VisionWave Holdings, Inc. 10-Q

Item 1 - Financial Statements VISIONWAVE HOLDINGS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS June 30, 2026 September 30, 2025 (Unaudited) Assets Current Assets: Cash and cash equivalents $ 4,881,610 $ 2,284,933 Accounts receivable 192,210 — Prepaid expenses and other current assets 404,863 189,549 Deposit 600,000 — Advances to supplier 98,250 98,250 Due from related party 147,500 120,000 Total Current Assets 6,324,433 2,692,732 Investment in securities designated for sale 281 281 Equity method investment 6,430,524 — Other investments 1,026,000 — Notes receivable, net of allowance 5,630,551 — Property, plant and equipment, net 170,160 — Other non-current asset 360,000 — Goodwill 592,000 — Intangible assets, net 159,265,218 — Total Assets $ 179,799,167 $ 2,693,013 Liabilities and Equity (Deficit) Current liabilities: Accounts payable and accrued expenses $ 5,457,681 $ 3,917,834 Customer deposit 108,006 108,006 Deferred revenue 350,000 — Income taxes payable 1,068,559 994,704 Excise tax payable 1,029,244 943,039 Promissory notes 22,333,167 1,003,995 Loan payable - current 108,010 — Due to related parties 2,135,084 2,434,492 Convertible notes payable, net of unamortized debt issuance cost 5,826,591 4,861,390 Stock based compensation liability 925,448 — Deferred tax liability 19,950 — Deferred underwriters’ discount 225,000 225,000 Total Current Liabilities 39,586,740 14,488,460 Loan payable 185,173 — Total Liabilities 39,771,913 14,488,460 Commitments and Contingencies (Note 20) Equity (Deficit) Preferred stock, par value $ 0.01 , 10,000,000 shares authorized; no shares issued or outstanding — — Common stock, par value $ 0.01 , 150,000,000 shares authorized; 27,332,069 and 14,521,094 shares issued and 24,414,467 and 14,521,094 shares outstanding at June 30, 2026 and September 30, 2025, respectively. 273,320 145,211 Treasury stock, at cost, par value $ 0.01 , 2,917,602 and 0 shares outstanding at June 30, 2026 and September 30, 2025, respectively. ( 16,513,628 ) — Shares to be issued related to acquisition, par value $0.01, 6,500,000 and 0 shares at June 30, 2026 and September 30, 2025, respectively. 90,755,000 — Additional paid-in capital 115,919,280 3,168,248 Accumulated deficit ( 60,788,463 ) ( 15,108,906 ) Accumulated other comprehensive income 11,982 — Total equity - VisionWave Holdings Inc. 129,657,491 ( 11,795,447 ) Non-controlling interest 10,369,763 — Total Equity (Deficit) 140,027,254 ( 11,795,447 ) Total Liabilities and Equity (Deficit) $ 179,799,167 $ 2,693,013 The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. 3 VISIONWAVE HOLDINGS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS FOR THE THREE AND NINE MONTHS ENDED JUNE 30, 2026 AND 2025 (Unaudited) Three Months Ended June 30, Nine Months Ended June 30, 2026 2025 2026 2025 Revenue $ 286,339 $ — $ 286,339 $ — Cost of Revenue ( 171,759 ) — ( 171,759 ) — Gross Profit 114,580 — 114,580 — Operating expenses: General and administrative 5,989,701 132,933 13,592,558 408,164 Research and development 747,803 8,548 1,334,412 79,993 Sales and marketing 3,167,400 4,585 6,780,011 4,585 Depreciation and amortization 8,354,343 — 14,175,488 — Total operating expenses 18,259,247 146,066 35,882,469 492,742 Loss from operations ( 18,144,667 ) ( 146,066 ) ( 35,767,889 ) ( 492,742 ) Other (expense) income: Interest income 185,789 — 205,191 — Interest expense ( 5,230,404 ) — ( 7,565,321 ) — Net gain/(loss) from sale of marketable securities — ( 9,455 ) — 104,656 Loss on disposal of investments ( 523,011 ) ( 523,011 ) — Change in fair value of convertible notes payable ( 568,706 ) — ( 847,752 ) — Change in fair value of other liabilities ( 15,610 ) — 247,190 — Change in fair value of other investments ( 1,632,548 ) — ( 1,632,548 ) — Other income (expenses) ( 1,450 ) — 107,525 — Total other (expense) income, net ( 7,785,940 ) ( 9,455 ) ( 10,008,726 ) 104,656 Loss before provision for income taxes ( 25,930,607 ) ( 155,521 ) ( 45,776,615 ) ( 388,087 ) Net loss ( 25,930,607 ) ( 155,521 ) ( 45,776,615 ) ( 388,087 ) Net Loss Attributable to Non-controlling interests ( 97,058 ) — ( 97,058 ) — Net Loss Attributable to VisionWave Holdings Inc. Shareholders ( 25,833,549 ) ( 155,521 ) ( 45,679,557 ) ( 388,087 ) Other comprehensive loss Foreign currency translations adjustment (income) loss, net of tax 19,253 — 19,253 — Total Comprehensive loss ( 25,911,354 ) ( 155,521 ) ( 45,757,362 ) ( 388,087 ) Comprehensive Loss Attributable to Non-controlling interest ( 89,787 ) — ( 89,787 ) — Comprehensive Loss Attributable to VisionWave Holdings Inc. Shareholders $ ( 25,821,567 ) $ ( 155,521 ) $ ( 45,667,575 ) $ ( 388,087 ) Basic and diluted weighted average shares outstanding 21,725,154 11,000,000 18,804,327 11,000,000 Basic and diluted net loss per share attributable to VisionWave Holdings Inc. $ ( 1.19 ) $ ( 0.01 ) $ ( 2.43 ) $ ( 0.04 ) The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. 4 VISIONWAVE HOLDINGS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (DEFICIT) FOR THE THREE AND NINE MONTHS ENDED JUNE 30, 2026 AND 2025 (Unaudited) Common stock Treasury Stock Additional Shares to be issued Accumulated Accumulated Non - Controlling Total Shares Amount Shares Amount Paid-in Capital in acquisition Deficit Other Comprehensive Income Interest Equity (Deficit) Balance as of September 30, 2025 14,521,094 $ 145,211 — $ — $ 3,168,248 $ — $ ( 15,108,906 ) $ — $ — $ ( 11,795,447 ) Issuance of shares in asset acquisition 1,500,000 15,000 — — 11,685,000 — — — — 11,700,000 Issuance of warrants in asset acquisition — — — — 2,340,000 — — — — 2,340,000 Exercise of warrants 495,509 4,955 — — 5,693,399 — — — — 5,698,354 Stock based compensation — — — — 2,054,847 — — — — 2,054,847 Net loss — — — — — — ( 6,935,915 ) — — ( 6,935,915 ) Balance as of December 31, 2025 16,516,603 165,166 — — 24,941,494 — ( 22,044,821 ) — — 3,061,839 Exercise of warrants 46,747 467 — — 537,124 — — — — 537,591 Issuance of shares in asset acquisition 3,000,000 30,000 — — 28,680,000 — — — — 28,710,000 Issuance of shares pursuant to SEPA 233,678 2,337 — — 1,758,425 — — — — 1,760,762 Shares to be issued related to acquisition — — — — — 66,990,000 — — — 66,990,000 Issuance of shares pursuant to the SaverOne exchange agreement 365,610 3,655 — — 2,720,137 — — — — 2,723,792 Shares to be issued related to asset acquisition — — — — — — — — — — Issuance of warrants pursuant to the Letter Agreement — — — — 6,986,665 — — — — 6,986,665 Stock based compensation 184,499 1,845 — — 784,474 — — — — 786,319 Net loss — — — — — — ( 12,910,093 ) — — ( 12,910,093 ) Balance as of March 31, 2026 20,347,137 203,470 — — 66,408,319 66,990,000 ( 34,954,914 ) — — 98,646,875 Issuance of shares in asset acquisition 3,500,000 35,000 — — 23,730,000 — — — — 23,765,000 Issuance of shares pursuant to SEPA 1,622,705 16,227 — — 8,763,582 — — — — 8,779,809 Issuance of shares pursuant to the SaverOne exchange agreement 945,251 9,453 — — 5,037,955 — — — — 5,047,408 Share swap between DFNS and VisionWave 475,590 4,756 — — 2,653,791 — — — — 2,658,547 Shares to be issued related to asset acquisition — — — — — 23,765,000 — — — 23,765,000 Stock based compensation 441,386 4,414 — — 3,075,554 — — — — 3,079,968 Shares repurchased in connection with BOCA JV — — ( 2,917,602 ) ( 16,513,628 ) 6,250,078 — — — 10,263,550 — Currency translation adjustment — — — — — — — 11,982 7,271 19,253 Non-controlling Interest Arising on Business Combination — — — — — — — — 196,000 196,000 Net loss — — — — — — ( 25,833,549 ) — ( 97,058 ) ( 25,930,607 ) Balance as of June 30, 2026 27,332,069 $ 273,320 ( 2,917,602 ) $ ( 16,513,628 ) $ 115,919,280 $ 90,755,000 $ ( 60,788,463 ) $ 11,982 $ 10,369,763 $ 140,027,254 Common stock Additional Accumulated Total Shares Amount Paid-in Capital Deficit Deficit Balance as of September 30, 2024 11,000,000 $ 110,000 - - $ 151,000 - $ ( 332,119 ) - - $ ( 71,119 ) Net loss — — - - — - ( 203,724 ) - - ( 203,724 ) Balance as of December 31, 2024 11,000,000 110,000 - - 151,000 - ( 535,843 ) - - ( 274,843 ) Net loss — — - - — - ( 28,842 ) - - ( 28,842 ) Balance as of March 31, 2025 11,000,000 110,000 - - 151,000 - ( 564,685 ) - - ( 303,685 ) Net loss — — - - — - ( 155,521 ) - - ( 155,521 ) Balance as of June 30, 2025 11,000,000 $ 110,000 - - $ 151,000 - $ ( 720,206 ) - - $ ( 459,206 ) The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. 5 VISIONWAVE HOLDINGS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Nine Months Ended June 30, 2026 2025 Cash flows from Operating Activities: Net loss $ ( 45,776,615 ) $ ( 388,087 ) Adjustments to reconcile net loss to net cash provided by operating activities: Change in fair value of other liabilities ( 247,190 ) — Change in fair value of convertible notes payable 847,752 — Change in fair value of investments 1,632,548 — Gain on investment of marketable securities — ( 104,656 ) Allowance for doubtful Notes 169,036 Loss on transfer of equity method securities 523,011 — Amortization of debt issuance cost 6,493,972 — Stock-based compensation 5,921,134 — Depreciation and amortization 14,175,488 — Changes in current assets and current liabilities: Prepaid expenses and other current assets ( 190,599 ) — Accounts receivable ( 181,519 ) Due from related party ( 27,500 ) — Deposit ( 600,000 ) — Advances to supplier — ( 98,250 ) Accounts payable and accrued expenses 1,056,962 135,000 Customer deposit — 108,006 Deferred revenue 350,000 — Due to related parties ( 299,408 ) 234,147 Deferred taxes ( 1,050 ) — Stock-based compensation liability 1,172,638 — Late payment penalty on excise taxes payable 86,205 — Late payment penalty on income taxes payable 73,855 — Net cash used in operating activities ( 14,821,280 ) ( 113,840 ) Cash flows from Investing Activities: Proceeds from sale of marketable securities, net — 114,375 Advance to C.M. Composite Materials Ltd ( 5,799,587 ) — Purchase of property and equipment ( 75,541 ) — Deposit on property, plant and equipment ( 350,000 ) — Cash paid for equity method investments ( 644,530 ) — Cash acquired in connection with asset acquisition 119,135 — Acquisition of business, net of cash acquired ( 68,000 ) — Cash paid for other investments ( 226,650 ) — Proceeds from sale of other investments 256,337 — Net cash (used in) provided by investing activities ( 6,788,836 ) 114,375 Cash flows from Financing Activities: Proceeds from issuance of convertible note, net of costs 850,000 — Repayment of convertible notes ( 892,907 ) — Proceeds from issuance of promissory note 16,975,000 — Proceeds from loan payable 63,951 — Repayment of loan payable ( 23,840 ) — Repayment of promissory note ( 9,560,270 ) — Proceeds from drawdown of SEPA 10,540,571 — Proceeds from exercise of warrants 6,235,945 — Net cash provided by financing activities 24,188,450 — Effect of exchange rate changes on cash 18,343 — Net change in cash 2,596,677 535 Cash and cash equivalents, beginning of the period 2,284,933 3,014 Cash and cash equivalents, end of the period $ 4,881,610 $ 3,549 Supplemental cash flow information: Interest paid $ 119,176 $ — Taxes paid $ — $ — Non cash investing and financing activities: Debt discount on warrant issued for Notes $ 6,986,655 $ — Issuance of shares pursuant to the SaverOne exchange agreement $ 7,771,200 $ — Issuance of shares in asset acquisition $ 64,175,000 $ — Issuance of warrants pursuant to exchange agreement $ 2,340,000 $ — Note issued in asset acquisition $ 16,000,000 $ — Shares to be issued related to acquisition $ 90,755,000 $ — Share swap between DFNS and VisionWave $ 2,658,548 $ — Non-cash repayment of Adrian Note $ 1,432,509 $ — Goodwill acquired in Business Combination $ 592,000 $ — NCI related to acquisition $ 196,000 $ — Net assets acquired and liability assumed related to acquisition $ 328,000 $ — VWAV shares were contributed (by members) in Boca JV LLC $ 16,513,628 $ — The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. 6 VISIONWAVE HOLDINGS, INC. AND SUBSIDIARIES NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Note 1— Organization and Business Operations VisionWave Holdings, Inc. (“VW Holdings” or the “Company”) is a Delaware company incorporated in 2024. VW Holdings is the successor to Bannix Acquisition Corp., (“Bannix”) a blank check company incorporated in the state of Delaware on January 21, 2021 for the purpose of effecting mergers, capital stock exchange, asset acquisitions, stock purchases, reorganization or similar business combinations with one or more businesses (“Business Combination”). Prior to the succession of Bannix by VW Holdings, on March 26, 2024, Bannix entered into a Business Combination Agreement (the “Original Agreement”), by and among Bannix, VisionWave Technologies, Inc., a Nevada corporation (“Target” or “VW Tech.”) and the shareholders of Target. On September 6, 2024, Bannix entered into a Merger Agreement and Plan of Reorganization (the “Merger Agreement”), by and among Bannix, VW Holdings, a direct, wholly owned subsidiary of Bannix, BNIX Merger Sub, Inc., a Delaware corporation and a direct, wholly owned subsidiary of VisionWave (“Parent Merger Sub”), BNIX VW Merger Sub, Inc., a Nevada corporation and direct, wholly owned subsidiary of VisionWave (“Company Merger Sub”), and Target. On July 14, 2025, the transaction contemplated by the Merger Agreement closed. The Company has four wholly owned subsidiaries: VisionWave Technologies, Inc., Solar Drone Ltd, acquired on December 15, 2025 pursuant to the Share Purchase Agreement (See Note 10), VisionWave IL Ltd. (“VisionWave Israel”), acquired on March 18, 2026 (See Note 20) and VisionWave UK, Ltd, incorporated on May 22, 2026. Note 2— Liquidity, Capital Resources and Going Concern The Company’s primary sources of liquidity have been cash from financing activities. For the nine months ended June 30, 2026, the Company’s net loss was $ 45,776,615 . During the nine months ended June 30, 2026, the Company used cash of $ 14,821,280 for operating activities. As of June 30, 2026, the Company had an accumulated deficit of $ 60,788,463 as of June 30, 2026. As of June 30, 2026, working capital deficit was $ 33,262,307 and cash was $ 4,881,610 . On July 25, 2025, the Company entered into the Standby Equity Purchase Agreement (“SEPA”) with YA II PN, LTD, a Cayman Islands exempt limited partnership (the “Investor”) pursuant to which the Company has the right to sell to the Investor up to $50 million of its shares of common stock, subject to certain limitations and conditions set forth in the SEPA, from time to time during the term of the SEPA. The Company received proceeds of $10,540,571, from draw down during the nine months ended June 30, 2026. The Company also received net proceed of $16,975,000 for loan issued during the nine months ended June 30, 2026 (See Note 14) and $850,000 from the issuance of convertible notes during the same periods. The Company’s future capital requirements will depend on many factors, including the timing and extent of spending to support further sales and marketing and research and development efforts. In order to finance these opportunities, the Company will need to raise additional financing. While there can be no assurances, the Company intends to raise such capital through issuances of additional equity. If additional financing is required from outside sources, the Company may not be able to raise it on terms acceptable to the Company or at all. These factors initially raised substantial doubt about the Company’s ability to continue as a going concern within one year after the date these financial statements are issued. 7 Going Concern Assessment and Management’s Plans In response to these conditions, on April 8, 2025, with an effective date of March 31, 2025 and as amended on July 28, 2026, the Company entered into a Funding Support Agreement with Stanley Hills, LLC (“Stanley Hills”), its principal shareholder of VisionWave Technologies, Pursuant to the agreement, Stanley Hills irrevocably and unconditionally committed to provide financial support to the Company, sufficient to fund the working capital needs through August 28, 2027. The funding may be provided by Stanley Hills in the form of direct payments to third parties, advances or intercompany loans or capital contributions, as mutually determined by the parties. Unless otherwise agreed in writing, any such advances will be non-interest bearing and repayable only at such time as determined by the Board of Directors, and only to the extent such repayment would not impair the Company’s liquidity or ability to continue as a going concern. The agreement may not be terminated by Stanley Hills prior to the twelve-month period from the date of release of the unaudited condensed consolidated financial statement. Management has determined that the SEPA agreement, the agreement with Stanley Hills, cash receipts from customer arrangements, resource reallocation initiatives, additional insider investments and financing, along with its existing cash and committed affiliated support, alleviated the risk about the Company’s ability to continue as a going concern for a reasonable period of time, which is considered to be one year from the issuance of the unaudited condensed consolidated financial statements. Note 3— Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements as of June 30, 2026 and for the three and nine months ended June 30, 2026 and 2025 are unaudited. The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”) for interim financial statements and Article 10 of Regulation S-X of the United States Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and nine months ended June 30, 2026 are not necessarily indicative of the results that may be expected for the fiscal year ending September 30, 2026. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements as of and for the year ended September 30, 2025 and footnotes thereto filed with the Securities Exchange Commission (“SEC”) on Form 10-K on December 31, 2025. All amounts referred to in the notes to the unaudited condensed consolidated financial statements are in United States Dollars ($) unless stated otherwise. Principles of Consolidation The accompanying unaudited condensed consolidated financial statements include the accounts of VisionWave Holdings Inc. and its subsidiaries (See Note 1). All intercompany balances and transactions have been eliminated in consolidation. As of April 1, 2026, the Company consolidated VWave Boca JV, LLC, a joint venture that is a variable interest entity (“VIE”) as the Company has determined that it is the primary beneficiary. In determining this, the Company evaluated whether it has (1) the power to direct the activities that most significantly impact the VIE's economic performance, and (2) the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE. (See Note 6 for further details). 8 Foreign Currency Translation and Transactions The Company’s reporting currency is the U.S. dollar. The functional currency of each entity in the group is the currency of the primary economic environment in which it operates. Transactions in foreign currencies are initially recorded in source currency and converted into the functional currency at the rates of exchange prevailing on the date of the transaction. The Company translates the financial statements from the local (functional) currency into US Dollars using the year or reporting period end or average exchange rates in accordance with the requirements of Accounting Standards Codification subtopic 830-10, Foreign Currency Matters (“ASC 830-10”). Assets and liabilities are translated at exchange rates as of the balance sheet dates. Expenses are translated at average rates in effect for the years presented. Translation gains and losses resulting from re-measurement from functional to reporting currency are recorded in accumulated other comprehensive loss as a component of shareholders’ deficit. Gains and losses resulting from transactions denominated in a currency other than the functional currency of the entity are included in general and administrative expenses in the consolidated statements of operations and other comprehensive loss using the average exchange rates in effect during the period. Segment Reporting The Company complies with ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”), which improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses among other disclosure requirements. Emerging Growth Company Status The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act of 1933, as amended, (the “Securities Act”), as modified by the Jumpstart our Business Startups Act of 2012, (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and shareholder approval of any golden parachute payments not previously approved. Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s financial statements with another public company which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used. 9 Use of Estimates The preparation of these unaudited condensed consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements and the reported amounts of expenses during the reporting periods. Making estimates requires management to exercise significant judgement. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the unaudited condensed consolidated financial statements, which management considered in formulating its estimate, could change in the near term due to one or more future confirming events. Significant estimates include assumptions made in the valuation of stock options, valuation of convertible notes, fair value of assets acquired including intangible assets, useful life of intangibles, valuation of warrants, impairment of goodwill and intangible assets, recoverability of receivables and recoverability of deferred tax assets. Accordingly, the actual results could differ from those estimates. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash accounts in a financial institution, which, at times may exceed the Federal Depository Insurance Coverage of $ 250,000 . As of June 30, 2026 and September 30, 2025, the Company had $ 4,108,462 and $ 1,774,899 deposits in excess of the Federal Depository Insurance Coverage, respectively. The Company has not experienced losses on these accounts. Business Combinations The Company evaluates whether acquired net assets should be accounted for as a business combination or an asset acquisition by first applying a screen test to determine whether substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets. If so, the transaction is accounted for as an asset acquisition. If not, Company applies its judgment to determine whether the acquired net assets meets the definition of a business by considering if the set includes an acquired input, process, and the ability to create outputs. The Company accounts for business combinations using the acquisition method when it has obtained control. The Company measures goodwill as the fair value of the consideration transferred including the fair value of any non-controlling interest recognized, less the net recognized amount of the identifiable assets acquired and liabilities assumed, all measured at their fair value as of the acquisition date. Transaction costs, other than those associated with the issuance of debt or equity securities, that the Company incurs in connection with a business combination are expensed as incurred. Any contingent consideration is measured at fair value at the acquisition date. For contingent consideration that does not meet all the criteria for equity classification, such contingent consideration is required to be recorded at its initial fair value at the acquisition date, and on each balance sheet date thereafter. Changes in the estimated fair value of liability-classified contingent consideration are recognized on the consolidated statements of operations in the period of change. When the initial accounting for a business combination has not been finalized by the end of the reporting period in which the transaction occurs, the Company reports provisional amounts. Provisional amounts are adjusted during the measurement period, which does not exceed one year from the acquisition date. These adjustments, or recognition of additional assets or liabilities, reflect new information obtained about facts and circumstances that existed at the acquisition date that, if known, would have affected the amounts recognized at that date. The Company accounts for certain business combinations that meet the definition of a reverse merger (also referred to as a reverse recapitalization) in accordance with ASC 805, Business Combinations, and ASC 810, Consolidation. A reverse merger occurs when the legal acquirer is determined to be the accounting acquiree, and the legal acquiree is determined to be the accounting acquirer. Accordingly: 10 ● No goodwill or intangible assets are recorded ● The transaction is treated as a capital transaction in substance ● The accounting acquirer’s assets and liabilities are carried forward at their historical carrying amounts ● The accounting acquiree’s net assets are recognized at fair value, if applicable Cash and Cash Equivalents The Company considers all cash on hand and in banks, including accounts in book overdraft positions, certificates of deposit and all short-term investments with an original maturity of three months or less when purchased to be cash equivalents. Cash equivalents were $ 26,186 and $ 0 at June 30, 2026 and September 30, 2025, respectively. Investments The Company from time to time invests in equity securities. All marketable equity securities held by the Company are accounted for under “Accounting Standards Codification (“ASC”) Topic 320, “ Investments - Debt and Equity Securities.” The Company accounts for available-for-sale equity investments at fair value. From time to time, if the Company determines that the available market price of an available for sale investments is not a reasonable indicator of the fair value, the Company will determine the best estimate of that fair value which is usually the cost. Equity Method Investment The Company accounts for investments in entities in which the Company has significant influence over the entity’s financial and operating policies, but does not control, using the equity method of accounting. The equity method investment is initially recorded at cost and subsequently increased for capital contributions and allocations of net income and decreased for capital distributions and allocations of net loss. Equity in net income (loss) from the equity method investment is allocated based on the Company’s economic interest. The equity method investment is reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If it is determined that a loss in value of the equity method investment is other than temporary, an impairment loss is measured based on the excess of the carrying amount of an investment over its estimated fair value. Goodwill Goodwill is the excess of consideration paid for an acquired entity over the fair value of the amounts assigned to assets acquired, including other identifiable intangible assets, net of liabilities assumed in a business combination. To determine the amount of goodwill resulting from a business combination, the Company performs an assessment to determine the acquisition date fair value of the acquired company’s tangible and identifiable intangible assets and liabilities. Goodwill is required to be evaluated for impairment on an annual basis or whenever events or changes in circumstances indicate the asset may be impaired. An entity has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than it carrying amount. These qualitative factors include: macroeconomic and industry conditions, cost factors, overall financial performance and other relevant entity-specific events. If the entity determines that this threshold is met, then the Company may apply a one-step quantitative test and record the amount of goodwill impairment as the excess of a reporting unit’s carrying amount over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The Company determines fair value through multiple valuation techniques and weights the results accordingly. 11 The Company is required to make certain subjective and complex judgments in assessing whether goodwill may be impaired. These judgments include significant assumptions and estimates used to determine the fair value of its reporting units, such as projected revenues and related growth rates, projected operating margins and operating cash flows, discount rates, and future economic and market conditions. The Company has elected to perform its annual goodwill impairment review on July 1 of each year, initially utilizing a qualitative assessment to determine whether it is more likely than not that the fair value of each reporting unit is less than its carrying amount. Other Intangible assets and amortization The Company recognizes intangible assets that arise from contractual or other legal rights or are otherwise separable. Intangible assets acquired in a business combination or asset acquisition are measured at their acquisition-date fair value. For intangible assets acquired in a group constituting an asset acquisition, the total cost is allocated to the individual assets based on their relative fair values. Upon initial recognition, an intangible asset is assigned an estimated useful life, representing the period over which the asset is expected to generate future economic benefits. Subsequently, intangible assets are amortized on a straight-line basis over their estimated useful lives. The resulting amortization expense is recognized within depreciation and amortization on the condensed consolidated statements of operations. The estimated useful life of used to determine amortization are as follows: Schedule of Depreciation for equipment and other assets Customer relationships 5 years Intellectual property 5 years Capitalized intellectual property costs include those acquired in the asset acquisitions including a propriety drone system. Property, Plant and Equipment and depreciation The value of property and equipment that were acquired as part of the Asset Acquisition (See Note 10) are recorded at a relative fair value assessed at the time of the acquisition less depreciation. Any additional property and equipment acquired, and any expenditures that extend the life of such assets are recorded at historical cost, including direct acquisition costs, less depreciation and impairment losses. Historical cost includes expenditures that are directly attributable to the acquisition of the items. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. All other repairs and maintenance costs are charged to profit or loss during the financial period in which they are incurred. Depreciation for equipment and other assets is computed using the straight-line method at rates calculated to depreciate the cost of the assets, less their anticipated residual values, if any, over their estimated useful lives. The estimated useful life of used to determine depreciation are as follows: Computer and accessories 3 years Drones 3 years Furniture 14 years An item of property and equipment is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. The gain or loss arising on the disposal or retirement of an asset is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognized in profit or loss. 12 The Company evaluates the carrying value of property and equipment and finite-lived intangible assets whenever a change in circumstances indicates that the net carrying value may not be recoverable from the entity-specific undiscounted future cash flows expected to result from our use of and eventual disposition of a long-lived asset or asset group. Events or circumstances that could trigger an impairment review of a long-lived asset or asset group include, but are not limited to: (i) a significant decrease in the market price of the asset, (ii) a significant adverse change in the extent or manner that the asset is used or in its physical condition, (iii) a significant adverse change in legal factors or in the business climate that could affect the value of the asset, (iv) an accumulation of costs significantly in excess of original expectation for the acquisition or construction of the asset, (v) a current period operating or cash flow loss combined with a history of operating or cash flow losses or a forecast of continuing losses associated with the use of the asset and (vi) a more-likely-than-not expectation that the asset will be sold or disposed of significantly before the end of its previously estimated useful life. If an impairment exists, the net carrying values are reduced to fair values. The Company estimates the fair values of these long-lived assets by performing a discounted future cash flow analysis for the remaining useful life of the asset, or the remaining useful life of the primary asset in the case of an asset group. An individual asset within an asset group is not impaired below its estimated fair value. There were no impairments recorded for the three and nine months ended June 30, 2026 and 2025. Fair Value of Financial Instruments The fair value of the Company’s cash, current assets and current liabilities approximate the carrying amounts represented in the accompanying unaudited condensed consolidated balance sheets, due to their short-term nature. Fair value is defined as the price which would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-tier fair value hierarchy which prioritizes the inputs used in the valuation methodologies is as follows: Level 1 Inputs - Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 Inputs - Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, volatilities, prepayment speeds, credit risks, etc.) or inputs that are derived principally from or corroborated by market data by correlation or other means. Level 3 Inputs - Unobservable inputs for determining the fair values of assets or liabilities that reflect an entity’s own assumptions about the assumptions that market participants would use in pricing the assets or liabilities. As of June 30, 2026, other than the convertible notes discussed below, the Company did not hold any financial assets or liabilities that were measured at fair value on a recurring or nonrecurring basis. Convertible Notes Payable For convertible debt instruments that are not considered liabilities under ASC 480 or ASC 815, the Company applies FASB ASC 470, Debt (“ASC 470”), for the accounting of such instruments, including any premiums or discounts. Debt issuance costs consist primarily of original issue discount (OID) and legal fees. These costs are netted off with the related loan and are being amortized to interest expense over the term of the related debt facilities using effective interest method. 13 The Company may elect the fair value option for certain financial instruments that meet the required criteria under ASC 825, Financial Instruments. The Company elected the fair value option for its SEPA related convertible notes, which met the required criteria under ASC 825, Financial Instruments. Issuance fees incurred on instruments for which the fair value option was elected are not deferred and are recognized as an expense when incurred in the consolidated statement of operations. The portion of the change in fair value attributable to instrument-specific credit risk, if any, is recognized in other comprehensive income, with the remainder recognized in earnings. Offsetting Balances In accordance with ASC Topic 210 “Balance Sheet”, the Company’s accounting policy is to offset assets and liabilities when a right of offset exists. Accordingly, the unaudited condensed consolidated balance sheets include transactions with affiliated parties on a net basis. Research and Development Cost The Company accounts for research and development cost (“R&D”) in accordance with ASC Topic 730, “Research and Development”. R&D represents costs are expensed as incurred. Net Loss Per Share Basic net loss per share is computed by dividing the net loss by the weighted average shares outstanding for the year. Diluted loss per share is computed by giving effect to all potential shares of common stock to the extent dilutive. For the three and nine months ended June 30, 2026 and 2025, the Company’s diluted weighted-average shares outstanding is equal to basic weighted-average shares, due to the Company’s net loss position. No common stock equivalents were included in the computation of diluted net loss per unit since such inclusion would have been anti-dilutive. At June 30, 2026 and 2025, potentially dilutive securities include the public warrants, stock options and the convertible promissory notes. Commitments and Contingencies In the normal course of business, the Company is subject to loss contingencies, such as legal proceedings and claims arising out of its business, which cover a wide range of matters, including, among others, government investigations, shareholder lawsuits, and no income tax matters. An accrual for a loss contingency is recognized when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. If a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, is disclosed. Revenue recognition The Company recognizes revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”). The core principle of the guidance in ASC 606 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve the core principle, the Company applied the following five-step model that requires entities to exercise judgment: 14 (1) Identify the contracts or agreements with a customer: The Company’s revenue is derived from the customer orders evidenced by invoices issued. Orders placed by customers constitute the Company’s contracts with customers. (2) Identifying the performance obligations in the contract or agreement: The contract with the customer contains a single performance obligation: delivery of the service to the customer. (3) Determine the transaction price: The Company requires a full prepayment from the customer at a fixed price per unit based on the terms of the invoice with the customer and before the shipment of products. The transaction price is the amount that reflects the consideration which the Company expects to receive. (4) Allocate the transaction price to the separate performance obligations: All transaction prices are allocated to the single performance obligation. (5) Recognize revenue as each performance obligation is satisfied: This performance obligation is satisfied when the service is performed. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the services it transfers to its clients. Cost of Revenue The Company’s cost of revenue is comprised of costs related to its commercial revenue, including direct costs and indirect costs associated with the offering of its service. Income Taxes The Company follows the asset and liability method of accounting for income taxes under ASC Topic 740, Income Taxes (“ASC 740”). Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that included the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. ASC 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. There were no unrecognized tax benefits as of June 30, 2026 and September 30, 2025. Interest and penalties related to Bannix Acquisition for the three and nine months ended June 30, 2026 were $ 24,627 and $ 73,854 , respectively. There were no interest and penalties related to Bannix Acquisition for the three and nine months ended June 30, 2025. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position. Accounts Receivable and Allowance for Credit Losses Accounts receivable represent unconditional rights to consideration arising from the Company’s provision of goods or services to customers. Accounts receivable are recorded at the invoiced amount and generally do not bear interest. The Company presents accounts receivable net of an allowance for credit losses. The Company estimates expected credit losses in accordance with ASC 326, Financial Instruments—Credit Losses . The allowance for credit losses represents the Company’s estimate of credit losses expected over the contractual life of its accounts receivable. The estimate is based on relevant information available at each reporting date, including historical credit loss experience, the aging and composition of outstanding receivables, customer-specific credit information, current economic conditions, and reasonable and supportable forecasts of future economic conditions. Noncontrolling Interests Noncontrolling interests represent the portion of the equity of consolidated subsidiaries and VIEs that is not attributable, directly or indirectly, to the Company. Noncontrolling interests are reported separately within stockholders’ equity in the consolidated balance sheets, except for redeemable noncontrolling interests that are required to be presented outside of permanent equity. The carrying amount of noncontrolling interests is adjusted for the noncontrolling interest holders’ share of net income or loss, other comprehensive income or loss, capital contributions, distributions, and other changes in the equity of the consolidated entity. Net income or loss and each component of other comprehensive income or loss are attributed to the Company and the noncontrolling interests based on their respective economic interests, including applicable ownership percentages and any substantive contractual profit-and-loss allocation provisions. Losses are attributed to noncontrolling interests even when such attribution results in a deficit noncontrolling interest balance. Changes in the Company’s ownership interest in a consolidated subsidiary or VIE that do not result in a loss of control are accounted for as equity transactions. No gain or loss is recognized in consolidated net income. The difference between the consideration paid or received and the adjustment to the carrying amount of the noncontrolling interest is recognized directly in equity attributable to the Company. If the Company ceases to be the primary beneficiary of a VIE or otherwise loses its controlling financial interest, the Company deconsolidates the entity. Upon deconsolidation, the Company derecognizes the former subsidiary’s assets, liabilities, and noncontrolling interests, recognizes any retained investment at fair value, and recognizes the resulting gain or loss in earnings . Recent Accounting Pronouncements On November 4, 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses (DISE), requiring additional disclosure of the nature of expenses included in the statements of operations. The new standard requires disclosures about specific types of expenses included in the expense captions presented on the face of the statements of operations as well as disclosures about selling expenses. The standard is effective for annual reporting periods beginning after December 15, 2026 and interim reporting periods within annual reporting periods beginning after December 15, 2027. The Company is currently assessing the impact this standard will have on its unaudited condensed consolidated financial statements and related disclosures. 15 The Company’s management does not believe that any other recently issued, but not yet effective, accounting pronouncements, if currently adopted, would have a material effect on the Company’s unaudited condensed consolidated financial statements. Note 4 — Recapitalization As outlined in Note 1, the Company consummated the Reverse Acquisition with VisionWave Technologies on July 14, 2025. Pursuant to and in accordance with the terms set forth in the Merger Agreement, (a) Parent Merger Sub merged with and into Bannix, with Bannix continuing as the surviving entity (the “Parent Merger”), as a result of which, (i) Bannix became a wholly owned subsidiary of VW Holdings, and (ii) each issued and outstanding share of Bannix immediately prior to the effective time of the Parent Merger (the “Parent Merger Effective Time”) (other than shares of Bannix Common Stock that have been redeemed or are owned by Bannix or any of its direct or indirect subsidiaries as treasury shares and any Dissenting Parent Shares) was automatically cancelled in exchange for one share of common stock, par value $ 0.001 of VW Holdings, each Bannix Warrant automatically converted into one warrant to purchase shares of VW Holdings Common Stock on substantially the same terms and conditions and each Bannix’s Right automatically converted into the number of shares of VW Holdings Common Stock that would have been received by the holder of such Bannix Right if it had been converted upon the consummation of a Business Combination in accordance with Bannix’s organizational document and, (b) immediately following the consummation of the Parent Merger but on the same day, Company Merger Sub merged with and into Target, with Target continuing as the surviving entity (the “Company Merger”, and, together with the Parent Merger, the “Mergers”), as a result of which, (i) Target became a wholly owned subsidiary of VW Holdings, and (ii) each issued and outstanding security of Target immediately prior to the effective time of the Company Merger (the “Company Merger Effective Time”) (other than any cancelled Shares or dissenting shares) were no longer be outstanding and were automatically cancelled in exchange for the issuance to the holder thereof of a substantially equivalent security of VW Holdings. The Mergers and the other transactions contemplated by the Merger Agreement are hereinafter referred to as the “Reverse Acquisition.” The Merger Agreement contained representations, warranties and covenants of each of the parties thereto that are customary for transactions of this type, including, among others, covenants providing for (i) certain limitations on the operation of the parties’ respective businesses prior to consummation of the Business Combination, (ii) the parties’ efforts to satisfy conditions to consummation of the Business Combination, including by obtaining any necessary approvals from governmental agencies, (iii) prohibitions on the parties soliciting alternative transactions, (iv) VW Holdings preparing and filing a registration statement on Form S-4 with the Securities and Exchange Commission (the “SEC”) and taking certain other actions to obtain the requisite approval of Bannix’s stockholders to vote in favor of certain matters, including the adoption of the Merger Agreement and approval of the Business Combination, at a special meeting to be called for the approval of such matters, and (v) the protection of, and access to, confidential information of the parties. On May 5, 2025, the SEC declared the Company’s registration statement on Form S-4 to be effective. As described in the Merger Agreement, VW Holdings has agreed to adopt an equity incentive plan The Business Combination was accounted for as a reverse recapitalization in accordance with GAAP. Under this method of accounting, Bannix, who is the legal acquirer, was treated as the “acquired” company for financial reporting purposes and VisionWave Technologies Inc. was treated as the accounting acquirer. VisionWave Technologies Inc. has been determined to be the accounting acquirer based on evaluation of the following facts and circumstances under the redemption scenarios: 16 ● VisionWave Technologies Inc.’s existing stockholders had more than 69% of the voting interest of VW Holdings under both the no redemption and maximum redemption scenarios; ● VisionWave Technologies Inc.’s senior management comprises the senior management of VW Holdings Inc.; the directors nominated by VisionWave Technologies represent the majority of the board of directors of VW Holdings Inc.; ● VisionWave Technologies Inc.’s operations comprise the ongoing operations of VW Holdings Inc. Accordingly, for accounting purposes, the Reverse Acquisition was treated as the equivalent of a capital transaction in which VisionWave technologies Inc. is issuing stock for the net assets of Bannix. The net assets of Bannix were stated at historical cost, with no goodwill or other intangible assets recorded. Operations prior to the Reverse Acquisition were those of VisionWave Technologies, Inc. Transaction Proceeds Upon closing of the Reverse Acquisition, the Company acquired cash of $ 1,169,746 as a result of the Reverse Acquisition, and paid total transaction costs of $ 1,145,900 . The following table reconciles the elements of the Reverse Acquisition to the consolidated statement of cash flows and the consolidated statement of changes in stockholders’ deficit. Schedule of consolidated statements of cash flows and changes in stockholders deficit Cash-trust and cash, net of redemptions $ 1,169,746 Less: transaction costs paid ( 1,145,900 ) Net payout in Reverse Acquisition 23,846 Less: Liabilities assumed ( 7,370,764 ) Less: Promissory note combined ( 1,003,995 ) Add: assets acquired 3,930 Reverse acquisition, net $ ( 8,346,983 ) The number of shares of Common Stock issued immediately following the consummation of the Reverse Acquisition were: Schedule of consummation of the Reverse Acquisition Bannix Class A common stock, outstanding prior to the Reverse Acquisition 2,623,666 Less: Redemption of Bannix Class A common stock ( 83,342 ) 2,540,324 Bannix Class B common stock, outstanding prior to the Reverse Acquisition — Business Combination shares 2,540,324 Bannix public Rights converted to shares at closing 690,000 Bannix private Rights converted to shares at closing 40,600 VisionWave Technologies Inc. Shares 11,000,000 Common Stock immediately after the Reverse Acquisition 14,270,924 17 The number of VisionWave Holdings’ shares was determined as follows: Schedule of the number of VisionWave Holdings shares VisionWave Technologies Inc. Shares VisionWave Holdings Inc. Shares after conversion ratio Class A Common 2,722 2,540,324 Class B Common — — Total 2,722 2,540,324 In exchange, each share of VisionWave Technologies was converted into 4,041 shares of the Company’s common stock. Public and private placement warrants The 6,900,000 public warrants issued at the time of Bannix’s initial public offering (the “Bannix IPO”), and 406,000 warrants issued in connection with private placement at the time of Bannix’s initial public offering remained outstanding and became warrants for the Company. Note 5 — Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following as of June 30, 2026 and September 30, 2025: Schedule of Prepaid expenses and other current assets June 30, 2026 September 30, 2025 Insurance premium $ 4,411 $ 83,833 Interest receivable 107,821 — Deposit on asset — 10,000 Prepaid consulting fees 50,500 50,000 Other prepaid expenses 117,708 261 Legal retainer 85,000 35,000 VAT receivable 10,072 — Other deposits 25,420 6,525 Due from underwriters 3,930 3,930 Total $ 404,863 $ 189,549 Note 6 — Investments Equity Method Investments SaverOne On January 26, 2026, the Company entered into a definitive Exchange Agreement (the “Exchange Agreement”) with SaverOne 2014 Ltd., an Israeli company whose American Depositary Shares are listed on The Nasdaq Stock Market (“SaverOne”). The Exchange Agreement replaced and superseded the previously disclosed non-binding Letter of Intent dated December 31, 2025. 18 The Exchange Agreement provides for a three-stage equity exchange and strategic collaboration providing for the Company to acquire up to approximately 51% of SaverOne’s issued and outstanding ordinary shares on a fully diluted basis, subject to milestone achievement and applicable regulatory approvals. In exchange, the Exchange Agreement provides SaverOne with the ability to acquire VisionWave common stock with an aggregate economic value of up to $ 7 million, subject to staged issuance, price-based adjustments, and compliance with Nasdaq listing rules. The transaction establishes SaverOne as the core operating platform for VisionWave’s radio-frequency (RF) defense and security technologies, supported by a non-exclusive, worldwide license to certain VisionWave RF intellectual property for defense and security applications. Staged Exchange Structure Stage 1: SaverOne issues VisionWave ordinary shares representing 19.99% of SaverOne’s outstanding share capital (fully diluted), in exchange for VisionWave common stock valued at approximately $ 2.74 million. Stage 2: Upon achievement of the first operational integration milestone, SaverOne issues VisionWave ordinary shares representing 19.99% of SaverOne’s outstanding share capital (fully diluted), in exchange for VisionWave common stock valued at approximately $ 2.74 million. Stage 3: Upon achievement of a commercial or defense pilot milestone, SaverOne issues VisionWave ordinary shares representing 11.02% of SaverOne’s outstanding share capital (fully diluted) resulting in VisionWave owning approximately 51% of SaverOne in exchange for VisionWave common stock valued at approximately $ 1.51 million. The number of VisionWave shares of common stock issued in each stage is determined based on a five-day VWAP immediately preceding the applicable closing. Additional Provisions The Exchange Agreement also includes, among other things: ● Board representation rights for VisionWave at SaverOne ● Registration rights for resale of VisionWave shares of common stock ● Use-of-proceeds covenants tied to RF platform development ● Value-protection mechanisms subject to Nasdaq compliance ● Mutual non-competition provisions within the defined field of use The transaction remains subject to milestone certifications, regulatory approvals, and customary closing conditions. At the close of stage 1 of the agreement, the Company issued 365,610 shares valued at $ 2,723,792 to SaverOne in exchange for 148,584 shares of SaverOne. At the close of stage 2 and 3 of the agreement, the Company issued 945,251 shares valued $4,206,367 to SaverOne in exchange for 728,060 shares of SaverOne. Pursuant to the June 22, 2026 Assignment Agreement with Adrian Holdings S.R.L., a Costa Rican company (“Adrian”), the Company issued notice of assignment and irrevocable delivery direction issued to SaverOne to transfer 343,610 of the 876,644 shares to Adrian for repayment on Note (See Note 14). 19 During the nine months ended June 30, 2026, the Company purchased an additional 181,055 shares of SaverOne costing $644,528. At June 30, 2026, the Company has an ownership interest of approximately 41.5% in SaverOne which represents 714,089 SaverOne shares. At June 30, 2026, the Company determined that approximately 195,591 additional shares of the Company with fair value of $ 841,041 are issuable to SaverOne under the value protection mechanism. The shares were not issued at June 30, 2026. SaverOne is accounted for as an equity method investment at June 30, 2026, pursuant to ASC 323 Investments—Equity Method and Joint Ventures. The investment in SaverOne of $ 6,430,524 is included in Equity method investments on the June 30, 2026 unaudited condensed consolidated balance sheet. As of June 30, 2026, the Company did not account for the share of profit or losses of SaverOne due to unavailability of relevant financial information. As of June 30, 2026, there were no indication of impairment on this investment. In addition, the Company issued the corresponding 543,072 shares to management at the Stage 1-3 Closing pursuant to Schedule 1.7 of the January 26, 2026 Agreement, including the applicable portion of the $3 million pool (39.1877%). At June 30, 2026, the Company determined that approximately 83,825 additional shares of the Company with fair value of $ 360,448 are issuable to management under the value protection mechanism. The shares were not issued at June 30, 2026. The total fair value of the shares of $2,892,159, $360,448 shares payable under the value protection mechanism at issuance date and $ 100,000 in shares payable awaiting finalizing of administrative processes were included in stock-based compensation on the accompanying unaudited condensed consolidated statements of operations. Joint Venture On January 9, 2026, the Company entered into a Strategic Joint Venture Agreement (the “JV Agreement”) with BOCA JOM, LLC (“BOCA”), GBT Tokenize Corp. (“TOKENIZE”), and GBT Technologies, Inc. (“GBT”). The parties agreed to form a Nevada limited liability company (the “JV LLC”) to develop, commercialize, and manage designated electronic design automation (EDA), defense, and high-security technology projects. Capital Contributions and Valuation To fund and resource the JV LLC, the parties agreed to specific capital and asset contributions. TOKENIZE will contribute its intellectual property portfolio along with 897,102 shares of the Company’s common stock for 22.04% ownership of the JV, and GBT will contribute 2,020,500 shares of the Company’s common stock for 2.264% ownership of the JV. BOCA will contribute the designated projects and provide non-exclusive licenses granting the JV LLC rights to use certain background intellectual property solely for the designated projects for 37.848% ownership of the JV. The Company will provide non-exclusive licenses granting the JV LLC rights to use certain background intellectual property solely for the designated projects for 37.848% ownership of the JV. All contributions of the Company’s securities are subject to compliance with applicable securities laws and Nasdaq Listing Rules, including any requisite shareholder approval. To facilitate the negotiation of equity ownership percentages, the parties utilized an internal reference value of $1.0 billion. The Company explicitly notes that this internal value is not a statement of the JV LLC’s actual fair market value, was reached without an independent third-party valuation, and should not be relied upon as an indication of value for the JV LLC, its assets, or the Company’s interest therein. Governance: The JV LLC will be governed by a three-member board, with specific governance and deadlock resolution mechanisms to be established in a separate operating agreement. TOKENIZE and GBT will not participate in the management or governance of the JV LLC. Additionally, the JV Agreement permits the Company to appoint a director to BOCA’s board; any reciprocal appointment of a BOCA designee to the Company’s board remains subject to approval by the Company’s independent directors, compliance with Nasdaq rules, and, if applicable, shareholder approval. The Company has appointed its CEO as the Managing Member of the JV. 20 Intellectual Property, Term, and Termination: Any intellectual property developed by the JV LLC (“Foreground IP”) will be wholly owned by the JV LLC, while each party retains ownership of its independently developed background IP. The JV Agreement has an initial term of seven years and contains customary termination rights, including if required regulatory approvals (e.g., CFIUS or export controls) are denied. Furthermore, if no designated project generates revenue within twelve months following the formation of the JV LLC, the JV Agreement may be terminated, and contributed consideration may be returned, subject to board-level fiduciary determinations. The transaction was closed on April 1, 2026. As of June 30, 2026, the JV LLC, a variable interest entity consolidated by the Company, held 2,917,602 shares of the Company's common stock. These shares were contributed to the JV LLC by GBT Tokenize Corp. and GBT Technologies, Inc. in connection with the JV LLC's formation and are presented as treasury stock within the Company's consolidated statement of stockholders' equity. These shares are excluded from the weighted-average shares used in the Company's computation of basic and diluted earnings per share. No gain or loss is recognized in the Company's consolidated statements of operations from changes in the fair value of these shares, consistent with the Company's policy of not recognizing gains or losses on transactions or remeasurements involving its own equity securities. These shares remain subject to transfer restrictions under the Strategic Joint Venture Agreement dated January 9, 2026 (the “JV Agreement”), pursuant to which they may not be sold, assigned, transferred, pledged, hypothecated, encumbered, or otherwise disposed of without the prior written consent of the other party to the JV Agreement, subject to limited permitted-transfer exceptions. The JV Agreement does not specify a fixed expiration date for this restriction . VWave Boca JV, LLC is a VIE for which the Company has determined that it is the primary beneficiary as it has the power to direct significant activities and obligations to absorb losses or right to receive benefits and therefore consolidates the JV and records non-controlling interest. The Company contributed access by license in its intellectual property with a carrying value of zero in exchange for its investment in VWave Boca JV, LLC. The Company’s shares of common stock contributed by the other members have been accounted for as treasury stock. The Company’s share of the income (loss) reported by the JV are consolidated in the accompanying condensed consolidated statements of operations. On April 1, 2026, the acquisition date, total treasury stock at cost was $ 16,513,627 , non-controlling interest of other members was $10,263,550 and additional paid in capital related to the treasury stock was $ 6,250,078 . 21 Investment in VWAV BOCA JV LLC — Restricted Shares and Contingent Termination As of June 30, 2026, VWAV BOCA JV LLC (the “JV LLC”) held 2,917,602 shares of the Company's common stock, contributed by GBT Tokenize Corp. and GBT Technologies, Inc. (“Tokenize” and “GBT”) in connection with the JV LLC's formation. These shares may not be sold, assigned, transferred, pledged, hypothecated, encumbered, or otherwise disposed of by the JV LLC without the prior written consent of the other party to the Strategic Joint Venture Agreement dated January 9, 2026 (the “JV Agreement”), subject to limited permitted-transfer exceptions. The JV Agreement does not specify a fixed expiration date for this restriction. The JV Agreement further provides that if no Designated Project generates revenue prior to April 1, 2027, the JV Agreement may be terminated, in which case the consideration contributed by each party, including the shares described above, would be returned to its original contributor (Tokenize and GBT, in the case of these shares) without compensation. This termination right is exercisable only upon mutual written agreement of BOCA and the Company, or by the Company if its board of directors determines in good faith that continuation would violate its fiduciary duties to shareholders; it is not automatic. As of June 30, 2026, no designated project had generated revenue. If this termination right were exercised, the Company would derecognize its interest in the JV LLC and account for the effects of the JV's dissolution in the period of termination. No gain or loss has been recognized by the Company related to changes in the fair value of the shares described above, as such shares represent the Company's own equity securities. Other Investments T3 Defense Inc. (“DFNS”) share swap On May 17, 2026, the Company entered into a Share Exchange and Swap Agreement (the “Agreement”) with T3 Defense Inc. (“DFNS”), a Nasdaq-listed company. Pursuant to the Agreement, the Company agreed to issue and deliver to DFNS 475,492 newly issued shares of the Company’s common stock (the “VWAV Exchange Shares”). In exchange, DFNS to issue to the Company 6,000,000 newly issued shares of DFNS common stock. On May 8, 2026, the Company issued 475,590 shares to DFNS and received 6,000,000 shares of DFNS representing 9.96% ownership of DFNS. At June 30, 2026, fair value of the investment in DFNS of $1,026,000 is recorded in other investments on the unaudited condensed consolidated balance sheet. For the three and nine months ended June 30, 2026, a loss on the investment of $1,632,548 is included in change in fair value of other investments on the unaudited condensed consolidated statements of operations. Note 7 — Note Receivable Advance to C.M. Composite Materials Ltd On December 26, 2025, the Company advanced principal in the amount of $ 398,245 to C.M. Composite Materials Ltd., an Israeli corporation (“CM”). In connection with the advance, CM delivered a Promissory Note to the Company (the “CM Note”). The CM Note has a 24-month maturity, with the outstanding principal due and payable on December 31, 2027, unless repaid earlier. The CM Note does not bear interest unless an event of default occurs, in which case interest accrues at a rate of 5 % per annum, or the maximum rate permitted by applicable law, if lower. The CM Note may be prepaid at any time without premium or penalty. The CM Note is a stand-alone financial obligation and is not contingent upon the completion of any acquisition, merger, or other strategic transaction. On January 22, 2026, the Company entered into an additional Promissory Note with CM for an amount of $ 200,000 to CM (the “Second Note”). The Second Note has a 24-month maturity, with the outstanding principal due and payable on January 30, 2028, unless repaid earlier. The Second Note does not bear interest unless an event of default occurs, in which case interest accrues at a rate of 5 % per annum, or the maximum rate permitted by applicable law, if lower. The Second Note may be prepaid at any time without premium or penalty. The proceeds of the Note were funded on January 26, 2026. The Second Note constitutes a binding and enforceable obligation of CM. The Note is a stand-alone financial obligation and is not contingent upon the completion of any acquisition, merger, or other strategic transaction. On February 4, 2026, the Company entered into an additional Promissory Note with CM for an amount of $ 500,000 (the “Third Note”). The Third Note has a 24-month maturity, with the outstanding principal due and payable on December 31, 2027, unless repaid earlier. The Third Note does not bear interest unless an event of default occurs, in which case interest accrues at a rate of 5 % per annum, or the maximum rate permitted by applicable law, if lower. The Third Note may be prepaid at any time without premium or penalty. The proceeds of the Third Note were funded on February 4, 2026. The Third Note constitutes a binding and enforceable obligation of CM. The Third Note is a stand-alone financial obligation and is not contingent upon the completion of any acquisition, merger, or other strategic transaction. The note was satisfied from funding pursuant to the funding agreement with Stanley Hills, LLC (See Note 2). In February 2026, CM entered into a settlement agreement with a vendor who alleged failure to meet contractual obligation in the sum of approximately 12 million Israeli Shekels following a failed motion to appoint a receiver by that said vendor. Pursuant to the agreement, CM is expected to make monthly payments to liquidate the obligation and regular court appearances. The Company evaluated the current financial position of CM and determined that there is not an increased credit risk nor is the collectability of the CM Note uncertain, due to past profitability of CM. 22 The CM Notes described herein remain fully enforceable regardless of whether any contemplated transaction is completed. At June 30, 2026, total advances to C.M. Composite Materials Ltd. of $ 1,098,245 is included in notes receivable on the unaudited condensed consolidated balance sheets. Side Letter Agreement On March 11, 2026, the Company entered into a Side Letter with C.M., Giza Zinger Even Mezzanine, Limited Partnership (“Giza”), and Matania (Mati) Moskovitch. This Side Letter supplements and addresses obligations under the Company’s previously disclosed Investment and Share Purchase Agreement (SPA) and Loan Agreement, both dated February 20, 2026. Under the Side Letter, the Company acknowledges an existing settlement agreement between Giza, Mati, and CM, and agrees that CM’s performance and payments under that settlement do not constitute a breach or event of default under the SPA or Loan Agreement. Pursuant to the Side Letter, the Company has irrevocably committed to providing aggregate funding of at least $ 5.0 million to CM. This funding commitment is specifically allocated as $1.5 million for working capital and $3.5 million for the establishment and operation of a new facility outside of Israel. Additionally, the agreement requires that CM’s activities outside Israel must be conducted directly by CM rather than through subsidiaries, unless those entities are pledged to Giza. Until CM’s obligations to Giza are fully satisfied, the Company has agreed not to exercise its conversion rights under the Loan Agreement (the Note) to convert amounts into equity of CM without Giza’s prior written consent. Furthermore, the parties agreed not to take actions that would result in the dilution of CM’s shareholders, including the issuance of new equity, options, warrants, or convertible securities. The Side Letter also stipulates that any shares of the Company to be issued to the shareholder (Mati) in connection with the SPA will be deposited with an approved Israeli trustee. These shares will be held in a dedicated securities account in Israel for the purpose of securing CM’s obligations to Giza. As stated in Note 18, pursuant to the Investment and Share Purchase Agreement, the Company agreed to provide loans to the Target Company as additional consideration under the Share Purchase Agreement. The Loan Agreement provides for a secured loan facility in an aggregate principal amount of up to $5,000,000 (the “Commitment”). The Company is obligated to make an initial advance of up to $1,500,000 within ten (10) Business Days following the Effective Date (subject to satisfaction of conditions precedent), to be used for general working capital purposes consistent with the Target Company’s ordinary course of business. Subsequent advances of the remaining up to $3,500,000 may be made in one or more tranches upon mutual written agreement of the parties, solely for working capital or the establishment and operation of a new facility outside Israel, with each tranche subject to the Company’s reasonable approval and minimum amounts (generally not less than $250,000 unless otherwise agreed). Proceeds of subsequent advances are to be used exclusively to operate, develop, certify, market, and commercialize the Target Company’s technologies and products in global markets, including the United States. The advances were made pursuant to a promissory note with a 24-month maturity, bearing no interest unless an event of default occurs (then at 5% per annum or the lower legal maximum), prepayable without penalty, and not contingent on any acquisition or strategic transaction. Any loan pursuant to the Loan Agreement will bear simple interest at 12% per annum (or such lower rate as mutually agreed in writing, but not exceeding prevailing market rates for similar loans as determined in good faith by the Company), calculated on a 360-day year basis for actual days elapsed. The loan will mature three (3) years after the Effective Date. The obligations under the Loan Agreement are secured by a first-priority security interest in substantially all assets of the Target Company (including accounts, inventory, equipment, general intangibles, intellectual property, and proceeds thereof). 23 During the nine months ended June 30, 2026, the Company advanced to the Target a total of $ 4,532,306 which is included in note receivable at June 30, 2026 on the unaudited condensed consolidated balance sheets. For the three and nine months ended June 30, 2026, interest income of $ 93,970 and $ 107,821 is accrued and included in interest income on the unaudited condensed consolidated statements of operations. VisionWave Israel advances On June 30, 2026, the VisionWave Israel advanced VIP Lux Travel Ltd. NIS 500,000 (approximately $169,036) to finance working capital and general corporate purposes. The advance is due on demand. On July 9, 2026, VisionWave Israel Ltd. entered into a loan agreement with VIP Lux Travel Ltd. pursuant to which the Company advanced an additional loan of NIS 1.0 million to a previous NIS 0.1 million advanced early July, which, together with an existing advance was consolidated into a single loan with an aggregate principal balance of NIS 1.1 million. The proceeds of the additional borrowing are intended to finance working capital and general corporate purposes. The consolidated loan bears interest at a fixed annual rate of 6.0% and is payable in accordance with an agreed amortization schedule consisting of periodic principal and interest payments through the contractual maturity date of February 1, 2027. Total contractual interest payable over the remaining term of the loan is approximately NIS 19,250. The loan may be prepaid in accordance with the terms of the agreement. The loan is secured by a first-priority mortgage on a residential property owned by a third-party guarantor, together with related security interests and customary remedies upon an event of default. Events of default include, among other things, payment defaults, insolvency events, certain judgments or liens, breaches of the loan or security agreements, and other customary default provisions, any of which may permit the lender to accelerate all amounts outstanding. In July 2026, VIP Lux filed for bankruptcy. The Company assessed the receivable from VIP Lux and determined a 100% credit loss on the outstanding balance at June 30, 2026. For the three and nine months ended June 30, 2026 and 2025, the allowance for doubtful notes was included in general and administrative expenses on the unaudited condensed consolidated statements of operations. The following table summarizes the Company’s notes receivable as of June 30, 2026: Schedule of notes receivable C.M. Composite Materials Ltd $ 1,098,245 Side Letter Agreement – C.M, Giza and Mati 4,532,306 Notes Receivable $ 5,630,551 24 Note 8 — Property, Plant and Equipment, Net Property and equipment, net consisted of the following at June 30, 2026 and September 30, 2025: June 30, 2026 September 30, 2025 Computer and accessories $ 357,893 $ — Furniture 9,493 — Drones 7,122 — Total cost 374,508 — Accumulated depreciation ( 204,348 ) — Net book value $ 170,160 $ — Depreciation expense was $ 13,774 and $ 0 for the three months ended June 30, 2026 and 2025, respectively, and $ 21,116 and $ 0 for the nine months ended June 30, 2026 and 2025, respectively. At June 30, 2026 and September 30, 2025, $ 360,000 and $ 0 deposit, respectively, on boat purchase is included in other non-current assets on the accompanying unaudited condensed consolidated balance sheets. Note 9 — Acquisition of Junko Solar Ltd On March 11, 2026, SolarDrone entered into a Consulting and Share Purchase Agreement (the “Junko Agreement”) with Mr. Amos Cohen, the controlling shareholder of Junko Solar Ltd., an Israeli company engaged in solar panel maintenance and cleaning services. Pursuant to the Junko Agreement, SolarDrone agreed to acquire 51% of the issued and outstanding shares of Junko Solar Ltd. (the “Junko Transaction”). The parties agreed on a pre-money valuation of Junko Solar of $ 400,000 , and SolarDrone agreed to purchase the 51% controlling interest for an aggregate purchase price of $ 204,000 . The purchase price will be paid in three equal installments: ●$68,000 upon execution of the Agreement ●$68,000 within 35 days ●$68,000 within 35 days thereafter Upon payment of the first installment, the shares representing 51% ownership of Junko Solar Ltd. will be transferred to SolarDrone or its designated affiliate. Pursuant to the Agreement, Mr. Amos Cohen was appointed Chief Executive Officer and a director of SolarDrone Ltd. Mr. Cohen will provide management and strategic services to SolarDrone pursuant to a consulting arrangement and will receive a consulting fee of 50,000 N.I.S per month plus VAT. As part of the Transaction, Junko Solar Ltd. will transfer operational activities related to solar panel cleaning and maintenance services, including customer relationships, business opportunities, and related operational assets to SolarDrone. SolarDrone will manage and operate the business going forward. The transaction was closed on April 1, 2026 and was accounted for as a business combination under ASC 805. 25 Purchase Price Allocation The preliminary allocation of the purchase price to the identifiable assets acquired and liabilities assumed, based on their estimated fair values at the acquisition date, is as follows: Schedule of estimated fair values at the acquisition date Consideration paid $ 204,000 % of Junk acquired 51 % Total fair value of Junko’s net assets $ 400,000 Assets Acquired: Accounts receivable $ 10,691 Other receivables 33,883 Property & equipment 107,349 Customer relationships 90,000 Total Assets Acquired 241,923 Liabilities Assumed: Bank loan 253,072 Accounts and other payables 49,733 Related party payable 110,118 Deferred tax liability 21,000 Total liability assumed 433,923 Goodwill 592,000 Net asset acquired $ 400,000 The purchase price allocation remains preliminary and subject to adjustment during the measurement period, which extends through one year after the acquisition date. During the measurement period, the Company may record adjustments to the provisional amounts recognized for assets acquired and liabilities assumed based on additional information obtained about facts and circumstances that existed as of the acquisition date. The excess of the fair value of the consideration transferred over the fair value of the identifiable net assets acquired was recorded as goodwill of $ 592,000 at April 1, 2026 in the condensed consolidated balance sheets. The goodwill recognized is primarily attributable to expected synergies from integrating SolarDrone’s operations with the Company’s. At acquisition date, $196,000 of the fair value of identifiable net assets of Junko was allocated to non - controlling interests. All intangible assets acquired are subject to amortization and their associated estimated acquisition date fair values are as follows: Schedule of amortization and their associated estimated acquisition date fair values Intangible assets Estimated useful life Acquisition date fair value Customer relationships 5 years $ 90,000 26 The consolidated financial statements of the Company include the results of operations of Junko from April 1, 2026 through June 30, 2026 and do not include results of operations for periods prior to April 1, 2026. The results of operations of Junko from April 1, 2026 to June 30, 2026 included total expenses and a net loss of $ 89,525 of which $ 45,658 is attributable to the Company and $ 43,867 to non-controlling interests. Note 10 — Asset Acquisitions Solar Drone On December 3, 2025, the Company entered into a Share Purchase Agreement (the “Solar Drone Agreement”) with BladeRanger Ltd., a company organized under the laws of Israel and listed on the Tel Aviv Stock Exchange under the ticker “BLRN” (“BladeRanger”), and, solely for purposes of acknowledgment and certain covenants therein, Solar Drone Ltd., an Israeli corporation engaged in the development of solar-powered drone technology (the “Solar Drone”). On December 15, 2025, the Company entered into Amendment No. 1 to the Solar Drone Agreement to provide that, in consideration for all of the issued and outstanding shares of Solar Drone, the Company shall issue and deliver to BladeRanger (or its designee(s)) 1,500,000 shares of the Company’s common stock (the “Company Shares”) valuated at $11,700,000 and 300,000 Pre-Funded Common Stock Purchase Warrants (the “Initial PFWs”) valued at $2,340,000. Further, the Company has agreed that if the average daily volume-weighted average price (“VWAP”) of the Company’s common stock for the five Trading Day period immediately preceding the date of effectiveness of the registration statement registering the resale of the Company Shares is less than $12.00 per share, the Pre-Funded Common Stock Purchase Warrants (the “Pre-Funded Warrants”) to purchase a number of additional shares of the Company’s common stock (the “Warrant Shares”) equivalent to the difference between $21,600,000 and the aggregate value of the Company Shares based on such VWAP, such that the aggregate consideration has a value of $21,600,000. The Company has determined that the value of these contingent Warrant Shares was $0 at acquisition date and June 30, 2026. In July 2026, the Company determined that an additional 3,875,000 Pre-Funded Warrant is payable BladeRanger following effectiveness of the registration statement registering the resale of the Company Shares. The Company evaluated this acquisition under ASC 805, Business Combinations. ASC 805 requires that an acquirer determine whether it has acquired a business. If the criteria of ASC 805 are met, a transaction would be accounted for as a business combination and the purchase price is allocated to the respective net assets and liabilities assumed based on their fair values and a determination is made whether any goodwill results from the transaction. The Company concluded that the acquired set of assets did not meet the US GAAP definition of a business as substantially all of the fair value of the gross assets acquired are concentrated in a single identifiable asset or group of similar identifiable assets and consequently accounted for the purchase as an asset acquisition. The Company allocated the total consideration transferred on the date of the acquisition to the assets and liabilities acquired on a relative fair value basis. The following table summarizes the acquisition date fair value of the assets acquired and the liabilities assumed: Schedule of fair value of the assets acquired and the liabilities assumed Amounts Recognized as of ​​​​​ Acquisition Date Total Consideration $ 14,040,000 Cash $ 119,135 Other Receivables 831 Fixed Assets (a) 8,387 Intangible assets (b) 14,029,591 Other Payables ( 17,582 ) Due to related party (c) ( 100,362 ) Net assets acquired $ 14,040,000 27 (a) Fixed asset consists primarily of drones and computer equipment acquired by the Company. The fair value of fixed assets was estimated to equal the replacement cost. (b) Intangible assets consist of intellectual property related drone technology and are recorded at estimated fair values based on the allocation of the total consideration transferred on the date of the acquisition to the assets and liabilities acquired on a relative fair value basis. (See Note 10). (c) Intercompany balance with VisionWave Holdings Inc. eliminated in consolidation. QuantumSpeed On January 5, 2026, the Company entered into an Asset Purchase Agreement with Adrian Holdings S.R.L. to acquire all right, title, and interest in specific intellectual property assets related to QuantumSpeed technology. The aggregate consideration for the intellectual property consists of a $ 10 million promissory note (the “Adrian Note”) and up to 10,000,000 shares of the Company’s common stock. Upon closing, the Company issued 3,000,000 shares of common stock valued at $ 28,710,000 and executed the $10 million Adrian Note. The issuance of the remaining 7,000,000 shares with a fair value of $ 66,900,000 is contingent upon receiving shareholder approval, as required by Nasdaq listing rules. The Company is obligated to use commercially reasonable efforts to obtain this approval no later than nine months following the closing date. The 7,000,000 shares were accounted for as equity and included in shares to be issued in asset acquisition on the accompanying unaudited condensed consolidated statements of changes in equity (deficit). If shareholder approval is not obtained within the nine-month period, the Company is required to transfer 60% of its equity interest in QuantumSpeed Inc. back to the seller, free and clear of all encumbrances. In such an event, the seller’s security interest in the equity would be released, and the seller would retain full ownership of the initial 3,000,000 closing shares and the $10 million promissory note. No alternative consideration will be provided in lieu of the unissued contingent share. The Company evaluated this acquisition under ASC 805, Business Combinations. ASC 805 requires that an acquirer determine whether it has acquired a business. If the criteria of ASC 805 are met, a transaction would be accounted for as a business combination and the purchase price is allocated to the respective net assets and liabilities assumed based on their fair values and a determination is made whether any goodwill results from the transaction. The Company concluded that the acquired asset did not meet the US GAAP definition of a business as substantially all of the fair value of the gross assets acquired are concentrated in a single identifiable asset and consequently accounted for the purchase as an asset acquisition. The Company allocated the total consideration transferred on the date of the acquisition to the single intellectual property acquired on a relative fair value basis. The following table summarizes the acquisition date fair value of the asset acquired: Schedule of summarizes the acquisition date fair value Amounts Recognized as of ​​​​​ Acquisition Date Total Consideration $ 105,700,000 Intellectual Property (QuantumSpeed) $ 105,700,000 Asset acquired $ 105,700,000 28 xClibre On April 10, 2026, the Company entered into an Asset Purchase Agreement with Dream America Marketing Services, Ltda. to acquire all right, title, and interest in certain intellectual property assets related to xClibre technology. The acquired assets consist solely of intellectual property. In consideration for the assigned intellectual property, the Company agreed to provide aggregate consideration consisting of up to 7,000,000 shares of the Company’s common stock and a $6,000,000 promissory note. At the closing of the transaction, the Company issued 3,500,000 shares of common stock and executed the $ 6,000,000 promissory note. The issuance of the remaining 3,500,000 contingent shares is subject to obtaining satisfactory proof-of-concept results and Nasdaq Shareholder Approval. The Company has agreed to use commercially reasonable efforts to obtain this proof-of-concept approval no later than nine months following the closing date. The proof-of-concept was obtained in April 2026. On April 10, 2026, the transactions contemplated by the Agreement were completed. The Assigned IP consists of intellectual property rights owned by the Seller relating to the xClibre technology, including patents, patent applications, trademarks, copyrights, trade secrets, know-how, software and other proprietary rights. On April 10, 2026, the Company issued 3,500,000 shares of its common stock to the Seller as partial consideration for the Assigned IP. The Company evaluated this acquisition under ASC 805, Business Combinations. ASC 805 requires that an acquirer determine whether it has acquired a business. If the criteria of ASC 805 are met, a transaction would be accounted for as a business combination and the purchase price is allocated to the respective net assets and liabilities assumed based on their fair values and a determination is made whether any goodwill results from the transaction. The Company concluded that the acquired asset did not meet the US GAAP definition of a business as substantially all of the fair value of the gross assets acquired are concentrated in a single identifiable asset and consequently accounted for the purchase as an asset acquisition. The Company allocated the total consideration transferred on the date of the acquisition to the single intellectual property acquired on a relative fair value basis. The following table summarizes the acquisition date fair value of the asset acquired: Schedule of summarizes the acquisition date fair value of the asset acquired Amounts Recognized as of ​​​​​ Acquisition Date Total Consideration $ 53,530,000 Cost related to acquisition 70,000 Fair value of the asset acquired $ 53,600,000 Intellectual Property (xClibre) $ 53,600,000 Asset acquired $ 53,600,000 29 Note 11 — Goodwill and Other Intangible Assets Goodwill As of June 30, 2026, the carrying amount of goodwill was $ 592,000 (See Note 11). There was no impairment of goodwill for the three and nine months ended June 30, 2026. Other Intangible Assets As noted in Notes 10, on December 15, 2025 and January 5, 2026, the Company acquired intellectual property from the acquisition of Solar Drone and QuantumSpeed, respectively. Solar Drone is a drone-based industrial technology platform providing automated cleaning and inspection solutions for utility-scale solar installations and high-voltage electrical infrastructure. The core asset is a proprietary, field-proven drone system that replaces manual, ground-based, and helicopter-based maintenance with autonomous drone operations, improving energy output, safety, and operational reliability while reducing costs and downtime. QuantumSpeed is currently in a proof-of-concept and system architecture phase, where core mathematical, algorithmic, and architectural principles have been defined and validated at a prototype level. The Company also acquired intellectual property xClibre from Dream America (See Note 10). At acquisition dates, the fair value of intellectual property are as follows: Schedule of fair value of intellectual property Intellectual Property Acquisition date fair value SolarDrone $ 14,029,591 QuantumSpeed 105,700,000 xClibre 53,600,000 $ 173,329,591 The following table summarized intangible assets of the Company: Schedule of fair value of intellectual property Estimated Useful Life (years) June 30, 2026 September 30, 2025 Intellectual property 5 $ 173,329,591 $ — Customer relationship 5 90,000 — 173,419,591 — Accumulated amortization ( 14,154,373 ) — Net book value $ 159,265,218 $ — Amortization of the intangible asset during the three and nine months ended June 30, 2026 was $ 8,340,569 and $ 14,154,373 , respectively, and there were no amortization charges during the three and nine months ended June 30, 2025. 30 The future amortization of the intangible asset is as follows: Schedule of future amortization of the intangible asset Fiscal Year Amount Remainder of 2026 $ 8,670,980 2027 34,683,918 2028 34,683,918 2029 34,683,918 2030 34,683,918 Thereafter 11,858,566 Total unamortized intangible assets $ 159,265,218 Note 12 — Accounts Payable and Accrued Expenses Accounts payable and accrued liabilities consist of the following as of June 30, 2026 and September 30, 2025: Schedule of Accounts payable and accrued liabilities June 30, 2026 September 30, 2025 Underwriter’s marketing fee (See Note 17) $ 1,800,000 $ 1,800,000 Vendors payable 1,593,684 939,192 Accrued compensation expense 131,001 359,667 Franchise tax payable 417,323 267,323 Insurance premium financing — 71,851 Accrued interest expense 1,076,099 49,914 Other payables and accrued expenses 439,574 429,887 Total $ 5,457,681 $ 3,917,834 Note 13 — Excise Tax Payable On August 16, 2022, the Inflation Reduction Act of 2022 (the “IR Act”) was signed into federal law. The IR Act provides for, among other things, a 1% federal excise tax on certain repurchases of stock by publicly traded U.S. domestic corporations and certain U.S. domestic subsidiaries of publicly traded foreign corporations occurring on or after January 1, 2023. The excise tax is imposed on the repurchasing corporation itself, not its shareholders from which shares are repurchased. The amount of the excise tax is generally 1% of the fair market value of the shares repurchased at the time of the repurchase. However, for purposes of calculating the excise tax, repurchasing corporations are permitted to net the fair market value of certain new stock issuances against the fair market value of stock repurchases during the same taxable year. In addition, certain exceptions apply to the excise tax. The U.S. Department of the Treasury (the “Treasury”) has been given authority to provide regulations and other guidance to carry out and prevent the abuse or avoidance of the excise tax. On December 27, 2022, the Treasury published Notice 2023-2, which provided clarification on some aspects of the application of the excise tax. The notice generally provides that if a publicly traded U.S. corporation completely liquidates and dissolves, distributions to such complete liquidation and other distributions by such corporation in the same taxable year in which the final distribution in complete liquidation and dissolution is made are not subject to the excise tax. Although such notice clarifies certain aspects of the excise tax, the interpretation and operation of aspects of the excise tax (including its application and operation with respect to SPACs) remain unclear and such interim operating rules are subject to change. 31 Because the application of this excise tax is not entirely clear, any redemption or other repurchase effected by the Company, in connection with a Business Combination, extension vote or otherwise, may be subject to this excise tax. Consequently, any redemption or other repurchase that occurs after December 31, 2022, in connection with a Business Combination, extension vote or otherwise, may be subject to the excise tax. Whether and to what extent the Company would be subject to the excise tax in connection with a Business Combination, extension vote or otherwise would depend on a number of factors, including (i) the fair market value of the redemptions and repurchases in connection with the Business Combination, extension or otherwise, (ii) the structure of a Business Combination, (iii) the nature and amount of any PIPE or other equity issuances in connection with a Business Combination (or otherwise issued not in connection with a Business Combination, but issued within the same taxable year of a Business Combination) and (iv) the content of regulations and other guidance from the Treasury. In addition, because the excise tax would be payable by the Company and not by the redeeming holder, the mechanics of any required payment of the excise tax have not been determined. The foregoing could cause a reduction in the cash available on hand to complete a Business Combination and in the Company’s ability to complete a Business Combination. During the second quarter of 2024, the Internal Revenue Service issued final regulations with respect to the timing and payment of the excise tax. These regulations provided that the filing and payment deadline for any liability incurred during the period from January 1, 2023 to December 31, 2023 would be October 31, 2024. Any amount of such excise tax not paid in full, will be subject to additional interest and penalties which are currently estimated at 8% interest per annum, a 0.5% underpayment penalty per month or portion of a month up to 25% of the total liability for any amount that is unpaid from November 1, 2024 until paid in full, and a failure to file penalty of 5% per month. Prior to the consummation of the Reverse Acquisition, Bannix’s common stockholders exercised their right to redeem their shares for a pro rata portion of the funds in Bannix’s Trust Account. As a result of these redemptions, Bannix estimated the excise tax liability and applicable interest and penalties pursuant to the IR Act. At the consummation of the Reverse Acquisition, $ 888,332 of excise tax liability, inclusive of excise tax interest and penalties, is assumed. For the three months ended June 30, 2026 and 2025, $ 26,383 and $ 0 , respectively of interest and penalties is estimated on the excise tax balance and included in general and administrative expenses on the unaudited condensed consolidated statements of operations. For the nine months ended June 30, 2026 and 2025, $ 86,204 and $ 0 , respectively, of interest and penalties is estimated on the excise tax balance and included in general and administrative expenses on the unaudited condensed consolidated statements of operations. As of June 30, 2026 and September 30, 2025, $ 1,029,244 and $ 943,039 of excise tax liabilities, respectively, inclusive of interest and penalties is recorded in the unaudited condensed consolidated balance sheets. Management believes that the federal stock repurchase excise tax does not apply to the Company’s business combination based on the specific facts and circumstances of the transaction. However, because the application of the excise tax to de-SPAC transactions remains subject to interpretation and uncertainty, the Company has continued to recognize the related liability, including estimated interest and penalties, in its financial statements pending final resolution of its accounting assessment. Note 14 — Promissory Notes The following table presents promissory Note balances at June 30, 2026 and September 30, 2025. June 30, 2026 September 30, 2025 Evie Autonomous Extension Notes $ 1,003,995 $ 1,003,995 YA II PN Letter Agreement 6,761,681 — Adrian Note 8,567,491 — Dream Note 6,000,000 — $ 22,333,167 $ 1,003,995 32 Evie Autonomous LTD Prior to the consummation of the Reverse Acquisition, Bannix issued unsecured promissory notes to Evie Autonomous LTD (“Evie”) with a principal amount of $ 1,003,995 (the “Evie Autonomous Extension Notes”). The Evie Autonomous Extension Notes bear no interest and are repayable in full upon the earlier of (a) the date of the consummation of Bannix’s initial Business Combination, or (b) the date of Bannix’s liquidation. On December 26, 2024 and amended on May 27, 2025, Bannix entered into an agreement to defer payment of the Evie Autonomous Extension Notes. Under the deferment agreement, these amounts will not become payable until any Pre-Paid Advance issued in connection with the SEPA is repaid in full (See Note 19). The balance of $ 1,003,995 was assumed at the close of the Reverse Acquisition. As of June 30, 2026 and September 30, 2025, the balance of $ 1,003,995 , owing to Evie is reported as promissory notes – Evie on the accompanying unaudited condensed consolidated balance sheets. YA II PN On February 26, 2026, VisionWave Holdings Inc. (the “Company”) entered into a Letter Agreement (the “Letter Agreement”) with YA II PN, Ltd. (the “Investor”), pursuant to which the Investor agreed to provide the Company with a $20,000,000 senior loan (the “Loan”) on the terms and conditions set forth therein. The Loan is evidenced by a Promissory Note (the “YA II PN Note”) in the original principal amount of $20,000,000, bearing 0% interest per annum (increasing to 18% upon an Event of Default as defined therein). The Note was issued at an original issue discount of 15%, resulting in gross proceeds to the Company of $17,000,000 (prior to deduction of a $25,000 structuring and due diligence fee), or $16,975,000 net cash received. The YA II PN Note matures 12 months from issuance and requires monthly amortization payments of $ 2,500,000 of principal (plus a 2% Payment Premium on such principal amount) beginning on the 60th day following issuance and continuing on the same day of each successive month thereafter until maturity (each an “Installment Date”). The Company may satisfy any Installment Amount in cash or, at its election, by delivering an Advance Notice under the Company’s existing Standby Equity Purchase Agreement dated July 25, 2025, as amended (the “SEPA”), subject to a 30-day repayment waterfall in favor of the Investor. The Company has the right to optionally redeem all or any portion of the outstanding principal at any time at 105% of the principal amount redeemed plus accrued and unpaid interest. Upon an uncured Event of Default, the Investor may convert all or any portion of the outstanding principal, accrued interest, and other amounts due into Common Stock at a conversion price equal to 90% of the lowest daily VWAP during the 10 consecutive Trading Days immediately prior to the conversion date, subject to a 4.99% beneficial ownership blocker, and a floor price. Concurrently with the issuance of the YA II PN Note, the Company issued to the Investor a warrant (the “Warrant”) to purchase 1,333,333 shares of Common Stock at an exercise price of $ 9.00 per share, exercisable for a term of five years from issuance. The obligations under the Note are guaranteed by each subsidiary of the Company pursuant to a Global Guaranty Agreement. The Letter Agreement contains customary representations, warranties, covenants (including restrictions on variable rate transactions, additional indebtedness without consent, and use of proceeds), and events of default. The Company is not required to register the shares issuable upon conversion of the Note but has agreed to register the shares issuable upon exercise of the Warrant. The Investor has demand registration rights covering all shares of common stock underlying the Note. Upon written demand, the Company must file a resale registration statement within 45 calendar days, use commercially reasonable efforts to cause it to become effective promptly, and address any Rule 415 limitations through pro-rata reductions and successive filings as necessary. In addition, the Company shall, at its sole cost and expense, file with the SEC on or before the date that is 90 calendar days after the closing date file a registration statement on Form S-1 registering the resale of all of the shares of common stock issuable upon exercise of the Warrant (the “Warrant Registration Statement”). The Company shall use its commercially reasonable efforts to cause the Warrant Registration Statement to be declared effective as soon as practicable after the filing thereof. The registration statement was filed on April 16, 2026. 33 Total debt issuance cost of $ 10,411,665 includes the $3,000,000 OID, $ 25,000 legal fees and $ 6,986,665 warrants value at issuance date and $400,000 payment premium. Debt issuance cost is amortized over the term of the Note using the effective interest rate method. During the three and nine months ended June 30, 2026, $ 8,779,809 and $ 9,560,270 , respectively, was repaid on the YA II PN Note. For the three months and nine months ended June 30, 2026, total amortized debt issuance cost of $ 4,606,282 and $ 6,333,616 was included in interest expense on the accompanying unaudited condensed consolidated statements of operations. At June 30, 2026 and September 30, 2025, the balance of the YA II PN Notes of $ 6,761,681 and $0, respectively, recorded in promissory notes - YA II PN on the accompanying unaudited condensed consolidated balance sheets, includes $ 4,078,049 and $ 0 , respectively of unamortized debt issuance cost. Adrian Note As stated in Note 10, on January 5, 2026, the Company issued a $10 million promissory note pursuant to the Adrian Asset Purchase Agreement (the “Adrian Note”). The loan accrues interest at a rate of 12% per annum with a 1% reduction in the interest rate for every $ 1,000,000 of payment. The loan matures on January 5, 2027. For the three and nine months ended June 30, 2026, pursuant to the June 22, 2026 assignment of exchange rights, joinder and partial satisfaction of note agreement (the “Assignment Agreement”) with Adrian, and the notice of assignment and irrevocable delivery direction to SaverOne, 343,610 of the 876,644 were issued to Adrian for repayment on Note at an agreed upon value of $ 1,432,509 was applied to the loan. Since the fair value of the shares and the agreed upon value differed at the time of transfer, the Company recognized a loss on disposal of the shares of $ 552,697 which is included in loss on disposal of investments on the accompanying unaudited condensed consolidated statements of income. For the three and nine months ended June 30, 2026 and 2025, interest expense of $ 285,074 and $ 564,526 , respectively, on the Adrian Note is included in interest expense on the accompanying unaudited condensed consolidated statements of operations. At June 30, 2026, the balance of the Adrian Note of $ 8,567,491 is included in promissory notes on the accompanying unaudited condensed consolidated balance sheet. Dream Note As stated in Note 10, on April 10, 2026, the Company issued a $6 million promissory note pursuant to the Asset Purchase Agreement with Dream America Marketing Services, Ltda (the “Dream Note”). The loan accrues interest at a rate of 12% per annum with a 1% reduction in the interest rate for every $1,000,000 of payment. The loan matures on April 10, 2027. For the three and nine months ended June 30, 2026 and 2025, interest expense of $ 159,781 on the Dream Note is included in interest expense on the accompanying unaudited condensed consolidated statements of operations. At June 30, 2026, the balance of the Dream Note of $ 6,000,000 is included in promissory notes on the accompanying unaudited condensed consolidated balance sheet. Note 15 — Loan Payable On May 8, 2023, Junko entered into a loan agreement (the “May 2023 Loan”) with an original principal amount of NIS 100,000. At the close of the business combination with Junko, the Company acquired $6,887 of the loan balance. The loan bears interest at a variable rate based on the Israeli prime rate plus an applicable margin (8.23% as of June 30, 2026) and matures on September 30, 2028. Principal and interest are payable in monthly installments. During the three and nine months ended June 30, 2026, interest on the May 2023 Loan of $142 is accrued and included in interest expenses on the unaudited condensed consolidated statements of operations. At June 30, 2026, the outstanding principal balance of $6,642 as of June 30, 2026 is included on loan payable on the accompanying unaudited condensed consolidated balance sheets. 34 On November 9, 2023, Junko entered into a loan agreement (the “November 2023 Loan”) with an original principal amount of NIS 100,000. At the close of the business combination with Junko, the Company acquired $12,755 of the loan balance. The loan bears interest at a variable rate based on the Israeli prime rate plus an applicable margin (8.23% as of June 30, 2026) and matures on March 20, 2027. Principal and interest are payable in monthly installments. During the three and nine months ended June 30, 2026, interest on the November 2023 Loan of $152 is accrued and included in interest expenses on the condensed consolidated statements of operations. At June 30, 2026, the outstanding principal balance of $10,168 as of June 30, 2026 is included on loan payable on the unaudited condensed consolidated balance sheets. On January 30, 2025, Junko entered into a loan agreement (the “January 2025 Loan”) with an original principal amount of NIS 700,000. At the close of the business combination with Junko, the Company acquired $191,740 of the loan balance. The loan bears interest at a variable rate based on the Israeli prime rate plus an applicable margin (7.81% as of June 30, 2026) and matures on January 20, 2031. Principal and interest are payable in monthly installments. During the three and nine months ended June 30, 2026, interest on the January 2025 Loan of $3,864 is accrued and included in interest expenses on the unaudited condensed consolidated statements of operations. At June 30, 2026, the outstanding principal balance of $190,942 as of June 30, 2026 is included on loan payable on the unaudited condensed consolidated balance sheets. On March 11, 2025, Junko entered into a loan agreement (the “March 2026 Loan”) with an original principal amount of NIS 54,800. At the close of the business combination with Junko, the Company acquired $11,809 of the loan balance. The loan bears interest at a variable rate based on the Israeli prime rate plus an applicable margin (7.6% as of June 30, 2026) and matures on July 11, 2027. Principal and interest are payable in monthly installments. During the three and nine months ended June 30, 2026, interest on the March 2026 loan of $228 is accrued and included in interest expenses on the unaudited condensed consolidated statements of operations. At June 30, 2026, the outstanding principal balance of $10,251 as of June 30, 2026 is included on loan payable on the unaudited condensed consolidated balance sheets. On February 22, 2026, Junko entered into a loan agreement (the “February 2026 Loan”) with an original principal amount of NIS 96,000. At the close of the business combination with Junko, the Company acquired $29,883 of the loan balance. The loan bears interest at a variable rate based on the Israeli prime rate plus an applicable margin (8.2% as of June 30, 2026) and matures on February 15, 2031. Principal and interest are payable in monthly installments. During the three and nine months ended June 30, 2026, interest on the February 2026 loan of $673 is accrued and included in interest expenses on the unaudited condensed consolidated statements of operations. At June 30, 2026, the outstanding principal balance of $30,244 as of June 30, 2026 is included on loan payable on the unaudited condensed consolidated balance sheets. On April 6, 2026, Junko entered into a loan agreement (the “April 2026 Loan”) with an original principal amount of NIS 200,000. The loan bears interest at a variable rate based on the Israeli prime rate plus an applicable margin (7.5% as of June 30, 2026) and matures on October 20, 2026. Principal and interest are payable in monthly installments. During the three and nine months ended June 30, 2026, interest on the April 2026 loan of $1,068 is accrued and included in interest expenses on the unaudited condensed consolidated statements of operations. At June 30, 2026, the outstanding principal balance of $44,936 as of June 30, 2026 is included on loan payable on the unaudited condensed consolidated balance sheets. 35 The following table summarizes loan balances at June 30, 2026 and September 30, 2025. Schedule of summarizes loan balances Loan June 30, 2026 September 30, 2026 May 2023 $ 6,642 $ — November 2023 10,168 — January 2025 190,942 May 2026 10,251 — March 2026 30,244 — February 2026 44,936 — 293,183 — Short term portion 108,010 — Long term portion 185,173 — $ 293,183 $ — Note 16 — Warrants As stated in Note 14, concurrently with the issuance of the YA II PN Note, the Company issued to the Investor the Warrant to purchase 1,333,333 shares of Common Stock at an exercise price of $9.00 per share, exercisable for a term of five years from issuance. The Company accounted for the Warrant in accordance with the guidance contained in ASC 815 whereby under that provision these warrants met the criteria for equity treatment. As such, these warrants are recorded at fair value at issuance date. The Company utilized a Monte Carlo Simulation model to estimate the fair values of the February 26, 2026 of the Warrants, which incorporated significant inputs that were not observable in the market, and thus represents a Level 3 measurement as defined in ASC 820. The unobservable inputs utilized for measuring the fair value of the contingent consideration reflect management’s own assumptions about the assumptions that market participants would use in valuing the contingent consideration. The Company determined the fair value by using the below key inputs to the Monte Carlo Simulation Model. Schedule of fair value of key inputs to the Monte Carlo Simulation Model February 26, 2026 Stock Price $ 7.96 Exercise Price $ 9.00 Volatility 73.0 % Risk free rate of return 3.54 % Term to maturity (years) 5.00 Term to financing (years) 2.50 The fair value of the Warrants on February 26, 2026 of $ 6,986,665 , was included as debt issuance cost related to the YA II PN Notes (See Note 14). Note 17 — Related Party Transactions Due to Related Parties Prior to the consummation of the Reverse Acquisition, Bannix entered into various transactions with related parties to fund working capital needs. A total of $ 2,124,212 owing to these related parties was assumed at the close of the Reverse Acquisition. The following table summarizes the related party balances as of June 30, 2026, and September 30, 2025, 36 Schedule of Due to Related Parties June 30, 2026 September 30, 2025 Suresh Yezhuvath $ — $ 223,960 Instant Fame and affiliated parties (1) 840,000 840,000 Stanley Hills (3)(4) 785,252 785,252 Accrued executive compensation (2) — 250,000 Anat Attia 251,832 335,280 IGOR (5) 258,000 — $ 2,135,084 $ 2,434,492 (1) Instant Fame and affiliated parties Represents unsecured promissory note issued by Bannix on December 13, 2022 in favor of Instant Fame, in the principal amount of $ 690,000 . In March and April 2023, Bannix issued additional unsecured promissory notes to Instant Fame for $ 75,000 for each promissory note. (2) Accrued executive compensation Represents compensation expense owing to executives. At the close of the reverse acquisition $220,000 and $55,000 were owed to Doug Davis and Erik Klinger, respectively. At September 30, 2025, $180,000, $25,000 and $45,000 were owed to Doug Davis, Noam Kenig and Erik Klinger, respectively (3) Transfer of balances During the year ended September 30, 2025, upon agreement by and amount the related parties, $235,333 of balances owing to Bannix Management LLP and $4,737 of balances of Subash Menon was transferred to Stanley Hills and $200,000 of balances owed to Subash Menon was transferred to Suresh Yezhuvath. (4) VisionWave Technologies related party transactions Stanley Hills, LLC, a corporation wholly owned by Anat Attia, paid the entire company expenses for VisionWave Technologies Inc., as well as funded the Company’s bank and brokerage accounts, on behalf of the Company. On April 8, 2025, with an effective date of March 31, 2025 and as amended on July 28, 2026, the Company entered into a Funding Support Agreement with Stanley Hills, LLC (“Stanley Hills”), the principal shareholder of VisionWave Technologies. Pursuant to the agreement, Stanley Hills irrevocably and unconditionally committed to provide financial support to the Company, sufficient to fund the working capital needs through August 28, 2027. The funding may be provided by Stanley Hills in the form of direct payments to third parties, advances or intercompany loans, or capital contributions, as mutually determined by the parties. Unless otherwise agreed in writing, any such advances will be non-interest bearing and repayable only at such time as determined by the Board of Directors, and only to the extent such repayment would not impair the Company’s liquidity or ability to continue as a going concern. The agreement may not be terminated by Stanley Hills prior to the twelve-month period from the date of release of the financial statement. On January 19, 2026, the Company and Yorkville Advisors amended the SEPA to provide that the prepaid advance would no longer constitute an advance under the SEPA but instead be evidenced by stand-alone promissory notes. During the three and nine months ended June 30, 2026, Stanley Hills provided funding of $ 0 and $ 500,000 to the Company, respectively. During the three and nine months ended June 30, 2026, the Company made a partial payment of $ 0 and $ 500,000 to Stanley Hills, LLC, respectively; the deferral agreement remains in effect and was not amended, and Yorkville Advisors has not delivered any notice of default under the SEPA or the related promissory notes. 37 During the nine months ended June 30, 2026, a total of $ 500,000 and $ 270,000 was repaid on the Stanley Hill and Anat Attia balances, respectively. During the three and nine months ended June 30, 2026, Anat Attia paid $ 728 and $ 82,552 of expenses on behalf of the Company and advanced the Company $0 and $100,000, respectively. As of June 30, 2026 and September 30, 2025, the balance of $785,252 owing to Stanley Hills, LLC is included in due to related parties on the unaudited condensed consolidated balance sheets, respectively. As of June 30, 2026 and September 30, 2025, the balance of $ 251,832 and $ 335,280 , respectively, owing to Anat Attia is included in due to related parties on the unaudited condensed consolidated balance sheets. (5) IGOR During the three and nine months ended June 30, 2026, an affiliate of Stanley Hills, paid $ 258,000 of operating expenses on behalf of the Company. The balance of $ 258,000 at June 30, 2026 is due on demand and included in due to related parties on the unaudited condensed consolidated balance sheets. Due from related party During the year ended September 30, 2025, the Company advanced against compensation $ 120,000 to the Executive Chairman and acting CEO. For the three and nine months ended June 30, 2026, the Company advanced to that executive an additional $0 and $27,500 against compensation, respectively. As of June 30, 2026 and September 30, 2025, $ 147,500 and $ 120,000 is advanced against compensation to the executive Chairman and acting CEO and reported in due from related party balance on the unaudited condensed consolidated balance sheets, respectively. Note 18 — Convertible Notes Payable Securities Purchase Agreements On July 15, 2025, the Company entered into Securities Purchase Agreements (the “July 2025 SPAs”) with two unaffiliated accredited investors (“July 2025 Lenders”), pursuant to which the Company issued promissory notes (the “July 2025 Notes”) to the July 2025 Lenders in the aggregate principal amount of $ 354,200 , which includes an aggregate original issue discount of $ 46,200 , for a purchase price of $ 308,000 . The Company incurred an additional $ 8,000 in fees related to this transaction which is capitalized as part of the debt issuance cost and amortized over the term of the July 2025 Notes. The July 2025 Notes bear interest at a one-time charge of 12% applied on the issuance date, mature on May 15, 2026, and is repayable in five monthly payments commencing January 15, 2026. The July 2025 Notes are convertible into shares of the Company’s common stock, par value $0.01 per share (the “Common Stock”), solely upon an event of default, at a conversion price equal to 75% of the lowest trading price during the ten trading days prior to conversion. The Company also entered into an irrevocable transfer agent instructions letter with its transfer agent in connection with the July 2025 Notes. The proceeds from the issuances of the July 2025 Notes were used for general working capital purposes. The July 2025 Lenders have piggyback registration rights and have agreed not to engage in short sales of the Company’s common stock during the term of the July 2025 Notes. The July 2025 Notes include customary representations, warranties, covenants, and default provisions. The Company may prepay the July 2025 Notes within the first 180 days. The loan pursuant to the July 2025 Notes closed and funded on July 17, 2025. During the three and nine months ended June 30, 2026, the Company repaid $ 99,176 and $ 396,704 , respectively on the July 2025 Notes which includes $42,504 interest. For the three months ended June 30, 2026 and 2025, total amortized debt issuance cost of $ 12,877 and $ 0 was included in interest expense on the accompanying unaudited condensed consolidated statements of operations, respectively. For the nine months ended June 30, 2026 and 2025 total amortized debt issuance cost of $ 45,463 and $ 0 was included in interest expense on the accompanying unaudited condensed consolidated statements of operations, respectively. For the three months ended June 30, 2026 and 2025, total interest expense $ 6,376 and $ 0 was included in interest expense on the accompanying unaudited condensed consolidated statements of operations, respectively. For the nine months ended June 30, 2026 and 2025, total interest expense $ 31,878 and $ 0 was included in interest expense on the accompanying unaudited condensed consolidated statements of operations, respectively. At June 30, 2026 and September 30, 2025, the balance of the July Notes of $ 0 and $ 308,737 , respectively, recorded in convertible notes payable on the accompanying unaudited condensed consolidated balance sheets, includes $ 0 and $ 45,463 , respectively of unamortized debt issuance cost. 38 On October 6, 2025, the Company entered into a Securities Purchase Agreement (the “October 2025 SPA”) with an unaffiliated accredited investor, pursuant to which the Company issued a promissory note (the “October 2025 Note”) to the investor in the aggregate principal amount of $ 296,700 , which includes an aggregate original issue discount of $ 38,700 , for a purchase price of $ 258,000 . The Company incurred an additional $ 8,000 in fees related to this transaction which is capitalized as part of the debt issuance cost and amortized over the term of the October 2025 Note. The October 2025 Note bear interest at a one-time charge of 12% applied on the issuance date, mature on July 30, 2026, and is repayable in five monthly payments commencing March 30, 2026. The October 2025 Note is convertible into shares of the Company’s common stock, par value $0.01 per share, solely upon an event of default, at a conversion price equal to 75% of the lowest trading price during the ten trading days prior to conversion. The Company also entered into an irrevocable transfer agent instructions letter with its transfer agent in connection with the October 2025 Note. The proceeds from the issuances of the October 2025 Note were used for general working capital purposes. The October 2025 investor have piggyback registration rights and have agreed not to engage in short sales of the Company’s common stock during the term of the October 2025 Note. The October 2025 Note include customary representations, warranties, covenants, and default provisions. The Company may prepay the October 2025 Notes within the first 180 days. During the three and nine months ended June 30, 2026, the Company repaid $ 124,614 and $ 290,766 , respectively on the October 2025 Notes. For the three months ended June 30, 2026 and 2025, total amortized debt issuance cost of $ 14,012 and $ 0 , respectively, was included in interest expense on the accompanying unaudited condensed consolidated statements of operations. For the nine months ended June 30, 2026 and 2025, total amortized debt issuance cost of $ 42,035 and $ 0 , respectively, was included in interest expense on the accompanying unaudited condensed consolidated statements of operations. For the three and nine months ended June 30, 2026 and 2025, total interest expense $ 10,681 and $ 0 , respectively, and $ 35,374 and $ 0 , respectively, was included in interest expense on the accompanying unaudited condensed consolidated statements of operations. At June 30, 2026 and September 30, 2025, the balance of the October Notes of $ 1,269 and $ 0 , respectively, recorded in convertible notes payable on the accompanying unaudited condensed balance sheets, includes $ 4,665 and $ 0 , respectively of unamortized debt issuance cost. On November 12, 2025, the Company entered into a Securities Purchase Agreement (the “November 2025 SPA”) with an unaffiliated accredited investor, pursuant to which the Company issued a promissory note (the “November 2025 Note”) to the November 2025 investor in the aggregate principal amount of $ 354,200 , which includes an aggregate original issue discount of $ 46,200 , for a purchase price of $ 308,000 . The Company incurred an additional $ 8,000 in fees related to this transaction which is capitalized as part of the debt issuance cost and amortized over the term of the November 2025 Note. The November 2025 Note bear interest at a one-time charge of 12% applied on the issuance date, mature on September 15, 2026, and is repayable in five monthly payments commencing May 15, 2026. The November 2025 Note is convertible into shares of the Company’s common stock, par value $0.01 per share (the “Common Stock”), solely upon an event of default, at a conversion price equal to 75% of the lowest trading price during the ten trading days prior to conversion. The Company also entered into an irrevocable transfer agent instructions letter with its transfer agent in connection with the November 2025 Notes. The proceeds from the issuances of the November 2025 Notes were used for general working capital purposes. The investor has piggyback registration rights and have agreed not to engage in short sales of the Company’s common stock during the term of the November 2025 Note. The November 2025 Note include customary representations, warranties, covenants, and default provisions. The Company may prepay the November 2025 Note within the first 180 days. During the three and nine months ended June 30, 2026, the Company repaid $247,940 on the November 2025 Notes. For the three months ended June 30, 2026 and 2025, total amortized debt issuance cost of $ 17,533 and $ 0 , respectively, was included in interest expense on the accompanying unaudited condensed consolidated statements of operations. For the nine months ended June 30, 2026 and 2025, total amortized debt issuance cost of $ 41,707 and $ 0 , respectively, was included in interest expense on the accompanying unaudited condensed consolidated statements of operations. For the three and nine months ended June 30, 2026 and 2025, total interest expense $ 12,751 and $ 0 , respectively, and $ 31,878 and $ 0 , respectively, was included in interest expense on the accompanying unaudited condensed consolidated statements of operations. At June 30, 2026 and September 30, 2025, the balance of the November Notes of $ 93,767 and $ 0 , respectively, recorded in convertible notes payable on the accompanying balance sheets, includes $ 12,493 and $ 0 , respectively of unamortized debt issuance cost. 39 Standby Equity Purchase Agreement - Pre-Paid Advance In connection with the SEPA (See Note 20), and subject to the condition set forth therein, the Investor advanced to the Company in the form of convertible promissory notes (the “Convertible Notes”) an aggregate principal amount of $5.0 million (the “Pre-Paid Advance”). The first Pre-Paid Advance was disbursed on July 25, 2025 with respect to $ 3.0 million and the balance of $ 2.0 million was disbursed on September 11, 2025 upon the registration statement registering the resale of the shares of common stock issuable under the SEPA being declared effective. The purchase price for the Pre-Paid Advance is 94% of the principal amount of the Pre-Paid Advance. Interest shall accrue on the outstanding balance of any Pre-Paid Advance at an annual rate equal to 6.0%, subject to an increase to 18% upon an event of default as described in the Convertible Notes. The maturity date is 12-months after the closing of each tranche of the Pre-Paid Advance. The Investor may convert the Convertible Notes into shares of the Company’s common stock at a conversion price equal to the lower of $10.00 or 93% of the lowest daily VWAP during the five consecutive trading days immediately preceding the conversion (the “Conversion Price”), which in no event may the Conversion Price be lower than $ 1.00 (the “Floor Price”) provided, however, that the Floor Price shall be adjusted (downwards only) to equal 20% of the average VWAP for the five (5) Trading Days immediately prior to the earlier of (i) date of effectiveness of the Registration Statement, (ii) the six-month anniversary of the date of the SEPA. Notwithstanding the foregoing, the Company may reduce the Floor Price to any amounts set forth in a written notice to the Holder; provided that such reduction shall be irrevocable and shall not be subject to increase thereafter. In addition, upon the occurrence and during the continuation of an event of default, the Convertible Notes shall become immediately due and payable and the Company shall pay to the Investor the principal and interest due thereunder. In no event shall Investor be allowed to effect a conversion if such conversion, along with all other shares of common stock beneficially owned by Investor and its affiliates would exceed 4.99% of the outstanding shares of the common stock of the Company. If any time on or after the issuance of the Convertible Notes (i) the daily VWAP is less than the Floor Price for five trading days during a period of seven consecutive trading days (“Floor Price Trigger”), or (ii) the Company has issued in excess of 99% of the shares of common stock available under the Exchange Cap, where applicable (“Exchange Cap Trigger” and collectively with the Floor Price Trigger, the “Trigger”), then the Company shall make monthly payments to Investor beginning on the seventh trading day after the Trigger and continuing monthly in the amount of $ 750,000 plus an 5.0 % premium and accrued and unpaid interest. The Exchange Cap Trigger will not apply in the event the Company has obtained the approval from its stockholders in accordance with the rules of Nasdaq Stock Market for the issuance of shares of common stock pursuant to the transactions contemplated in the Convertible Note and the SEPA in excess of 19.99% of the aggregate number of shares of common stock issued and outstanding as of the effective date of the SEPA (the “Exchange Cap”). The Convertible Notes is a legal debt obligation with a variable-share conversion feature and the Company elected to account for the Convertible Notes at fair value under ASC 825. The Note remains a liability after issuance and the instrument is remeasured after initial recognition, with changes in fair value recorded in earnings each reporting period until settlement, modification, or extinguishment and consistent with the liability-classified model. As of June 30, 2026 and September 30, 2025, the par value of the notes was $ 5,000,000 and the fair value of the notes was $ 5,400,405 and $ 4,552,653 , respectively. For the three months ended June 30, 2026 and 2025, total interest expense $ 74,795 and $ 0 , respectively, was included in interest expense on the accompanying unaudited condensed consolidated statements of operations. For the nine months ended June 30, 2026 and 2025, total interest expense $ 225,205 and $ 0 respectively, was included in interest expense on the accompanying unaudited condensed consolidated statements of operations. 40 January 2026 Notes On January 9, 2026, the Company issued promissory notes (the “January 2026 Notes”) to two investors in the aggregate principal amount of $ 354,200 , which includes an aggregate original issue discount of $ 46,200 , for a purchase price of $ 293,000 . The Company incurred an additional $ 8,000 in fees related to this transaction which is capitalized as part of the debt issuance cost and amortized over the term of the January 2026 Notes. The January 2026 Notes bear interest at a one-time charge of 12% applied on the issuance date, mature on November 15, 2026, and is repayable in five monthly payments commencing July 15, 2026. The January 2026 Notes are convertible into shares of the Company’s common stock, par value $0.01 per share, solely upon an event of default, at a conversion price equal to 75% of the lowest trading price during the ten trading days prior to conversion. The Company also entered into an irrevocable transfer agent instructions letter with its transfer agent in connection with the January 2026 Notes. The proceeds from the issuances of the January 2026 Notes were used for general working capital purposes. The investors have piggyback registration rights and have agreed not to engage in short sales of the Company’s common stock during the term of the January 2026 Notes. The January 2026 Notes include customary representations, warranties, covenants, and default provisions. The Company may prepay the January 2026 Notes within the first 180 days. The Company evaluated the embedded conversion features and other terms of the January 2026 Notes under applicable accounting guidance, including ASC 815, Derivatives and Hedging. The conversion feature is exercisable solely upon an event of default and accordingly, the Company concluded that bifurcation of the embedded conversion feature was not required as of issuance. The January 2026 Notes were therefore initially recorded at their principal amount, net of unamortized original issue discount and debt issuance costs. As the notes were not elected under the fair value option of ASC 825, the Company accounts for the January 2026 Notes at amortized cost and no recurring fair value measurement is required. For the nine months ended June 30, 2026 and 2025, total amortized debt issuance cost of $ 31,151 and $ 0 , respectively, was included in interest expense on the accompanying unaudited condensed consolidated statements of operations. For the three and nine months ended June 30, 2026 and 2025, total interest expense $ 12,751 and $ 0 , respectively, and $ 23,377 and $ 0 , respectively, was included in interest expense on the accompanying unaudited condensed consolidated statements of operations. At June 30, 2026 and September 30, 2025, the balance of the January Notes of $ 331,150 and $ 0 , respectively, recorded in convertible notes payable on the accompanying balance sheets, includes $ 23,050 and $ 0 , respectively of unamortized debt issuance cost. The following table presents changes of the convertible notes with significant unobservable inputs (Level 3) for the three and nine months ended June 30, 2026. Schedule of unobservable inputs of convertible notes Convertible Notes Convertible Notes balance at September 30, 2025 $ 4,552,653 Change in fair value 286,680 Convertible Notes balance at December 31, 2025 4,839,333 Change in fair value ( 7,634 ) Convertible Notes balance at March 31, 2026 4,831,699 Change in fair value 568,706 Convertible Notes balance at June 30, 2026 $ 5,400,405 The Convertible notes were valued using unobservable inputs that are not corroborated by market data (Level 3). The valuation is based on Monte Carlo Simulation to simulate weekly stock prices through maturity. The enterprise value is then allocated to each class of outstanding shares and convertible notes based on an option pricing model where the value for each class is driven by the current value and expected volatility of the underlying equity value. 41 The key assumptions used to value the convertible notes as of June 30, 2026 and September 30, 2025: Schedule of key assumptions used to value the convertible notes June 30, 2026 September 30, 2025 Stock Price $ 4.30 $ 9.53 Equity Volatility 67 % 52 % Discount Rate 45 % 41 % Risk free rate of return 3.67 - 3.78 % 3.70 % Term to maturity (years) 0.07 - 0.20 0.82 The following table presents balance of the convertible notes with significant unobservable inputs (Level 3) as of June 30, 2026 and September 30, 2025: June 30, 2026 September 30, 2025 Convertible notes (at fair value) $ 5,400,405 $ 4,552,653 July Notes (at amortized cost) — 308,737 October Note (at amortized cost) 1,269 — November Note (at amortized cost) 93,767 — January 2026 Note (at amortized cost)) 331,150 — Balance, Convertible notes payable $ 5,826,591 $ 4,861,390 Note 19 — Underwriter’s Agreement Upon completion of the initial public offering of Bannix IPO, the underwriters are entitled to a deferred underwriting discount of $ 225,000 , solely in the event that the Company completes a Business Combination, subject to the terms of the underwriting agreement. Additionally, the underwriters are entitled to a Business Combination marketing fee of 3.5 % of the gross proceeds of the sale of Units in the IPO upon the completion of the Company’s initial Business Combination subject to the terms of the underwriting agreement. At the close of the Reverse Acquisition, the Company assumed $ 225,000 of underwriting discount which is included in deferred underwriting discount on the accompanying unaudited condensed consolidated balance sheets at June 30, 2026 and September 30, 2025. The amount is due on demand but payable only after the repayment of the SEPA Pre-paid Advances (See Note 18). On June 9, 2025, Bannix entered into an amendment to the underwriting agreement. Pursuant to the amendment, payments of the Business Combination marketing fee will be modified as follows: ● $ 500,000 shall be paid in cash, deferred until the later of (i) twelve (12) months after closing or (ii) the date when a key financing facility of the post-combination company is fully equitized. ● $ 1,300,000 shall be paid in shares of the post-combination company’s common stock, calculated based on the 30-day VWAP immediately following the closing date. These shares will be subject to piggyback registration rights and a lock-up that expires upon the termination or full amortization of the referenced financing facility. At the close of the Reverse Acquisition, the Company assumed $ 1,800,000 of marketing fees costs which is included in accounts payable and accrued expenses on the accompanying unaudited condensed consolidated balance sheets at June 30, 2026 and September 30, 2025. 42 In addition, Bannix issued the underwriter (and/or its designees) (the “Representative”) 393,000 shares of Common Stock for $0.01 per share (the “Representative Shares”) upon the consummation of the Bannix IPO. A balance of $ 3,930 outstanding by the Representative for the Representative Shares were assumed at close at the Reverse Acquisition. As of June 30, 2026 and September 30, 2025, the Representative has not yet paid for these shares, and the amount owed of $ 3,930 is included in prepaid expenses on the unaudited condensed consolidated balance sheets. Note 20 — Commitment and Contingencies Standby Equity Purchase Agreement On July 25, 2025, the Company entered into the Standby Equity Purchase Agreement (“SEPA”) with YA II PN, LTD, a Cayman Islands exempt limited partnership (the “Investor”) pursuant to which the Company has the right to sell to the Investor up to $50 million of its shares of common stock, subject to certain limitations and conditions set forth in the SEPA, from time to time during the term of the SEPA. In connection with the SEPA, and subject to the condition set forth therein, Investor advanced to the Company in the form of convertible promissory notes (the “Convertible Notes”) an aggregate principal amount of $5 million (the “Pre-Paid Advance”) (See Note 18). The Investor, in its sole discretion and providing that there is a balance remaining outstanding under the Convertible Notes, may deliver a notice under the SEPA requiring the issuance and sale of shares of common stock to the Investor at the Conversion Price in consideration of an offset of the Convertible Notes (“Investor Advance”). The Investor, in its sole discretion, may select the amount of any Pre-Paid Advance, provided, that the number of shares issued does not cause the Investor to exceed the 4.99% ownership limitations does not exceed the Exchange Cap or the number of shares of common stock that are registered. As a result of a Pre-Paid Advance, the amounts payable under the Convertible Notes will be offset by such amount subject to each Investor Advance. The Company will control the timing and amount of any sales of shares of common stock to the Investor, except with respect to the Pre-Paid Advances. The SEPA will automatically terminate on the earliest to occur of (i) the 24-month anniversary of the date of the SEPA or (ii) the date on which the Investor shall have made payment of Advances pursuant to the SEPA for shares of common stock equal to $ 50,000,000 . The Company has the right to terminate the SEPA at no cost or penalty upon five (5) trading days’ prior written notice to the Investor, provided that there are no outstanding Advance Notices for which shares of common stock need to be issued and the Company has paid all amounts owed to the Investor pursuant to the Convertible Notes. The Company and the Investor may also agree to terminate the SEPA by mutual written consent. Neither the Company nor the Investor may assign or transfer our respective rights and obligations under the SEPA, and no provision of the SEPA may be modified or waived by us or Investor other than by an instrument in writing signed by both parties. As consideration for the Investor’s commitment to purchase the shares of common stock pursuant the SEPA, the Company paid the Investor, (i) a structuring fee in the amount of $ 30,000 and (ii) 200,000 shares of common stock as an equity fee. Further, the Company is required to pay Investor a commitment fee of $ 500,000 of which $ 250,000 shall be due and payable on the earlier of the effective date of the initial registration statement, or 60 days following the date hereof and the remaining $250,000 shall be due and payable on the date that is 90 days following the initial due date to be paid by the issuance of such number of common shares that is equal to the applicable portion of the commitment fee divided by the average of the daily VWAPs of the common shares during the three trading days immediately prior to the applicable due date. The total consideration of $ 1,350,000 is recorded as general and administrative expenses in the statement of operations for the year ended September 30, 2025 and is inclusive of fair value of $ 470,000 of the 200,000 shares issued and $ 350,000 consulting fees. At June 30, 2026 and September 30, 2025, $ 140,000 of the commitment fee is unpaid and included in accrued expenses on the accompanying unaudited condensed consolidated balance sheets. 43 The SEPA fails the fixed-for-fixed equity classification test due to the Exchange Cap requiring shareholder approval, which constitutes a variable settlement contingency outside the issuer’s control. Therefore, equity classification under ASC 815-40 is precluded, and the SEPA must be accounted for as a liability (or derivative liability, as applicable). While the SEPA has an underlying (the issuer’s stock price) and a notional amount (the $50 million commitment), it does not meet the third characteristic of a derivative because it requires more than a nominal initial net investment (e.g., the $5 million Pre-Paid Advance in two tranches and related fees). Therefore, the SEPA does not meet the definition of a derivative under ASC 815-10-15-83. Accordingly, the SEPA should be recorded as nonderivative liability requiring ongoing fair value remeasurement. As of June 30, 2026 and September 30, 2025, based on management assumptions the SEPA liability was zero. Amendment to SEPA On January 19, 2026, the Company entered into an amendment to the Standby Equity Purchase Agreement, dated as of July 25, 2025 (the “SEPA Amendment No. 1”), by and between the Company and YA II PN, Ltd. (the “Investor”). The Amendment amends the SEPA to, among other things: (i) remove the Investor’s ability to deliver Investor Notices, which previously allowed the Investor to require the Company to issue and sell shares of Common Stock to the Investor in offset of amounts outstanding under the Promissory Notes; (ii) modify the conditions under which an amortization event may occur, providing that no amortization event shall be deemed to have occurred due to a Registration Event ( prior to July 15, 2026 (the “Rule 144 Date”), and after the Rule 144 date, no such amortization event shall occur so long as the Company remains current on its filings with the Securities and Exchange Commission (the “SEC”) and the Investor is able to rely on Rule 144 under the Securities Act of 1933, as amended, to resell shares of Common Stock issuable under the Promissory Notes; (iii) cancel the Investor’s obligation to fund an additional $ 2,000,000 in principal amount to the Company as set forth in a letter agreement dated September 11, 2025, between the Company and the Investor (provided that subsequent fundings on the same or different terms may be mutually agreed by the parties in the future and documented in writing); and (iv) require the Company to use its best efforts to promptly respond to comments from the staff of the SEC regarding the Company’s initial Registration Statement on Form S-1 (File No. 333-289952) and seek effectiveness of such Registration Statement as soon as reasonably practicable. During the three and nine months ended June 30, 2026, the Company issued 1,856,383 shares under the SEPA for total proceeds of $ 10,540,571 of which $ 9,560,270 was applied to the YA II PN Notes (See Note 14). Contingent Commission Payable On May 22, 2025, VisionWave Technologies executed an Addendum to an existing agreement, pursuant to which Raptor LLC was appointed as exclusive sales agent for 280,534 TFLM shares (See Note 22) and Raptor LLC will be entitled to a fixed fee of $ 50,000 , payable from the gross proceeds of the share sale of the TFLM shares. As of June 30, 2026, no sale of the TFLM shares has occurred, and VisionWave Technologies has not granted the required power of attorney over its brokerage account to enable such sales. Accordingly, the commission obligation to Raptor LLC is considered contingent. TFLM is eligible for unsolicited quotes only and is traded on expert market, which make its sales improbable. 44 Litigation From time to time, the Company may be subject to routine litigation, claims or disputes in the ordinary course of business. The Company defends itself vigorously in all such matters but cannot predict the outcome or effect of any potential litigation, claims or disputes. Maxim Group LLC On April 17, 2026, Maxim Group LLC filed a complaint against VisionWave Holdings, Inc. in the Supreme Court of the State of New York, County of New York, alleging breach of contract and seeking damages related to certain financing transactions completed by the Company in July 2025 and February 2026 pursuant to an engagement agreement dated April 9, 2025. Maxim alleges entitlement to placement fees and declaratory relief in connection with financings involving YA II PN, Ltd., a fund managed by Yorkville Advisors Global, LP. The action includes claims for alleged unpaid fees of approximately $1.33 million, declaratory relief concerning alleged tail rights and rights of first refusal, attorneys’ fees, interest, and other relief. The action was filed under an unassigned New York County index number as of the filing date. The Company believes the asserted claims are without merit and intends to defend the matter vigorously. Also on April 17, 2026, the Company filed a separate action against Maxim Group LLC in the Supreme Court of the State of New York, County of New York, asserting claims for breach of contract, declaratory judgment, and unjust enrichment. The Company alleges, among other things, that Maxim did not identify or place relevant financing transactions, was not entitled to compensation under the parties’ agreement, and wrongfully invoiced the Company for fees related to the July 2025 and February 2026 financings. The Company seeks, among other relief, repayment of approximately $ 210,000 previously paid to Maxim, rescission of an additional invoice of approximately $1.4 million, declaratory relief regarding the parties’ rights under the agreement, damages, restitution, interest, and costs. The Company believes Maxim’s claims are without merit and intends to vigorously defend against them while aggressively pursuing its own claims. This action was also filed under an unassigned New York County index number as of the filing date. At this early stage of the proceedings, the Company is unable to reasonably estimate the ultimate outcome or potential loss, if any, associated with these matters. Pre-litigation disputes with former employees The Company is involved in certain pre-litigation disputes with former employees, former executives, and other individuals associated with the Company arising primarily from organizational changes implemented following the departure of the Company’s former Chief Executive Officer in late December 2025. Such matters include allegations relating to severance, unpaid compensation, notice-period pay, equity awards, and related contractual and employment matters. Certain individuals have asserted claims through counsel, and the parties have engaged in correspondence and preliminary settlement discussions. The Company disputes the allegations and claims asserted in these matters and intends to vigorously defend its positions. As of the date of this Quarterly Report, no formal lawsuits, arbitrations, or other legal proceedings have been filed with respect to these matters. Due to the early stage of these disputes, the absence of formal proceedings, and the inherent uncertainty surrounding such matters, the Company is unable to reasonably estimate the possible loss or range of loss, if any, that may result from these matters. Accordingly, no liability has been accrued in the accompanying condensed consolidated financial statements. Except as described above, the Company is not a party to any other pending legal proceedings that management believes, individually or in the aggregate, would have a material adverse effect on the Company’s business, financial condition, or results of operations. 45 AI Infrastructure Agreement On October 5, 2025, the Company entered into an Order Form (the “PVML Agreement”) with PVML Ltd., a Tel Aviv–based provider of secure data-AI infrastructure. The Agreement establishes a strategic collaboration to integrate PVML’s secure, real-time data-AI infrastructure with the Company’s radar and AI-driven computer-vision technologies to enable secure, autonomous mission-data systems for defense and homeland-security applications. The terms of the PVML Agreement include: ● The initial term is twelve (12) months, automatically renewable for successive one-year periods unless either party gives 60-days’ prior notice of non-renewal. ● The Company will pay total consideration of $ 600,000 , consisting of (i) a cash component of $ 250,000 payable upon execution and (ii) an equity component valued at $ 350,000 , to be settled through the issuance of 35,000 shares of the Company’s common stock valued at $ 10.00 per share. ● The PVML Agreement provides for a yearly platform fee covering 2.4 million PVML Units (“PUs”) of data-processing capacity, with usage fees for consumption beyond that level. ● Each party retains ownership of its respective intellectual property, and the Company will own all outputs and derivatives generated through its use of the PVML platform. The Company paid $ 250,000 under this agreement. As of June 30, 2026, the Company has not issued shares for the equity component and the total value of $ 350,000 is included in stock-based compensation liability on the unaudited condensed consolidated balance sheets. Subsequent to quarter-end, the parties continue to discuss the timing and scope of the pilot phase of the arrangement. The Company will issue the shares or otherwise resolve the equity consideration in accordance with the agreement or any future written amendment between the parties. The project is currently on hold pending mutual agreement by both parties to conclude cancellation or continuation. Letter of Engagement with the National Oil Company of Liberia On March 18, 2026, the Company entered into a Letter of Engagement (the “LOE”) with the National Oil Company of Liberia (“NOCAL”). The LOE relates to offshore petroleum Blocks LB-4 and LB-5 located in the Liberia Basin and establishes a framework for the Company to advance toward the execution of a Production Sharing Contract (“PSC”) with the Government of Liberia. The execution of a PSC is subject to pre-qualification by the Liberia Petroleum Regulatory Authority, regulatory approvals, and legislative ratification. Under the LOE, the Company has been granted exclusive, non-transferable rights to pursue the Blocks for an eight-month period from the date of execution, during which NOCAL is prohibited from negotiating or granting rights in the Blocks to third parties. While the LOE does not constitute a final award of petroleum rights, it contains binding provisions including confidentiality, exclusivity, and specified financial obligations. In connection with the LOE, the Company is subject to the following near-term and contingent financial obligations: ● Initial Signing Bonus: The Company is required to pay a binding initial signing bonus of $300,000 per block (totaling $600,000) within 60 days of the execution of the LOE. This amount is fully refundable without interest if the Blocks are not awarded to the Company for reasons not attributable to its own actions ● Data Licensing (Contingent): Following the execution of a PSC, the Company would be required to license seismic data for a minimum of $1,000,000 per block within 120 days ● PSC Signature Bonus (Contingent): Upon execution and legislative ratification of a PSC, the Company would be obligated to pay a signature bonus of $1,000,000 per block within 90 days The contemplated PSC would include a multi-phase exploration program spanning approximately seven years. It also contemplates certain carried and participating interests, including a 10% carried interest to NOCAL, a 10% carried interest to the Government of Liberia, a 5% carried interest to citizens, and up to 5% participation by a local Liberian company. 46 During the nine months ended June 30, 2026, the Company paid the initial sign on bonus of $ 600,000 and is included in deposits on the unaudited condensed consolidated balance sheets. The Company notes that there is no assurance a PSC will be executed or that the Company will ultimately be awarded the Blocks. The initiative is exploratory in nature and involves significant geopolitical, regulatory, and operational risks. Bitcoin mining acceleration and orchestration platform On February 17, 2026, the Company entered into a Statement of Work (the “SOW”) with a third-party vendor for the development, validation, and deployment of a custom qSpeed-Mine™ Bitcoin mining acceleration and orchestration platform. The SOW has a total contract value of $ 10 million and represents a commitment for custom software and systems development to enhance the Company’s Bitcoin mining operations. At June 30, 2026, the $ 350,000 payment upon execution was recorded as deferred revenue on the accompanying unaudited consolidated balance sheets. Scope and Structure The SOW provides for the design, validation, and deployment of a production-grade software acceleration layer, fleet orchestration/control plane, observability tools, security hardening, and deployment engineering optimized for Bitcoin (SHA-256d) mining across up to approximately 1,000 nodes/machines. The engagement is structured with objective technical milestones and acceptance criteria, and payments are contingent upon successful delivery and acceptance of each milestone. The expected program duration is approximately 32 weeks. Payment Milestones The SOW provides for the following milestone-based payment structure: ●$350,000 was paid upon execution of the SOW; ●Approximately $1 million is payable through completion and acceptance of the proof-of-concept (“POC”) milestone; ●Approximately $6 million is payable upon completion and acceptance of successive intermediate milestones, including scaled deployment and operational validation; and ●Approximately $3 million is payable upon final delivery and full program acceptance. If milestone execution proceeds as planned, the SOW is structured to generate not less than the full $10 million in revenue during calendar year 2026, subject to milestone completion and acceptance of which there is no guarantee. Revenue is expected to be recognized in accordance with applicable accounting standards based on milestone achievement and acceptance. Additional Terms All deliverables under the SOW are owned by the Company, reinforcing the Company’s proprietary rights in the QuantumSpeed™ platform. The SOW does not obligate the counterparty to continue beyond accepted milestones and does not include minimum purchase or volume commitments beyond the defined milestone structure. The Company does not intend to pursue this transaction and no formal cancellation has been made to date. 47 C.M. Composite Materials Ltd Investment and Share Purchase Agreement On February 20, 2026 (the “Effective Date”), the Company entered into two related definitive agreements in connection with a strategic investment and acquisition transaction involving C.M. Composite Materials Ltd., an Israeli corporation with registration number 513931289 (the “Target Company”): (i) an Investment and Share Purchase Agreement (the “Share Purchase Agreement”), dated as of February 20, 2026, by and among the Company (as Buyer), Matania (Mati) Moskovich (as Seller), and the Target Company (solely for purposes of acknowledgment and certain covenants); and (ii) a Loan Agreement (the “Loan Agreement”), dated as of February 20, 2026, by and between the Company (as Lender) and the Target Company (as Borrower). Pursuant to the Share Purchase Agreement, the Company agreed to acquire from the Seller 10.2 ordinary shares of the Target Company (the “Purchased Shares”), representing 51% of the issued and outstanding ordinary shares of the Target Company (which has 20 outstanding ordinary shares out of 30,000 authorized ordinary shares, par value 0.1 NIS per share). In consideration therefore, the Company agreed to issue to the Seller 250,000 shares of the Company’s common stock, $0.01 par value per share (the “Buyer Shares”), valued at $ 2,500,000 based on the parties’ agreement. The transaction is structured as a private placement exempt from registration under Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”), and/or Rule 506 of Regulation D promulgated thereunder. The Seller was granted certain registration rights with respect to the Buyer Shares. The Company has also agreed to provide loans to the Target Company as additional consideration under the Share Purchase Agreement. The Loan Agreement provides for a secured loan facility in an aggregate principal amount of up to $ 5,500,000 (the “Commitment”). The Company is obligated to make an initial advance of up to $1,500,000 within ten (10) Business Days following the Effective Date (subject to satisfaction of conditions precedent), to be used for general working capital purposes consistent with the Target Company’s ordinary course of business. Subsequent advances of the remaining up to $3,500,000 may be made in one or more tranches upon mutual written agreement of the parties, solely for working capital or the establishment and operation of a new facility outside Israel, with each tranche subject to the Company’s reasonable approval and minimum amounts (generally not less than $250,000 unless otherwise agreed). Proceeds of subsequent advances are to be used exclusively to operate, develop, certify, market, and commercialize the Target Company’s technologies and products in global markets, including the United States. This Loan Agreement expands upon the Company’s prior financial support to the Target Company including previous advances. The advances were made pursuant to a promissory note with a 24-month maturity, bearing no interest unless an event of default occurs (then at 5% per annum or the lower legal maximum), prepayable without penalty, and not contingent on any acquisition or strategic transaction. Any loan pursuant to the Loan Agreement will bear simple interest at 12% per annum (or such lower rate as mutually agreed in writing, but not exceeding prevailing market rates for similar loans as determined in good faith by the Company), calculated on a 360-day year basis for actual days elapsed. The loan will mature three (3) years after the Effective Date. The obligations under the Loan Agreement are secured by a first-priority security interest in substantially all assets of the Target Company (including accounts, inventory, equipment, general intangibles, intellectual property, and proceeds thereof). The Loan Agreement is evidenced by a promissory note. On February 26, 2026, the Company entered into the First Amendment (the “Amendment”) to the Investment and Share Purchase Agreement, dated as of February 20, 2026 (the “SPA”), by and among the Company (“Buyer”), Matania (Mati) Moskovich (the “Seller”), and, solely for purposes of acknowledgment and certain covenants therein, C.M. Composite Materials Ltd., an Israeli limited liability company (the “CM Company”). Capitalized terms used but not defined herein shall have the meanings ascribed to them in the SPA. The Amendment adds a new recital to the SPA emphasizing that the sole purpose of the Company entering into the SPA is to facilitate and enable the establishment of a joint venture in India between the CM Company (and/or FBM) and Belrise Industries Limited (or its affiliate) as contemplated by that certain Memorandum of Understanding dated February 16, 2026 (the “Belrise MOU”), and that the execution and performance of definitive agreements with Belrise Industries Limited (the “Belrise JV Agreements”) is a critical and indispensable component of the overall transaction. 48 The Amendment provides that the Company’s obligation to consummate the purchase of the Purchased Shares and the other transactions contemplated by the SPA is expressly conditioned upon the satisfaction (or waiver by the Company in its sole and absolute discretion) of the following condition precedent (the “Belrise Condition”): (a) the CM Company and FBM Composite Materials Ltd. shall have duly executed and delivered the Belrise JV Agreements substantially in the form and on the terms contemplated by the Belrise MOU; and (b) the Belrise JV Agreements shall be in full force and effect and shall not have been terminated, amended, or modified in any respect materially adverse to the CM Company or the Company without the prior written consent of the Company. The Seller acknowledges that the Belrise Condition is material, and failure to satisfy it entitles the Company to terminate the SPA without liability. The Amendment amends and restates Section 2.3 of the SPA to provide that the Closing shall take place remotely no later than June 30, 2026 (or such later date as mutually agreed), provided that in no event shall the Closing occur unless and until the Belrise Condition has been satisfied (or waived by the Company). The Amendment also permits termination by the Company if the Belrise Condition has not been satisfied (or waived by the Company) on or before March 31, 2026 (the “Belrise Long-Stop Date”), provided that the Company may not terminate if it is then in material breach of its obligations under the SPA. Except as expressly amended by the Amendment, the SPA remains in full force and effect. At June 30, 2026, the transaction had not been consummated. Acquisition of VisionWave IL, Ltd. On March 18, 2026, the Company acquired 100% of the issued and outstanding shares of VisionWave IL Ltd., an Israeli private shell limited company (“VisionWave Israel”), for nominal consideration. Further, on March 18, 2026, VisionWave Israel appointed Khdoura Sabbagh as Chief Executive Officer and its sole director and entered into an Employment Agreement with Mr. Sabbagh, pursuant to which Mr. Sabbagh was appointed Chief Executive Officer of VisionWave Israel. Under the Employment Agreement, Mr. Sabbagh will receive an annual base salary of $ 150,000 and is eligible to receive options to purchase 2,000,000 shares of the Company’s common stock, subject to vesting and the terms of the Company’s equity incentive plan. The agreement contains customary terms regarding duties, confidentiality, intellectual property, and termination. On March 18, 2026, VisionWave Israel also entered into a Consulting Agreement with CO-Finance Financial and Accounting Consulting Ltd., a company controlled by Oren Attiya, pursuant to which Mr. Attiya will provide financial and accounting services to VisionWave Israel. Under the Consulting Agreement, the consultant will receive monthly compensation of NIS 12,000 plus VAT. The agreement is structured as an independent contractor arrangement and includes customary terms and conditions. At June 30, 2026, the options were not granted under the employment agreement. Advance to supplier and customer deposit In January 2025, the Company entered into a product purchase agreement and paid $98,250 advance payment to the vendor. The product was delivered and tested by the vendor on March 13, 2025 was shipped to the client. The client, pursuant to the December 2024 product purchase agreement requested a 50% deposit totaling $108,006 in 2025. The client received the product and live fire tests were performed on September 15, 2025. 49 During the nine months ended June 30, 2026, the client and the Company mutually agreed to terminate the contract. The Company will repay the deposit to the client and the company is expected to receive a refund from the vendor. The deposit was refunded in July 2026. At June 30, 2026 and September 30, 2025, the advance to the vendor is recorded as advances to suppliers on the accompanying unaudited condensed consolidated balance sheets. At June 30, 2026 and September 30, 2025, the deposit of $108,006 is recorded as customer deposit on the accompanying unaudited condensed consolidated balance sheets. Ian Share Purchase Agreement On May 12, 2026, VisionWave Israel Ltd. (“VW Israel”), a wholly owned subsidiary of the Company, entered into a definitive Share Purchase and Shareholders Agreement (the “Agreement”) with Mr. Ian Paklida (the “Seller”), pursuant to which VW Israel agreed to acquire 60% of the issued and outstanding equity interests of VIP Lux Travel Ltd. and PKLST Tourism and Leisure Ltd., both Israeli corporations (collectively, the “Target Companies”). The Agreement is definitive; however, the transaction has not yet closed. Under the terms of the Agreement, the consideration for the acquisition of the Target Companies will be the issuance of shares of common stock of the Company, subject to the satisfaction of various conditions precedent and regulatory approvals. The Agreement contemplates an aggregate transaction value of up to approximately 15 million NIS, payable in the Company shares valued at approximately USD $3 million. The number of shares to be issued will be 513,752 shares of common stock of the Company representing $6.02 cost per share. The Agreement includes customary representations, warranties, covenants, indemnification provisions, confidentiality obligations, lock-up restrictions, and closing conditions. Closing remains subject to, among other things: ● completion of legal, financial, and operational due diligence; ● receipt of all required corporate and regulatory approvals; ● applicable tax rulings and/or approvals in Israel; ● execution and delivery of final ancillary closing documents; and ● satisfaction or waiver of other customary closing conditions. Until the closing occurs, there can be no assurance that the acquisition will be consummated on the terms currently contemplated, or at all. The Company intends to evaluate strategic opportunities relating to the Target Companies’ operations and potential integration into VisionWave’s broader international business activities. During the three months ended June 30, 2026, the Company advanced 500,000 million NIS (approximately $167,000) to the Target Companies. On July 31, 2026 VIP Lux Travel Ltd filed for bankruptcy. VisionWave Israel filed its objection to the procedure on August 6, 2026 and claimed fraud by VIP Lux Travel Ltd and its manager including using a forged document. Latin American Government Purchase Order On April 2, 2026, the Company announced the receipt of a signed purchase order from a Latin American governmental public safety organization. The order provides for the supply of drone-based operational systems and integrated payload technologies, including long-range observation quadrotor platforms, day/night EO/IR imaging payloads, and network-based connectivity modules. The systems are intended to support defense, public safety, and law enforcement missions. 50 The purchase order contemplates a multi-phase deployment structure, with initial deliveries expected to commence in 2026. The completion of the order and subsequent deployment phases are subject to standard commercial terms and customary conditions, including delivery milestones, quantity confirmations, performance, and acceptance. The Company has noted that there can be no assurance that the full scope of the purchase order will be completed or that all anticipated revenues from the order will be realized. At June 30, 2026, no delivery was made under this purchase order, waiting on end user letter from the client. Lucky Whale Production Limited On June 12, 2026, the Company entered into a term sheet (the “Term Sheet”) with Lucky Whale Production Limited, a Hong Kong-incorporated project sponsor (the “Sponsor”), setting out the principal proposed terms for the establishment of a joint venture to develop, hold and operate a proposed Tier IV data center project located in Beth Shemesh, Israel (the “Project”). Under the proposed structure described in the Term Sheet, the Company and the Sponsor would form a jointly held company (the “Joint Company”), which would be owned 68% by the Company and 32% by the Sponsor. The Joint Company would in turn hold 75% of a special purpose project company that would hold the land, building permit and related rights for the Project, with the remaining 25% retained by the current land owner. As a result of this ownership chain, the Company’s effective indirect interest in the Project would be approximately 51%. The precise structure, including the manner of transfer of rights and applicable tax matters, would be determined in the definitive agreements. As consideration for the acquisition of the Project rights, the Term Sheet contemplates that the Company would issue shares of its common stock with an aggregate value of approximately US$40 million to the land owner, on an all-share basis with no cash component. The number of shares would be determined by reference to a volume-weighted average price of the Company’s common stock over an agreed period near closing. Any such issuance would be subject to all required approvals, including, to the extent required under the rules of The Nasdaq Stock Market, approval by the Company’s stockholders, and the shares would be subject to lock-up and orderly resale arrangements and customary registration rights. The issuance of the consideration shares, together with the Company’s other recent and pending equity issuances, would be dilutive to existing stockholders. The Term Sheet further contemplates that the Company would commit, in the definitive agreements, to arrange the financing required to construct and establish the Project. The Project would require substantial additional capital, which the Company expects would be sourced through capital-markets activities and/or project-finance facilities. There can be no assurance that such financing would be available to the Company on acceptable terms, or at all. The Term Sheet also addresses other proposed terms customary for a transaction of this type, including management and governance arrangements (under which the Sponsor would manage the Project and appoint its chief executive officer, subject to reserved matters requiring the Company’s consent and a deadlock-resolution mechanism), a put option in favor of the land owner exercisable for a limited period following completion of construction, mutual exclusivity, and confidentiality. The completion of the proposed transaction would be subject to conditions precedent, including the completion of due diligence, the execution of definitive agreements, the receipt of required corporate, stockholder, SEC and Nasdaq approvals, the receipt of a fairness opinion if required, and the receipt of applicable regulatory, licensing and third-party consents. On July 24, 2026, the Company determined that continuing to pursue the proposed transaction would not be in the best interests of the Company or its shareholders. Accordingly, the Company has notified Lucky Whale Production Limited that it has elected not to proceed with the transaction contemplated by the previously announced term sheet and does not intend to negotiate or execute definitive agreements relating to the proposed project. 51 Meteor Aerospace Ltd On June 29, 2026, the Company entered into a binding Acquisition Agreement (the “Meteor Agreement”) with Meteor Aerospace Ltd. (“Meteor”), an Israeli aerospace and defense company pursuant to which the Company agreed to acquire fifty-one percent (51%) of the issued and outstanding share capital of Meteor, subject to the satisfaction of specified closing conditions. Meteor is engaged in the development, manufacturing and commercialization of aerospace and defense technologies, including unmanned aerial systems, unmanned ground systems, unmanned surface vessels, loitering munition systems, electronic warfare technologies, command, control, communications, cyber and battlefield management systems, and related intellectual property. The Agreement values Meteor at a pre-money equity valuation of $40 million. Subject to the satisfaction of all closing conditions, VisionWave will acquire 51% of the issued and outstanding equity interests of Meteor for aggregate consideration having a value of approximately $ 20.4 million, consisting of: ● approximately $ 6.0 million of unrestricted shares of VisionWave common stock; and ● approximately $ 14.4 million of restricted shares of VisionWave common stock, subject to a contractual lock-up period of six months following closing. The number of shares to be issued will be determined based upon the volume weighted average price (“VWAP”) of VisionWave common stock during the five trading days immediately preceding the closing date. The closing of the transaction is expressly conditioned upon, among other things: ● successful completion of a live flight validation of Meteor’s Impact-700 unmanned aerial system; ● VisionWave’s satisfactory completion of legal, financial, operational, technical, aerospace, cybersecurity, export control, intellectual property and commercial due diligence; ● satisfaction or waiver of other customary closing conditions. The Agreement provides that the flight validation is intended to verify the operational integrity, engineering functionality and basic flight capability of the Meteor Impact-700 platform and is not intended to demonstrate maximum performance specifications, commercial readiness or full operational capabilities. Upon closing, VisionWave will obtain a controlling interest in Meteor and will have the right to appoint three of the five directors serving on Meteor’s Board of Directors, designate the Chairman of the Board and approve major corporate actions. All directors are required to be Israeli citizens. The Agreement further provides for: ● a thirty-day exclusivity period during which Meteor and its shareholders may not solicit or negotiate alternative acquisition or financing transactions, subject to limited exceptions; ● customary confidentiality obligations; 52 ● representations and warranties regarding ownership, intellectual property, regulatory compliance and accuracy of information; ● binding arbitration in Israel for dispute resolution; and ● the continued involvement of Meteor founder Itzhak Nissan, former President and Chief Executive Officer of Israel Aerospace Industries Ltd., who is expected to enter into an executive employment and/or consulting agreement at closing and serve as Chief Technology Director of Meteor for a minimum period of three years following closing. The Agreement contemplates that the acquisition will include Meteor’s existing and future products, technologies, software, intellectual property, research and development activities, engineering developments, manufacturing capabilities and related business assets, including, among others: ● Impact-700 tactical unmanned aerial vehicle; ● Impact-1400 strategic MALE unmanned aerial vehicle; ● Rambow unmanned ground vehicle; ● Orca unmanned surface vessel; ● MERLOW loitering munition system; ● electronic warfare and SIGINT technologies; ● command, control, communications, cyber and battlefield management systems; and ● related aerospace and defense technologies. The Company expects to utilize the acquired technologies to expand its autonomous systems, defense technologies and integrated security solutions portfolio. At June 30, 2026, the transaction was not closed. In July 2026, the company announced that it will no longer pursue this transaction. Foresight Autonomous Holdings Ltd On June 2, 2026, the Company entered into a Securities Exchange Agreement (the “Foresight Agreement”) with Foresight Autonomous Holdings Ltd. (“Foresight”), pursuant to which the Company will acquire, in two stages, newly issued ordinary shares of Foresight representing 52% of Foresight’s issued and outstanding share capital as of the Stage 1 Closing (the “Stage 1 Closing Date”). With this proposed transaction, it is the goal of the Company to establish Foresight as the core operating platform for the Company’s RF-focused perception systems and related defense, homeland security and autonomous technology initiatives. Summary of Key Terms ● Stage 1 Closing (expected within 45–60 days of the Effective Date): Foresight will issue to the Company newly issued ordinary shares, no par value per share (“Ordinary Shares”), representing 46% of Foresight’s issued and outstanding share capital as of the Stage 1 Closing Date (post-issuance, including 1% finder’s fee allocation). In exchange, the Company will issue to Foresight shares of the Company’s common stock, $0.01 par value per share (the “Common Stock”) with an aggregate value of $ 15,480,769 (88.4615% of $17.5 million total), calculated based on the volume-weighted average price of the Company’s Common Stock over the five consecutive trading days immediately preceding the Stage 1 Closing Date (the “VWAV Average Price”). 53 ● Stage 2 Closing (conditional upon achievement of a defined milestone): Foresight will issue an additional 6% of its share capital, and the Company will issue additional shares of its Common Stock valued at approximately $ 2,019,231 (11.5385% of $17.5 million). The milestone is the commencement of a binding pilot project utilizing the integrated perception platform (the “Perception Platform”) in the commercial, defense, or security sector (the “Milestone”). ● Total Consideration : $ 17,500,000 in shares of the Company’s Common Stock issuable to Foresight, plus up to $3,000,000 in management equity grants under the Company’s equity incentive plan, subject to vesting conditions including the Milestone achievement, performance milestones, transfer restrictions, and clawback provisions. ● Board Representation : The Company will have the right to designate two directors to the Foresight Board of Directors upon Stage 1 Closing and one additional director upon Stage 2 Closing. The Foresight Agreement contains a value protection mechanism designed to preserve 65% of the economic value of the shares of Common Stock issued to Foresight. For a two-year period following each Closing (the “Protection Period”), if Foresight sells all of the shares of Common Stock (and any previously issued make-whole shares) and realizes aggregate gross proceeds below the applicable protected amount of $ 10,062,500 for the Stage 1 Closing and $1,312,500 for the Stage 2 Closing (collectively, the “Protected Amount”), the Company is obligated to issue additional shares of its Common Stock (or, if mutually agreed and compliant with applicable law and Nasdaq rules, pre-funded warrants) as make-whole shares (the “Make Whole Shares”). The mechanism provides that Foresight will deliver a notice with supporting documentation after each complete sale; the Company has audit rights; and additional shares are issued based on the average closing price of the Company’s Common Stock on Nasdaq for the 20 consecutive trading days immediately preceding the date of the notice (the “Make-Whole Price”) until the Protected Amount is achieved or the Protection Period expires. The Company covenants to use best efforts to maintain sufficient authorized shares, obtain all necessary stockholder and Nasdaq approvals, and file supplemental listings promptly. Failure to issue Make-Whole Shares on a timely basis triggers liquidated damages of 1.5% of the shortfall amount per 30-day period (in addition to specific performance and cost-recovery remedies). The Foresight Agreement includes customary registration rights, a 24-month management preservation covenant for Foresight’s executive team, a covenant requiring Foresight to allocate no less than 50% of proceeds from sales of the Company’s Common Stock to the Perception Platform, a 36-month leak-out agreement limiting Foresight’s daily sales of the Company’s Common Stock to 5% of actual daily trading volume, and audit rights allowing the Company to inspect Foresight’s trading records to verify compliance. The Foresight Agreement also contains mutual representations, warranties, covenants, indemnification, and termination provisions customary for a transaction of this nature. At June 30, 2026, the transaction was not closed. Note 21 — Stockholder’s Equity (Deficit) Preferred Stock — The Company is authorized to issue 10,000,000 shares of preferred stock, par value $ 0.01 per share, with such designations, voting and other rights and preferences as may be determined from time to time by the Company’s board of directors. As of June 30, 2026 and September 30, 2025, there were no shares of preferred stock issued or outstanding. 54 Common Stock — The Company is authorized to issue 150,000,000 shares of common stock with par value of $ 0.01 each. As of June 30, 2026 and September 30, 2025, there were 27,332,069 and 14,521,094 shares of Common Stock issued and outstanding, respectively. Warrants As part of the Bannix IPO, Bannix issued 6,900,000 warrants to third-party investors where each whole warrant entitles the holder to purchase one share of the Company’s Class A common stock at an exercise price of $ 11.50 per share (the “Public Warrants”). Simultaneously with the closing of the IPO, Bannix completed the private sale of 406,000 Private Placement warrants where each warrant allows the holder to purchase one share of the Company’s Class A common stock at $ 11.50 per share. Bannix accounted for the 6,900,000 warrants issued in connection with the IPO and private placement in accordance with the guidance contained in ASC Topic 815 “Derivatives and Hedging” whereby under that provision, the Private Warrants did not meet the criteria for equity treatment and were recorded as a liability. Accordingly, Bannix classified the Private Warrants as a liability at fair value and adjusts them to fair value at each reporting period. The Public Warrants met the classification for equity treatment. The warrants became exercisable on the later of 12 months from the closing of this offering or upon completion of its initial Business Combination and will expire five years after the completion of Reverse Acquisition, at 5:00 p.m., Eastern Time, or earlier upon redemption or liquidation. Once the warrants become exercisable, the Company may redeem the warrants: ● in whole and not in part; ● at a price of $ 0.01 per warrant; ● upon not less than 30 days’ prior written notice of redemption, to each warrant holder; and ● if, and only if, the reported last sale price of the Public Shares equals or exceeds $ 18.00 per share (as adjusted for share subdivisions, share consolidations, share capitalizations, rights issuances, reorganizations, recapitalizations and the like) for any 20 trading days within a 30-trading day period ending on the third trading day prior to the date the Company sends the notice of redemption to the warrant holders. ● if, and only if, there is a current registration statement in effect with respect to the issuance of the shares underlying such warrants at the time of redemption and for the entire 30-day trading period referred to above and continuing each day until the date of redemption. At the time of the Reverse Acquisition, The Private Placement Warrants became identical to the Public Warrants underlying the Units sold in the Bannix IPO. The Private Placement Warrants were classified as Equity upon close of the Reverse Acquisition. During the three and nine months ended June 30, 2026, 0 and 542,256 warrants were exercised for $0 and $6,235,945, respectively. At June 30, 2026 and September 30, 2025, there were 8,396,069 and 7,304,992 warrants outstanding inclusive of 300,000 pre-funded warrants (See Note 10). Conversion of public and private rights On July 14, 2025, at the close of the Reverse Acquisition, 6,900,000 public rights and 406,000 private rights under Bannix were converted for Common shares on a ten-to-one basis. 55 The following is an analysis of the warrants grant activity: Schedule of stock option grant activity Number Weighted Average Exercise Price Weighted Average Remaining Life Outstanding at September 30, 2025 7,304,992 $ 11.50 4.79 Granted 300,000 0.01 5.23 Expired — — — Exercised ( 495,509 ) ( 11.50 ) ( 4.79 ) Outstanding at December 31, 2025 7,109,483 11.02 4.56 Granted 1,333,333 9.00 5.00 Expired — — — Forfeited ( 46,747 ) ( 11.50 ) ( 4.56 ) Outstanding at March 31, 2026 8,396,069 10.69 4.41 Granted — — Expired — — — Forfeited — — — Outstanding at June 30, 2026 8,396,069 $ 10.69 4.16 At June 30, 2026 and September 30, 2025, the intrinsic value of the warrants was $ 1,287,000 and $ 0 , respectively. The assumptions used in Monte Carlo Simulation model related to the February 26, 2026 1,333,333 warrants issuance are set forth in the table immediately below: February 26, 2026 Stock Price $ 7.96 Exercise Price $ 9.00 Volatility 73.0 % Risk free rate of return 3.54 % Term to maturity (years) 5.00 Term to financing (years) 2.50 Stock based compensation Omnibus Equity Incentive Plan On August 5, 2025, the Board of Directors (the “Board”) of Bannix adopted Bannix’s 2025 Omnibus Equity Incentive Plan (the “Plan”), which authorizes the issuance of up to 7,000,000 shares of Bannix’s common stock, par value $0.01 per share (the “Common Stock”). The Plan is subject to approval by Bannix’s shareholders within twelve (12) months of the Board’s adoption date. If shareholder approval is obtained, the Plan will become effective as of August 5, 2025. The Plan provides for the grant of various equity-based awards, including non-qualified stock options, incentive stock options, restricted stock awards, restricted stock unit awards, stock appreciation rights, performance stock awards, performance unit awards, unrestricted stock awards, distribution equivalent rights, or any combination thereof. The Plan is intended to assist Bannix in attracting, retaining, and incentivizing key management employees, directors, and consultants, and to align their interests with those of Bannix’s shareholders. Stock Options On August 6, 2025 and September 2, 2025, the Company entered into several employment agreements, pursuant to which the Company granted 6,350,000 options to employees with vesting periods of 4 years and exercise price of $ 7.2 and $ 9.09 , respectively. On January 2, 2026 and March 12, 2026, the Company granted an additional 500,000 options each to two employees with vesting period of 4 years and 4 years and exercise price of $ 9.26 and $ 7.47 , respectively. For the three and nine months ended June 30, 2026 and 2025, total stock-based compensation related to the employments agreements was $ 1,122,429 and $ 0 , respectively, and $ 4,251,373 and $ 0 , respectively, and included in general and administrative expense on the accompanying unaudited condensed consolidated statements of operations. During the three and nine months ended June 30, 2026, 0 and 3,600,000 unvested options were forfeited which resulted in stock-based compensation reversal of $0 and $1,733,920. 56 On July 16, 2025, the Company entered into a consultant non statutory stock option agreement with a vendor, pursuant to which the vendor was granted 500,000 stock options that vested immediately at an exercise price of $ 3.27 and total compensation expense of $ 1,452,240 was recognized during the year ended September 30, 2025. The assumptions used in the Black-Scholes model are set forth in the table immediately below: Schedule of Black-Scholes model January 2, 2026 - March 12, 2026 August 6, 2025 - September 2, 2025 Exercise price $ 9.26 - 7.47 $ 3.27 - 9.09 Risk-free interest rate 3.74 - 3.84 % 3.58 - 3.91 % Volatility 73.0 - 86.3 % 101.4 - 114.4 % Expected life (years) 4 - 4.5 3.19 - 5.00 Dividend yield 0 % 0 % The following is an analysis of the stock option grant activity: Schedule of stock option grant activity Number Weighted Average Exercise Price Weighted Average Remaining Life Outstanding at September 30, 2025 — $ — — Granted 6,850,000 7.42 5.23 Expired — — — Exercised — — — Outstanding at December 31, 2025 6,850,000 7.42 5.23 Granted 1,000,000 8.37 5.00 Expired — — — Forfeited ( 3,600,000 ) ( 8.04 ) ( 4.38 ) Outstanding at March 31, 2026 4,250,000 7.75 5.85 Granted — — — Expired — — — Forfeited — — — Outstanding at June 30, 2026 4,250,000 $ 7.75 5.60 At June 30, 2026 and September 30, 2025, the intrinsic value of outstanding options is $ 515,000 and $ 14,429,000 , respectively. At June 30, 2026 and September 30, 2025, 500,000 options were vested and exercisable, respectively. The Company will recognize the remaining total stock-based compensation of $15,233,519 in future periods as follows: Schedule of recognize the remaining total stock-based compensation Year Amount 2026 $ 1,173,753 2027 4,695,012 2028 4,695,012 2029 4,216,626 2030 453,116 Total $ 15,233,519 57 Restricted stock units (“RSUs”) On August 1, 2025, the Company entered into agreements with three independent directors, pursuant to which each independent directors will be granted $ 60,000 of restricted stock units annually. On January 30, 2026, the Company issued an additional 14,961 RSUs to independent directors. The restricted stock units will vest after 1 year of service. For the three and nine months ended June 30, 2026 and 2025, the Company recorded stock-based compensation expense related to the RSUs of $ 110,127 and $ 0 , respectively, and $ 298,348 and $ 0 in the nine months ended June 30, 2026 and 2025, respectively. At June 30, 2026 and September 30, 2025, unearned compensation is $ 36,713 and $ 150,000 , respectively and will be recognized in the future. The following table summarizes RSU issuance and related stock-based expense, Schedule of RSU issuance and related stock-based expense Quarter ended RSU issued Value of RSUs issued Stock based compensation September 30, 2025 15,735 $ 180,000 $ 30,000 December 31, 2025 — — 45,000 March 31, 2026 14,961 295,000 143,221 June 30, 2026 — — — 30,696 $ 475,000 $ 218,221 Issuance of shares to former directors On August 9, 2025, the Company entered into compensation agreements with three former directors, pursuant to which each director will receive $120,000 payable in cash or shares. Two directors elected to receive a total of $125,000 in shares and on September 10, 2025, total shares of 10,927 were issued and stock-based compensation of $125,000 related the compensation agreements with two former directors was included in general and administrative expense on the consolidated statements of operations during the year ended September 30, 2025. There was no issuance of shares for the three and nine months ended June 30, 2026 and 2025. Other share issuances As outlined in Note 14, the Company issued 200,000 shares of Common stock at a fair value of $ 470,000 pursuant to the SEPA during the year ended September 30, 2025. There were no issuance of shares under this agreement for the three and nine months ended June 30, 2026. At the close of the Reverse Acquisition, Bannix owed a vendor 22,500 shares pursuant to an agreement for the provision of services. On July 25, 2025, the Company issued the Common Shares to the vendor to satisfy the outstanding obligation. As stated in Note 10, on December 15, 2025, the Company issued 1,500,000 Common Shares pursuant to the asset acquisition. On January 28, 2026, the Company issued 8,532 shares to the vendor in satisfaction of the terms under the $75,000 RSUs issuable under the consulting arrangement. On May 7, 2026, pursuant to a May 6, 2026 consulting agreement with a vendor, the Company issued 55,000 shares with a fair value on grant date of $331,150 for services to be rendered from May 2026 to October 2026. For the three and nine months ended June 30, 2026 and 2025, the Company recorded stock-based compensation expense related to the agreement of $112,384 and $0, respectively, and $112,384 and $0 in the nine months ended June 30, 2026 and 2025, respectively. At June 30, 2026 and September 30, 2025, unearned compensation is $224,766 and $0, respectively and will be recognized in the future. 58 Stock-based compensation liability In November 2025, the Company entered into an advisory services agreement with an independent member of the board of directors. As compensation for the services of the board member, a compensation of $ 30,000 monthly payable in cash and $5,000 monthly payable in shares. At June 30, 2026 and September 30, 2025, the $ 40,000 and $ 0 payable in shares was not issued to the director and is included in stock-based compensation liability on the accompanying unaudited condensed consolidated balance sheets. On October 9, 2025, the Company entered into a consulting arrangement with a vendor, pursuant to which $ 75,000 of RSUs will be issued within 5 days of the execution date and the contract then 6 months later. The Company issued 8,352 shares to the vendor during the three months ended March 31, 2026. There were no shares payable and unissued at June 30, 2026 and September 30, 2025. As stated in Note 20, pursuant to the PVML Agreement, the payment contains an equity component valued at $ 350,000 , to be settled through the issuance of 35,000 shares of the Company’s common stock valued at $ 10.00 per share. At June 30, 2026, the Company had not issued these shares and the $ 350,000 payable in shares is included in stock-based compensation liability on the accompanying unaudited condensed consolidated balance sheets. There were no shares payable and unissued at September 30, 2025. At June 30,2026, $ 100,000 shares payable to SaverOne management after the close of Tranche 2 and 3 is included in stock-based compensation liability on the accompanying unaudited condensed consolidated balance sheets. At June 30, 2026, the Company determined that 83,825 shares are due to SaverOne management under the value protect mechanism of the SaverOne Agreement. The fair value of $ 360,448 of the shares is included in stock-based compensation liability on the accompanying unaudited condensed consolidated balance sheets. There were no shares payable and unissued at September 30, 2025. Note 22 — Gain on Sale of Marketable Securities On June 4, 2024, VW Tech invested in 10 million shares Avant Technologies, Inc. (“AVAI”). On February 28, 2025 and March 5, 2025, VW Tech sold 264,112 of AVAI shares for net proceeds of $ 114,111 for a total gain of $104,656 on sale of marketable securities. On April 28, 2025, the Company sold its remaining holding of 9,735,888 shares of AVAI, which were recorded at par value of $ 0.001 per share to a third party in exchange for 280,534 shares of Tofla Megaline Inc. (“TFML”). The Company determined that the quoted price of the TFLM shares was not a reliable indicator of fair value at the measurement date as the historical price data indicates that TFLM shares consistently reflected very limited daily trading volume over an extended period. Therefore, the Company measured the TFLM shares received at par value of $0.001 per share, which was deemed the most reliable and supportable estimate of fair value at the transaction date under ASC 820. As a result of this non-cash exchange, the Company recognized a loss on sale of the 9,735,888 shares of AVAI of approximately $ 9,455 during the year ended September 30, 2025. The total gain on sale of AVAI shares of $ 104,656 is recorded in the recorded as gain on sale of marketable securities on the unaudited condensed consolidated statements of operations during the year ended September 30, 2025. At June 30, 2026 and September 30, 2025, the total par value of TFML shares of $281 is recorded as investment in marketable securities available for share on the unaudited condensed consolidated balance sheets. Note 23 — Income Tax The Company files income tax returns in the U.S. federal jurisdiction and in various state and local jurisdictions and is subject to examination by the various taxing authorities, since inception. At the close of the Reverse Acquisition, the Company assumed $ 959,639 of income tax expenses inclusive of interest and penalties. For the three and nine months ended June 30, 2026, the Company incurred an additional $ 24,627 and $ 73,855 , respectively, in interest and penalties for its failure to file and pay its taxes. At June 30, 2026 and September 30, 2025, the total liability of $ 1,068,559 and $ 994,704 , respectively, is included on the unaudited condensed consolidated balance sheets. Note 24 — Segment Information ASC Topic 280 establishes standards for companies to report financial statement information about operating segments, products, services, geographic areas, and major customers. Operating segments are defined as components of an enterprise for which separate financial information is available that is regularly evaluated by the Company’s chief operating decision maker (“CODM”), or group, in deciding how to allocate resources and assess performance. 59 The CODM has been identified as the Chief Executive Officer, who reviews the operating results for the Company as a whole to make decisions about allocating resources and assessing financial performance. Accordingly, management has determined that the Company only has one operating segment. The CODM assesses performance for the single segment and decides how to allocate resources based on operating loss that also is reported on the consolidated statements of operations. The measure of segment assets is reported on the unaudited condensed consolidated balance sheets as total assets. When evaluating the Company’s performance and making key decisions regarding resource allocation the CODM reviews several key metrics, which include the following: Schedule of Segment Information Three Months Ended June 30, Nine Months Ended June 30, 2026 2025 2026 2025 Revenue $ 286,339 $ — $ 286,339 $ — Cost of goods sold ( 171,759 ) — ( 171,759 ) — Gross Profits 114,580 — 114,580 — Operating Expenses: General and administrative 5,989,699 132,933 13,592,556 408,164 Research and development 747,803 8,548 1,334,412 79,993 Sales and marketing 3,167,400 4,585 6,780,011 4,585 Depreciation and amortization 8,354,343 — 14,175,488 — Operating loss $ ( 18,144,665 ) $ ( 146,066 ) $ ( 35,767,887 ) $ ( 492,742 ) The key metrics included in segment profit or loss reviewed by the CODM are operating costs. The CODM reviews operating costs to manage and forecast cash to ensure enough capital is available to meet operational needs and find research and development efforts. The CODM also reviews operating costs to manage, maintain and enforce all contractual agreements to ensure costs are aligned with all agreements and budget. Note 25 — Subsequent Events The Company evaluated subsequent events and transactions that occurred after the balance sheet date up to the date of the filing of this report. The Company did not identify any subsequent events, other than disclosed in the Notes and discussed below, that would have required adjustment or disclosure in these unaudited condensed consolidated financial statements. Distributor Agreement On July 1, 2026, the Company entered into a Distributor Agreement (the “Distributor Agreement”) with Stratonex Defence Technologies Ltd., a private company organized under the laws of England and Wales (“Stratonex”). Pursuant to the Agreement, the Company appointed Stratonex as its strategic commercialization, integration and sovereign delivery partner for the United Kingdom, Europe and other mutually agreed markets. The Agreement establishes a framework pursuant to which Stratonex will identify, develop and manage commercial opportunities for the Company’s technologies, including engagement with government, defense and institutional customers, while supporting systems integration, sovereign deployment and commercialization of the Company’s products within the applicable territories. The Agreement includes an opportunity registration process pursuant to which Stratonex may register prospective commercial opportunities with the Company. Upon written acceptance by the Company, registered opportunities receive exclusive protection during the applicable registration period, subject to the terms and conditions of the Agreement. The Agreement does not grant Stratonex exclusive distribution rights throughout the applicable territories and expressly reserves the Company’s right to appoint additional distributors and market its products through other channels, except with respect to accepted registered opportunities. 60 The initial term of the Agreement is two (2) years and automatically renews for successive one-year periods unless earlier terminated in accordance with its terms. Either party may terminate the Agreement upon sixty (60) days’ prior written notice or earlier upon specified events of default. The Agreement also contains customary provisions relating to confidentiality, intellectual property ownership, export compliance, warranties, indemnification and limitations of liability. The Agreement does not obligate Stratonex to purchase any minimum quantity of products, does not establish minimum revenue commitments and does not obligate the Company to accept any purchase order submitted by Stratonex. Product pricing will be established pursuant to quotations issued by the Company from time to time. Ben Everitt, the founder and a 50% shareholder of Stratonex, also serves as a member of the Company’s Advisory Board pursuant to an Advisory Board Agreement entered into in October 2025. Mr. Everitt serves solely as an independent advisor to the Company’s Board of Directors and is not a director, executive officer or employee of the Company. Mr. Everitt is a former Member of the Parliament of the United Kingdom and has more than twenty years of experience in government, national security, defense policy and strategic advisory roles, including service on the United Kingdom Parliament’s National Security Bill Committee and participation in the Armed Forces Parliamentary Scheme. The Company’s Board of Directors reviewed and approved the Agreement after considering the existing advisory relationship between the Company and Mr. Everitt. Mr. Everitt is not a member of the Company’s Board of Directors and did not participate in the Company’s review, negotiation or approval of the Agreement. Securities Purchase Agreement and Convertible Debentures On July 20, 2026, the Company entered into a Securities Purchase Agreement (the “Securities Purchase Agreement”) with YA II PN, Ltd. (the “Investor”), an investment fund managed by Yorkville Advisors Global, LP, pursuant to which the Company agreed to issue and sell to the Investor convertible debentures in the aggregate principal amount of up to $15,000,000 (the “Convertible Debentures”), at a purchase price equal to 85% of the principal amount thereof, in two tranches. The first tranche, in the principal amount of $10,000,000, closed on July 20, 2026 (the “First Closing”). The second tranche, in the principal amount of $5,000,000, will close upon the effectiveness of the initial registration statement described below under “Registration Rights Agreement.” The Company also paid the Investor a non-refundable due diligence fee of $50,000, which was netted from the proceeds of the First Closing. The Company intends to use the net proceeds of the offering for working capital and general corporate purposes. The Convertible Debentures bear interest at a rate of 5.00% per annum (which increases to 18.00% per annum during the continuance of an event of default), calculated on the basis of a 365-day year, and mature on July 20, 2027. Beginning on December 30, 2026, and on the same day of each calendar month thereafter, the Company is required to repay the Convertible Debentures in monthly installments of $1,750,000 of principal, plus a payment premium equal to 2% of the principal amount being paid and accrued and unpaid interest. Installment amounts are payable, at the Company’s option, in cash or by offset against the proceeds of one or more advances under the Company’s Standby Equity Purchase Agreement with the Investor, dated July 25, 2025, as amended (the “SEPA”). While the Convertible Debentures are outstanding, any advances under the SEPA must use the three-day pricing option provided for therein, and payments in excess of the installment amount then due are not subject to the payment premium. The Company may redeem amounts outstanding under the Convertible Debentures prior to maturity at any time upon advance notice by paying the principal amount being redeemed, a redemption premium equal to 5% of such principal amount, and accrued and unpaid interest. The Convertible Debentures are convertible at the option of the Investor into shares of the Company’s common stock, par value $0.01 per share (the “Common Stock”), at a fixed conversion price of $5.00 per share. Upon the occurrence and during the continuance of an event of default, the Investor may convert at the lower of such fixed price or a variable price equal to 90% of the lowest daily volume-weighted average price of the Common Stock during the ten trading days immediately preceding the conversion date, subject to a floor price of $0.702 per share. The Investor may not convert the Convertible Debentures (or exercise the Warrants described below) to the extent that, after giving effect thereto, the Investor and its affiliates would beneficially own more than 4.99% of the outstanding Common Stock. The Convertible Debentures also may not be converted, and the Warrants may not be exercised, to the extent the shares issuable would exceed the aggregate number of shares of Common Stock that the Company may issue under the applicable rules of The Nasdaq Stock Market LLC (the “Exchange Cap”), unless the Company’s stockholders approve issuances in excess of the Exchange Cap. 61 The Securities Purchase Agreement contains customary representations, warranties and covenants of the Company, including, among other things, covenants that, while the Convertible Debentures are outstanding and subject to specified exceptions, restrict the Company’s ability to enter into variable rate transactions (other than pursuant to the SEPA), incur additional indebtedness or grant liens, effect discounted offerings, and make payments on certain related-party indebtedness. Closing of the transaction was conditioned upon, among other things, the delivery of consent and deferral agreements by the holders of certain outstanding promissory notes issued by the Company. Warrants In connection with the Securities Purchase Agreement, the Company issued to the Investor warrants (the “Warrants”) to purchase up to 1,800,000 shares of Common Stock at an exercise price of $5.00 per share. The Warrants are exercisable upon issuance and expire 36 months after the date of issuance. The Warrants are exercisable for cash, provided that if, after the six-month anniversary of the date of the Securities Purchase Agreement, a registration statement covering the resale of the shares underlying the Warrants is not available, the Warrants may be exercised on a cashless basis. Registration Rights Agreement In connection with the Securities Purchase Agreement, the Company entered into a Registration Rights Agreement with the Investor (the “Registration Rights Agreement”), pursuant to which the Company agreed to file with the Securities and Exchange Commission (the “SEC”) an initial registration statement covering the resale of the shares of Common Stock issuable upon conversion of the Convertible Debentures and exercise of the Warrants, together with certain additional shares issuable under the SEPA, within 60 days, and to use commercially reasonable efforts to cause such registration statement to be declared effective within the deadlines specified therein and to maintain its effectiveness until the registrable securities have been sold or may be sold without restriction under Rule 144. Global Guaranty Agreement In connection with the Securities Purchase Agreement, certain subsidiaries of the Company receiving proceeds of the Convertible Debentures, consisting of VisionWave Technologies, Inc., VisionWave Holdings UK Ltd and Solar Drone Ltd., entered into a Global Guaranty Agreement in favor of the Investor (the “Guaranty”), pursuant to which such subsidiaries, jointly and severally, guaranteed the payment obligations of the Company under the Convertible Debentures and the related transaction documents. Consent and Deferral Letter Agreements On July 20, 2026, as a condition to the First Closing, the Company entered into side letter agreements (the “Consent and Deferral Letters”) with each of Dream America Marketing Services, Ltda. (“Dream America”), the holder of a promissory note issued by the Company on April 10, 2026 in the original principal amount of $6,000,000, and Adrian Holdings S.R.L. (“Adrian”), the holder of a promissory note issued by the Company on January 5, 2026 in the original principal amount of $10,000,000. Pursuant to the Consent and Deferral Letters, each of Dream America and Adrian has agreed, until the obligations under the Convertible Debentures have been indefeasibly paid in full, (i) not to demand, request, accept, receive or apply any cash payments from the Company in respect of its promissory note (including payments of principal, interest, fees, default interest, premiums, costs or expenses), with any such payments received to be returned to the Company or held in suspense unless otherwise consented to in writing by the Investor, and (ii) to forbear from exercising its rights and remedies upon the occurrence of any default under its promissory note. Each of Dream America and Adrian has also consented to the Company’s incurrence of the indebtedness under the Convertible Debentures and to the payments required to be made thereunder, whether made in cash or through the issuance and sale of shares of Common Stock and the use of the proceeds of such issuances and sales to repay the Convertible Debentures. Except as set forth in the Consent and Deferral Letters, the terms of such promissory notes remain in full force and effect. 62 Extension of Maturity of SEPA Promissory Notes On July 20, 2026, the Investor, as holder of the promissory notes issued by the Company in connection with prepaid advances under the SEPA on July 25, 2025 (in the original principal amount of $3,000,000) and September 11, 2025 (in the original principal amount of $2,000,000) (collectively, the “SEPA Notes”), delivered to the Company written notice of its election, pursuant to the terms of the SEPA Notes, to extend the maturity date of the SEPA Notes to January 25, 2027 (the “Maturity Extension”), which extension the Company acknowledged and agreed. Termination of Term Sheet with Lucky On July 24, 2026, the Company determined that continuing to pursue the proposed transaction with Lucky Whale would not be in the best interests of the Company or its shareholders. Accordingly, the Company has notified Lucky Whale Production Limited that it has elected not to proceed with the transaction contemplated by the previously announced term sheet and does not intend to negotiate or execute definitive agreements relating to the proposed project. C.M Composite Side Letter On July 28, 2026, the Company entered into a side letter (the “Side Letter”) with the Seller and C.M. Composite, pursuant to which the parties agreed to extend (i) the Belrise Long-Stop Date from March 31, 2026 to December 31, 2026, effective retroactively as of March 31, 2026, and (ii) the Outside Closing Date from June 30, 2026 to December 31, 2026, effective retroactively as of June 30, 2026. Accordingly, the Company is entitled to terminate the Share Purchase Agreement, without liability, if the Belrise Condition has not been satisfied (or waived by the Company in its sole and absolute discretion) on or before December 31, 2026, provided that the Company may not so terminate if it is then in material breach of its obligations under the Share Purchase Agreement, and the Closing shall take place no later than December 31, 2026 (or such later date as may be mutually agreed in writing by the parties); provided, that in no event shall the Closing occur unless and until the Belrise Condition has been satisfied (or waived by the Company in its sole and absolute discretion). Under the Side Letter, each party acknowledged that no party has exercised, or shall be deemed to have exercised, any right of termination under the Share Purchase Agreement arising from the failure of the Belrise Condition to be satisfied on or before March 31, 2026 or the failure of the Closing to occur on or before June 30, 2026, and each party irrevocably waived any right to terminate the Share Purchase Agreement, and any claim, right or remedy, in each case solely to the extent arising from the passage of the original Belrise Long-Stop Date or the original Outside Closing Date prior to the date of the Side Letter. The Side Letter does not waive the Belrise Condition itself, which remains a condition precedent to the Company’s obligation to consummate the Closing. Except as expressly set forth in the Side Letter, the Share Purchase Agreement and each other agreement, instrument and document executed in connection therewith remain unmodified and in full force and effect. D-Fence Term Sheet On August 2, 2026, VisionWave Holdings, Inc. (the “Company” or “VisionWave”) entered into a term sheet (the “Term Sheet”) with D-Fence Electronic Fencing Systems Ltd. (“D-Fence”), an Israeli developer of artificial intelligence-powered perimeter security and electronic fencing systems, providing the framework for VisionWave’s proposed acquisition of a controlling equity interest in D-Fence. The Term Sheet is binding upon the parties only with respect to its provisions relating to exclusivity, confidentiality, expenses, governing law and termination; the remaining provisions of the Term Sheet, including those describing the structure and terms of the proposed transaction, are non-binding and are subject in all respects to the negotiation and execution of a definitive share purchase agreement (the “Definitive Agreement”). 63 Pursuant to the Term Sheet, VisionWave intends to acquire at least fifty-one percent (51%) of the outstanding equity interests of D-Fence in exchange for shares of VisionWave common stock. VisionWave will also receive an option, exercisable for a period of two years following the initial closing, to acquire the remaining forty-nine percent (49%) of D-Fence. The Term Sheet contemplates an implied valuation of approximately $5 million for the initial acquisition, with the remaining equity subject to an implied valuation of approximately $20 million. The Term Sheet provides that no cash consideration will be paid to the D-Fence shareholders. VisionWave may, however, provide up to $1,000,000 per year to D-Fence in the form of a loan to fund contract execution and approved operating expenses, which D-Fence will be obligated to repay from available funds in accordance with the terms of such loan. Any shares of VisionWave common stock issued in connection with the proposed transaction are expected to be issued in a private placement exempt from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”), in reliance on Section 4(a)(2) thereof and/or Regulation D thereunder, and the closing of the proposed transaction will be subject to approval by the Company’s stockholders in accordance with applicable Nasdaq listing rules. The Term Sheet also provides for a price protection mechanism pursuant to which, if within six months following the closing the price or implied valuation of the Company’s common stock is lower than the implied per-share valuation at the closing, the exchange ratio will be retroactively adjusted and the Company will issue, for no additional consideration, additional shares of common stock to the former D-Fence shareholders in an amount sufficient to preserve the total transaction value agreed upon at the closing. Any such additional issuance would result in dilution to the Company’s existing stockholders. In addition, the Term Sheet contemplates that the Definitive Agreement will provide the D-Fence shareholders with customary registration rights, including the obligation of the Company to file a resale registration statement on Form S-1 (or Form S-3, if eligible) within 90 calendar days following the closing and to use its best efforts to cause such registration statement to be declared effective within 180 calendar days following the closing, together with one demand registration right, customary piggy-back registration rights, a lock-up of 180 days from effectiveness and customary indemnification provisions. The Term Sheet further contemplates that Uriel Bin and Max Nudelman will remain in their positions with D-Fence for a period of four years following the closing. The Term Sheet grants the Company exclusivity through September 30, 2026 and contemplates that the Definitive Agreement will be executed no later than September 30, 2026, with the closing to occur no later than October 15, 2026, subject to extension by mutual written consent to a date no later than October 31, 2026. The Term Sheet may be terminated by either party upon written notice if the Definitive Agreement is not executed by September 30, 2026 or if any condition precedent becomes incapable of satisfaction. Hen Basketball Haifa Club Sponsorship Agreement On August 5, 2026, the Company entered into a Sponsorship Agreement (the “Sponsorship Agreement”) with Hen Basketball Haifa Club, a registered association organized under the laws of the State of Israel (the “Club”), a professional basketball club competing in the Israeli basketball leagues. Pursuant to the Sponsorship Agreement, the Company will serve as the main sponsor of the Club for the 2026-2027 basketball season, and will receive sponsorship and promotional rights that include, among other things, display of the Company’s logo on the Club’s official playing jerseys, use of the Company’s logo on the Club’s official marketing materials, website and social media channels, and acknowledgment of the Company as the Club’s main sponsor in official publications and sponsor listings. The Sponsorship Agreement remains in effect until the conclusion of the 2026-2027 basketball season, unless earlier terminated in accordance with its terms. As consideration for the sponsorship rights granted to the Company, the Company agreed to issue to the Club 2,000,000 newly issued shares of the Company’s common stock, par value $0.01 per share (the “Shares”). The Shares will constitute “restricted securities” within the meaning of Rule 144 under the Securities Act of 1933, as amended (the “Securities Act”), will bear a customary restrictive legend, and will be subject to a six-month holding period under Rule 144. Following expiration of the applicable holding period, the Club may not sell, on any single trading day, a number of Shares exceeding ten percent (10%) of the average daily trading volume of the Company’s common stock for the ten (10) trading days preceding the date of such sale. The Club has no registration rights with respect to the Shares, and has agreed not to engage in any short sales of, or hedging or derivative transactions with respect to, the Company’s common stock while it holds any Shares. The Sponsorship Agreement contains customary representations, warranties and covenants of the parties. Either party may terminate the Sponsorship Agreement upon an uncured material breach by the other party, and the Company may terminate the Sponsorship Agreement with immediate effect in the event of conduct by the Club that brings, or is reasonably likely to bring, the Company into public disrepute. If the Sponsorship Agreement is terminated by the Company prior to the conclusion of the 2026-2027 season as a result of the Club’s material breach or such conduct, the Club is required to return to the Company a pro-rata portion of the Shares corresponding to the unexpired portion of the term (or to pay the Company the value thereof). 64 Termination of Agreement with Meteor On August 13, 2026, the Company delivered to Meteor a written notice terminating the Agreement, entered in on June 29, 2026, effective immediately (the “Termination Notice”). The Company terminated the Agreement following its due diligence review Conversion of Convertible Promissory Note On August 17, 2026, YA II PN, Ltd. (“YA”) delivered a conversion notice to the Company pursuant to Convertible Promissory Note No. VWAV-2, dated September 11, 2025. Pursuant to the conversion notice, YA elected to convert $1,250,000 of outstanding principal and $112,109.59 of accrued interest, representing an aggregate conversion amount of $1,362,109.59. In accordance with the terms of the Note, the applicable conversion price was $1.00 per share, resulting in the issuance of 1,362,109 shares of the Company’s common stock to YA. Following the conversion, $750,000 of principal remained outstanding under the Note. Additional Share Issuances Subsequent to June 30, 2026 and to the date of this Report on Form 10Q, the Company issued an additional 1,510,000 shares under the SEPA.