beem20260331

beem20260331_10q.htm

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Period ended March 31, 2026

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _________________ to ________________

Commission File Number 001-38868

Beam Global

(Exact name of Registrant as specified in its charter)

Nevada	26-1342810
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification Number)

5660 Eastgate Dr.

San Diego, California

92121

(Address of principal executive offices)

(Zip Code)

(858) 321-2223

(Registrant’s telephone number, including area code)

_____________________________________________

(Former name, former address and formal fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange in which registered
Common stock, $0.001 par value	BEEM	Nasdaq Capital Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company under Rule 12b-2 of the Exchange Act. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐	Accelerated filer ☐
Non-accelerated Filer ☒	Smaller reporting company ☒
Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The number of registrant's shares of common stock, $0.001 par value, issuable and outstanding as of May 12, 2026 was 22,201,586.

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TABLE OF CONTENTS

		Page

PART I	FINANCIAL INFORMATION	3
Item 1.	Financial Statements (Unaudited)	3
	Condensed Consolidated Balance Sheets at March 31, 2026 and December 31, 2025	3
	Condensed Consolidated Statements of Operations and Comprehensive Loss for the Three Months Ended March, 2026 and 2025	4
	Condensed Consolidated Statements of Changes in Stockholders’ Equity for the Three Months Ended March 31, 2026 and 2025	5
	Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2026 and 2025	6
	Notes To Condensed Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	20
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	27
Item 4.	Controls and Procedures	28

PART II	OTHER INFORMATION	29
Item 1.	Legal Proceedings	29
Item 1A.	Risk Factors	29
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	29
Item 3.	Defaults Upon Senior Securities	29
Item 4.	Mine Safety Disclosures	29
Item 5.	Other Information	29
Item 6.	Exhibits	30
	SIGNATURES	31

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PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

Beam Global

Condensed Consolidated Balance Sheets

(In thousands, except share and per share data)

	*March 31,*			*December 31,*
	*2026*			*2025*
	(Unaudited)
Assets
Current assets
Cash	$	1,973		$	969
Accounts receivable, net of allowance for credit losses of $2,762 and $939		4,701			8,236
Prepaid expenses and other current assets		2,072			2,070
Inventory, net		10,423			9,766
Total current assets		19,169			21,041

Property and equipment, net		12,312			13,093
Operating lease right of use assets		1,474			1,358
Intangible assets, net		6,884			7,127
Deposits		113			113
Total assets	$	39,952		$	42,732

Liabilities and Stockholders' Equity
Current liabilities
Accounts payable	$	6,245		$	5,925
Accrued expenses		3,037			2,885
Sales tax payable		786			843
Deferred revenue, current		2,052			1,800
Note payable, current		69			68
Contingent consideration, current		104			104
Operating lease liabilities, current		711			484
Total current liabilities		13,004			12,109

Deferred revenue, noncurrent		633			690
Note payable, noncurrent		113			131
Other liabilities, noncurrent		2,755			2,939
Deferred tax liabilities, noncurrent		1,182			1,203
Operating lease liabilities, noncurrent		735			815
Total liabilities		18,422			17,887

Commitments and contingencies (Note 8)

Stockholders' equity
Preferred stock, $0.001 par value, 10,000,000 authorized, none outstanding as of March 31, 2026 and December 31, 2025		-			-
Common stock, $0.001 par value, 350,000,000 shares authorized, 21,136,983 and 19,124,163 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively		22			19
Additional paid-in-capital		160,292			156,446
Accumulated deficit		(138,501	)		(131,646	)
Accumulated Other Comprehensive Income (AOCI)		(283	)		26

Total stockholders' equity		21,530			24,845

Total liabilities and stockholders' equity	$	39,952		$	42,732

The accompanying unaudited notes are an integral part of these unaudited condensed consolidated Financial Statements

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Beam Global

Condensed Consolidated Statement of Operations and Comprehensive Loss

(Unaudited, in thousands except per share data)

	*Three Months Ended*
	*March 31,*
	*2026*			*2025*

Revenues	$	3,128		$	6,324

Cost of revenues		3,543			5,823

Gross (loss) profit		(415	)		501

Operating expenses		6,296			5,265

Impairment of goodwill		-			10,780

Loss from operations		(6,711	)		(15,544	)

Other (expense) income
Interest income		5			23
Other (expense) income		(145	)		4
Interest expense		(4	)		(6	)
Total Other (expense) income		(144	)		21

Net Loss	$	(6,855	)	$	(15,523	)

Net foreign currency translation (expense) benefit		(309	)		461

Total Comprehensive Loss	$	(7,164	)	$	(15,062	)

Net Loss per share - basic/diluted	$	(0.33	)	$	(1.04	)

Weighted average shares outstanding - basic/diluted		20,473			14,990

The accompanying unaudited notes are an integral part of these unaudited condensed consolidated Financial Statements

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Beam Global

Consolidated Statements of Changes in Stockholders’ Equity

(Unaudited, in thousands)

						Additional					Accumulated Other			Total
	Common Stock					Paid-in-		Accumulated			Comprehensive			Stockholders'
	Stock			Amount		Capital		Deficit			Income			Equity
Balance at December 31, 2025		19,124		$	19	$	156,446	$	(131,646	)	$	26		$	24,845
Stock issued for director services - vested		54			-		94		-			-			94
Stock issued to (released from) escrow account - unvested		(54	)		-		-		-			-			-
Employee stock-based compensation expense		215			-		343		-			-			343
Impact of foreign currency translation		-			-		-		-			(309	)		(309	)
Sale of stock under ATM agreement		1,798			3		3,409		-			-			3,412
Net loss		-			-		-		(6,855	)		-			(6,855	)
Balance at March 31, 2026		21,137		$	22	$	160,292	$	(138,501	)	$	(283	)	$	21,530


Balance at December 31, 2024		14,919		$	15	$	147,072	$	(104,643	)	$	(1,156	)	$	41,288
Stock issued for director services - vested		30			-		94		-			-			94
Stock issued to (released from) escrow account - unvested		94			-		-		-			-			-
Employee stock-based compensation expense		-			-		352		-			-			352
Impact of foreign currency translation		-			-		-		-			461			461
Net loss		-			-		-		(15,523	)		-			(15,523	)
Balance at March 31, 2025		15,043		$	15	$	147,518	$	(120,166	)	$	(695	)	$	26,672

The accompanying unaudited notes are an integral part of these unaudited condensed consolidated Financial Statements

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Beam Global

Condensed Consolidated Statements of Cash Flows

(Unaudited, in thousands)

	*Three Months Ended March 31,*
	*2026*			*2025*
Operating Activities:
Net loss	$	(6,855	)	$	(15,523	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		877			955
Provision on credit losses		1,823			239
Impairment of goodwill		-			10,780
Stock-based compensation		516			521
Disposal of property and equipment		12			23
Amortization of operating lease right of use asset		306			30
Changes in assets and liabilities:
(Increase) decrease in:
Accounts receivable		1,669			730
Prepaid expenses and other current assets		(90	)		39
Inventory		(773	)		595
Deposits		-			(1	)
Increase (decrease) in:
Accounts payable		364			(745	)
Accrued expenses		162			(101	)
Operating lease liability		(275	)		-
Sales tax payable		(56	)		238
Deferred revenue		204			229
Other long term liabilities		(152	)		231
Net cash used in operating activities		(2,268	)		(1,760	)

Investing Activities:
Purchase of property and equipment		(47	)		(54	)
Funding of patent costs		-			(16	)
Net cash used in investing activities		(47	)		(70	)

Financing Activities:
Proceeds from sale of common stock under ATM agreement, net of offering costs		3,412			-
Repayments of note payable		-			(15	)
Net cash provided by (used in) financing activities		3,412			(15	)

Effect of exchange rate changes		(93	)		(223	)

Net increase (decrease) in cash		1,004			(2,068	)
Cash at beginning of period		969			4,572
Cash at end of period	$	1,973		$	2,504

Supplemental Disclosure of Cash Flow Information:
Cash paid for interest	$	4		$	6

Supplemental Disclosure of Non-Cash Investing and Financing Activities:
Right-of-use assets obtained in exchange for lease liabilities	$	426		$	-

The accompanying unaudited notes are an integral part of these unaudited condensed consolidated Financial Statements

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BEAM GLOBAL

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1.	NATURE OF OPERATIONS, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Operations

References in this Report to “we,” “us,” “our,” the “Company” or “Beam” means Beam Global, a Nevada corporation, and its subsidiaries.

Beam is a clean-technology innovation company headquartered in San Diego, California with offices in the U.S. in San Diego, California and Broadview, Illinois; in Europe in Belgrade and Kraljevo, Serbia; and in Abu Dhabi, United Arab Emirates. We develop, design, engineer, manufacture, and sell high-quality, renewably energized infrastructure products for electric vehicle (“EV”) charging, infrastructure for Smart Cities (the interconnected physical and digital elements within a city that utilize technology to enhance efficiency, sustainability, and quality of life for residents), energy security and disaster preparedness and highly energy-dense battery solutions in safe, compact and unique form-factors. Additionally, we manufacture structures with electronic integration such as street lighting, cell towers and energy infrastructure products as well as power electronics including invertors, charge controllers, power supplies and LED lighting. Beam’s energy storage products provide high energy density in safe, compact and bespoke form-factors, which we believe are ideal for the rapidly growing mobile and stationary equipment product market which often requires electrical energy without being connected to the electrical grid.

Beam Global's products and proprietary technology solutions target the following markets:

●

EV charging infrastructure;

●

Energy storage solutions;

●

Energy security and disaster preparedness;

●

Mobile and stationary equipment;

●

Transportation infrastructure products; and

●

Power electronics and telecommunications equipment

Basis of Presentation

The interim unaudited condensed consolidated financial statements included herein have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial statements and are in the form prescribed by the Securities and Exchange Commission in instructions to Form 10-Q and Rule 10-01 of Regulation S-X. In management’s opinion, all adjustments (consisting of normal recurring adjustments and reclassifications) necessary to present fairly our results of operations and cash flows for the three months ended March 31, 2026 and 2025, and our financial position as of March 31, 2026, have been made. All amounts are presented in thousands if otherwise noted. The results of operations for such interim periods are not necessarily indicative of the operating results to be expected for the full year.

Certain information and disclosures normally included in the notes to the annual financial statements have been condensed or omitted from these interim financial statements. Accordingly, these interim unaudited condensed consolidated financial statements should be read in conjunction with the financial statements and notes thereto for the year ended December 31, 2025. The December 31, 2025 balance sheet is derived from those statements.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates in the accompanying financial statements include the allowance for certain expected credit losses, valuation of inventory and standard cost allocations, depreciable lives of property and equipment, valuation of contingent consideration liability, valuation of intangible assets, estimates of loss contingencies, estimates of the valuation of lease liabilities and the related right of use assets, valuation of share-based costs, and the valuation allowance on deferred tax assets.

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Recent Accounting Pronouncements

Recently adopted pronouncements

In November 2024, the FASB issued ASU 2024-04, "Debt with Conversion and Other Options" (“ASU 2024-04”), which clarifies the requirements for determining whether certain settlements of convertible debt instruments should be accounted for as an induced conversion. ASU 2024-04 is effective for annual periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods. Early adoption is permitted for all entities that have adopted the amendments in Update 2020-06. Adoption can be on a prospective or retrospective basis. The Company adopted this ASU prospectively on January 1, 2026. The adoption had no impact on its consolidated financial statements.

Recent pronouncement not yet adopted

In October 2023, the FASB issued ASU 2023-06, “Disclosure Improvements” (“ASU 2023-06”), which amends the disclosure or presentation requirements related to various subtopics in the FASB Accounting Standards Codification (the “Codification”). The ASU was issued in response to the SEC’s disclosure update and simplification initiative issued in August 2018. The effective date for the amendments for each topic will be the date on which the SEC’s removal of that related disclosure from Regulation S-X or Regulation S-K becomes effective, with early adoptions prohibited. The Company is currently evaluating the impact of this ASU on its consolidated financial statements and related disclosures.

In November 2024, the FASB issued ASU 2024-03, "Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Topic 220): Disaggregation of Income Statement Expenses." This guidance requires additional disclosure of certain amounts included in the expense captions presented on the Statement of Operations as well as disclosures about selling expenses. The ASU is effective on a prospective basis, with the option for retrospective application, for annual periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027. Early adoption is permitted for annual financial statements that have not yet been issued. The Company is currently evaluating the impact of this ASU on its consolidated financial statements and related disclosures.

In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270), Narrow-Scope Improvements, to provide clarity about the current requirements, rather than evaluate whether to expand or reduce interim disclosure requirements. The amendments in ASU 2025-11 result in a comprehensive list of interim disclosures that are required by GAAP. The amendments in ASU 2025-11 also include a disclosure principle that requires entities to disclose events since the end of the last annual reporting period that have a material impact on the entity. The amendments in ASU 2025-11 are effective for interim reporting periods within annual reporting periods beginning after December 15, 2027 and early adoption is permitted. The amendments in ASU 2025-11 can be applied either prospectively or retrospectively to any or all prior periods presented in the financial statements. The Company is currently evaluating the disclosure impact that ASU 2025-11 may have on its financial statement presentation and disclosures.

Other recent accounting pronouncements did not or are not believed by management to have a material impact on the Company’s present or future consolidated financial statements.

Concentrations

Credit Risk

Financial instruments that potentially subject us to concentrations of credit risk consist of cash and accounts receivable.

The Company maintains its cash in banks and financial institutions deposits that at times may exceed federally insured limits. The Company has not experienced any losses in such accounts from inception through March 31, 2026. As of March 31, 2026, approximately $1.2 million of the Company’s cash deposits were greater than the federally insured limits.

Major Customers

For the three months ended March 31, 2026, two customers accounted for 12% and 14% of total revenues, respectively, and for the three months ended March 31, 2025, one customer accounted for 12% of total revenue. At March 31, 2026, one customer accounted for 20% of total accounts receivable and at December 31, 2025, one customer accounted for 27% of total accounts receivable. For the three months ended March 31, 2026 and 2025, the Company’s concentration of sales to federal, state and local governments represented 22% and 47% of revenues, respectively.

Foreign Operations

The following summarizes key financial metrics associated with the Company’s continuing operations:

		*March 31,*		*December 31,*
	*2026*		*2025*

Assets - Serbia	$	18,496	$	19,144
Assets - U.S.		21,328		23,479
Assets - UAE		128		109
Total Assets	$	39,952	$	42,732

Liabilities - Serbia	$	7,883	$	7,490
Liabilities - U.S.		10,491		10,376
Liabilities - UAE		48		21
Total Liabilities	$	18,422	$	17,887

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	*Three Months Ended*
	*March 31,*
	*2026*			*2025*

Sales - Serbia	$	1,572		$	1,526
Sales - U.S.		1,556			4,798
Total Revenues	$	3,128		$	6,324


Net Loss - Serbia	$	(748	)	$	(6,691	)
Net Loss - U.S.		(6,100	)		(8,832	)
Net Loss - UAE		(7	)		-
Total Net Loss	$	(6,855	)	$	(15,523	)

Accounts Receivable

The Company does business and extends credit based on an evaluation of each customer’s financial condition, generally without requiring collateral. Management reviews accounts receivable on a periodic basis to determine if any receivables may become uncollectible. Management’s evaluation includes several factors including the aging of the accounts receivable balances, a review of significant past due accounts, dialogue with the customer, the financial profile of a customer, the Company’s historical write-off experience, net of recoveries, and economic conditions. Exposure to losses from receivables is expected to vary by customer due to the financial condition of each customer. The Company estimates future credit losses based on the age of customer receivable balances, collection history and forecasted economic trends. The Company monitors exposure to credit losses and maintains allowances for anticipated losses considered necessary under the circumstances. A summary of the allowance for credit losses for the three months ended March 31, 2026 and the year ended December 31, 2025:

	*March 31,*		*December 31,*
	*2026*		*2025*
Allowance for credit losses:
Beginning of period	$	939	$	259
Net provision for credit losses		1,823		782
(Charge-offs)/recoveries, net		-		(102	)
End of Period	$	2,762	$	939

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Fair Value Measurement

The Company follows the authoritative guidance that establishes a formal framework for measuring fair values of assets and liabilities in the consolidated financial statements that are already required by generally accepted accounting principles to be measured at fair value. The guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The transaction is based on a hypothetical transaction in the principal or most advantageous market considered from the perspective of the market participant that holds the asset or owes the liability.

The Company utilizes market data or assumptions that market participants who are independent, knowledgeable, and willing and able to transact would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated or generally unobservable. The Company attempts to utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs.

The Company is able to classify fair value balances based on the observability of those inputs. The guidance establishes a formal fair value hierarchy based on the inputs used to measure fair value. The hierarchy gives the highest priority to Level 1 measurements and the lowest priority to level 3 measurements, and accordingly, Level 1 measurement should be used whenever possible.

The hierarchy is broken down into three levels based on the reliability of inputs as follows:

Level 1 – Quoted prices in active markets for identical assets or liabilities or published net asset value for alternative investments with characteristics similar to a mutual fund.

Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3 – Unobservable inputs for the asset or liability.

The methods used may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while Management believes its valuation methods are appropriate, the fair value of certain financial instruments could result in a difference fair value measurement at the reporting date. There were no changes in the Company’s valuation methodologies from the prior year.

For purpose of this disclosure, the carrying amounts for financial assets and liabilities such as cash and cash equivalents, accounts receivable – trade, other prepaid expenses and current assets, accounts payable and other current liabilities, all approximate fair value due to their short-term nature as of March 31, 2026. The Company had Level 3 liabilities as of March 31, 2026. There were no transfers between levels during the reporting period.

	*Level 1*		*Level 2*		*Level 3*
Contingent Consideration as of December 31, 2025		-		-	$	104
Additions						-
Change in fair value						-
Contingent Consideration as of March 31, 2026		-		-	$	104

Significant Accounting Policies

During the three months ended March 31, 2026, there were no changes to our significant accounting policies as described in our Annual Report on Form 10-K for the year ended December 31, 2025.

Net Loss Per Share

Basic net loss per share is computed by dividing the net loss by the weighted average number of shares of common stock outstanding during the periods presented. Diluted net loss per common share is computed using the weighted average number of common stock outstanding for the period, and, if dilutive, potential common stock outstanding during the period. Potential common stock consists of the incremental shares of common stock issuable upon the exercise of stock options, stock warrants, convertible debt instruments or other common stock equivalents. Potentially dilutive securities are excluded from the computation if their effect is anti-dilutive.

The following outstanding shares of dilutive instruments as of March 31, 2026 and 2025 were not included in the computation of diluted loss per share:

	*March 31,*
	*2026*		*2025*
Stock Options		980,950		650,904
Warrants		200,000		200,000
Total Shares		1,180,950		850,904

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Segments

The Company assesses its segment reporting based on how it internally manages and reports the results of its business to its chief operating decision maker. Management reviews financial results, manages the business and allocates resources on an aggregate basis. Therefore, financial results are reported in a single operating segment.

2.	LIQUIDITY

The Company had net losses of $6.9 million for the three months ended March 31, 2026 which includes $3.5 million of non-cash expenses that mainly included provision on credit losses of $1.8 million, employee stock-based compensation of $0.5 million, depreciation and amortization of $0.9 million, and $0.3 million of amortization of operating lease right of use asset. The Company had net losses of $15.5 million for the three months ended March 31, 2025 which includes $12.5 million of non-cash expenses, of which $10.8 million related to goodwill impairment. The Company had net cash used in operating activities of $2.3 million and $1.8 million for the three months ended March 31, 2026 and 2025, respectively.

At March 31, 2026, the Company had a cash balance of $2.0 million and working capital of $6.2 million. Based on the Company’s current operating plan and the available working capital that it believes can be converted to cash (specifically the accounts receivable balance of approximately $4.7 million), the Company believes that it has the ability to fund its operations and meet contractual obligations for at least twelve months from the date of this report.

In March 2023, the Company entered into a supply chain line of credit agreement with OCI Group for up to $100 million with a 5-year term to further support our working capital requirements. Subject to the terms of the agreement, OCI Group will make available to the Company funding based on amounts owed to the Company by its customers. To date, the Company has not borrowed against this line of credit.

On April 11, 2025, we entered into an At Market Issuance Sales Agreement (the “Sales Agreement”) with B. Riley Securities, Inc. (“B. Riley”), pursuant to which we may issue and sell shares of our common stock from time to time, at our option, through B. Riley as our sales agent, subject to certain terms and conditions. Upon our delivery and B. Riley’s acceptance of a placement notice, B. Riley will use commercially reasonable efforts to sell shares, consistent with its normal trading and sales practices, in transactions deemed to be “at the market” offerings as defined in Rule 415 of the Securities Act of 1933, as amended, including by means of ordinary brokers’ transactions at market prices, in block transactions or as otherwise agreed by B. Riley and us. B. Riley may also sell the shares of common stock in negotiated transactions, subject to our prior approval. Any shares sold will be sold pursuant to our effective shelf registration statement on Form S-3 (File No. 333-272396), as supplemented by a prospectus supplement dated April 11, 2025 and November 13, 2025, which allows us to sell up to $15.6 million in shares of our common stock (the “ATM Prospectus Supplement”). We will pay B. Riley a commission of up to 2.5% of the gross proceeds of the sale of any shares sold through B. Riley. As of March 31, 2026, the Company has $11.9 million remaining available for issuance and sale under the ATM Prospectus Supplement to the Company’s effective shelf registration statement on Form S-3.

Although the Company is focused on achieving profitability through revenue growth, improved gross margins and operating leverage, we expect to continue to incur losses for a period of time. We may seek additional capital to finance our operations, support working capital needs and execute our business strategy, including through equity or debt financings or other strategic transactions. There can be no assurance that we will achieve profitable operations or that additional capital or debt financing will be available when needed, on favorable terms, or at all. Any additional financing, if obtained, may not be sufficient to meet our obligations or support our long-term business strategy. In addition, any equity financing, debt financing with an equity component, or other strategic transaction could result in significant dilution to our stockholders.

3.	PREPAIDS AND OTHER CURRENT ASSETS

Prepaid expenses and other current assets are summarized as follows:

	*March 31,*		*December 31,*
	*2026*		*2025*
Vendor prepayments	$	1,453	$	1,303
Prepaid insurance		63		111
Other		556		656
Total prepaid expenses and other current assets