a Credit and Security Agreement (the “Working Capital Facility Agreement”) with BMO Bank N.A.

(“BMO”) that provides up to a maximum $15.0 million secured asset-backed revolving credit facility (the “Working Capital Facility”).

On May 22, 2026, the Company amended the Working Capital Facility Agreement to increase the maximum borrowing capacity to $20.0 million.

The facility matures on August 5, 2028 and contains certain financial and non-financial covenants.

The Company was in compliance with all covenants under the Working Capital Facility Agreement as of March 31, 2026.

The Company was in compliance with all covenants under the Working Capital Facility Agreement as of June 30, 2026.

Obligations under the Working Capital Facility are secured by a continuing security interest in substantially all property of Inseego Corp.

and certain of its subsidiaries, subject to customary exclusions.

Availability under the Working Capital Facility is determined monthly as the excess of a borrowing base (“Borrowing Base”), comprised of a percentage of eligible accounts receivable and eligible inventory, over the total loans outstanding under the Working Capital Facility.

If the aggregate outstanding amount of the Working Capital Facility exceeds the Borrowing Base at any time, the excess amount shall be payable on demand by BMO.

If the aggregate outstanding amount of the Working Capital Facility, including outstanding letters of credit, exceeds the Borrowing Base at any time, the excess amount shall be payable on demand by BMO.

Loans made under the Working Capital Facility bear interest at a Term Secured Overnight Financing Rate (“SOFR”), as defined in the Working Capital Facility Agreement, plus an applicable margin ranging from 1.00-2.50%, subject to certain exceptions.

Interest on loans made under the Working Capital Facility are paid in cash, in arrears, on a semi-annual basis.

As of March 31, 2026, there were no outstanding borrowings and availability to borrow under the Working Capital Facility was $14.5 million.

As of June 30, 2026, the Company had $3.0 million of outstanding letters of credit issued under the Working Capital Facility to support inventory purchases.

No amounts had been drawn under the letters of credit as of June 30, 2026, and no funded obligations were payable to BMO.

As of June 30, 2026, there were $10.0 million in outstanding borrowings and availability to borrow under the Working Capital Facility was $6.5 million.

The Company’s 3.25% convertible notes due in 2025 (the “2025 Convertible Notes”) matured on May 1, 2025, at which time all outstanding principal and related accrued interest was paid-off in full.

The Company’s 9.0% senior secured notes due in 2029 (the “2029 Senior Secured Notes”) had a principal balance of $48.9 million as of March 31, 2026 and mature on May 1, 2029.

The Company’s 9.0% senior secured notes due in 2029 (the “2029 Senior Secured Notes”) had a principal balance of $48.9 million as of June 30, 2026 and mature on May 1, 2029.

While the Company’s liquidity and financial results had several positive developments in 2025, the Company has a history of operating and net losses and overall usage of cash from operating and investing activities.

4 unchanged sentences

Contractual Obligations and Commitments

As of March 31, 2026, our material contractual obligations consisted of the following:

As of June 30, 2026, our material contractual obligations consisted of the following:

• To mitigate the risk of material shortages and price increases, we enter into non-cancellable purchase obligations with certain key contract manufacturers and other vendors for the purchase of goods and services to be received up to three to four quarters following the balance sheet date.

Our purchase obligations consist of agreements to purchase goods and services entered into in the ordinary course of business.

As of March 31, 2026, our future payments under these noncancellable purchase obligations were approximately $127.1 million.

• $48.9 million in outstanding borrowings under the 2029 Senior Secured Notes;

As of June 30, 2026, our future payments under these noncancellable purchase obligations were approximately $119.9 million.

• $48.9 million in long-term debt outstanding under the 2029 Senior Secured Notes;

see Part I Item 1, Note 4 – Debt ;

• $10.0 million in outstanding borrowings under the Working Capital Facility;

see Part I Item 1 Note 4 – Debt ;

• Operating lease liabilities that are included on our consolidated balance sheet.

2 unchanged sentences

The following table summarizes our unaudited condensed consolidated statements of cash flows for the periods indicated (in thousands):

Three Months Ended

Six Months Ended

Operating cash flows from continuing operations $ (22,062) $ (7,055)

Operating cash flows from discontinued operations — (881)

Net cash provided by (used in) operating activities 1,715 (3,467)

Net cash used in operating activities (22,062) (7,936)

Investing cash flows from continuing operations (8,287) (4,591)

9 unchanged sentences

Operating activities.

Net cash provided by operating activities for the three months ended March 31, 2026 is primarily comprised of net cash provided by working capital of $1.9 million, which was largely due to timing of large cash receipts on accounts receivable balances, partially offset by the payout of the Company’s annual bonuses that were accrued for at December 31, 2025.

The net cash provided by working capital was partially offset by a $4.5 million net loss and non-cash charges during the period, including share-based compensation expense of $2.3 million and depreciation and amortization of $1.8 million.

Net cash used in operating activities for three months ended March 31, 2025 is primarily comprised of a $1.2 million net loss from continuing operations during the period and net cash used for working capital of $7.0 million, which was largely due to the payout of the annual bonus that was accrued for at December 31, 2024, partially offset by non-cash charges, including depreciation and amortization of $2.1 million, share-based compensation expense of $1.6 million, and provision for excess and obsolete inventory of $0.7 million.

Net cash used in operating activities for the six months ended June 30, 2026 is primarily comprised of net cash used for working capital of $19.9 million, which was largely due to timing of large cash receipts on accounts receivable balances and the payout of the Company’s annual bonuses that were accrued for at December 31, 2025, and a $13.0 million net loss, partially offset by non-cash charges during the period, including share-based compensation expense of $5.4 million and depreciation and amortization of $4.1 million.

Net cash used in operating activities for six months ended June 30, 2025 is primarily comprised of a $0.7 million net loss from continuing operations during the period and net cash used for working capital of $15.0 million, which was largely due to the payout of the annual bonus that was accrued for at December 31, 2024, partially offset by non-cash charges, including depreciation and amortization of $3.9 million, share-based compensation expense of $3.3 million, and provision for excess and obsolete inventory of $1.2 million.

Investing activities.

Net cash used in investing activities during the three months ended March 31, 2026 is primarily comprised of $3.8 million of cash outflows related to the development of software in support of our products and services.

Net cash used in investing activities for the three months ended March 31, 2025 is comprised of $1.7 million of cash outflows related to the development of software in support of our products and services, partially offset by $0.7 million received during the period related to a working capital adjustment payment from the purchaser of the Company’s Telematics Business that was sold in 2024.

Net cash used in investing activities during the six months ended June 30, 2026 is primarily comprised of $7.8 million of cash outflows related to the development of software in support of our products and services.

Net cash used in investing activities for the six months ended June 30, 2025 is comprised of $4.4 million of cash outflows related to the development of software in support of our products and services, partially offset by $0.7 million received during the period related to a working capital adjustment payment from the purchaser of the Company’s Telematics Business that was sold in 2024.

Financing activities.

Net cash used in financing activities during the three months ended March 31, 2026 is primarily comprised of the $3.3 million payment made as part of the Preferred Stock Exchange Agreement.

Net cash provided by financing activities for the three months ended March 31, 2025 is comprised of less than $0.1 million of cash received from exercises of stock options.

Net cash provided by financing activities during the six months ended June 30, 2026 is primarily comprised of $10.0 million drawn on the Working Capital Facility and $0.7 million of cash received from exercises of stock options and purchases

through the Company’s employee stock purchase plan, partially offset by the $3.3 million payment made as part of the Preferred Stock Exchange Agreement.

Net cash used in financing activities for the six months ended June 30, 2025 is is primarily comprised of the repayment of the remaining $14.9 million 2025 Convertible Notes principal balance, partially offset by $0.3 million of cash received from exercises of stock options.

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 2. Management’s Discussion and Analysis