# EDGAR Filing Document

**Accession Number:** 0001604191
**File Stem:** 0001104659-26-042177
**Filing Date:** 2026-4
**Character Count:** 133196
**Document Hash:** 51265333aacc6d085019ef3dfbe57b8e
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001104659-26-042177.hdr.sgml**: 20260413

**ACCESSION NUMBER**: 0001104659-26-042177

**CONFORMED SUBMISSION TYPE**: 8-K/A

**PUBLIC DOCUMENT COUNT**: 15

**CONFORMED PERIOD OF REPORT**: 20250930

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20260413

**DATE AS OF CHANGE**: 20260413

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** GridAI Technologies Corp.
- **CENTRAL INDEX KEY:** 0001604191
- **STANDARD INDUSTRIAL CLASSIFICATION:** PHARMACEUTICAL PREPARATIONS [2834]
- **ORGANIZATION NAME:** 03 Life Sciences
- **EIN:** 464993860
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K/A
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-37853
- **FILM NUMBER:** 26856334

**BUSINESS ADDRESS:**
- **STREET 1:** 777 YAMATO ROAD
- **STREET 2:** SUITE 502
- **CITY:** BOCA RATON
- **STATE:** FL
- **ZIP:** 33431
- **BUSINESS PHONE:** 561-589-7020

**MAIL ADDRESS:**
- **STREET 1:** 777 YAMATO ROAD
- **STREET 2:** SUITE 502
- **CITY:** BOCA RATON
- **STATE:** FL
- **ZIP:** 33431

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Entero Therapeutics, Inc.
- **DATE OF NAME CHANGE:** 20240516

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** First Wave BioPharma, Inc.
- **DATE OF NAME CHANGE:** 20210921

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** AzurRx BioPharma, Inc.
- **DATE OF NAME CHANGE:** 20141103

?xml version='1.0' encoding='ASCII'?

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 8-K/A**

**(Amendment No. 1)**

**CURRENT REPORT**

**PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**Date of Report (Date of earliest event reported): September 30, 2025**

---

| |
|:---|
| **GridAI Technologies Corp.** |
| **(Exact name of Registrant as Specified in its Charter)** |

---

---

| | | |
|:---|:---|:---|
| **Delaware** | **001-37853** | **46-4993860** |
| (State or other Jurisdiction of<br> Incorporation) | (Commission<br> File Number) | (IRS Employer <br> Identification No.) |

---

**777 Yamato Road, Suite 502**

 **Boca Raton, FL** **33431**

(Address of Principal Executive Offices) (Zip Code)

 **(561) 589-5444**

(Registrant's Telephone Number, Including Area Code)

**N/A**

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

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

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange on which <br> registered** |
| Common Stock, par value $0.0001 per share | GRDX | The Nasdaq Stock Market LLC |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

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. ◻

**EXPLANATORY NOTE**

On October 6, 2025, GridAI Technologies Corp. (f/k/a Entero Therapeutics, Inc.), a Delaware corporation (the "Company" or "we"), filed a Current Report on Form 8-K (the "Initial 8-K") disclosing, amongst other things, the completion of its previously announced share exchange agreement (the "Share Exchange Agreement") with GridAI Corp, a Nevada corporation ("GridAI"), and the stockholders of all of the issued and outstanding shares of GridAI.

The Company is amending the Initial 8-K to include [certain risk factors related to GridAI's business and consummation of the transactions contemplated by the Share Exchange Agreement (the "Risk Factors"), an overview of GridAI's business (the "Business Section"),] historical financial statements of GridAI and the unaudited pro forma combined financial information giving effect to the Share Exchange Agreement as of September 30, 2025.

The pro forma financial information included herein has been presented for informational purposes only. It does not purport to represent the actual results of operations that we and GridAI would have achieved had the companies been combined during the periods presented in the pro forma financial information and is not intended to project the future results of operations that the combined company may achieve.

The Business Section and Risk Factors are filed as Exhibit 99.3 to this Current Report on Form 8-K/A and are incorporated herein by reference.

**Item 9.01 Financial Statements and Exhibits.**

**(a) Pro Forma Financial Information.**

The unaudited pro forma condensed combined balance sheet as of September 30, 2025 and the unaudited pro forma condensed combined statement of operations for the nine months ended September 30, 2025 are filed with this Current Report on Form 8-K/A as Exhibit 99.2 and incorporated herein by reference.

**(b) Financial Statements of Businesses Acquired.**

The audited financial statements of GridAI from inception to September 30, 2025 are filed as Exhibit 99.1 to this Current Report on Form 8-K/A and incorporated herein by reference.

**(c) Exhibits.**

---

| | |
|:---|:---|
| **No.** | **Description** |
| [23.1](tm2611367d1_ex23-1.htm) | [Consent of Macias Gini & O'Connell LLP](tm2611367d1_ex23-1.htm) |
| [99.1](tm2611367d1_ex99-1.htm) | [Audited Financial Statements of GridAI Corp. as of September 30, 2025](tm2611367d1_ex99-1.htm) |
| [99.2](tm2611367d1_ex99-2.htm) | [Unaudited Pro Forma Condensed Combined Balance Sheet. as of September 30, 2025 and the Unaudited Pro Forma Condensed Combined Statement of Operations for the period ended September 30, 2025](tm2611367d1_ex99-2.htm) |
| [99.3](tm2611367d1_ex99-3.htm) | [Business Section and Risk Factors](tm2611367d1_ex99-3.htm) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | **GRIDAI TECHNOLOGIES CORP.** | **GRIDAI TECHNOLOGIES CORP.** |
| Date: April 13, 2026 | By: | /s/ Jason D. Sawyer |
|  | Name: | Jason D. Sawyer |
|  | Title: | Chief Executive Officer |

---

## Exhibit 23.1

**Exhibit 23.1**

<u>Consent of Independent Auditor</u>

We hereby consent to the inclusion in the form 8-K/A of GridAI Technologies Corp. dated on April 13, 2026, the consolidated financial statements of Grid AI, Corp. as of September 30, 2025, and the period from inception (April 16, 2024) through September 30, 2025. Our report on the financial statements of Grid AI, Corp. contains an explanatory paragraph regarding the Company's ability to continue as a going concern.

/s/ Macias Gini & O'Connell LLP

Irvine, California

April 13, 2026

## Exhibit 99.1

**Exhibit 99.1**

**GRID AI CORP. AND SUBSIDIARIES**

**CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE PERIOD FROM APRIL 16, 2024 (INCEPTION) TO SEPTEMBER 30, 2025**

**GRID AI CORP. AND SUBSIDIARIES**

**TABLE OF CONTENTS**

**FOR THE PERIOD FROM APRIL 16, 2024 (INCEPTION) TO SEPTEMBER 30, 2025**

---

| | |
|:---|:---|
| **INDEPENDENT AUDITORS' REPORT** | 1 |
| **CONSOLIDATED FINANCIAL STATEMENTS** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Consolidated Balance Sheet | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Consolidated Statement of Operations and Comprehensive Loss | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Consolidated Statement of Changes in Stockholders' Deficit | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Consolidated Statement of Cash Flows | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Notes to the Consolidated Financial Statements | 8 |

---

**Independent Auditor's Report**

To Board of Directors and Shareholders of

GridAI Corp.

**Opinion**

We have audited the accompanying consolidated balance sheet of GirdAI, Corp. and Subsidiaries (the "Company") as of September 30, 2025, and the related consolidated statement of operations and comprehensive loss, shareholders' deficit, and cash flow for the period from inception (April 16, 2024) through September 30, 2025, and the related notes (collectively referred to as the "financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of September 30, 2025, and the results of its operation and its cash flow for the period from inception (April 16, 2024) through September 30, 2025, in conformity with accounting principles generally accepted in the United States of America.

***Basis for Opinion***

We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Company and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

***Emphasis of Matter – Substantial Doubt About the Company's Ability to Continue as a Going Concern***

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As described in Note 2 to the consolidated financial statements, the Company has incurred losses from operations, has a net capital deficiency, and has stated that substantial doubt exists about the Company's ability to continue as a going concern. Management's evaluation of the events and conditions and management's plans regarding these matters are also described in Note 2. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. Our opinion is not modified with respect to this matter.

***Responsibilities of Management's for the Financial Statements***

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with accounting principles generally accepted in the United States of America and for the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern within one year after the date that the consolidated financial statements are issued or available to be issued.

***Auditor's Responsibilities for the Audit of the Financial Statements***

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the consolidated financial statements.

In performing an audit in accordance with GAAS, we:

&nbsp;&nbsp;&nbsp;&nbsp;· Exercise professional judgment and maintain professional
skepticism throughout the audit.

&nbsp;&nbsp;&nbsp;&nbsp;· Identify and assess the risks of material misstatement
of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures
include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;· Obtain an understanding of internal control relevant
to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion
on the effectiveness of the Company's internal control. Accordingly, no such opinion is expressed.

&nbsp;&nbsp;&nbsp;&nbsp;· Evaluate the appropriateness of accounting policies
used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;· Conclude whether, in our judgment, there are
conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going
concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.

Macias Gini & O'Connell LLP

Irvine, California

April 13, 2026

**GRID AI CORP. AND SUBSIDIARIES**

**CONSOLIDATED BALANCE SHEET**

**As of September 30, 2025**

---

| | |
|:---|:---|
|  | **September 30** |
| **ASSETS** |  |
| **CURRENT ASSETS** |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $332969 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses | 11125 |
| &nbsp;&nbsp;&nbsp;Subscription receivable | 447935 |
| &nbsp;&nbsp;&nbsp;Trade receivable | 37372 |
| &nbsp;&nbsp;&nbsp;Other receivables | 138145 |
| &nbsp;&nbsp;&nbsp;Other current assets | 206043 |
| **Total current assets** | 1173589 |
| Developed technologies, net | 563116 |
| Trade name, net | 156317 |
| Customer relationships, net | 90854 |
| Goodwill | 225001 |
| **Total Other Assets** | 1035288 |
| **TOTAL ASSETS** | $2208877 |
| **LIABILITIES AND STOCKHOLDERS' DEFICIT** |  |
| **CURRENT LIABILITIES** |  |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | $1079668 |
| &nbsp;&nbsp;&nbsp;Notes payable | 310000 |
| &nbsp;&nbsp;&nbsp;Income tax payable | 71140 |
| &nbsp;&nbsp;&nbsp;Deferred consideration payable | 7000000 |
| &nbsp;&nbsp;&nbsp;Due to related party | 269898 |
| **TOTAL CURRENT LIABILITIES** | 8730706 |
| **STOCKHOLDERS' DEFICIT** |  |
| &nbsp;&nbsp;&nbsp;Common stock, $0.01 par value, 100,000,000 authorized, 38,000,000 issued and outstanding as of September 30, 2025 | 380000 |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital |  |
| &nbsp;&nbsp;&nbsp;Accumulated deficit | (5508419) |
| &nbsp;&nbsp;&nbsp;Cumulative translation adjustment | 237047 |
| &nbsp;&nbsp;&nbsp;Total equity attributable to GridAI | (4891372) |
| &nbsp;&nbsp;&nbsp;Non-controlling interest | (1630457) |
| **Total deficit** | (6521829) |
| **TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT** | $2208877 |

---

See accompanying notes to the consolidated financial statements.

**GRID AI CORP. AND SUBSIDIARIES**

**CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE LOSS**

**APRIL 16, 2024 (INCEPTION) TO PERIOD ENDED SEPTEMBER 30, 2025**

---

| | |
|:---|:---|
|  | **For the Period From April<br> 16, 2024 to September 30,<br> 2025** |
| **REVENUE** | $138697 |
| **Operating expenses** |  |
| Cost of services | 320548 |
| General and administrative expenses | 4957068 |
| Total operating expenses | 5277616 |
| **LOSS FROM OPERATIONS** | (5138919) |
| **Other income (expense)** |  |
| &nbsp;&nbsp;&nbsp;Foreign exchange loss | (202761) |
| &nbsp;&nbsp;&nbsp;Other income (expense) | 1515 |
| &nbsp;&nbsp;&nbsp;Financing costs | (4334) |
| Total other income (expense) | (205580) |
| &nbsp;&nbsp;&nbsp;Current tax benefit | (92748) |
| **Net Loss** | (5251751) |
| **Other comprehensive loss** |  |
| &nbsp;&nbsp;&nbsp;Cumulative translation adjustment | 237047 |
| **Other comprehensive loss** | $(5014704) |
| Net loss attributable to non-controlling interests | $(1964181) |
| Net loss attributable to Grid AI Corp. | $(3287570) |

---

See accompanying notes to the consolidated financial statements.

**GRID AI CORP. AND SUBSIDIARIES**

**CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' DEFICIT**

**APRIL 16, 2024 (INCEPTION) TO PERIOD ENDED SEPTEMBER 30, 2025**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Shares** | **Common <br> stock** | **Additional Paid-<br> in Capital** | **Accumulated<br> deficit** | **Non- <br> controlling<br> interest** | **Other<br> comprehensive<br> income** | **Total** |
| **Balance at inception** |  | $— | $— | $— | $— |  | $— |
| &nbsp;&nbsp;&nbsp;Purchase of AMPx |  |  |  |  | 281000 |  | 281000 |
| &nbsp;&nbsp;&nbsp;Net loss attributable to Grid AI Corp. |  |  |  | (3287570) |  |  | (3287570) |
| &nbsp;&nbsp;&nbsp;Net loss attributable to non-controlling interests |  |  |  |  | (1964181) |  | (1964181) |
| &nbsp;&nbsp;&nbsp;Cumulative translation adjustment |  |  |  |  |  | 237047 | 237047 |
| &nbsp;&nbsp;&nbsp;Shares issued as founders shares | 32273400 | 322734 | (322734) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Sales of warrants - cash |  |  | 4168479 |  |  |  | 4168479 |
| &nbsp;&nbsp;&nbsp;Stock-based compensation |  |  | 1043396 |  |  |  | 1043396 |
| &nbsp;&nbsp;&nbsp;Shares issued for warrants conversion | 5726600 | 57266 | (57266) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Purchase of additional interest in AMPX |  |  | (4831875) | (2220849) | 52724 |  | (7000000) |
| **Consolidated balance as of September 30, 2025** | 38000000 | $380000 | $— | $(5508419) | $(1630457) | $237047 | $(6521829) |

---

See accompanying notes to the consolidated financial statements.

**GRID AI CORP. AND SUBSIDIARIES**

**CONSOLIDATED STATEMENT OF CASH FLOWS**

**APRIL 16, 2024 (INCEPTION) TO PERIOD ENDED SEPTEMBER 30, 2025**

---

| | |
|:---|:---|
|  | **For the period from <br> April 16, 2024 to<br> September 30, 2025** |
| **CASH FLOWS FROM OPERATING ACTIVITIES** |  |
| &nbsp;&nbsp;&nbsp;Net loss | $(5251751) |
| &nbsp;&nbsp;&nbsp;**Adjustments to reconcile net loss to net cash used in operating activities:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 51713 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | 1043396 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred tax | (215500) |
| &nbsp;&nbsp;&nbsp;**Changes in operating assets and liabilities:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trade receivable | 55968 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other receivables | (41891) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other current assets | (71975) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses | (11028) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes payable | 71140 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trade and other payables | 389275 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due to related party | 280983 |
| &nbsp;&nbsp;&nbsp;Net cash used in operating activities | (3699670) |
| **CASH FLOWS FROM INVESTING ACTIVITIES** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchase of AMPX, net of cash acquired of $375,569 | (124431) |
| &nbsp;&nbsp;&nbsp;Net cash used in investing activities | (124431) |
| **CASH FLOWS FROM FINANCING ACTIVITIES** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from notes payable | 310000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sales of warrants | 3720544 |
| &nbsp;&nbsp;&nbsp;Net cash provided by financing activities | 4030544 |
| Effect on Foreign Exchange Rate on Changes on Cash | 126526 |
| **NET INCREASE IN CASH** | 332969 |
| **CASH AT BEGINNING OF YEAR** |  |
| **CASH AT END OF YEAR** | $332969 |

---

See accompanying notes to the consolidated financial statements.

**GRID AI CORP. AND SUBSIDIARIES**

**CONSOLIDATED STATEMENT OF CASH FLOWS**

**APRIL 16, 2024 (INCEPTION) TO PERIOD ENDED SEPTEMBER 30, 2025**

---

| | |
|:---|:---|
| **SUPPLEMENTAL CASH FLOW INFORMATION** |  |
| **CASH PAID FOR:** |  |
| Taxes | $59745 |
| Interest | $— |
| **NONCASH INVESTING AND FINANCING ACTIVITIES:** |  |
| Deferred contingent payable | $7000000 |
| Subscription receivable | $447935 |
| Total assets acquired in AMPx business acquisition | $1388972 |
| Total liabilities assumed in AMPx business acquisition | $983541 |
| Founder shares issues to Grid AI Corp. founders | $— |

---

See accompanying notes to the consolidated financial statements.

**GRID AI CORP. AND SUBSIDIARIES**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE PERIOD FROM APRIL 16, 2024 (INCEPTION) TO SEPTEMBER 30, 2025**

**1. ORGANIZATION AND NATURE OF OPERATIONS**

**Nature of Operations**

Virtual Communities Inc. was formed in April 2024 and, prior to February 28, 2025, did not have any operations. On September 30, 2025, Virtual Communities Inc. changes its name to Grid AI Corp. ("GridAI" or the "Company").

On February 28, 2025, the Company acquired a 51% controlling interest in AMPx UK Holdings ("AMPx"), which became its primary operating subsidiary (see Note 11). As a result, the Company's operations since inception primarily consist of the activities of AMPx since the acquisition date.

The Company is a grid-edge technology company focused on developing software platforms that support the optimization and management of electrical loads and distributed energy resources.

The Company's core technologies include Dynamic Load Shaping ("DLS") and an Aggregation Management Platform ("AMP"), which are designed to manage and optimize energy usage and grid interaction, including applications related to large-scale energy demand environments.

On September 30, 2025, GridAI was acquired by GridAI Technologies, Inc. (formerly Entero Therapeutics, Inc.) and became a wholly owned subsidiary of GridAI Technologies.

**2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

**Basis of Presentation**

The Company's consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). The Financial Accounting Standards Board (FASB) has established the Accounting Standards Codification (ASC) as the sole source of authoritative GAAP. The consolidated financial statements are presented for the period from inception (April 16, 2024) through September 30, 2025. The Company did not have substantive operations prior to March 1, 2025.

**Principles of Consolidation**

The accompanying consolidated financial statements include the accounts of GridAI and its subsidiaries, AMP UK Holdings, AMPx Hardware Limited, AMPx Limited, AMPx Czech s.r.o, and Amp X Australia Pty Ltd. Intercompany account balances and transactions have been eliminated in consolidation.

**Risks and Uncertainties**

The Company operates in an early-stage, evolving business environment and is subject to a number of risks and uncertainties that could affect its operations and financial condition. The Company has a limited operating history and has incurred recurring losses from operations. Its ability to achieve profitability is dependent on the successful development and commercialization of its technology platform, the ability to generate sufficient revenues, and access to additional financing.

The Company operates internationally through subsidiaries located in multiple jurisdictions, including the United Kingdom, Czech Republic, and Australia. As a result, the Company is exposed to risks associated with foreign operations, including changes in economic conditions, foreign currency fluctuations, regulatory requirements, tax laws, and political environments in the jurisdictions in which it operates.

In addition, the Company's future results may be impacted by its ability to attract and retain qualified personnel, execute its business strategy, and manage growth. The Company's operations may also be affected by general economic conditions, capital market conditions, and industry-specific developments.

**GRID AI CORP. AND SUBSIDIARIES**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE PERIOD FROM APRIL 16, 2024 (INCEPTION) TO SEPTEMBER 30, 2025**

These factors, among others, could materially affect the Company's financial position, results of operations, and cash flows.

**Use of Estimates**

The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported amounts of revenues and expenses.

These estimates and assumptions are based on historical experience and other factors that management believes to be reasonable under the circumstances. Actual results could differ materially from those estimates.

Significant estimates and assumptions reflected in the consolidated financial statements include, but are not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;· the fair value of assets acquired
 and liabilities assumed in business combinations, including developed technology, customer
 relationships, and trade name intangible assets;

&nbsp;&nbsp;&nbsp;&nbsp;· the valuation of goodwill and the
 assessment of potential impairment;

&nbsp;&nbsp;&nbsp;&nbsp;· the fair value and classification
 of deferred consideration payable;

&nbsp;&nbsp;&nbsp;&nbsp;· the determination of useful lives
 for intangible assets and related amortization;

&nbsp;&nbsp;&nbsp;&nbsp;· revenue recognition, including the
 identification of performance obligations and timing of revenue recognition under ASC 606;

&nbsp;&nbsp;&nbsp;&nbsp;· the assessment of allowance for credit
 losses on receivables; and

&nbsp;&nbsp;&nbsp;&nbsp;· foreign currency translation and
 related estimates.

These estimates are inherently uncertain and may change as additional information becomes available.

**Going Concern**

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As of September 30, 2025, the Company had cash of approximately $333,000, has incurred losses from operations since inception, and has negative working capital. The Company also has significant obligations, including deferred consideration payable in connection with the acquisition of AMPx. These conditions raise substantial doubt about the Company's ability to continue as a going concern within one year from the date that the financial statements are issued. Management's plans include raising additional capital and obtaining financial support from its parent company. However, such plans are not considered probable of being effectively implemented or sufficient to alleviate the substantial doubt. Accordingly, substantial doubt about the Company's ability to continue as a going concern exists and is not alleviated. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

**Cash**

The Company maintains its cash in bank deposit accounts which may at times exceed insurance limits provided by banks. Financial instruments that potentially expose the Company to concentrations of credit risk consist of cash. The Company maintains its cash balances with financial institutions in foreign jurisdictions and with financial institutions in federally insured accounts in the U.S. The Company may from time to time have cash in banks in excess of FDIC insurance limits. The Company has not experienced any losses to date resulting from this practice. The Company mitigates its risk by maintaining the majority of its cash and equivalents with high quality financial institutions.

**GRID AI CORP. AND SUBSIDIARIES**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE PERIOD FROM APRIL 16, 2024 (INCEPTION) TO SEPTEMBER 30, 2025**

**Trade Receivable and other current assets**

The Company records accounts receivable when it has the unconditional right to issue an invoice and receive payment regardless of whether revenue has been recognized. Accounts receivable are recorded at the invoiced amount, net of allowance for credit losses. Effective January 1, 2025, the Company adopted Accounting Standards Update 2025-05-Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses for Account Receivable and Contract Assets for Private Companies and Certain Not for Profit Entities which permits consideration of subsequent cash collections when estimating the allowance for credit losses. Other current assets primarily consisted of various other receivables. The Company evaluates the collectability of its receivables based on historical experience, current economic conditions, and specific customer circumstances. As of April 16, 2024 (inception) and September 30, 2025, the Company determined that no allowance for credit losses was required.

**Business Combinations**

The Company accounts for its business combinations under the provisions of ASC Topic 805 Business Combinations, which requires that the acquisition method of accounting be used for all business combinations. Assets acquired and liabilities assumed, including non-controlling interests, are recorded at the date of acquisition at their respective fair values. Any excess fair value of the net tangible and intangible assets acquired over the purchase price is recorded as bargain purchase gain in the statements of operations at the acquisition closing date. During the measurement period, which extends no later than one year from the acquisition date, the Company may record certain adjustments to the carrying value of the assets acquired and liabilities assumed. After the measurement period, all adjustments are recorded in the consolidated statements of operations as operating expenses or income. Acquisition-related expenses are recognized separately from the business combinations and are expensed as incurred.

**Fair value measurements**

The Company's financial instruments consist mainly of cash equivalents, other receivables, prepaid expenses and other current assets, accounts payable, accrued expenses and other current liabilities. The carrying amounts of cash equivalents, other receivables, prepaid expenses and other current assets, accounts payable, accrued expenses and other current liabilities approximate their estimated fair value due to their short-term maturities.

ASC 820-10 (Topic 820, "Fair Value Measurements and Disclosures") defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. The standard provides a consistent definition of fair value which focuses on an exit price that would be received upon sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

ASC 820-10 also prioritizes, within the measurement of fair value, the use of market-based information over entity specific information and establishes a three-level hierarchy for fair value measurements based on the nature of inputs used in the valuation of an asset or liability as of the measurement date.

The three-level hierarchy for fair value measurements is defined as follows:

&nbsp;&nbsp;&nbsp;&nbsp;a. Level
 1 – inputs to the valuation methodology are quoted prices (unadjusted) for identical
 assets or liabilities in active markets;

&nbsp;&nbsp;&nbsp;&nbsp;b. Level
 2 – inputs to the valuation methodology include quoted prices for similar assets and
 liabilities in active markets, and inputs that are observable for the asset or liability
 other than quoted prices, either directly or indirectly including inputs in markets that
 are not considered to be active; and

&nbsp;&nbsp;&nbsp;&nbsp;c. Level
 3 – inputs to the valuation methodology are unobservable and significant to the fair
 value measurement.

**GRID AI CORP. AND SUBSIDIARIES**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE PERIOD FROM APRIL 16, 2024 (INCEPTION) TO SEPTEMBER 30, 2025**

Fair value is a market-based measure considered from the perspective of a market participant rather than an entity-specific measure. Therefore, even when market assumptions are not readily available, the Company's own assumptions are set to reflect those that market participants would use in pricing the asset or liability at the measurement date. The Company uses prices and inputs that are current as of the measurement date, including during periods of market dislocation. In periods of market dislocation, the observability of prices and inputs may change for many instruments. This condition could cause an instrument to be reclassified within levels in the fair value hierarchy. The Company notes that all cash is held is considered a Level 1 instrument.

The Company estimates the fair value of notes payable and deferred consideration payable based on a discounted cash flows analysis, based on the Company's current estimated incremental borrowing rate for similar instruments with comparable terms and maturities. The notes payable and deferred consideration payable fair value estimates are considered a Level 2 within the fair value hierarchy. Because the notes payable and deferred consideration payable are short-term in nature, the estimated the fair value approximates carrying value.

As of September 30, 2025, the Company did not have any Level 3 instruments.

**Foreign Currency Translation**

The Company's consolidated financial statements are presented in US dollars. Each subsidiary entities of the Company has its own respective functional currency determined based on the primary economic environment in which it operates, and items included in the respective financial statements of each entity are measured using that functional currency. A currency other than the functional currency is referred to as a foreign currency and subsidiaries with a functional currency other than the US dollar are referred to as a foreign operation.

Transactions in foreign currencies are initially recorded in the functional currency at the rate in effect at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the spot rate of exchange in effect at the reporting date. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rate as at the date of the initial transaction. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. All exchange differences are recorded in profit and loss.

The financial statements of subsidiaries that have a functional currency other than the US dollar were translated into US dollars as follows: assets and liabilities – at the closing rate at the date of the statements of financial position, and income and expenses – at the average rate for the period. All resulting changes are recognized in other comprehensive loss as foreign currency translation adjustments.

**Goodwill**

Goodwill represents the excess of the purchase price of an acquired business over the fair value of the identifiable assets acquired and liabilities assumed. Goodwill is not amortized but is subject to periodic review for impairment.

The Company evaluates goodwill for impairment annually and whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Such events or circumstances could include, among other factors, operating losses, changes in projected cash flows, or adverse changes in market conditions. If the carrying value of goodwill exceeds its estimated fair value, an impairment loss is recognized in the consolidated statements of operations. As of September 30, 2025, the Company has not recognized any impairment charges related to goodwill.

**GRID AI CORP. AND SUBSIDIARIES**

**NOTES TO THE CONSOLIDATED FINANCIAL SATEMENTS**

**FOR THE PERIOD FROM APRIL 16, 2024 (INCEPTION) TO SEPTEMBER 30, 2025**

**Intangible Assets**

Intangible assets acquired in business combinations, including developed technology, customer relationships, and trade names, are recorded at fair value at the acquisition date. Developed technology and other intellectual property are considered finite-lived intangible assets and are amortized on a straight-line basis over their estimated useful lives of 10 years. Customer relationships and trade names are also amortized on a straight-line basis over their estimated useful lives of 8 years and 10 years, respectively.

Intangible assets are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.

**Revenue Recognition**

The Company follows a single principle-based five-step model when accounting for revenue arising from contracts with customers, which is based on the requirements of FASB Topic 606, *Revenue from Contracts with Customers* ("ASC 606 ").

*Energy generation revenue*

Energy generation revenue is generated primarily from contracts with various non-affiliated parties under long-term power purchase agreements ("PPAs") or feed-in tariffs. The Company recognizes energy revenue when persuasive evidence of an arrangement exists, and energy has been generated and transmitted to the grid. The price of energy is fixed or determinable and the collectability of the resulting receivable is reasonably assured.

*Engineering, procurement & construction ("EPC") revenue*

The Company recognizes revenue for sale of EPC and development services over time based on the estimated progress to completion using a cost-based input method. In applying cost-based input methods of revenue recognition, the Company uses the actual costs incurred relative to the total estimated costs to determine the Company's progress towards contract completion and to calculate the corresponding amount of revenue and gross profit to recognize.

Cost-based input methods of revenue recognition are considered a faithful depiction of the Company's efforts to satisfy EPC and development services contracts and, therefore, reflect the transfer of goods or services to a customer under such contracts. Costs incurred towards contract completion may include costs associated with direct materials, labor, subcontractors, and other indirect costs related to contract performance.

*Management fee and other revenues*

Operation and maintenance ("O&M") services are transferred over time when customers receive and consume the benefits provided by the Company's performance under the terms of service arrangements. Revenues from O&M services are recognized when the work completed to date does not require re- performances and the costs of O&M services are expensed when incurred.

**Leases**

Leases are recorded on the balance sheet as right of use assets and lease obligations. Lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. Leases with a term of 12 months or less at inception are expensed monthly over the lease term. The lease term is determined by assuming the exercise of renewal options that are reasonably certain. The implicit interest rate or the incremental borrowing rate is used in determining the present value of future payments. The company has one lease agreement with a term of 12 months or less.

**GRID AI CORP. AND SUBSIDIARIES**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE PERIOD FROM APRIL 16, 2024 (INCEPTION) TO SEPTEMBER 30, 2025**

**Income Taxes**

*Current income tax*

Current income tax assets and liabilities are measured at the amount expected to be received from or paid to taxing authorities, based on tax rates and laws that have been enacted as of the reporting date in the jurisdictions where the Company operates. Current income tax related to items recognized directly in equity is also recorded in equity.

*Deferred income tax*

Deferred income taxes are recognized using the liability method for temporary differences between the financial reporting basis and the tax basis of assets and liabilities. Deferred tax liabilities are recorded for all taxable temporary differences, and deferred tax assets are recorded for deductible temporary differences, net operating loss carryforwards, and tax credit carryforwards to the extent it is more likely than not that they will be realized.

Deferred tax assets and liabilities are measured using tax rates expected to apply in the periods when the temporary differences reverse, based on tax laws enacted at the reporting date. Deferred tax related to items recognized directly in equity is also recorded in equity.

Deferred tax assets and liabilities are offset when the Company has a legally enforceable right to offset current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and jurisdiction.

*Uncertain Tax Position*

The Company follows the provisions of income tax guidance which provides recognition criteria and a related measurement model for uncertain tax positions taken or expected to be taken in income tax returns. The guidance requires that a position taken or expected to be taken in a tax return be recognized in the financial statements when it is more likely than not that the position would be sustained upon examination by tax authorities. Tax positions that meet the more likely than not threshold are then measured using a probability weighted approach recognizing the largest amount of tax benefit that is greater than 50% likely of being realized upon ultimate settlement. The Company has not recognized any liability for uncertain tax positions as of September 30, 2025 or April 16, 2024 (inception).

**Accounting for Warrants**

The Company accounts for stock-based compensation arrangements with employees and non-employee consultants using a fair value method which requires the recognition of compensation expense for costs related to all stock-based payments, including common stock warrants. As September 30, 2025, each Grid AI warrant was converted into Grid AI common stock.

**Recently Issued Accounting Pronouncements**

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures ("ASU 2023-09"), which includes amendments that further enhance income tax disclosures, primarily through standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. The amendments are effective for all public entities for fiscal years beginning after December 15, 2024. The Company adopted ASU 2023-09 on January 1, 2025 and the adoption did not have a material effect on the Company's financial statement disclosures.

In May 2025, the FASB issued ASU 2025-04, Compensation—Stock Compensation (Topic 718) and Revenue from Contracts with Customers (Topic 606). ASU 2025-04 revises the definition of "performance condition" for share-based consideration payable to a customer, removes the policy election to account for forfeitures as they occur for awards with service conditions, and clarifies that ASC 606 variable consideration guidance does not apply to such awards. This guidance is effective for the Company beginning in the first quarter of 2027, with early adoption permitted, and may be applied on a modified retrospective or retrospective basis. The Company does not currently issue share-based consideration to customers and does not expect the adoption of ASU 2025-04 to have a material impact, but will continue to monitor for applicability.

**GRID AI CORP. AND SUBSIDIARIES**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE PERIOD FROM APRIL 16, 2024 (INCEPTION) TO SEPTEMBER 30, 2025**

In May 2025, the FASB issued ASU 2025-03, Business Combinations (Topic 805) and Consolidation (Topic 810): Determining the Accounting Acquirer in the Acquisition of a Variable Interest Entity. ASU 2025-03 clarifies the determination of the accounting acquirer in certain equity-based acquisitions when the legal acquiree is a variable interest entity ("VIE") that meets the definition of a business. This guidance is effective for the Company beginning in the first quarter of 2027, with early adoption permitted, and must be applied prospectively to relevant transactions. The Company has not entered into such transactions to date and does not expect a material impact upon adoption.

In November 2024, the FASB issued ASU 2024-04, Induced Conversions of Convertible Debt Instruments. This ASU clarifies the requirements for determining whether certain settlements of convertible debt should be accounted for as induced conversions. The guidance is effective for the Company beginning in the first quarter of 2026, with early adoption permitted, and may be applied prospectively or retrospectively. While the Company has outstanding convertible debt, no induced conversions have been undertaken. Management does not expect the adoption of ASU 2024-04 to have a material impact unless future inducement transactions occur.

In November 2024, the FASB issued ASU 2024-03, Income Statement — Reporting Comprehensive Income — Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. This ASU requires additional disclosures of specified expense categories, qualitative descriptions of remaining amounts in expense captions, and disclosure of selling expenses and the Company's definition thereof. This guidance is effective for the Company beginning with the 2027 annual report, with early adoption permitted. The Company is evaluating its reporting processes to ensure compliance with the new disclosure requirements.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. ASU 2023-09 requires expanded disclosures of rate reconciliation categories, significant reconciling items, and disaggregated income taxes paid, net of refunds. The guidance is effective for the Company beginning with the 2025 annual report, with early adoption permitted, and should be applied prospectively, with retrospective adoption also permitted. The Company is evaluating enhancements to its income tax disclosures in preparation for adoption.

Management has reviewed the above standards and, based on the Company's current operations and transactions, does not expect their adoption to have a material impact on the Company's consolidated financial statements.

The Company has evaluated other recently issued accounting pronouncements and has concluded that the impact of recently issued standards that are not yet effective will not have a material impact on the Company's financial position or results of operations upon adoption.

**3. REVENUE**

**Revenue Recognition**

The Company recognizes revenue in accordance with ASC 606, Revenue from Contracts with Customers, which applies a five-step model to determine the timing and amount of revenue recognition.

**GRID AI CORP. AND SUBSIDIARIES**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE PERIOD FROM APRIL 16, 2024 (INCEPTION) TO SEPTEMBER 30, 2025**

The Company generates revenue from software-based energy orchestration services provided through its proprietary platform. These services include monitoring, optimization, dispatch management, and related support services for energy storage systems and distributed energy resources.

**Identification of Performance Obligations**

The Company's contracts with customers primarily consist of Energy Storage System ("ESS") Services Agreements and platform service agreements. Under these arrangements, the Company provides a series of integrated services, including system monitoring, optimization, dispatch management, and platform access. Management has concluded that these services are not distinct within the context of the contract and represent a single performance obligation consisting of a stand-ready obligation to provide continuous services over the contract term.

**Transaction Price**

The transaction price under these agreements generally consists of fixed monthly service fees. In certain arrangements, the Company may also earn variable consideration in the form of revenue-sharing arrangements tied to participation in energy market programs. Such amounts are recognized when it is probable that a significant reversal of revenue will not occur and are typically constrained until the underlying market event occurs and the associated revenue is known.

**Timing of Revenue Recognition**

Revenue is recognized over time as the Company satisfies its performance obligations, as customers simultaneously receive and consume the benefits of the services provided. Revenue is recognized on a ratable basis over the contract term, which reflects the continuous nature of the Company's stand-ready service obligations.

**Principal vs. Agent Considerations**

The Company evaluates whether it acts as principal or agent in its arrangements. The Company has concluded that it acts as principal, as it controls the services prior to transfer to the customer, is primarily responsible for fulfilling the service obligations, and has discretion in establishing pricing. Accordingly, revenue is recognized on a gross basis.

**4. TRADE RECEIVABLE**

As of September 30, 2025, trade receivables of $37,372, had no allowance for credit losses. Other receivable of $138,145 had no allowance for credit losses as of September 30, 2025. As of April 16, 2024 (inception), the Company had $0 trade receivables.

**5. OTHER CURRENT ASSETS**

The following tables disaggregates the balance of other receivables and other current assets on the consolidated balance sheet as of September 30, 2025:

---

| | |
|:---|:---|
| Refundable deposits | 2016 |
| VAT paid on purchases | 203673 |
| GST recoverable | 354 |
|  | $206043 |

---

**GRID AI CORP. AND SUBSIDIARIES**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE PERIOD FROM APRIL 16, 2024 (INCEPTION) TO SEPTEMBER 30, 2025**

**6. INTANGIBLE ASSETS**

As of September 30, 2025, intangible assets were comprised of the following:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Intangible asset** | **Estimated <br> useful life<br> (years)** | **Acquisition date<br> fair value** | **Accumulated<br> amortization** | **Net Book Value at <br> September 30, 2025** |
| DLS developed technology | 10 | $578000 | $(33717) | $544283 |
| AMP developed technology | 10 | 20000 | (1167) | 18833 |
| Customer relationships | 8 | 98000 | (7146) | 90854 |
| Trade name | 10 | 166000 | (9683) | 156317 |
|  |  | $862000 | $(51713) | $810287 |

---

The future remaining amortization expense for the following five years is as follows:

---

| | |
|:---|:---|
| 2025 (remaining) | $22163 |
| 2026 | 88650 |
| 2027 | 88650 |
| 2028 | 88650 |
| 2029 | 88650 |
| Thereafter | 433524 |
|  | $810287 |

---

**7. INCOME TAXES**

The Company files income tax returns in the U.S. federal jurisdiction and various state jurisdictions. Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. Where applicable, the Company records a valuation allowance to reduce any deferred tax assets that it determines will not be realizable in the future.

The Company recognizes the benefit of an uncertain tax position that it has taken or expects to take on income tax returns it files if such tax position is more likely than not to be sustained on examination by the taxing authorities, based on the technical merits of the position. These tax benefits are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate resolution. Although the Company believes that it has adequately reserved for uncertain tax positions (including interest and penalties), it can provide no assurance that the final tax outcome of these matters will not be materially different. The Company makes adjustments to these reserves in accordance with the income tax accounting guidance when facts and circumstances change, such as the closing of a tax audit or the refinement of an estimate. To the extent that the final tax outcome of these matters is different than the amounts recorded, such differences will affect the provision for income taxes in the period in which such determination is made and could have a material impact on the Company's financial condition and operating results. Carryforward attributes that were generated in tax years prior to those that remain open for examination may still be adjusted by relevant tax authorities upon examination if they either have been, or will be, used in a future period.

The Company conducts operations in the United Kingdom and the Czech Republic through its subsidiaries. Income earned in these jurisdictions is subject to local taxation at statutory rates.

**GRID AI CORP. AND SUBSIDIARIES**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE PERIOD FROM APRIL 16, 2024 (INCEPTION) TO SEPTEMBER 30, 2025**

For the period ended September 30, 2025, the provision / (benefit) for income taxes consists of the following:

---

| | |
|:---|:---|
|  | **September 30, 2025** |
| Current: |  |
| &nbsp;&nbsp;&nbsp;Foreign | $122752 |
| Deferred: |  |
| &nbsp;&nbsp;&nbsp;Foreign | (215500) |
| Total | $(92748) |

---

As of September 30, 2025, deferred tax assets and (liabilities) are comprised of:

---

| | |
|:---|:---|
| Deferred Tax Assets |  |
| Net Operating Loss Carryforwards | $936073 |
| Total deferred tax assets before valuation allowance | 936073 |
| Valuation Allowance | (733501) |
| Total deferred tax assets, net of valuation allowance | 202572 |
| Deferred Tax Liabilities |  |
| Intangibles | (202572) |
| Total deferred tax liabilities, net | $— |

---

The reconciliation of the Federal statutory income tax provision to the Company's effective income tax provision is as follows for the periods indicated:

---

| | |
|:---|:---|
| Income tax benefit at statutory rates | 21.00% |
| Change in Valuation Allowance | (13.59)% |
| Foreign Rate Differential | 3.41% |
| Non-controlling interest | (9.10)% |
| Total Tax Expense (Benefit) | 1.72% |

---

At September 30, 2025, the Company had U.S. federal net operating loss ("NOL") carryforwards of $1,387,578, which are indefinite-lived and may be carried forward indefinitely under current U.S. tax law. The Company also had U.K. NOL carryforwards of $2,578,727, which are not subject to expiration under current U.K. tax legislation.

**8. DEFERRED CONSIDERATION PAYABLE**

On September 30, 2025, GridAI, per their original purchase agreement with AMPx UK Holdings, exercised their option to purchase an additional 24% interest in AMPx for $7,000,000 as deferred consideration payable. The deferred consideration payable of $2,000,000 was due to be paid on October 15, 2025. Subsequent to September 30, 2025, the Company paid $750,000 towards the payable, with the remaining balance due June 1, 2026 or within thirty days following the date revenue is first earned by AMPx. The terms of the deferred consideration do not include an interest component. This transaction was recorded as a reduction in non-controlling interest on the consolidated balance sheet recorded on September 30, 2025.

**GRID AI CORP. AND SUBSIDIARIES**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE PERIOD FROM APRIL 16, 2024 (INCEPTION) TO SEPTEMBER 30, 2025**

**9. NOTES PAYABLE**

The Company borrowed $310,000 by issuing two promissory notes payable to third parties on September 11, 2025. The notes bear interest at 2% and mature with accrued interest on the earlier of the Company receiving financing of at least $1.5 million or January, 1 2026. There were no corresponding conversion or covenant provisions. See Note 14 Subsequent Events for further disclosure.

**10. RELATED PARTY TRANSACTIONS**

In the ordinary course of business, the Company enters into transactions with related parties. Related parties include the former owners of AMPX, who retained a non-controlling interest of approximately 24%. As of September 30, 2025, amounts due to related parties totaled $269,898 and primarily relate to advances and operating expenses paid on behalf of the Company. The Company also recorded deferred consideration payable of $7,000,000 to the former controlling owners of AMPX in connection with the acquisition, which is considered a related party transaction.

**11. BUSINESS ACQUISITION**

On February 28, 2025, the Company acquired 51% interest in AMPx limited for $500,000. The acquisition is expected to give the Company access to grid-edge technology focused on developing software platforms that support the optimization and management of electrical loads and distributed energy resources. The transaction was accounted for under the acquisition method of accounting in accordance with ASC 805. The Company has performed a preliminary allocation of the purchase price to the identifiable assets acquired and liabilities assumed. The allocation is based on management's initial estimates of the fair values as of the acquisition date. In accordance with ASC 805, the Company may record adjustments to the provisional amounts during the measurement period, which ends no later than one year from the acquisition date. Goodwill acquired in the acquisition represents the excess of purchase consideration over the fair value of net assets acquired and is primarily attributable to the assembled workforce, which does not qualify for separate recognition.

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:

---

| | |
|:---|:---|
|  | Amount |
| Cash paid | $500000 |
| **Purchase consideration** | $**500000** |

---

**GRID AI , CORP. AND SUBSIDIARIES**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE PERIOD FROM APRIL 16, 2024 (INCEPTION) TO SEPTEMBER 30, 2025**

---

| | |
|:---|:---|
| **Assets acquired:** | |
| Cash and cash equivalents | $375569 |
| Accounts receivable | 301971 |
| Developed technology | 598000 |
| Customer relationship | 98000 |
| Trade name | 166000 |
| Goodwill | 225001 |
| Total assets | $1764541 |
| **Liabilities assumed:** |  |
| Accounts payable and accrued expenses | 768041 |
| Deferred tax liability | 215500 |
| Total liabilities | $983541 |
| **Net assets acquired** | 781000 |
| Non-controlling interest | 281000 |
| **Purchase consideration** | $**500000** |

---

As part of the acquisition, the Company acquired intangible assets, which are included in the developed technology, customer relationships, and tradename line items on the consolidated balance sheet as of September 30, 2025. See Note 6 - Intangible Assets for more information on estimated useful lives and fair values.

**12. OPERATING LEASES**

As of September 30, 2025, the Company leases office space under a short-term operating lease with a term of 6 months. The lease qualifies as a short-term lease, and therefore, no ROU asset or lease liability is recorded on the balance sheet.

Lease payments under the short-term lease are recognized on a straight-line basis as lease expense within general and administrative expenses in the statement of income. Total lease expense for the from inception to the period ended September 30, 2025 was $30,344.

**13. STOCKHOLDERS' EQUITY**

The Company has Common stock with $0.01 par value, 100,000,000 authorized, 38,000,000 issued and outstanding as of September 30, 2025. During the period ended September 30, 2025, the Company converted 2,491,232 of outstanding warrants into 5,726,600 to common shares of the Company. The warrants contained conversion terms to convert into common shares at a ratio of one warrant to one common share. Upon conversion of the warrants on September 30, 2025, the warrants converted at a ratios of 2.11 to 2.30 which was treated as a modification and resulted in a deemed dividend to the warrant holders for the excess shares. The deemed dividend was a charge to APIC and resulted in no additional compensation expense as the Company was in a retained deficit position at conversion. In addition, the Company recognized stock-based compensation expense of $1,043,396 for 521,698 warrants issued to employees and third parties that were vested at issuance. The Company also issued 1,448,968 warrants for cash of $4,168,479 to investors, in which $447,935 recorded as subscription receivable for cash received on October 1, 2025. Each warrant was valued at $2.00 per warrant based on the value that warrants were sold to third parties.

**GRID AI , CORP. AND SUBSIDIARIES**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE PERIOD FROM APRIL 16, 2024 (INCEPTION) TO SEPTEMBER 30, 2025**

**14. SUBSEQUENT EVENTS**

The notes payable due on the earlier of January 1, 2026 or the date the Company receives financing of at least $1.5 million were canceled on February 23, 2026. The Company and the lenders agreed that the notes proceeds of $310,000 could be used to pay the exercise price for warrants that were issued to the lenders in a separate transaction. There was a de minimis accrued interest associated with the notes payable.

On September 30, 2025, the Company was acquired by Grid AI Technologies Corp, publicly owned entity, pursuant to the terms of a Share Exchange Agreement (the "Grid AI Agreement") dated September 30, 2025. Under the terms of the Grid AI Agreement, each Seller transferred to Grid AI Technologies Corp all of the issued and outstanding shares of the Company in exchange for the portion of the equity interests of the Grid AI Technologies Corp. The combined fair value of the equity consideration issued to the Sellers was estimated at $27.1 million, consisting of $2.1 million attributable to the common stock issued and $25.0 million attributable to the Series H Preferred Stock. No cash consideration was paid.

## Exhibit 99.2

**Exhibit 99.2**

**GRID AI TECHNOLOGIES CORP.**

**Pro Forma Consolidated Balance Sheets (unaudited)**

**As of September 30, 2025**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Grid AI<br> Technologies<br> Corp**<br>**September 30,<br> 2025** | **GridAI, Corp**<br>**September 30,<br> 2025** | **Adjustments**<br>**September 30,<br> 2025** |  | **Consolidated**<br>**September 30,<br> 2025** |
| **ASSETS** |  |  |  |  |  |
| Current Assets: |  |  |  |  |  |
| Cash and cash equivalents | $2180789 | $332969 |  |  | $2513758 |
| Subscription receivable |  | 447935 |  |  | 447935 |
| Trade receivable |  | 37372 |  |  | 37372 |
| Prepaid expenses | 98175 | 11125 |  |  | 109300 |
| Assets of disposal group held-for-sale | 83170009 |  |  |  | 83170009 |
| Other receivables |  | 138145 |  |  | 138145 |
| Other current assets |  | 206043 |  |  | 206043 |
| Total Current Assets | 85448973 | 1173589 |  |  | 86622562 |
| Other Assets: |  |  |  |  |  |
| Developed technology, net |  | 563116 | 18002884 | Note 3 | 18566000 |
| Customer relationships |  | 90854 | 2215146 | Note 3 | 2306000 |
| DLS developed technology |  |  | 727000 | Note 3 | 727000 |
| Trade name |  | 156317 | 656683 | Note 3 | 813000 |
| Goodwill | 1684182 | 225001 | 18911030 | Note 4 | 19136031 |
| Investment GridAI | 27110586 |  | (27110586) | Note 5 |  |
| Deposits | 49122 |  |  |  | 49122 |
| Total Other Assets | 28843890 | 1035288 | 11808829 |  | 41688007 |
| Total Assets | $114292863 | $2208877 | $11808829 |  | $128310569 |
| **LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)** |  |  |  |  |  |
| Current Liabilities: |  |  |  |  |  |
| Accounts payable | $3474909 | $1079668 |  |  | $4554577 |
| Accrued expenses | 410324 |  |  |  | 410324 |
| Deferred consideration- short term |  | 7000000 |  |  | 7000000 |
| Accrued dividend payable | 1564753 |  |  |  | 1564753 |
| Line of credit | 700000 | 310000 |  |  | 1010000 |
| Operating lease liabilities - current | 135609 |  |  |  | 135609 |
| Liabilities held-for-sale | 23672708 |  |  |  | 23672708 |
| Income tax payable |  | 71140 |  |  | 71140 |
| Due to related party |  | 269898 |  |  | 269898 |
| Other current liabilities | 59482 |  |  |  | 59482 |
| Total Liabilities | 30017785 | 8730706 |  |  | 38748491 |
| Mezzanine Equity: |  |  |  |  |  |
| Series G preferred stock- Par value $0.0001 per share; 13,000 shares designated; 12,373.226 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively. | 61681100 |  |  |  | 61681100 |
| Stockholders' Equity (Deficit): |  |  |  |  |  |
| Series B preferred stock- Par value $0.0001 per share; 1,731.6 shares authorized; 475.56 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively. | 255 |  |  |  | 255 |
| Series C preferred stock- Par value $0.0001 per share; 25,000 shares authorized; 0 shares issued and outstanding at September 30, 2025 and December 31, 2024. |  |  |  |  |  |
| Series D preferred stock- Par value $0.0001 per share; 50 shares designated; 0 shares issued and outstanding at September 30, 2025 and December 31, 2024. |  |  |  |  |  |
| Series E preferred stock- Par value $0.0001 per share; 50 shares designated; 0 shares issued and outstanding at September 30, 2025 and December 31, 2024. |  |  |  |  |  |
| Series F preferred stock- Par value $0.0001 per share; 2,333 shares designated; 0 shares issued and outstanding at September 30, 2025 and December 31, 2024. | , |  |  |  |  |
| Series H preferred stock-Par value $0.0001 per share, 38,801.546 shares designated and 28,604.5 shares issued and outstanding at September 30, 2025 and 0 at December 31, 2024 | 4 |  |  |  | 4 |
| Common stock - Par value $0.0001 per share; 100,000,000 shares authorized; 2,547,147 and 1,584,650 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively. |  | 380000 | (380000) | Note 6 |  |
| Additional paid-in capital | 228392426 |  |  |  | 228392426 |
| Accumulated deficit | (205798707) | (5508419) | 5508419 | Note 6 | (205798707) |
| Cumulative translation adjustment |  | 237047 | (237047) | Note 6 |  |
| Non-controlling interest |  | (1630457) | 6917457 | Note 7 | 5287000 |
| Total Stockholders' Equity (Deficit) | 22593978 | (6521829) | 11808829 | Note 6 | 27880978 |
| Total Liabilities, Mezzanine Equity and Stockholders' Equity (Deficit) | $114292863 | $2208877 | $11808829 |  | $128310569 |

---

**GRID AI TECHNOLOGIES CORP.**

**Pro Forma Consolidated Statement of Operations (unaudited)**

**For the period January 1, 2025 to September 30, 2025**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **GridAI<br> Technologies Corp<br> September 30,<br> 2025** | **Grid AI Corp<br> September 30,<br> 2025** | **Adjustments** |  | **Combined<br> ProForma** |
| Revenue | $— | $138697 |  |  | $138697 |
| Operating expenses: |  |  |  |  |  |
| Cost of services |  | 320548 |  |  | 320548 |
| Research and development expenses | 32080 |  |  |  | 32080 |
| General and administrative expenses | 2362967 | 4957068 | 1672425 | Note 8 | 8992450 |
| Total operating expenses | 2395037 | 5277616 | 1672425 |  | 9345078 |
| Loss from operations | (2395037) | (5138919) | (1672425) |  | (9174301) |
| Other (expense) income: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest income (expense), net | (90037) |  |  |  | (90037) |
| &nbsp;&nbsp;&nbsp;Foreign exchange loss |  | (202761) |  |  | (202761) |
| &nbsp;&nbsp;&nbsp;Other income (expense), net | (108818) | 1515 |  |  | (107303) |
| &nbsp;&nbsp;&nbsp;Financing costs |  | (4334) |  |  | (4334) |
| Total other income (expense) | (198855) | (205580) |  |  | (404435) |
| Current tax benefit |  | (92748) |  |  | (92748) |
| Loss from continued operations | $(2593892) | $(5251751) | $(1672425) |  | $(9518068) |
| &nbsp;&nbsp;&nbsp;Loss from discontinued operations net of tax | (816808) |  |  |  | (816808) |
| Net loss | $(3410700) | $(5251751) | $(1672425) |  | $(10589048) |
| &nbsp;&nbsp;&nbsp;Preferred stock dividends | (254172) |  |  |  | (254172) |
| Net loss applicable to common shareholders | $(3664882) | $(5251751) | $(1672425) |  | $(10598048) |
| Weighted average shares outstanding, basic and diluted | 1609863 |  | 424348 |  | 2034211 |
| Loss per share, basic and diluted | $(2.28) |  |  |  | $(5.21) |
| Loss per share from discontinued operations, basic and diluted | $(0.51) |  |  |  | $(0.40) |

---

**Note 1 – Basis of Presentation**

The unaudited pro forma condensed consolidated balance sheet as of September 30, 2025 gives effect to the acquisition of Grid AI Corp. ("GridAI") as if the transaction had occurred on September 30, 2025. The unaudited pro forma condensed consolidated statements of operations for the period from January 1, 2025 to September 30, 2025 reflect the combined results of the Company and GridAI for such period. GridAI's substantive operations commenced on February 28, 2025; accordingly, no material operating activity is reflected for GridAI prior to that date, consistent with the financial statement footnote disclosure.

**Note 2 – Purchase Price Allocation**

The acquisition has been accounted for as a business combination under ASC 805. The preliminary purchase price allocation resulted in the recognition of identifiable intangible assets and goodwill as follows:

&nbsp;&nbsp;&nbsp;&nbsp;· Developed technology: $18,566,000

&nbsp;&nbsp;&nbsp;&nbsp;· Customer relationships: $2,306,000

&nbsp;&nbsp;&nbsp;&nbsp;· DLS developed technology: $727,000

&nbsp;&nbsp;&nbsp;&nbsp;· Trade name: $813,000

&nbsp;&nbsp;&nbsp;&nbsp;· Goodwill: $17,542,703

These amounts represent the excess of purchase consideration over the fair value of identifiable net assets acquired.

**Note 3 – Intangible Asset Adjustments**

The pro forma adjustments reflect the recognition of intangible assets to their estimated fair values in accordance with ASC 805. These adjustments adjust the carrying value of intangible assets to the following fair values as determined in the purchase price allocation:

&nbsp;&nbsp;&nbsp;&nbsp;· Developed technology: $18,566,000

&nbsp;&nbsp;&nbsp;&nbsp;· Customer relationships: $2,306,000

&nbsp;&nbsp;&nbsp;&nbsp;· DLS developed technology: $727,000

&nbsp;&nbsp;&nbsp;&nbsp;· Trade name: $813,000

These amounts are reflected within "Developed technology, net," "Customer relations," and "Trade name" in the pro forma balance sheet.

**Note 4 – Goodwill Recognition**

Goodwill of $17,542,703 represents the excess of the purchase consideration over the fair value of identifiable net assets acquired. The goodwill recognized is primarily attributable to expected synergies, assembled workforce, and future economic benefits from GridAI.

**Note 5 – Elimination of Investment in GridAI**

The pro forma adjustments include the elimination of the historical investment in GridAI of $27,110,586, which is replaced by the underlying assets and liabilities of GridAI in consolidation.

**Note 6 – Equity Adjustments**

The pro forma adjustments reflect:

&nbsp;&nbsp;&nbsp;&nbsp;· Elimination of GridAI historical equity balances, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Additional paid-in capital: $(4,831,875)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Accumulated deficit: $3,289,116

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Cumulative translation adjustment: $(240,078)

&nbsp;&nbsp;&nbsp;&nbsp;· Recognition of non-controlling interest of $5,287,000 representing the portion
of GridAI not acquired.

**Note 7 – Non-Controlling Interest**

The pro forma balance sheet reflects non-controlling interest of $5,287,000, representing the equity interest retained by minority shareholders in GridAI following the acquisition.

**Note 8– Intangible Asset Amortization**

The pro forma adjustment of $1,672,425 reflects incremental amortization expense related to the identifiable intangible assets recognized in the acquisition of GridAI, as if the acquisition had occurred on January 1, 2025. This adjustment is reflected within general and administrative expenses in the unaudited pro forma condensed consolidated statement of operations.

This adjustment represents the difference between amortization based on the preliminary fair values assigned to the acquired intangible assets and the historical amortization recorded by GridAI and is reflected within general and administrative expenses.

## Exhibit 99.3

**Exhibit 99.3**

**Business Description**

Grid AI Corp. ("Grid AI" or the "Company") develops software and services designed to accelerate power availability and optimize energy infrastructure for artificial intelligence (AI) data centers and other large energy users. The Company is currently in the development stage of an AI data center platform. This platform aims to use and optimize distributed energy resources, including battery energy storage systems, on-site generation, and grid interconnections. Currently, there is no revenue generated from this AI data center platform. The Company's commercial pipeline has recently been re-established and is continuing to develop through consulting-led engagements and targeted business development initiatives. Current discussions are primarily with battery energy storage system (BESS) providers and energy infrastructure participants, including companies such as Mango Power and Nomad Transportable Power Systems. While prior trial deployments, including in Australia, have not yet resulted in significant commercial revenue, these efforts have informed management's strategy to focus on lower-friction, near-term opportunities that can be pursued with limited incremental cost. Market conditions vary significantly by geography, and the Company is prioritizing regions and use cases where its platform can be more readily adopted.The Company does not have any major customers at the present time and in the future aims to primarily serve AI data center developers, hyperscalers (large-scale cloud service providers that operate extensive computing, storage, and networking infrastructure to support enterprise applications and AI workloads), and energy infrastructure developers in North America and Australia.

Notwithstanding the early-stage nature of commercialization, the Company continues to prioritize development of its data center energy orchestration platform, which remains its core strategic focus and is expected to serve as the foundation for future revenue generation.

GridAI is a wholly owned subsidiary of GridAI Technologies, Inc.

**Legacy Technologies**

Prior to GridAI's acquisition of AMP X UK Holdings ("AMP X") in February 2025, AMP X had developed and operated two principal technology platforms focused on residential and distributed energy management: DLS developed technology and ALICE Home Energy Management Systems (HEMS). While the Company currently supports these technologies, there is very minimal revenue and the Company's current focus is on data centers. DLS (Dynamic Load Shaping) is the Company's front-of-meter optimization platform designed to manage and optimize large-scale distributed energy resources, such as utility-scale battery energy storage systems and solar arrays, by determining when to charge, hold, or discharge energy based on market and grid conditions.

ALICE is the Company's home energy management system (HEMS) platform, which enables residential users to optimize energy usage across devices such as batteries, solar systems, and household appliances through data-driven orchestration.

While historical deployments and trial activity, including in Australia, have not yet resulted in significant commercial revenue, management believes these efforts have provided valuable operational insight and market feedback that inform the Company's current strategy. The Company is actively evaluating lower-friction, near-term commercial opportunities related to these technologies, which may be pursued on a limited, low-cost basis as part of its broader development efforts.

Management has not assumed that all previously contemplated pipeline opportunities related to these legacy platforms will be realized; however, based on current market dynamics and increasing demand for energy optimization solutions, management believes it is reasonable that certain opportunities, including those that may be delayed, could be achieved. Accordingly, management continues to monitor the commercial viability of these platforms and incorporate such assessments into its broader strategic planning and impairment analyses.

**Strategic Pivot and Operational Restructuring**

Following its acquisition of Amp X, Grid AI assessed the commercial viability of the above platform offerings, in particular the potential for ALICE. This assessment was informed through discussions with potential customers, investors active in the sector (including venture capital and private equity firms), and executives of adjacent companies and competitors, as well as feedback from trial deployments. Based on this outreach and market feedback, management determined that, while customers recognized the technical capabilities of the platform, many were unwilling to replace existing deployed systems that were viewed as sufficiently effective.The Company is currently re-evaluating these opportunities across different geographic markets, including the United States, United Kingdom, and Australia, where market conditions, customer needs, and adoption dynamics may differ from prior deployments.

Following the above assessment, management initiated a strategic pivot in 2025:

&nbsp;&nbsp;&nbsp;&nbsp;· Reduced headcount to lower cash burn

&nbsp;&nbsp;&nbsp;&nbsp;· Scaled back DLS and Alice to minimum support levels

&nbsp;&nbsp;&nbsp;&nbsp;· Focused on new technology in a fundamentally new market: energy orchestration
for hyperscale AI data center campuses

This pivot represents a significant shift in both market focus and technological architecture.

**AI Data Center Developed Technology**

Following GridAI's acquisition of AMP X in February 2025, Grid AI commenced development of a new technology platform focused on AI-optimized energy orchestration for large-scale data center campuses.

The Company plans to generate revenue from its AI data center platform through:

· Base platform fees for operational visibility and orchestration<br> · Performance-based fees tied to power cost optimization

The platform is designed to deliver AI-optimized infrastructure by integrating data center operations with advanced energy systems. Core functionality includes data integration across site-level assets (including engines, battery systems, substations, and building systems), real-time monitoring through a centralized "single pane of glass" dashboard, historical data access, and reporting capabilities.

The platform also incorporates a proprietary digital twin model of each site, enabling simulation of energy usage, asset behavior, and grid interactions under various scenarios. This is supported by forecasting models for load, generation, and market conditions, which inform optimization decisions.

Based on management's experience to date, including discussions with data center operators, energy infrastructure participants, and industry consultants, the Company has not identified a direct competitor offering an equivalent fully integrated solution combining data center orchestration and energy optimization at scale; however, the Company operates in a broader competitive landscape that includes partial or adjacent solutions.

In addition, the platform includes a co-optimization engine that participates in energy markets (including day-ahead, real-time, and reserve markets, where applicable) while prioritizing uninterrupted data center operations. An orchestration control layer ensures that energy assets operate in accordance with both market commitments and the operational requirements of the data center.

Target customers include enterprise and government entities operating large data center campuses.

Based on current projections:

· A majority of the Company's projected 2026 revenues are expected to be derived from the AI data center technology.

· The contribution from this platform is expected to increase substantially in subsequent years.

The Company markets its legacy technologies and intends to pursue commercial deployment of its AI data center platform through direct sales and strategic partnerships with energy developers, system integrators, engineering firms, and other industry participants. The Company has commenced early-stage development activities related to its data center orchestration platform in connection with a potential future deployment at a customer site. As of the date of this Current Report on Form 8-K, the platform has not yet been commercially deployed. Initial development and integration activities are ongoing, and any future commercial deployment will depend on the progress of customer projects, including construction and operational readiness milestones, as well as the availability of customer funding.

**Competition**

The Company operates in a competitive and rapidly evolving market that includes energy management software providers, virtual power plant ("VPP") platforms, battery system integrators, utilities, engineering firms, and in-house customer-developed solutions. The Company also competes with emerging technology providers focused on distributed energy resource optimization and artificial intelligence-driven grid management.

Competition is driven by several factors, including software functionality, scalability, interoperability with third-party hardware and market platforms, speed of deployment, regulatory expertise, customer relationships, and pricing. The Company's solutions must integrate with a wide range of third-party systems, including batteries, control systems, and energy market infrastructure, which are often not standardized and may change over time.

The markets in which the Company operates are highly competitive and include both established industry participants with significant financial, technical, and commercial resources, as well as new entrants seeking to capitalize on the growth of distributed energy and AI-driven energy optimization. Some competitors offer vertically integrated solutions, including hardware, software, and energy services, while others provide point solutions that compete with specific components of the Company's platform.

The Company's ability to compete successfully depends on its ability to continue to innovate, expand its platform capabilities, maintain reliable system performance, and effectively execute its go-to-market strategy. The Company also competes based on its ability to convert pilot programs and non-binding arrangements into long-term commercial contracts, scale deployments across multiple jurisdictions, and adapt to evolving regulatory frameworks and market rules.

In addition, customers may elect to develop in-house energy management systems or partner with alternative providers, which may reduce demand for the Company's solutions. As a result, the Company may face pricing pressure, longer sales cycles, and increased customer acquisition costs. If the Company is unable to compete effectively, it may lose market share, which could adversely affect its business, operating results, and financial condition.

**Sources and Availability of Raw Materials**

The Company's business is primarily software-based and does not rely on raw materials. Customer deployments may depend on third-party equipment and services, including battery systems, generation assets, and grid infrastructure.

**Dependence on Major Customers**

The Company is in an early stage of commercialization and expects that a limited number of customers may account for a significant portion of revenue in the near term. Amp Z is a current customer with whom the Company has been engaged in ongoing collaboration since October 1, 2025; however, as of the date of this report, the parties remain under a letter of intent and have not yet finalized a definitive commercial agreement. The Company has not generated material revenue from Amp Z to date. Accordingly, the Company does not have any major customers at the present time.

**Patents, Trademarks, and Agreements**

The Company relies on proprietary software, trade secrets, trademarks, and contractual protections. The Company does not currently rely on material labor agreements.

**Government Approvals**

The Company's software platform itself generally does not require direct government approvals to operate. However, the Company's solutions are deployed within regulated energy markets and are therefore indirectly subject to a range of federal, state, and local regulatory requirements.

Customer deployments may require regulatory approvals, permits, interconnection agreements, and market participation approvals, which are typically obtained by customers, utilities, or project partners. These approvals may relate to grid interconnection, participation in wholesale electricity markets, local permitting, and compliance with applicable energy regulations.

The Company's platform is designed to operate within complex and evolving regulatory frameworks, including those governing distributed energy resources, virtual power plants, and wholesale market participation. Changes in laws, regulations, market rules, or regulatory interpretations could impact the ability of customers to deploy the Company's solutions, participate in energy markets, or realize the expected economic benefits of the platform.

In addition, the Company relies on integrations with third-party systems and market operators, including utilities, grid operators, and energy market platforms, which are themselves subject to regulatory oversight. Delays in obtaining required approvals, changes in regulatory requirements, or limitations imposed by regulators or market operators could adversely affect the Company's business, operating results, and financial condition.

**Effect of Government Regulation**

The Company operates in regulated energy markets. Regulatory changes affecting energy storage, distributed energy resources, interconnection, or energy markets could impact the Company's business.

**Environmental Compliance**

The Company's operations are primarily software-based and are not expected to incur material environmental compliance costs. Customer projects may be subject to environmental regulations that could affect project timing.

**Employees**

As of April 13, 2026, the Company had 18 full-time employees.

**Risks Related to Our Business and Industry**

***Our limited operating history makes evaluating our business and prospects difficult.***

Prior to GridAI's acquisition of AMP X UK Holdings ("AMP X") in February 2025, AMP X had developed and operated two principal technology platforms focused on residential and distributed energy management: DLS developed technology and ALICE Home Energy Management Systems (HEMS). While the Company currently supports these technologies, there is very minimal revenue and the Company's current focus is on data centers. While we are looking to develop a data center platform, we have a limited history operating our business at its current scale and under our current strategy, and therefore a limited history upon which you can base an investment decision.

Further, the company's ability to execute its business plan depends on successfully completing customer deployments, integrating with third-party hardware and software systems, and scaling its platform and personnel. Delays in implementation, customer adoption, or integration with external systems could adversely affect operating results. Our operating results may fluctuate significantly, which could make our future results difficult to predict and could cause our operating results to fall below expectations.

***The distributed generation industry is emerging and our distributed generation offerings may not receive widespread market acceptance.***

The implementation and use of distributed generation at scale is still not widespread, and we cannot be sure that any potential customers will accept our services and solutions broadly. Enterprises may be unwilling to adopt our offerings over traditional or competing power sources for any number of reasons, including the perception that our technology is unproven, lack of confidence in our business model, unavailability of back-up service providers to operate and maintain the energy storage systems, and lack of awareness of our related products and services. Because this is an emerging industry, broad acceptance of our products and services is subject to a high level of uncertainty and risk. If the market develops more slowly than we anticipate, our business may be adversely affected.

***If renewable energy technologies are not suitable for widespread adoption, or if sufficient demand for our software-enabled services does not develop or takes longer to develop than we anticipate, we may not be able to generate sufficient revenue or revenue at all to be financially successful.***

The market for renewable, distributed energy generation is emerging and rapidly evolving, and its future success is uncertain. If renewable energy generation proves unsuitable for widespread commercial deployment or if demand for our renewable energy products and services fails to develop sufficiently, our revenue, market share and profitability would be adversely impacted.

Many factors may influence the widespread adoption of renewable energy generation and demand for our products and services, including, but not limited to the cost-effectiveness of renewable energy technologies as compared with conventional and competitive technologies, the performance and reliability of renewable energy products as compared with conventional and non-renewable products, fluctuations in economic and market conditions that impact the viability of conventional and competitive alternative energy sources, increases or decreases in the prices of oil, coal and natural gas, continued deregulation of the electric power industry and broader energy industry, and the availability or effectiveness of government subsidies and incentives. You should consider our prospects in light of the risks and uncertainties emerging companies encounter when introducing new products and services into a nascent industry.

***Our market estimates and assumptions may prove inaccurate.***

While we anticipate being able to generate revenue and garnering customers, market estimates and growth forecasts are subject to significant uncertainty and are based on assumptions and estimates that may prove to be inaccurate. Even if the markets in which we compete meet our size estimates and forecasted growth, our business could fail to grow at similar rates, if at all. The assumptions relating to our market opportunities include, but are not limited to (i) general declines in the cost of renewable energy generation assets; (ii) growing deployment of renewable energy assets and energy storage systems; and (iii) continued complexity of the electrical grid and resulting demand for stability and resiliency. Our expected market opportunities are also based on the assumption that our existing and future offerings will be more attractive to our customers and potential customers than competing products and services. If these assumptions prove inaccurate, our business, financial condition and results of operations could be adversely affected.

***We expect to face significant competition in our industry.***

We expect to face significant competition in our industry and market. The Company operates in a competitive and rapidly evolving market that includes energy management software providers, virtual power plant ("VPP") platforms, battery system integrators, utilities, engineering firms, and in-house customer-developed solutions. The Company also competes with emerging technology providers focused on distributed energy resource optimization and artificial intelligence-driven grid management.

Competition is driven by several factors, including software functionality, scalability, interoperability with third-party hardware and market platforms, speed of deployment, regulatory expertise, customer relationships, and pricing. The Company's solutions must integrate with a wide range of third-party systems, including batteries, control systems, and energy market infrastructure, which are often not standardized and may change over time.

The markets in which the Company operates are highly competitive and include both established industry participants with significant financial, technical, and commercial resources, as well as new entrants seeking to capitalize on the growth of distributed energy and AI-driven energy optimization. Some competitors offer vertically integrated solutions, including hardware, software, and energy services, while others provide point solutions that compete with specific components of the Company's platform.

The Company's ability to compete successfully depends on its ability to continue to innovate, expand its platform capabilities, maintain reliable system performance, and effectively execute its go-to-market strategy. The Company also competes based on its ability to convert pilot programs and non-binding arrangements into long-term commercial contracts, scale deployments across multiple jurisdictions, and adapt to evolving regulatory frameworks and market rules.

We cannot assure that we will be able to compete successfully with other players in the market. In such event, our business may be negatively impacted.

***We plan to use artificial intelligence in our business, and challenges with properly managing its use could result in harm to our brand, reputation, business or customers, and adversely affect our results of operations.***

We plan to use AI-enabled software and services offerings and incorporating AI in internal tools that support our business. This emerging technology presents a number of risks inherent in its use. AI algorithms are based on machine learning and predictive analytics, which can create accuracy issues, unintended biases, and discriminatory outcomes that could harm our brand, reputation, business, or customers. Additionally, no assurance can be made that the usage of AI will assist us in being more efficient or offset the costs of its implementation. Further, dependence on AI to make certain business decisions may introduce additional operational vulnerabilities by producing inaccurate outcomes, recommendations, or other suggestions based on flaws in the underlying data or other unintended results. Our competitors or other third parties may incorporate AI into their business, services, and products more rapidly or more successfully than us, which could hinder our ability to compete effectively and adversely affect our results of operations. Implementing the use of AI successfully, ethically and as intended, will require significant resources. In addition, the use of AI may increase regulatory, cybersecurity, and data privacy risks, such as intended, unintended, or inadvertent transmission of proprietary or sensitive information. The technologies underlying AI and their use cases are rapidly developing, and it is not possible to predict all of the legal, operational or technological risks related to the use of AI. Our obligation to comply with emerging AI initiatives, laws, and regulations, including under proposed or enacted legislation regulating AI in jurisdictions such as the U.S. and European Union, could entail significant costs, negatively affect our business, or limit our ability to incorporate certain AI capabilities into our business.

***Our future growth will depend on developing and commercializing our AI data center platform.***

Following GridAI's acquisition of AMP X in February 2025, Grid AI commenced development of a new technology platform focused on AI-optimized energy orchestration for large-scale data center campuses. However, as of today, this platform is still in an early stage of commercialization and has not been deployed. We cannot assure that this platform will ever be successfully deployed. In such event, our business may be unable to achieve anticipated financial growth.

Furthermore, we may also introduce new technologies or products that do not work in the future, are not delivered on a timely basis, are not developed according to product and/or cost specifications, or are not well received by customers. There may be fewer opportunities than we expect due to a decline in business or economic conditions or a decreased demand in these markets or for our new products from our expectations, our inability to successfully execute our sales and marketing plans, or for other reasons. In addition to our current growth opportunities, our future growth may be reliant on our ability to identify and develop potential new growth opportunities. This process is inherently risky and may result in investments in time and resources for which we do not achieve any return or value. These risks are enhanced by attempting to introduce multiple breakthrough technologies and products simultaneously.

Our growth opportunities and those opportunities we may pursue are subject to rapidly changing and evolving technologies and industry standards, and may be replaced by new technology concepts or platforms. If we do not develop innovative and reliable product offerings and enhancements in a cost-effective and timely manner that are attractive to customers in these markets; if we are otherwise unsuccessful in competing in these new product categories; if the new product categories in which we invest our limited resources do not emerge as expected or do not produce the growth or profitability we expect, or when we expect it, or if we do not correctly anticipate changes and evolutions in technology and platforms, our business and results of operations may be adversely affected.

**Risks Relating to Our Operations**

***Our business strategy may not achieve anticipated benefits. Our failure to do so could adversely affect our business, financial condition, and results of operations.***

The Company plans to generate revenue from its AI data center platform through base platform fees for operational visibility and orchestration and performance-based fees tied to power cost optimization. Target customers include enterprise and government entities operating large data center campuses.

The Company has initiated development of its data center orchestration platform in connection with a potential future deployment at a customer site. Initial development and integration activities are underway. As of the date of this report, the platform has not yet been commercially deployed.

Any future commercial deployment is expected to occur as customer projects progress through construction and operational readiness milestones. The timing and extent of such deployment will depend on a number of factors, including project development timelines and the availability of customer funding. There can be no assurance that the platform will be successfully commercialized. Customer acceptance of our software and service offerings is critical to our future success. We cannot assure that customers will be attracted to our platform and software solutions. If market demand for the types of AI-driven energy software and services we are developing and will seek to develop in the future does not grow as anticipated, or if competitors offer more attractive products, our revenue growth and market position could be adversely affected. As with all software offerings, there is also a risk that our solutions could be vulnerable to cybersecurity threats or contain errors, bugs, or other issues affecting their functionality, which could negatively affect customer satisfaction and adoption.

In addition, continuing to execute on the new strategy requires investment in new capabilities and resources, particularly in software development, data management, and AI. We may face challenges in recruiting, retaining, and training employees who have the necessary skill sets to support our new business model. A failure to build or acquire these capabilities in a timely manner could delay the successful execution of the strategy and weaken our competitive position.

***We currently have no major customers.***

We have no major customers. Even if we acquire customers in the future, the loss of any one of our significant customers, their inability to perform under their contracts, their termination or failure to renew their contracts with us, or their default in payment could cause our revenue and our working capital to decline materially. We cannot assure that we will be successful in acquiring or retaining customers in the future. In such event, we may be unable to generate revenue, and our business, results of operations and financial condition could be materially and adversely affected.

***If we are unable to attract and retain key employees and hire qualified management, technical, engineering and sales personnel, our ability to compete and successfully grow our business could be adversely affected.***

We believe that our success and our ability to reach our strategic objectives are highly dependent on the contributions of our key management, technical, engineering, and finance personnel. Key leaders include Marshall Chapin, Mike Krastev and Vaclav Moulis. Executive leadership and senior management transitions, reductions in workforce and employee turnover can be time-consuming, difficult to manage, create instability, cause disruption to our business and result in the loss of institutional knowledge. Any of these outcomes could impede the execution of our day-to-day operations and our ability to fully implement our business strategy. These effects could also make it more difficult to attract and retain talent. The failure to successfully hire and retain key executives and employees or the further loss of any key executives, senior management or employees could have a significant impact on our operations, including declining product identity and competitive differentiation, eroding employee morale and productivity or an inability to maintain internal controls, regulatory or other compliance related requirements, any and all of which could in turn adversely impact our business, financial condition, and results of operations.

In addition, our ability to manage our growth effectively, including our ability to expand our market presence, is impacted by our ability to successfully retain our management team, and hire and train new personnel. Our success in hiring, attracting and retaining senior management and other experienced and highly skilled employees will depend in part on our ability to provide competitive compensation packages and a high-quality work environment and maintain a desirable corporate culture. To help attract, retain, and motivate qualified employees, we use stock-based awards, such as restricted stock units and performance-based cash incentive awards, and in the case of our executive officers, we also use performance stock units. Further sustained declines in our stock price, or lower stock price performance relative to our competitors, can further reduce the retention value of our stock-based awards. We may not be able to attract, integrate, train, motivate or retain current or additional highly qualified personnel, and our failure to do so could adversely affect our business, financial condition and operating results.

Furthermore, there is continued and increasing competition for talented individuals in our field. In addition to longstanding competition for highly skilled and technical personnel, we face increased competitive pressures and employee cost inflation in tighter labor markets. Industry competition and cross-industry labor market pressures may negatively affect our ability to attract and retain our executive officers and other key technology, sales, marketing and support personnel and drive increases in our employee costs, both of which could adversely affect our business, financial condition and results of operations.

***Any failure to offer high-quality technical support services may adversely affect our relationships with our customers and adversely affect our financial results.***

Our customers depend on our support organization to resolve any technical issues relating to our hardware and software-enabled services. In addition, our sales process is highly dependent on the quality of our software and service offerings, on our business reputation and on strong recommendations from our existing customers. Any failure to maintain high-quality and highly-responsive technical support, or a market perception that we do not maintain high-quality and highly-responsive support, could adversely affect our reputation, our ability to sell our products to existing and prospective customers, and our business, financial condition and results of operations.

We offer technical support services with our software and service offerings and may be unable to respond quickly enough to accommodate short-term increases in demand for support services, particularly as we increase the size of our customer base. We also may be unable to modify the format of our support services to compete with changes in support services provided by competitors. It is difficult to predict demand for technical support services and if demand increases significantly, we may be unable to provide satisfactory support services to our customers. Additionally, increased demand for these services, without corresponding revenue, could increase costs and adversely affect our business, financial condition and results of operations.

***Severe weather events, including the effects of climate change, are inherently unpredictable and may have a material adverse effect on our financial results and financial condition.***

Our business, including our customers and suppliers, may be exposed to severe weather events and natural disasters, such as tornadoes, tsunamis, tropical storms (including hurricanes), earthquakes, windstorms, hailstorms, severe thunderstorms, flooding, wildfires and other fires, extreme heatwaves, drought and power shut-offs causing, among other things, disruptions to our supply chain or utility interconnections and/or damage to energy storage systems installed at our customers' sites. Such damage or disruptions may prevent us from being able to satisfy our contractual obligations or may reduce demand from our customers for our energy storage systems causing our operating results to vary significantly from one period to the next. We may incur losses in our business in excess of: (1) those experienced in prior years, (2) the average expected level used in pricing, or (3) current insurance coverage limits.

The incidence and severity of severe weather conditions and other natural disasters are inherently unpredictable. Climate change is projected to affect the occurrence of certain natural events, such as an increase in the frequency or severity of wind and thunderstorm events, and tornado or hailstorm events due to increased convection in the atmosphere; more frequent wildfires and subsequent landslides in certain geographies; higher incidence of deluge flooding; and the potential for an increase in severity of the hurricane events due to higher sea surface temperatures. Changing market dynamics, global policy developments and the increasing frequency and impact of extreme weather events on critical infrastructure in the U.S. and elsewhere as a result of climate change have the potential to disrupt our business, the business of our suppliers and the business of our customers, and may cause us to experience higher attrition, losses and additional costs to maintain or resume operations. Additionally, climate change and the occurrence of severe weather events may adversely impact the demand, price, and availability of insurance. Due to significant variability associated with future changing climate conditions, we are unable to predict the impact climate change will have on our business.

***Increased scrutiny from stakeholders and regulators regarding sustainability practices and disclosures, including those related to sustainability, and disclosure could result in additional costs and adversely impact our business and reputation.***

Companies across all industries are facing increased scrutiny regarding their sustainability practices and disclosures and some institutional and individual investors are using sustainability screening criteria in making investment decisions. Our disclosures on these matters or a failure to satisfy evolving stakeholder expectations for sustainability practices and reporting, which may conflict with one another, may potentially harm our reputation and impact employee retention, customer relationships and access to capital. For example, certain market participants use third-party benchmarks or scores to measure a company's sustainability practices in making investment decisions and customers and supplies may evaluate our sustainability practices or require that we adopt certain sustainability policies as a condition of awarding contracts. In addition, our failure or perceived failure to pursue or fulfill our goals, targets and objectives or to satisfy various reporting standards within the timelines we announce, or at all, could expose us to government enforcement actions and private litigation. Furthermore, complying or failing to comply with existing or future federal, state, local, and foreign legislation and regulations applicable to our sustainability efforts, which may conflict with one another, could cause us to incur additional compliance and operational costs, suffer reputational harm or to become the target of litigation, investigations or other proceedings initiated by government authorities or private actors, which could materially and adversely affect our business, financial condition and results of operations.

Our ability to achieve any goal or objective, including with respect to environmental and diversity initiatives and compliance with sustainability reporting standards, is subject to numerous risks, many of which are outside of our control. Examples of such risks include the availability and cost of technologies and products that meet sustainability and ethical supply chain standards, evolving regulatory requirements affecting sustainability standards or disclosures, our ability to recruit, develop and retain diverse talent in our labor markets, and our ability to develop reporting processes and controls that comply with evolving standards for identifying, measuring and reporting sustainability metrics. Methodologies for reporting sustainability data may be updated and previously reported sustainability data may be adjusted to reflect improvement in availability and quality of third-party data, changes in assumptions, changes in the nature and scope of our operations and other changes in circumstances. Our processes and controls for reporting sustainability matters across our operations and supply chain are evolving along with multiple disparate standards for identifying, measuring, and reporting sustainability metrics, including sustainability-related disclosures that may be required by the SEC, European and other regulators, and such standards may change over time, which could result in significant revisions to our current goals, reported progress in achieving such goals, or ability to achieve such goals in the future. As sustainability best-practices, reporting standards and disclosure requirements continue to develop, we may incur increasing costs related to sustainability monitoring and reporting.

***A failure of our information technology ("IT") and data security infrastructure could adversely affect our business and operations.***

The efficient operation of our business depends on our IT systems. We rely upon the capacity, reliability and security of our IT and data security infrastructure and our ability to effectively manage our business data, accounting, financial, legal and compliance functions, communications, supply chain, order entry and fulfillment, and expand and routinely update this infrastructure in response to the changing needs of our business. Our existing IT systems and any new IT systems we utilize may not perform as expected. If we experience a problem with the functioning of an important IT system or a security breach of our IT systems, including during system upgrades or new system implementations, the resulting disruptions could adversely affect our business.

Despite our implementation of reasonable security measures, our IT systems, like those of other companies, are vulnerable to damages from computer viruses, natural disasters, fire, power loss, telecommunications failures, personnel misconduct, human error, unauthorized access, physical or electronic security breaches, cyber-attacks (including malicious and destructive code, phishing attacks, ransomware, and denial of service attacks), and other similar disruptions. Such attacks or security breaches may be perpetrated by bad actors internally or externally (including computer hackers, persons involved with organized crime, or foreign state or foreign state-supported actors). Cybersecurity threat actors employ a wide variety of methods and techniques that are constantly evolving, increasingly sophisticated, and difficult to detect and successfully defend against. Moreover, we may not have the current capability to detect certain vulnerabilities, which may allow those vulnerabilities to persist in our systems over long periods of time. Additionally, it may take considerable time for us to investigate and evaluate the full impact of incidents, particularly for sophisticated attacks. These factors may inhibit our ability to provide prompt, full and reliable information about the incident to our customers, partners, regulators, and the public. Geopolitical tensions or conflicts, such as Russia's invasion of Ukraine, may further heighten the risk of cyber-attacks. The emergence and maturation of AI capabilities may also lead to new and/or more sophisticated methods of attack, including fraud that relies upon "deep fake" impersonation technology or other forms of generative automation that may scale up the efficiency or effectiveness of cyber-attacks. We have experienced such incidents in the past, and any future incidents could expose us to claims, litigation, regulatory or other governmental investigations, administrative fines and potential liability. Any system failure, accident or security breach could result in disruptions to our operations. A material network breach in the security of our or our service providers' IT systems could include the theft of our trade secrets, customer information, human resources information or other confidential data, including but not limited to personally identifiable information. Although past incidents have not had a material adverse effect on our business operations or financial performance, to the extent that any disruptions or security breach results in a loss or damage to our data, or an inappropriate disclosure of confidential, proprietary or customer information, it could cause significant damage to our reputation, affect our relationships with our customers and strategic partners, lead to claims against us from governments and private plaintiffs, and otherwise adversely affect our business. We cannot guarantee that future cyberattacks, if successful, will not have a material effect on our business or financial results.

Many governments have enacted laws requiring companies to provide notice of cyber incidents involving certain types of data, including personal data. If an actual or perceived cybersecurity breach of security measures, unauthorized access to our system or the systems of the third-party vendors that we rely upon, or any other cybersecurity threat occurs, we may incur liability, costs, or damages, contract termination, our reputation may be compromised, our ability to attract new customers could be negatively affected, and our business, financial condition, and results of operations could be materially and adversely affected. Any compromise of our security could also result in a violation of applicable domestic and foreign security, privacy or data protection, consumer and other laws, regulatory or other governmental investigations, enforcement actions, and legal and financial exposure, including potential contractual liability. In addition, we may be required to incur significant costs to protect against and remediate damage caused by these disruptions or security breaches in the future. Further, our contracts may not fully protect us from liabilities, damages, or claims and, although we carry cyber insurance, we cannot be certain that our coverage will be adequate for liabilities actually incurred, that insurance will continue to be available to us on commercially reasonable terms, or at all, or that any insurer will not deny coverage as to any future claim. In addition, any data breach, security incident, or compromise of protected personal information may also result in notification requirements or other disclosure obligations and may subject us to civil fines and penalties, litigation, regulatory investigations or enforcement actions or claims for damages under applicable privacy laws.

***Our failure to adequately secure, protect and enforce our intellectual property rights may undermine our competitive position, and litigation to protect our intellectual property rights may be costly.***

The Company's intellectual property is primarily software-based and may be inherently difficult to protect, as patents and formal protections in this area can be limited and enforcement may be uncertain. The Company relies in part on trade secrets, proprietary know-how, and contractual protections, which may be vulnerable to unauthorized use, employee misappropriation, or other forms of intellectual property theft. In addition, litigation to enforce intellectual property rights is often complex, time-consuming, and costly, and there can be no assurance that the Company will be successful in protecting its intellectual property.

Monitoring unauthorized use of proprietary technology can be difficult and expensive. For example, many of our software developers reside in California and we cannot legally prevent them from working for a competitor.

Also, litigation may be necessary to enforce our intellectual property rights, protect our trade secrets, or determine the validity and scope of the proprietary rights of others. Such litigation may result in our intellectual property rights being challenged, limited in scope or declared invalid or unenforceable. We cannot be certain that the outcome of any litigation will be in our favor, and an adverse determination in any such litigation could impair our intellectual property rights and may adversely affect our business, prospects and reputation.

We rely primarily on patent, trade secret and trademark laws, and non-disclosure, confidentiality, and other types of contractual restrictions to establish, maintain, and enforce our intellectual property and proprietary rights. However, our rights under these laws and agreements afford us only limited protection and the actions we take to establish, maintain, and enforce our intellectual property rights may not be adequate. For example, our trade secrets and other confidential information could be disclosed in an unauthorized manner to third parties, our owned or licensed intellectual property rights could be challenged, invalidated, circumvented, infringed, or misappropriated or our intellectual property rights may not be sufficient to provide us with a competitive advantage, any of which could have a material adverse effect on our business, financial condition and results of operations. Additionally, we rely on our brand names, trade names and trademarks to distinguish our products and services. In the event that our trademarks are successfully challenged and we lose rights to use those trademarks, we could be forced to rebrand our products and services, which could result in the loss of goodwill and brand recognition. In addition, the laws of some countries do not protect proprietary rights as fully as do the laws of the U.S. As a result, we may not be able to protect our proprietary rights adequately abroad.

We may face claims that our use of such technology or components infringes or otherwise violates the rights of others, which would subject us to the risks described above. We may seek indemnification from our licensors or suppliers under our contracts with them, but our rights to indemnification or our suppliers' resources may be unavailable or insufficient to cover our costs and losses.

**Regulatory Risks**

***Negative attitudes toward renewable energy projects from the U.S. government, other lawmakers and regulators, and activists could adversely affect our business, financial condition and results of operations.***

Parties with an interest in other energy sources, including lawmakers, regulators, policymakers, environmental and advocacy organizations or other activists may invest significant time and money in efforts to delay, repeal or otherwise negatively influence laws, regulations and programs that promote renewable energy. Many of these parties have substantially greater resources and influence than we have. Further, changes in U.S. federal, state or local political, social or economic conditions, including changes in U.S. Presidential administrations or deprioritization of these laws, programs and regulations, could result in their modification, delayed adoption or repeal. Any failure to adopt, delay in implementing, expiration, repeal or modification of these programs and regulations, or the adoption of any programs or regulations that encourage the use of other energy sources over renewable energy, could adversely affect our business, financial condition and results of operations.

***The installation and operation of our energy storage systems are subject to environmental laws and regulations in various jurisdictions, and there is uncertainty with respect to the interpretation of certain environmental laws and regulations to our energy storage systems, especially as these regulations evolve over time.***

We are subject to national, state and local environmental laws and regulations, as well as environmental laws in those foreign jurisdictions in which we operate. Environmental laws and regulations can be complex and are evolving. These laws can give rise to liability for administrative oversight costs, cleanup costs, property damage, bodily injury, fines and penalties. We are committed to compliance with applicable environmental laws and regulations, including health and safety standards, and we routinely review the operation of our energy storage systems for health, safety and compliance. Our energy storage systems, like other battery technology-based products of which we are aware, produce small amounts of hazardous wastes and air pollutants, and we seek to handle these materials in accordance with applicable regulatory standards.

Maintaining compliance with laws and regulations can be challenging given the changing patchwork of environmental laws and regulations that prevail at the U.S. federal, state, regional and local levels and in foreign countries in which we operate. Most existing environmental laws and regulations preceded the introduction of battery technology and were adopted to apply to technologies existing at the time, namely large, coal, oil or gas-fired power plants. Currently, there is generally little guidance from these agencies on how certain environmental laws and regulations may, or may not, be applied to our technology.

In many instances, our technology is moving faster than the development of applicable regulatory frameworks. It is possible that regulators could delay or prevent us from conducting our business in some way pending agreement on, and compliance with, shifting regulatory requirements. Such actions could delay the sale to and installation by customers of energy storage systems, require their modification or replacement, result in fines, or trigger claims of performance warranties and defaults under customer contracts that could require us to refund hardware or service contract payments, any of which could adversely affect our business, financial performance and reputation.

***Changes in the U.S. trade environment, including the imposition of import tariffs, could adversely affect the amount or timing of our revenues, results of operations or cash flows.***

The United States has imposed significant new tariffs on nearly all products and components imported into the United States and could propose additional tariffs or increases to those already in place. Escalating trade tensions, particularly between the United States and China, have led to increased tariffs and trade restrictions, including tariffs applicable to certain materials and components for products used in storage or solar energy projects and the renewable energy market more broadly, such as module supply and availability. More specifically, in March 2018, the United States imposed a 25% tariff on steel imports and a 10% tariff on aluminum imports pursuant to Section 232 of the Trade Expansion Act of 1962 and has imposed additional tariffs on steel and aluminum imports pursuant to Section 301 of the Trade Act of 1974. In February 2025, the United States expanded the Section 232 tariffs on steel and aluminum, raising them to 25% on both metals and eliminating previously available country-level and importer-specific exclusions and exemptions. In June 2025, Section 232 tariffs on steel and aluminum were further increased to 50%, and the scope was broadened to cover the steel and aluminum content of a wider range of derivative products. To the extent we source products that contain overseas supplies of steel and aluminum, these tariffs and any additional or increased tariffs could result in interruptions in the supply chain and negatively affect costs and our gross margins.

Additionally, in January 2018, the United States adopted a tariff on imported solar modules and cells pursuant to Section 201 of the Trade Act of 1974. The tariff was initially set at 30%, with a gradual reduction over four years to 15%. In 2022, the United States extended the Section 201 solar tariffs for an additional four years, which declined to a rate of 14% in 2025. The Section 201 solar tariffs expired on February 7, 2026. While this tariff did not apply directly to the components we import, it may have indirectly affected us by affecting the financial viability of solar energy projects, which could in turn reduce demand for our products. Furthermore, in July 2018, the United States adopted a 10% tariff on a long list of products imported from China under Section 301 of the Trade Act of 1974, including, inverters and power optimizers, which became effective on September 24, 2018 and has been increased several times since then. In June 2019, the Office of the U.S. Trade Representative increased the rate of such tariffs from 10% to 25%. In September 2024, Section 301 tariffs on Chinese solar cells and modules were increased from 25% to 50%, and in January 2025, new 50% Section 301 tariffs took effect on Chinese polysilicon and solar wafers. The Section 301 tariff on lithium-ion non-electric vehicle batteries from China, including those used in energy storage systems, increased from 7.5% to 25% effective January 1, 2026. While these tariffs are not directly applicable to our products, they could negatively affect the solar energy projects in which our products are used, which could lead to decreased demand for our products. In 2025, the United States broadly imposed additional 10% tariffs on Chinese goods under the International Emergency Economic Powers Act of 1977.

In addition, the United States currently imposes antidumping and countervailing duties on certain imported crystalline silicon photovoltaic ("PV") cells and modules from China and Taiwan. Such antidumping and countervailing duties can change

over time pursuant to annual reviews conducted by the U.S. Department of Commerce ("USDOC"), and an increase in duty rates could have an adverse impact on our operating results.

In February 2022, Auxin Solar Inc., a U.S. producer of crystalline silicon PV products, petitioned the USDOC to investigate alleged circumvention of antidumping and countervailing duties on crystalline silicon PV cell and module imports assembled and completed in Cambodia, Malaysia, Thailand, and Vietnam. In August 2023, USDOC issued a final determination that certain Chinese producers are circumventing antidumping and countervailing duties by shipping crystalline silicon PV cells and modules through Cambodia, Malaysia, Thailand, and Vietnam for minor processing. However, that two-year moratorium has since expired. In 2024, USDOC initiated a second solar antidumping and countervailing duties case involving these same four countries, and final antidumping and countervailing duties orders were issued in June 2025. Also in 2025, the United States also initiated an antidumping and countervailing duties case for Chinese anode material, which could affect battery prices, and USDOC initiated antidumping and countervailing duties investigations into imports of solar cell and modules from India, Indonesia, and Laos. The timing and progress of many of our customers' projects depend upon the supply of batteries, PV cells and modules. As a result, the imposition and collection of antidumping and countervailing duties, the expanded scope of antidumping and countervailing duties investigations to additional countries and battery materials, and the stacking of multiple tariff authorities on such products, it could adversely affect our business, financial condition and results of operations.

Tariffs, and the possibility of additional or increased tariffs in the future, have created uncertainty in the industry, particularly in light of the recent change in U.S. Presidential administration. This has resulted in, and may continue to result in, some project delays. If the price of solar systems or energy storage systems in the United States increases, the use of these products could become less economically feasible and could reduce our gross margins or reduce the demand of such systems manufactured and sold, which in turn may decrease demand for our products. Additionally, existing or future tariffs may negatively affect key customers, suppliers, and manufacturing partners. Such outcomes could adversely affect the amount or timing of our revenues, results of operations or cash flows, and continuing uncertainty could cause sales volatility, price fluctuations or supply shortages, or cause our customers to advance or delay their purchase of our products. It is difficult to predict what further trade-related actions governments may take, which may include additional or increased tariffs and trade restrictions, and we may be unable to quickly and effectively react to such actions.