NOTE 3 – GOING CONCERN ASSESSMENT

Management has evaluated the Company’s ability to continue as a going concern within one year after the date that these financial statements are issued in accordance with the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) 205-40, Presentation of Financial Statements – Going Concern. Management’s evaluation considered the Company’s current financial condition, including its cash position, recurring operating losses, and historical negative cash flows from operations, as well as its forecasted results and cash flows for the twelve months following the date of issuance of these financial statements.

As of December 31, 2025, the Company had incurred recurring operating losses and experienced negative cash flows from operations, and it had limited cash on hand and constrained access to additional sources of capital. We did not have any credit facilities available to us as of December 31, 2025, or as of the filing date of this Quarterly Report. These conditions initially raised substantial doubt about the Company’s ability to continue as a going concern within one year after the date that these financial statements were issued. Based on its current cash balance, projected cash used in operations, and other obligations coming due during the next twelve months, management determined that, absent mitigating plans, the Company may not have had sufficient liquidity to fund operations and meet its obligations as they become due over that period.

In response to these conditions, management has developed and begun implementing plans intended to improve liquidity and address the factors that initially raised substantial doubt. These plans include a cost-reduction program that is expected to reduce annual operating expenses by approximately $930 thousand beginning in fiscal year 2026. The cost-reduction program consists of actions such as personnel reductions, renegotiation of vendor contracts, and reductions in discretionary spending. Management has already initiated a portion of these actions as of the date these financial statements were issued. Management’s plans also include seeking additional equity and/or debt financing.

After considering the expected impact of these plans, including the anticipated $930 thousand annual reduction in operating expenses, management believes that the Company will have sufficient liquidity to fund its operations and meet its obligations as they become due within one year after the date that these financial statements were issued. The accompanying financial statements have therefore been prepared on a going concern basis and do not include any adjustments that might result from the outcome of these uncertainties.