What changed in this filing

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Item 1A. Risk Factors

2026-03-05 compared with 2025-03-06 · 28 added, 18 removed, 144 unchanged (24% of the section changed)

25 unchanged sentences

shareholders’ equity of $0.9 million.

Based on our current operations, we expect to have sufficient working capital for more than

the next 5 years of operations.

Based on our current operations, we expect to have sufficient working capital for the foreseeable

Based on current operating levels and assumptions regarding future royalty growth, we believe our existing cash and working capital

are sufficient to fund operations for the foreseeable future.

However, actual results may differ from these expectations due to factors

including licensee performance and financial stability, timing of royalty receipts, and macroeconomic conditions.

of Operating Losses

28 unchanged sentences

introduce products using SPD technology, we cannot predict when and if our licensees will generate substantial sales of such products.

Our SPD technology is currently licensed to over 40 companies.

Our SPD technology is currently licensed to numerous companies.

Other companies are also evaluating SPD technology for use in various

8 unchanged sentences

in sufficient quantities to make the Company profitable.

During 2025, one of our European licensees supplying an automotive OEM filed

for bankruptcy and ceased operations.

Although production was transitioned to another licensee, royalty recognition during portions of

2025 was affected.

We rely on independent licensees to manufacture and sell products incorporating our technology.

The financial distress,

insolvency or operational disruption of any significant licensee could delay production, disrupt supply chains, affect the timing of

royalty income or require transition to alternative licensees, which may not occur without interruption or additional cost.

products have only recently been introduced

4 unchanged sentences

have several large licensees that account for 10% or more of our annual fee income

2024, four licensees accounted for 34%, 28%, 11% and 11%, respectively, of fee income recognized for the year.

During 2023, four licensees

accounted for 39%, 16%, 16% and 13%, respectively, of fee income recognized for the year.

The loss of all or a substantial portion of

the fee income from any of these customers (or certain other significant customers) could have a material adverse effect on our business,

financial condition, and/or results of operations.

2025, five licensees accounted for 21%, 20%, 20%, 19% and 13%, respectively, of fee income recognized for the year.

During 2024, four

licensees accounted for 34%, 28%, 11% and 11%, respectively, of fee income recognized for the year.

The loss of all or a substantial

portion of the fee income from any of these customers (or certain other significant customers) could have a material adverse effect on

our business, financial condition, and/or results of operations.

products face intense competition, which could affect our ability to increase our revenues

17 unchanged sentences

end-product licensees require a source of SPD film to manufacture finished products.

Currently, Showa Denko Chemical and Gauzy Ltd.

the only sources of commercial quantities of SPD-film.

There are several other companies that are licensed to manufacture SPD-film, but

they have not begun commercial production of this film.

Our end-product licensees’ ability to sell SPD products could be negatively

impacted if there was a prolonged disruption in SPD-film availability.

Such a disruption could also negatively impact our revenues, results

of operations and financial condition.

Currently, Gauzy Ltd.

is the only source of commercial

quantities of SPD-film.

There are several other companies that are licensed to manufacture SPD-film, but they have not begun commercial

production of this film.

Our end-product licensees’ ability to sell SPD products could be negatively impacted if there was a prolonged

disruption in SPD-film availability.

Such a disruption could also negatively impact our revenues, results of operations and financial

are dependent on key personnel

51 unchanged sentences

of our financial statements.

STAFF COMMENTS

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-K

Item 1A. Risk Factors