What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2025-08-13 compared with 2025-05-07 · 168 added, 172 removed, 420 unchanged (45% of the section changed)

12 unchanged sentences

stock, $ 0.001 par value, 681,000,000 shares authorized;

231,229,054 and 225,975,331 shares issued and outstanding as of March 31,

231,229,054 and 225,975,331 shares issued and outstanding as of June 30,

2025, and September 30, 2024

19 unchanged sentences

at March 31, 2025

at June 30, 2025

at September 30, 2023

4 unchanged sentences

at March 31, 2024

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

at June 30, 2024

accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

CONSOLIDATED STATEMENTS OF CASH FLOWS

Months Ended March 31,

Months Ended June 30,

FLOWS FROM OPERATING ACTIVITIES:

5 unchanged sentences

receivable, net

expenses and other assets

expenses and other current assets

payable and accrued liabilities

taxes payable

Deferred revenue

Income taxes payable

cash provided by / (used in) operating activities

FLOWS FROM INVESTING ACTIVITIES:

of short-term investments

cash provided by investing activities

sale (purchase) of short-term investments

of fixed assets

cash provided by / (used in) investing activities

FLOWS FROM FINANCING ACTIVITIES:

1 unchanged sentence

cash used in financing activities

/ (DECREASE) IN CASH

BEGINNING OF PERIOD

5 unchanged sentences

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

THE SIX MONTHS ENDED March 31, 2025 AND 2024

THE NINE MONTHS ENDED JUNE 30, 2025 AND 2024

1 – DESCRIPTION OF BUSINESS

mission is to make cybersecurity simple and accessible for mid-market and emerging companies, a market that we believe is currently underserved.

We believe that our cybersecurity product and service offerings provide cybersecurity and privacy risk management solutions for our customers.

mission is to make cybersecurity simple and accessible for mid-market and emerging companies, a market that we believe is currently

We believe that our cybersecurity product and service offerings provide cybersecurity and privacy risk management

solutions for our customers.

We anticipate that our target customers will continue to need cost-effective security solutions.

We continue to expand our catalogue of

services and solutions to address the cybersecurity needs of our customers, including virtual Chief Information Security Officer (“vCISO”),

cyber program strategy, zero trust, third-party risk management, compliance readiness, cloud security services, privacy, threat intelligence,

managed end-point security solutions, and cybersecurity awareness.

continue to expand our catalogue of services and solutions to address the cybersecurity needs of our customers, including virtual

Chief Information Security Officer (“vCISO”), cyber program strategy, zero trust, third-party risk management,

compliance readiness, cloud security and architecture services, privacy, threat intelligence, managed end-point security solutions,

and cybersecurity awareness.

are marketing and selling Enclave, a proprietary software product that simplifies important cybersecurity tasks to achieve “microsegmentation.”

13 unchanged sentences

vCISO Services agreements are in the form of a monthly subscription;

some clients select a prepaid block of hours or time and

materials engagements.

Rates for vCISO Services range from $ 350

Each of our vCISOs is generally embedded into the C-suite executive teams of two (2) to four (4) of our clients.

augment our vCISO Services offering with a full range of other cybersecurity products and services, including third-party software

and services that we resell and those delivered by our security engineer employees and independent contractors.

some clients select a prepaid block of hours or time and materials

Rates for vCISO Services range from $ 350 to $ 450 per hour.

Each of our vCISOs is generally embedded into the C-suite executive

teams of two (2) to four (4) of our clients.

We augment our vCISO Services offering with a full range of other cybersecurity products

and services, including third-party software and services that we resell and those delivered by our security engineer employees and independent

headquarters are located at 146 Main Street, Suite 405, Worcester, MA, 01608.

12 unchanged sentences

fiscal year ending September 30, 2025, and the prior fiscal year ended September 30, 2024, respectively.

the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments

(consisting only of normal recurring adjustments) necessary to present fairly the financial position, results of operations, and

changes in cash flows for the interim periods presented.

Certain footnote information has been condensed or omitted from these

consolidated financial statements.

Therefore, these condensed consolidated financial statements should be read in conjunction with

the consolidated financial statements and accompanying footnotes included in our Form 10-K for the fiscal year ended September 30, 2024, filed with the Securities

the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments (consisting

only of normal recurring adjustments) necessary to present fairly the financial position, results of operations, and changes in cash

flows for the interim periods presented.

Certain footnote information has been condensed or omitted from these consolidated financial

Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial

statements and accompanying footnotes included in our Form 10-K for the fiscal year ended September 30, 2024, filed with the Securities

and Exchange Commission on December 13, 2024 (“2024 Form 10-K”).

The same accounting policies have been followed in these unaudited interim condensed consolidated financial statements as

those applied in the preparation of our consolidated audited financial statements for the year ended September 30, 2024.

The same accounting policies have been followed in these

unaudited interim condensed consolidated financial statements as those applied in the preparation of our consolidated audited financial

statements for the year ended September 30, 2024.

preparation of financial statements in conformity with U.S.

7 unchanged sentences

prior year amounts have been reclassified to be comparable with the current year’s presentation.

These reclassifications had no effect on the previous operations or financial condition of the Company.

These reclassifications had no

effect on the previous operations or financial condition of the Company.

manage our operations as a single operating segment for the purposes of assessing performance and making operating decisions.

12 unchanged sentences

on short-term investments is accrued in interest receivable, which is included on our balance sheet in “Accounts receivable, net.”

income related to cash equivalents and short-term investments is reported in “Other income, net” on the Condensed

Consolidated Statement of Operations.

income related to cash equivalents and short-term investments is reported in “Other income, net” on the Condensed Consolidated

Statement of Operations.

accounts receivable are recorded at the invoiced amounts and do not bear interest.

16 unchanged sentences

are recorded in operating cash flows.

Our analysis indicated we did require an allowance for credit losses at March 31, 2025;

therefore, we reversed the

$ 30 thousand balance we had previously recorded for an allowance for credit losses.

analysis indicated we did not require an allowance for June 30, 2025.

Value of Financial Instruments

24 unchanged sentences

the fair value of a reporting unit exceeds its carrying amount, the goodwill of the reporting unit is considered not impaired.

the carrying amount of a reporting unit exceeds its fair value, an impairment loss will be recognized in an amount equal to that

excess, limited to the total amount of goodwill allocated to that reporting unit.

carrying amount of a reporting unit exceeds its fair value, an impairment loss will be recognized in an amount equal to that excess,

limited to the total amount of goodwill allocated to that reporting unit.

assets, which consist of finite-lived intangible assets and property and equipment, are assessed for impairment whenever events or changes

6 unchanged sentences

determine the impairment, if any, contain management’s best estimates using appropriate assumptions and projections at that time.

There have been no significant events or changes in circumstances during the six-months ended March 31, 2025, that would indicate that

the carrying amount of the Company’s intangible asset, goodwill, may be impaired as of March 31, 2025.

There have been no significant events or changes in circumstances during the nine months ended June 30, 2025, that would indicate that

the carrying amount of the Company’s intangible asset, goodwill, may be impaired as of June 30, 2025.

recognize revenue in accordance with the guidance in ASC Topic 606 (Revenue from Contracts with Customers).

112 unchanged sentences

account for warrants in accordance with FASB ASC Topics 480 and 815.

The result of this accounting treatment is that the fair value

of the embedded derivative, if required to be bifurcated, is marked-to-market at each balance sheet date and recorded as a

The change in fair value is recorded in our consolidated statement of operations as a component of other income or

Upon exercise of a warrant, it is marked to fair value at the exercise date and then that fair value is reclassified to

The result of this accounting treatment is that the fair value of

the embedded derivative, if required to be bifurcated, is marked-to-market at each balance sheet date and recorded as a liability.

change in fair value is recorded in our consolidated statement of operations as a component of other income or expense.

Upon exercise

of a warrant, it is marked to fair value at the exercise date and then that fair value is reclassified to equity.

of Recently Issued Amendments to Authoritative Accounting Guidance

17 unchanged sentences

December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740):

Improvements to Income Tax Disclosures,” which

updates income tax disclosure requirements primarily by requiring specific categories and greater disaggregation within the rate reconciliation

Improvements to Income Tax Disclosures,” which updates

income tax disclosure requirements primarily by requiring specific categories and greater disaggregation within the rate reconciliation

table and disaggregation of income taxes paid, net of refunds, by jurisdiction.

18 unchanged sentences

3 – LIQUIDITY AND CAPITAL RESOURCES

of March 31, 2025, and September 30, 2024, we had $ 1.2

million and $ 1.0

million, respectively, of cash and cash equivalents.

In addition, we had $ 100 thousand

in short-term investments as of March 31, 2025, and $ 250 thousand at September 30, 2024.

We incurred net losses during the six-month

periods ended March 31, 2025, and 2024, of $ 249

thousand and $ 499

thousand, respectively.

primary requirements for liquidity and capital are working capital, research and development, sales and marketing activities, and other

of June 30, 2025, and September 30, 2024, we had $ 1.1 million and $ 1.0 million, respectively, of cash and cash equivalents.

we had $ 100 thousand in short-term investments as of June 30, 2025, and $ 250 thousand at September 30, 2024.

We incurred net losses during

the nine-month period ended June 30, 2025, of $ 510 thousand.

primary requirements for liquidity and capital are working capital, research and development, selling and marketing activities, and other

general corporate needs.

1 unchanged sentence

cash equivalents.

As of March 31, 2025, we are not party to any off-balance sheet arrangements that have had or are reasonably likely

As of June 30, 2025, we are not party to any off-balance sheet arrangements that have had or are reasonably likely

to have a current or future material effect on our financial condition, results of operations, liquidity, capital expenditures, or capital

Significant cash requirements for the remainder of the fiscal year include our working capital requirement.

believe that our existing cash, cash equivalents, and our anticipated cash flows from operations will be sufficient to meet our working

7 unchanged sentences

deposits with original maturities of less than 90 days are included in “Cash and cash equivalents.” Time deposits with original

maturities from 91-360 days are included in “Short-term investments.” As of March 31, 2025, and September 30, 2024, the Company

maturities from 91-360 days are included in “Short-term investments.” As of June 30, 2025, and September 30, 2024, the Company

had no long-term investments.

1 unchanged sentence

OF CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS

(in thousands)

cash equivalents

short-term investments

Term Investment

Short Term Investment

Maturity Date

Time deposits

August 5, 2025

more information about the fair value of the Company’s financial instruments, see Note 7.

5 – DEFERRED COSTS

July 23, 2021, Cipherloc Corporation (“Cipherloc”) entered into a financial advisory and consulting agreement with

Paulson Investment Company, LLC (“Paulson”).

July 23, 2021, Cipherloc Corporation (“Cipherloc”) entered into a financial advisory and consulting agreement with Paulson

Investment Company, LLC (“Paulson”).

The agreement with Paulson remains in place after the Business Combination.

Pursuant to the agreement, Paulson will provide the following services at the Company’s request:

(a) familiarize itself with

the Company’s business, assets, and financial condition;

(b) assist the Company in developing strategic and financial

(d) assist the Company in increasing its

profile in the investment and financial community through introductions to analysts and potential investors, participation in

investment conferences, and exploitation of reasonably available media opportunities;

(e) identify potentially attractive merger and

acquisition opportunities;

(f) review possible innovative financing opportunities;

and (g) render other financial advisory services

as may be reasonably requested.

The term of the agreement is four years from the date of the agreement, unless terminated earlier by

either party as provided therein.

As compensation for these services, the Company issued to Paulson 4

million shares of the Company’s common stock and agreed to reimburse Paulson for all reasonable and documented expenses

incurred by Paulson in connection with providing such services.

to the agreement, Paulson will provide the following services at the Company’s request:

(a) familiarize itself with the Company’s

business, assets, and financial condition;

(b) assist the Company in developing strategic and financial objectives;

in increasing its exposure in the software industry;

(d) assist the Company in increasing its profile in the investment and financial

community through introductions to analysts and potential investors, participation in investment conferences, and exploitation of reasonably

available media opportunities;

(e) identify potentially attractive merger and acquisition opportunities;

(f) review possible innovative

financing opportunities;

and (g) render other financial advisory services as may be reasonably requested.

The term of the agreement is

four years from the date of the agreement, unless terminated earlier by either party as provided therein.

As compensation for these services,

the Company issued to Paulson 4 million shares of the Company’s common stock and agreed to reimburse Paulson for all reasonable

and documented expenses incurred by Paulson in connection with providing such services.

The fair value of the shares issued was $ 720

thousand, which Cipherloc recognized as deferred costs which are amortized at a rate of $ 45

thousand per quarter.

thousand, which Cipherloc recognized as deferred costs which are amortized at a rate of $ 45 thousand per quarter.

The Company expensed

thousand the six months ended March 31, 2025, and 2024, respectively .

The unamortized balance of the deferred costs was $ 60

thousand at March 31, 2025.

December 10, 2021, we entered into a lease for approximately 500

$ 135 thousand for the nine months ended June 30, 2025, and 2024, respectively.

The unamortized balance of the deferred costs was $ 15 thousand

at June 30, 2025.

December 10, 2021, we entered a lease for approximately 500

square feet of office space at 146 Main Street in Worcester,

Massachusetts, with the option to renew

annually for three twelve-month periods through December 2025.

The annual renewal date is January 1 st .

current lease payment is $ 986 per month.

Our current lease payment is $ 986 per month.

The lease allows for a 2% increase effective at the beginning of each renewal period.

lease expenses were $ 6

thousand and $ 6

thousand for both the six months ended March 31, 2025, and 2024, respectively.

lease expenses were $ 9 thousand for both the nine months ended June 30, 2025, and 2024, respectively.

expect to pay approximately $ 6 thousand through December 2025, the remaining term of the Worcester lease .

We intend to renew the

lease for another twelve-month period beginning January 1, 2026, and ending December 31, 2026, at an annual cost of $ 12 thousand.

7 – FAIR VALUE MEASUREMENT

11 unchanged sentences

Short-term investments

entire balance of time deposits maturing in 91 to 360 days at March 31, 2025, and September 30, 2024, are certificates of deposit issued

entire balance of time deposits maturing in 91 to 360 days at June 30, 2025, and September 30, 2024, are certificates of deposit issued

by a bank at which total deposits exceed the FDIC limit of $ 250 thousand.

1 unchanged sentence

9 - STOCKHOLDERS’ EQUITY

of March 31, 2025, we had 231,229,054

of June 30, 2025, we had 231,229,054

shares of common stock outstanding and were authorized to issue 681,000,000

681,000,000 shares

of common stock at a par value of $ 0.001 .

We had 225,975,331 shares

of common stock outstanding as of September 30, 2024.

Common Stock Issued Under Equity Incentive

During the six months ended March 31, 2025, 6,398,717 Restricted Stock Units vested for which we issued 4,897,323

shares of common stock and 1,501,394 RSU’s were sold by employees to fund payroll taxes.

shares of common stock at a par value of $ 0.001 per share .

We had 225,975,331

shares of common stock outstanding as of September 30, 2024.

Stock Issued Under Equity Incentive Plan

the nine months ended June 30, 2025, 6,398,717 Restricted Stock Units vested for which we issued 4,897,323 shares of common stock and

1,501,394 RSU’s were sold by employees to fund payroll taxes.

Stock Issued for Legal Settlement

April 2021, Eric Marquez, the former Secretary/Treasurer and Chief Financial Officer of Cipherloc, and certain other plaintiffs,

filed a lawsuit against Cipherloc and Michael De La Garza, Cipherloc’s former Chief Executive Officer and President,

in the 20 th Judicial District for Hays County, Texas (Cause No.

We executed a settlement agreement with the plaintiffs

on December 13, 2024, resulting in the dismissal of the lawsuit with prejudice on January 2, 2025.

The settlement agreement required

the Company to issue the plaintiffs a combined 356,400 shares of common stock, which was done on December 20, 2024, with a fair market

value of $ 14 thousand.

April 2021, Eric Marquez, the former Secretary/Treasurer and Chief Financial Officer of Cipherloc, and certain other plaintiffs, filed

a lawsuit against Cipherloc and Michael De La Garza, Cipherloc’s former Chief Executive Officer and President, in the 20 th

Judicial District for Hays County, Texas (Cause No.

We executed a settlement agreement with the plaintiffs on December

13, 2024, resulting in the dismissal of the lawsuit with prejudice on January 2, 2025.

The settlement agreement required the Company

to issue the plaintiffs a combined 356,400 shares of common stock.

The shares were issued on December 20, 2024, with a fair market value of $ 14

Stock Issued for Cash

did no t issue shares of common stock for cash during the six months ended March 31, 2025.

did no t issue shares of common stock for cash during the nine months ended June 30, 2025.

Stock Issued for Business Combinations

did no t issue shares for mergers or acquisitions related activity during the six months ended March 31, 2025.

did no t issue shares for mergers or acquisitions related activity during the nine months ended June 30, 2025.

Stock Issued for Services

did no t issue shares for services during the six months ended March 31, 2025.

of March 31, 2025, we had zero ( 0 ) shares of preferred stock outstanding.

following table summarizes warrant activity for the six months ended March 31, 2025:

did no t issue shares for services during the nine months ended June 30, 2025.

of June 30, 2025, we had zero ( 0 )

shares of preferred stock outstanding and were authorized to issue 10,000,000 shares of preferred stock at a par value of $ 0.001 per share.

following table summarizes warrant activity for the nine months ended June 30, 2025:

OF WARRANT ACTIVITY

thousands, except prices and remaining lives)

Average Exercise Price

Average Remaining Life

at September 30, 2024

Cancelled/Forfeited

at March 31, 2025

Canceled/Forfeited

at June 30, 2025

10 – REVENUE FROM CONTRACTS WITH CUSTOMERS

Disaggregation

disaggregate our revenue from contracts with customers (clients) by service type.

See the below table:

OF DISAGGREGATED REVENUE

disaggregate our revenue from contracts with customers (clients) by service type as indicated in the table below:

SCHEDULE OF DISAGGREGATED REVENUE

Cybersecurity

5 unchanged sentences

deferred revenue is expected to be earned within 12 months of the balance sheet date.

in deferred revenue were as follows:

OF CHANGES IN DEFERRED REVENUE

change in deferred revenue from September 30, 2024, to June 30, 2025, is summarized as follows:

SCHEDULE OF CHANGES IN DEFERRED REVENUE

at September 30, 2024

at March 31, 2025

at June 30, 2025

11 – BUSINESS RISK AND CREDIT RISK CONCENTRATION INVOLVING CASH

client individually accounted for over 10% of our revenue during the three months or six months ended March 31, 2025, or 2024.

had three clients with accounts receivable balances together totaling approximately 45 % of our accounts receivable balance at March 31,

maintain our cash, cash equivalents, and short-term investments in accounts held by a highly reputable financial institution which, at

times, may exceed federally insured limits as guaranteed by the Federal Deposit Insurance Corporation (“FDIC”).

insures these deposits up to $ 250

As of March 31, 2025, approximately

client individually accounted for approximately 13 % of our revenue during the three months ended June 30, 2025.

No client individually

accounted for over 10 % of our revenue during the three months ended June 30, 2024, or the nine months ended June 30, 2025, or 2024.

had two clients with accounts receivable balances together totaling approximately 30 % of our accounts receivable balance at June 30,

maintain our cash, cash equivalents, and short-term investments in accounts held by a highly reputable financial institution which,

at times, may exceed federally insured limits as guaranteed by the Federal Deposit Insurance Corporation (“FDIC”).

FDIC insures these deposits up to $ 250

As of June 30, 2025, approximately $ 899

thousand of our cash and cash equivalent balance and $ 100

thousand of our short-term investment balance

were uninsured.

We have not experienced any losses on cash.

thousand of our short-term investment balance were uninsured.

We have not experienced any losses on our cash or short-term investments.

12 – RELATED PARTY TRANSACTIONS

4 unchanged sentences

to RealCISO for such use.

For the six months ending March 31, 2025, and 2024, we paid $ 41 thousand and $ 20 thousand, respectively, to RealCISO.

also received $ 13

thousand and $ 77

thousand from RealCISO for software development

services that we provided RealCISO during the six months ended March 31, 2025, and 2024, respectively.

For the nine months ending June 30, 2025, and 2024, we paid $ 77 thousand and $ 35 thousand, respectively, to

also invoiced $ 17 thousand and $ 119 thousand from RealCISO for software development services that we provided RealCISO during the nine

months ended June 30, 2025, and 2024, respectively.

October 13, 2023, the Association of the US Army (“AUSA”) signed an agreement for a cybersecurity risk assessment for approximately

3 unchanged sentences

On July 8, 2024,

AUSA signed an agreement for recurring vCISO Services, which generated $ 54 thousand of revenue during the six months ended March 31,

AUSA signed an agreement for recurring vCISO Services, which generated $ 54 thousand of revenue during the nine months ended June 30,

SideChannel reserved booth space at the AUSA Global Force Symposium held in March 2025.

In the six months ended March 31, 2025,

In the nine months ended June 30, 2025,

we paid $ 8 thousand to AUSA for this event.

other related party transactions occurred during the six months ended March 31, 2025.

other related party transactions occurred during the nine months ended June 30, 2025.

13 – STOCK BASED COMPENSATION

3 unchanged sentences

over a 3 -year period.

following table summarizes the activity of our RSUs granted under our Equity Incentive Plan during the six months ended March 31, 2025:

following table summarizes the activity of our RSUs granted under our Equity Incentive Plan during the nine months ended June 30, 2025:

SCHEDULE OF RESTRICTED STOCK UNITS VESTING

Grants at September 30, 2024

RSUs at September 30, 2024

( 6,398,717 )

Cancelled/Forfeited

Grants at March 31, 2025

December 20, 2024, our Board of Directors authorized awarding 1.1 million RSUs to each of the three independent directors vesting over

three years beginning on March 1, 2025, and ending on March 1, 2027.

On March 3, 2025 we granted 7,937,706 RSU’s to officers and

The average grant date fair value of RSUs granted during the six months ended March 31, 2025 was $ 0.04 .

The Company recognizes

compensation cost for unvested share-based awards on a straight-line basis over the requisite service period.

total stock-based compensation expense for the six months ended March 31, 2025, was $ 218

thousand for the amortization of outstanding equity

compensation grants.

Stock-based compensation of $ 185

thousand is included in general and administrative

expense, $ 9 thousand in selling and marketing expense, and

thousand in research and development expense.

unamortized stock compensation expense at March 31, 2025, is $ 701

thousand, and the remaining weighted average term

to vesting is 2.4

following table summarizes the activity of our stock options granted under our Equity Incentive Plan during the six months ended March

OF STOCK OPTION OUTSTANDING TRANSACTIONS

at September 30, 2024

Canceled/Forfeited

RSUs at June, 2025

December 20, 2024, our Board of Directors authorized awarding 1.1

million RSUs to each of the three independent directors vesting over three

years beginning on March 1, 2025, and ending on March 1, 2027 .

On March 3, 2025, we granted 7,937,706

RSUs to officers and employees.

During the quarter ended June 30, 2025, we awarded 250,000

RSUs to new employees vesting over three years beginning on March 1, 2026 and ending on March 1, 2028.

The average grant date fair value of RSUs granted during the nine months ended June 30, 2025, was $ 0.04 .

The Company recognizes compensation cost for unvested share-based awards on a straight-line basis over the requisite service

total stock-based compensation expense for the nine months ended June 30, 2025, was $ 306 thousand for the amortization of outstanding

equity compensation grants.

Stock-based compensation of $ 262 thousand is included in general and administrative expense, $ 11 thousand

in selling and marketing expense, and $ 33 thousand in research and development expense.

unamortized stock compensation expense at June 30, 2025, is $ 622 thousand, and the remaining weighted average term to vesting is 2.1

following table summarizes the activity of our stock options granted under our Equity Incentive Plan during the nine months ended June

SCHEDULE OF STOCK OPTION OUTSTANDING TRANSACTIONS

of Stock Options

Options at September 30, 2024

Cancelled/Forfeited

( 3,300,000 )

at March 31, 2025

Options at June 30, 2025

December 20, 2024, our Board of Directors authorized the termination of stock options previously awarded to independent directors.

9 unchanged sentences

The settlement agreement requires

the Company to issue the plaintiffs a combined 356,400 shares of common stock and pay a total of $ 95 thousand in cash in six equal, quarterly

instalments of approximately $ 16 thousand each, beginning by January 1, 2025, and ending by April 1, 2026.

The expenses associated with

this settlement were included in our results for the fiscal year ended September 30, 2024.

Two payments totaling approximately $ 32 thousand

have been made as of March 31, 2025.

the Company to issue the plaintiffs a combined 356,400 shares of common stock and pay a total of $ 95 thousand in cash in six equal,

quarterly installments of approximately $ 16 thousand each, beginning by January 1, 2025, and ending by April 1, 2026.

The expenses associated

with this settlement were included in our results for the fiscal year ended September 30, 2024.

Three payments totaling approximately

$ 47 thousand have been made as of June 30, 2025.

15 – SUBSEQUENT EVENTS

have assessed our operations through the filing date of this Quarterly Report on Form 10-Q and determined that there were no

material subsequent events requiring adjustment to, or disclosure in, our condensed consolidated financial statements for the six

months ended March 31, 2025 .

have assessed our operations through the filing date of this Quarterly Report on Form 10-Q and determined that there were no material

subsequent events requiring adjustment to, or disclosure in, our condensed consolidated financial statements for the nine months ended

June 30, 2025 .

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