# EDGAR Filing Document

**Accession Number:** 0001417663
**File Stem:** 0001628280-26-021464
**Filing Date:** 2026-3
**Character Count:** 36021
**Document Hash:** 7ef4251151f6e386b6503dcdcb2062de
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001628280-26-021464.hdr.sgml**: 20260326

**ACCESSION NUMBER**: 0001628280-26-021464

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 13

**CONFORMED PERIOD OF REPORT**: 20260326

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20260326

**DATE AS OF CHANGE**: 20260326

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** SANUWAVE Health, Inc.
- **CENTRAL INDEX KEY:** 0001417663
- **STANDARD INDUSTRIAL CLASSIFICATION:** SURGICAL & MEDICAL INSTRUMENTS & APPARATUS [3841]
- **ORGANIZATION NAME:** 08 Industrial Applications and Services
- **EIN:** 201176000
- **STATE OF INCORPORATION:** NV
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-42552
- **FILM NUMBER:** 26799192

**BUSINESS ADDRESS:**
- **STREET 1:** 9600 W. 6TH SSTREET
- **CITY:** EDEN PRAIRIE
- **STATE:** MN
- **ZIP:** 55344
- **BUSINESS PHONE:** 952-656-1029

**MAIL ADDRESS:**
- **STREET 1:** 9600 W. 6TH SSTREET
- **CITY:** EDEN PRAIRIE
- **STATE:** MN
- **ZIP:** 55344

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** RUB MUSIC ENTERPRISES, INC.
- **DATE OF NAME CHANGE:** 20071106

?xml version='1.0' encoding='ASCII'? snwv-20260326

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 8-K**

**CURRENT REPORT**

**Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934**

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| | |
|:---|:---|
| Date of Report (Date of earliest event reported) | **March 26, 2026** |

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| |
|:---|
| **SANUWAVE Health, Inc.** |
| (Exact name of registrant as specified in its charter) |

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| | | |
|:---|:---|:---|
| **Nevada** | **000-42552** | **20-1176000** |
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |

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| | | | |
|:---|:---|:---|:---|
| **9600 W. 76th Street, Suite 118,** | **Eden Prairie,** | **Minnesota** | **55344** |
| (Address of principal executive offices) | (Address of principal executive offices) | (Address of principal executive offices) | (Zip Code) |

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| | | |
|:---|:---|:---|
| Registrant's telephone number, including area code | **(952)** | **656-1029** |

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| |
|:---|
| **N/A** |
| (Former name or former address, if changed since last report) |

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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 (see General Instruction A.2. below):

☐ 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:**

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| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange on which**<br>**registered** |
| Common stock, par value $0.001 per share | SNWV | The Nasdaq Stock Market LLC |

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Indicate by check mark whether the registration is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.

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. □

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**Item 2.02&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Results of Operations and Financial Condition.**

On March 26, 2026, Sanuwave Health, Inc., a Nevada corporation (the "Company"), issued a press release announcing its financial results for the fourth quarter and fiscal year ended December 31, 2025. As previously announced, a business update via conference call will occur on March 27, 2026 at 8:30 am EST. Materials are provided on the Company's website at www.sanuwave.com/investors.

The information in this Item 2.02 of this Current Report on Form 8-K and the exhibit attached hereto shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and shall not be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.

**Item 9.01&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial Statements and Exhibits.**

(d)Exhibits.

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| | |
|:---|:---|
| **Exhibit** <br>**No.** | **Description** |
| <u>[99.1](ex-991snwvpressreleasex202.htm)</u> | Press Release dated March 26, 2026 |
| 104 | Cover Page Interactive Data File--the cover page XBRL tags are embedded within the Inline XBRL document. |

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**SIGNATURES**

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

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| | | |
|:---|:---|:---|
| | SANUWAVE HEALTH, INC. | SANUWAVE HEALTH, INC. |
| Dated: March 26, 2026 | By: | */s/ Peter Sorensen* |
|  | Name: | Peter Sorensen |
|  | Title: | Chief Financial Officer |

---

## Exhibit 99.1

**Exhibit 99.1**

![logoa.jpg](logoa.jpg)

**Sanuwave Announces Record Revenues and Financial Results for Q4 and Full Year 2025** 

*Q4 2025 revenues were $13.4 million, up 29.7% from Q4 2024. This was an all-time quarterly record for the Company.* 

*Full year 2025 revenues were $44.1 million up 35.0% from full year 2024 revenues. This was an all-time annual record for the Company.*

*Q4 2025 gross margin was 74.7%, versus 77.9% in Q4 2024 and 77.6% in Q3 2025.* 

*Full year 2025 gross margin was 77.1%* versus *75.2% in 2024.*

*GAAP Operating Income was $2.0 million for Q4 2025 and $4.9 million for full year 2025.* 

*Company provides guidance for revenues of $9.6-10.3 million (an increase of 3-10%) for Q1 2026 as compared to Q1 2025 and initiates full year 2026 revenue guidance of 16-25% growth vs 2025 ($51.0-55.0 million).*

**EDEN PRAIRIE, MN, March 26, 2026 (GLOBE NEWSWIRE) -- Sanuwave Health, Inc.** (the "Company" or "Sanuwave") (NASDAQ: SNWV), a leading provider of next-generation FDA-approved wound care products, is pleased to provide its financial results for the three months and full year ended December 31, 2025.

**Q4 2025 ended December 31, 2025**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Revenue for the three months ended December 31, 2025, totaled $13.4 million, an increase of 29.7%, as compared to $10.3 million for the same period of 2024. This growth is consistent with guidance of $13-14 million for the quarter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 255 UltraMist® systems were sold in Q4 2025 up from 135 in Q4 2024 and from 155 in Q3 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• UltraMist® consumables revenue increased by 10.6% to $6.5 million in Q4 2025, versus $5.9 million for the same quarter last year. Consumables revenue represented 48.7% of overall revenues in Q4 2025. UltraMIST systems and consumables remained the primary revenue growth driver for the Company and represented approximately 100% of Sanuwave's overall revenues in Q4 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Gross margin as a percentage of revenue amounted to 74.7% for the three months ended December 31, 2025, versus 77.9% for the same period last year. Cost of revenues included a $486 thousand write-off of PACE inventory associated with the sunsetting of that product line. Absent this charge, gross margin would have been 78.3%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• For the three months ended December 31, 2025, operating income totaled $2.0 million, no change, compared to Q4 2024. Q4 2025 included the inventory write off of $486 thousand which affected cost of revenues and a sales tax expense of $479 thousand which increased general and administrative expenses. Absent these charges, operating income would have been $3.0 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net income for the fourth quarter of 2025 was $7.7 million, driven predominantly by the change in the fair value of derivative liabilities. This compares to a net loss of $13.3 million in the fourth quarter of 2024 which was

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primarily driven by the change in the fair value of derivative liabilities, valuation adjustments resulting from the share and warrant exchange, and the extinguishment of debt.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted EBITDA [1] for the three months ended December 31, 2025, was $4.8 million versus Adjusted EBITDA of $3.7 million for the same period last year, an improvement of $1.1 million.

**Full year 2025 ended December 31, 2025**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Revenue for the year ended December 31, 2025, totaled $44.1 million, an increase of 35.0%, as compared to $32.6 million for the same period of 2024. This growth was in line with full year guidance of growth of 35-39% year on year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 624 UltraMist® systems were sold in 2025 up from 374 in 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• UltraMist® consumables revenue increased by 27.4% to $25.5 million (58.0% of revenues) in 2025, versus $20.1 million for the same period last year. UltraMIST systems and consumables remained the primary revenue growth driver and continued to represent over 99% of Sanuwave's overall revenues in 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Gross margin as a percentage of revenue amounted to 77.1% for the year ended December 31, 2025, versus 75.2% for the same period last year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• For the year ended December 31, 2025, operating income totaled $4.9 million, an increase of $1.1 million compared to 2024 as a result of the Company's continued efforts to drive profitable growth and manage expenses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net income for 2025 was $11.8 million, driven predominantly by the change in the fair value of derivative liabilities, other income, and increased operating profit. This compares to a net loss of $33.1 million in 2024 which was primarily driven by the change in the fair value of derivative liabilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted EBITDA [1] for the twelve months ended December 31, 2025, was $13.6 million versus Adjusted EBITDA of $7.2 million for the same period last year, an improvement of $6.5 million.

"We're pleased to be, once more, announcing an all-time record quarter for Sanuwave on both revenues and adjusted EBITDA, especially during such challenging times in the wound care space," said CEO Morgan Frank. "The effects of the CMS reimbursement cut to skin substitutes and an intensification of the CMS audit environment have been dramatically reshaping a number of sectors of wound care, particularly mobile care. Q4 2025 saw the first major reactions to the new pricing with large numbers of mobile wound care providers exiting the space and/or cutting staff. At the same time, we have seen other existing companies and a great many new ones gearing up to enter. It seems very much to be a 'one tide going out while another tide is coming in' sort of moment for the space and, while such transitions are inevitably choppy, it seems like a lot of this change will ultimately flow our way. The patients and the wounds have not gone away and neither has the need for care. UltraMIST remains a potent solution ready made for the work and business flow of our customers and the needs of those they care for. Significant numbers of large, skilled distributors and resellers who had been focusing on skin subs and allografts have become interested in repping UltraMIST and we have taken advantage of this new option to dramatically increase our functional number of feet on the street. These gains in Q4 2025 were somewhat offset by lower consumables sales resulting from a confluence of some customers going out of business and others reducing patient volumes in response to an aggressive audit environment. CMS appears to have made a determination to focus heavily on medical necessity and value for money in the wound care space and while this has created a bit of a stutter step in the short

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run, we see it as a trend that should be long term beneficial to us. We remain more convinced than ever of the potential for this product to help transform wound care."

**Financial Outlook** 

The Company forecasts Q1 2026 revenue of $9.6 to $10.3 million (3-10% increase from Q1 2025) and initiates full year 2026 revenue guidance of $51.0-55.0 million (16-25% increase as compared to full year 2025 revenue).

As previously announced, a business update will occur via conference call on March 27, 2026 at 8:30 a.m. EST. Materials for the conference call are included on the Company's website at http://www.sanuwave.com/investors.

Telephone access to the call will be available by dialing the following numbers:

Toll Free:1-800-343-4136

Toll/International: 1-203-518-9843

Conference ID: SANUWAVE

OR click the link for instant telephone access to the event.

https://viavid.webcasts.com/starthere.jsp?ei=1753775&tp_key=6ca0a4cd2b

A replay will be made available through April 10, 2026:

Toll-Free: 1-844-512-2921

Toll/International: 1-412-317-6671

Replay Access ID: 1161147

[1] This is a non-GAAP financial measure. Refer to "Non-GAAP Financial Measures" and the reconciliations in this release for further information.

**About Sanuwave**

Sanuwave Health is focused on the research, development, and commercialization of its patented, non-invasive and biological response-activating medical systems for the repair and regeneration of skin, musculoskeletal tissue, and vascular structures.

Sanuwave's end-to-end wound care portfolio of regenerative medicine products and product candidates helps restore the body's normal healing processes. Sanuwave applies and researches its patented energy transfer technologies in wound healing, orthopedic/spine, aesthetic/cosmetic, and cardiac/endovascular conditions.

**Non-GAAP Financial Measures** 

This press release includes certain financial measures that are not presented in our financial statements prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP"). These financial measures are considered "non-GAAP financial measures" and are intended to supplement, and should not be considered as superior to, or a replacement for, financial measures presented in accordance with U.S. GAAP.

The Company uses Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA"), Adjusted EBITDA, Adjusted Gross Margin Percentage and Adjusted Operating Income to assess its operating performance. Adjusted EBITDA

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is Earnings before Interest, Taxes, Depreciation and Amortization adjusted for the change in fair value of derivatives and any significant non-cash or infrequent charges. Adjusted Gross Margin Percentage is gross margin percentage adjusted for inventory write-off. Adjusted Operating Income is operating income adjusted for inventory write-off, sales tax expense and release of historical accrual. EBITDA, Adjusted EBITDA, Adjusted Gross Margin Percentage and Adjusted Operating Income should not be considered as alternatives to net income (loss), gross margin percentage or operating income, as applicable, as a measure of financial performance or any other performance measure derived in accordance with U.S. GAAP, and they should not be construed as an inference that the Company's future results will be unaffected by unusual or infrequent items. These non-GAAP financial measures are presented in a consistent manner for each period, unless otherwise disclosed. The Company uses these measures for the purpose of evaluating its historical and prospective financial performance, as well as its performance relative to competitors. These measures also help the Company to make operational and strategic decisions. The Company believes that providing this information to investors, in addition to U.S. GAAP measures, allows them to see the Company's results through the eyes of management, and to better understand its historical and future financial performance. These non-GAAP financial measures are also frequently used by analysts, investors, and other interested parties to evaluate companies in our industry, when considered alongside other U.S. GAAP measures.

EBITDA, Adjusted EBITDA, Adjusted Gross Margin Percentage and Adjusted Operating Income have their limitations as analytical tools, and you should not consider them in isolation or as a substitute for analysis of the Company's results as reported under U.S. GAAP. For example, some of these limitations are that EBITDA and Adjusted EBITDA:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Do not reflect every expenditure, future requirements for capital expenditures or contractual commitments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Do not reflect all changes in our working capital needs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Do not reflect interest expense, or the amount necessary to service our outstanding debt.

As presented in the U.S. GAAP to Non-GAAP Reconciliations section below, the Company's non-GAAP financial measures exclude the impact of certain charges that contribute to our net income (loss), gross margin percentage and operating income, as applicable.

**Forward-Looking Statements**

This press release may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to *future* financial results, production expectations, plans for future business development activities and expectations regarding the impact of changes in tariff rates. Forward-looking statements include all statements that are not statements of historical fact regarding intent, belief or current expectations of the Company, its directors or its officers. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the Company's ability to control. Actual results may differ materially from those projected in the forward-looking statements. Among the key risks, assumptions and factors that may affect operating results, performance and financial condition are risks associated with regulatory oversight, the Company's ability to manage its capital resources, competition and the other factors discussed in detail in the Company's periodic filings with the Securities and Exchange Commission. The Company undertakes no obligation to update any forward-looking statement.

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Contact: investors@sanuwave.com

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SELECTED FINANCIAL DATA

FOR THE QUARTERS ENDED DECEMBER 2025 AND 2024

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| | | |
|:---|:---|:---|
| (in thousands) | 2025 | 2024<br>(As Restated) |
| **Revenue** | $**13394** | $**10326** |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of Revenues | 3392 | 2285 |
| **Gross Margin** | **10002** | **8041** |
| &nbsp;&nbsp;&nbsp;&nbsp;Gross Margin % | 74.7% | 77.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 7999 | 6029 |
| **Operating Income** | $**2003** | $**2012** |
| Total other income (expense) | 5775 | (15291) |
| **Net Income (Loss) Before Income Taxes** | $**7778** | $**(13279)** |
| Income tax expense | 86 | 27 |
| **Net Income (Loss)** | $**7692** | $**(13306)** |

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NON-GAAP ADJUSTED EBITDA

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| | | |
|:---|:---|:---|
| | Three Months Ended December 31, | Three Months Ended December 31, |
| (in thousands) | 2025 | 2024<br>(As Restated) |
| **Net Income (Loss)** | $7692 | $(13306) |
| Non-GAAP Adjustments: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense | 603 | 2681 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 363 | 409 |
| **EBITDA** | 8658 | (10216) |
| Non-GAAP Adjustments for Adjusted EBITDA: |  |  |
| Change in fair value of derivative liabilities | (5921) | 13780 |
| Other non-cash or infrequent charges: |  |  |
| &nbsp;&nbsp;Stock-based compensation | 1337 | 1514 |
| &nbsp;&nbsp;Loss (Gain) on extinguishment of debt | - | (1121) |
| &nbsp;&nbsp;Severance agreement and legal settlement | 89 | 156 |
| &nbsp;&nbsp;Release of historical accrued expenses | - | (968) |
| &nbsp;&nbsp;State & local sales tax <sup>1</sup> | 479 | 510 |
| &nbsp;&nbsp;Sale and disposal of PACE product line <sup>2</sup> | 123 | - |
| **Adjusted EBITDA** | $4765 | $3655 |

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<sup>1</sup> The charges represent a non-recurring state and local sales tax expense related to the restatement of prior period financial statements.

<sup>2</sup> The charges represent the net amount of proceeds received of $0.4 million and inventory written down of $0.5 million, as part of the Company's sale and disposal of the PACE product line.

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NON-GAAP ADJUSTED EBITDA

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| | | |
|:---|:---|:---|
| | For the Years Ended December 31, | For the Years Ended December 31, |
| (in thousands) | 2025 | 2024<br>(As Restated) |
| **Net Income (Loss)** | $11813 | $(33083) |
| &nbsp;&nbsp;Non-GAAP Adjustments: |  |  |
| Interest expense | 6246 | 13779 |
| Depreciation and amortization | 1265 | 1145 |
| &nbsp;&nbsp;**EBITDA** | $19324 | $(18159) |
| Non-GAAP Adjustments for Adjusted EBITDA: |  |  |
| &nbsp;&nbsp;Change in fair value of derivative liabilities | (8107) | 31413 |
| Other non-cash or infrequent charges: |  |  |
| &nbsp;&nbsp;Stock-based compensation | 4850 | 1514 |
| &nbsp;&nbsp;Loss (Gain) on extinguishment of debt | 477 | (6326) |
| &nbsp;&nbsp;&nbsp;Loss on impairment of assets | 196 | - |
| &nbsp;&nbsp;Severance agreement and legal settlement | 202 | 741 |
| &nbsp;&nbsp;Release of historical accrued expenses | - | (1547) |
| &nbsp;&nbsp;Gain on license and option agreement | (5000) | (2500) |
| &nbsp;&nbsp;Prepaid legal fees expensed from termination of Merger Agreement | - | 457 |
| &nbsp;&nbsp;State & local sales tax <sup>1</sup> | 1567 | 1569 |
| &nbsp;&nbsp;Sale and disposal of PACE product line <sup>2</sup> | 123 | - |
| **Adjusted EBITDA** | $13632 | $7162 |

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<sup>1</sup> The charges represent a non-recurring state and local sales tax expense related to the restatement of prior period financial statements.

<sup>2</sup> The charges represent the net amount of proceeds received of $0.4 million and inventory written down of $0.5 million, as part of the Company's sale and disposal of the PACE product line.

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Adjusted Gross Margin and Adjusted Operating Income

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| | | | |
|:---|:---|:---|:---|
| | Three Months Ended December 31, | Three Months Ended December 31, | Change |
| (In millions) | 2025 | 2024 |  |
| **Gross Margin %** | 74.7% | 77.9% | (320) bp |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*Inventory write-off* | $0.5 | $- |  |
| **Adjusted Gross Margin %** | 78.3% | 77.9% | 40 bp |
| **Operating Income** | $2.0 | $2.0 | -% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*Inventory write-off* | 0.5 | - |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*Sales Tax Expense* | 0.5 | 0.5 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*Release of historical accrual* | - | (0.9) |  |
| **Adjusted Operating Income** | $3.0 | $1.6 | 88% |

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CONSOLIDATED BALANCE SHEETS

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| | | |
|:---|:---|:---|
| (In thousands, except share data) | 2025 | 2024<br> (As Restated) |
| ASSETS |  |  |
| Current Assets: |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $11959 | $10237 |
| &nbsp;&nbsp;&nbsp;Accounts receivable, net of allowance of $1,265 and $1,147, respectively | 5422 | 3329 |
| &nbsp;&nbsp;&nbsp;Inventory | 5934 | 4149 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 1312 | 682 |
| Total Current Assets | 24627 | 18397 |
| Non-Current Assets: |  |  |
| Property and equipment, net | 1972 | 303 |
| &nbsp;&nbsp;&nbsp;Right of use assets, net | 390 | 429 |
| &nbsp;&nbsp;&nbsp;Intangible assets, net | 3026 | 3730 |
| &nbsp;&nbsp;&nbsp;Goodwill | 7260 | 7260 |
| &nbsp;&nbsp;&nbsp;Secured revolving credit facility debt issuance costs, net | 68 | - |
| Total Non-Current Assets | 12716 | 11722 |
| Total Assets | $37343 | $30119 |
| LIABILITIES |  |  |
| Current Liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Current portion of secured term loan | $5638 | $- |
| &nbsp;&nbsp;&nbsp;Senior secured debt | - | 25305 |
| &nbsp;&nbsp;&nbsp;Accounts payable | 3251 | 3728 |
| &nbsp;&nbsp;&nbsp;Accrued expenses | 8382 | 7756 |
| &nbsp;&nbsp;&nbsp;Warrant liability | - | 8107 |
| &nbsp;&nbsp;&nbsp;Current portion of operating lease liabilities | 157 | 126 |
| &nbsp;&nbsp;&nbsp;Current portion of finance lease liabilities | - | 175 |
| &nbsp;&nbsp;&nbsp;Current portion of contract liabilities | 388 | 193 |
| &nbsp;&nbsp;&nbsp;Accrued interest | 24 | - |
| Other | 7 | 33 |
| Total Current Liabilities | 17847 | 45423 |
| Non-Current Liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Secured term loan, net of current portion and debt issuance costs | 15667 | - |
| &nbsp;&nbsp;&nbsp;Secured revolving credit facility | 655 | - |
| &nbsp;&nbsp;&nbsp;Operating lease liabilities, less current portion | 854 | 125 |
| &nbsp;&nbsp;&nbsp;Finance lease liabilities, less current portion | - | 66 |
| &nbsp;&nbsp;&nbsp;Contract liabilities, less current portion | 701 | 300 |
| Total Non-Current Liabilities | 17877 | 491 |
| Total Liabilities | 35724 | 45914 |

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| | | |
|:---|:---|:---|
| STOCKHOLDERS' EQUITY (DEFICIT) |  |  |
| Preferred stock, par value $0.001, 5,000,000 shares authorized, 6,175 Series A, 293 Series B, 90 Series C, and 8 Series D designated shares, respectively; no shares issued and outstanding at December 31, 2025 and 2024 | - | - |
| Common stock, par value $0.001, 2,500,000,000 shares authorized, 8,588,876 and 8,543,686 issued and outstanding at December 31, 2025 and 2024, respectively | 9 | 9 |
| Additional paid-in capital | 244285 | 238685 |
| Accumulated deficit | (242685) | (254499) |
| Accumulated other comprehensive loss | 10 | 10 |
| Total Stockholders' Equity (Deficit) | 1619 | (15795) |
| Total Liabilities and Stockholders' Equity (Deficit) | $37343 | $30119 |

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

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| | | |
|:---|:---|:---|
| (In thousands, except share and per share data) | Years ended December 31, | Years ended December 31, |
|  | 2025 | 2024<br> (As Restated) |
| Revenue | $44051 | $32634 |
| Cost of revenues | 10082 | 8084 |
| Gross Margin | 33969 | 24550 |
| Operating Expenses: |  |  |
| &nbsp;&nbsp;&nbsp;General and administrative | 19372 | 12917 |
| &nbsp;&nbsp;&nbsp;Selling and marketing | 7419 | 6323 |
| &nbsp;&nbsp;&nbsp;Research and development | 1353 | 673 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 880 | 789 |
| Total Operating Expenses | 29024 | 20702 |
| Operating Income | 4945 | 3848 |
| Other Income (Expense) |  |  |
| &nbsp;&nbsp;&nbsp;Interest expense | (6246) | (12565) |
| &nbsp;&nbsp;&nbsp;Interest expense, related party | - | (1214) |
| &nbsp;&nbsp;&nbsp;(Loss) Gain on extinguishment of debt | (477) | 6326 |
| &nbsp;&nbsp;&nbsp;Change in fair value of derivative liabilities | 8107 | (31413) |
| &nbsp;&nbsp;&nbsp;Loss on impairment of assets | (196) | - |
| &nbsp;&nbsp;&nbsp;Other expense | (42) | (893) |
| &nbsp;&nbsp;&nbsp;Other income | 5808 | 2855 |
| Total Other Income (Expense) | 6954 | (36904) |
| Net Income (Loss) Before Income Taxes | 11899 | (33056) |
| Income tax expense | 86 | 27 |
| Net Income (Loss) | $11813 | $(33083) |
| Other Comprehensive Income (Loss) |  |  |
| &nbsp;&nbsp;&nbsp;Foreign currency translation adjustments | - | 121 |
| Total Comprehensive Income (Loss) | $11813 | $(32962) |
| Earnings (Loss) per Share: |  |  |
| &nbsp;&nbsp;&nbsp;Basic | $1.38 | $(7.41) |
| &nbsp;&nbsp;&nbsp;Diluted | $0.41 | $(7.41) |
| Weighted average shares outstanding: |  |  |
| &nbsp;&nbsp;&nbsp;Basic | 8563510 | 4462883 |
| &nbsp;&nbsp;&nbsp;Diluted | 9082510 | 4462883 |

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CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)

(In thousands, except share data)

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | Common Stock | Common Stock | | | | |
| | Number of Shares<br> Issued and Outstanding | Par Value |<br>Additional Paid-<br>in Capital |<br>Accumulated <br>Deficit |<br>Accumulated Other<br>Comprehensive<br>Loss |<br>Total |
| Balance as of December 31, 2023 (as previously reported) | 3041492 | $3 | $176979 | $(220049) | $(111) | $(43178) |
| &nbsp;&nbsp;&nbsp;Correction of prior period error | - | - | - | (1367) | - | (1367) |
| Balance as of January 1, 2024 (as restated) | 3041492 | $3 | $176979 | $(221416) | $(111) | $(44545) |
| &nbsp;&nbsp;&nbsp;Sale of common stock | 1248489 | 1 | 10299 | - | - | 10300 |
| &nbsp;&nbsp;&nbsp;Shares issued for settlement of warrants | 3558396 | 4 | 41380 | - | - | 41384 |
| &nbsp;&nbsp;&nbsp;Shares issued for settlement of debt | 685737 | 1 | 8513 | - | - | 8514 |
| &nbsp;&nbsp;&nbsp;Stock-based compensation | 9572 | - | 1514 | - | - | 1514 |
| &nbsp;&nbsp;&nbsp;Foreign currency translation adjustment |  |  | - | - | 121 | 121 |
| &nbsp;&nbsp;&nbsp;Net loss (as restated) |  | - | - | (33083) | - | (33083) |
| Balance as of December 31, 2024 (as restated) | 8543686 | $9 | $238685 | $(254499) | $10 | $(15795) |
| &nbsp;&nbsp;&nbsp;Stock-based compensation | 4787 | - | 4968 | - | - | 4968 |
| &nbsp;&nbsp;&nbsp;Stock options exercised | 37879 | - | 555 | - | - | 555 |
| &nbsp;&nbsp;&nbsp;Shares granted in lieu of board of director fees | 2524 | - | 77 | - | - | 77 |
| &nbsp;&nbsp;&nbsp;Net income | - | - | - | 11813 | - | 11813 |
| Balance as of December 31, 2025 | 8588876 | $9 | $244285 | $(242685) | $10 | $1619 |

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CONSOLIDATED STATEMENTS OF CASH FLOWS

Years ended December 31, 2025 and 2024

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| | | |
|:---|:---|:---|
| (In thousands) | 2025 | 2024<br> (As Restated) |
| Operating Activities |  |  |
| Net income (loss) | $11813 | $(33083) |
| &nbsp;&nbsp;&nbsp;Adjustments to reconcile net income (loss) to net cash provided by operating activities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | 4850 | 1514 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 974 | 788 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of right-of-use assets | 309 | 357 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for credit losses | 202 | 77 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on disposal and impairment of assets | 210 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss (gain) on extinguishment of debt | 477 | (6326) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of derivative liabilities | (8107) | 31413 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on sale of patents | (5375) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of debt issuance and debt discounts | 1461 | 5520 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Write-off of inventory related to PACE disposal | 498 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on lease modification | (7) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued interest and accrued interest, related parties | - | 3387 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from tenant improvement funds | 586 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | (2296) | (486) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventory | (2283) | (1198) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other assets | (724) | (79) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | (521) | (1422) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses and contract liabilities | 1965 | 1993 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating leases | (156) | - |
| Net Cash Provided by Operating Activities | 3876 | 2455 |
| Investing Activities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchases of property and equipment | (1942) | (490) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sale of patents | 5375 | - |
| Net Cash Provided by (Used in) Investing Activities | 3433 | (490) |
| Financing Activities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Repayment of principal secured term loan | (1438) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from secured term loan | 23000 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from secured revolving credit facility | 655 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payment of debt issuance costs | (371) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from exercises of stock options | 556 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payment of note payable | (27747) | (3548) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from convertible promissory notes | - | 1300 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from secured promissory notes payable, related party | - | 500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payments to secured promissory notes payable, related party | - | (500) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sale of common stock | - | 10300 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payments to factoring | - | (1490) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Principal payments on finance leases | (242) | (208) |
| Net Cash (Used in) Provided by Financing Activities | (5587) | 6354 |

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| | | |
|:---|:---|:---|
| Effect of Exchange Rates on Cash and Cash Equivalents | - | 121 |
| Net Change in Cash and Cash Equivalents During Period | 1722 | 8440 |
| Cash and Cash Equivalents at Beginning of Period | 10237 | 1797 |
| Cash and Cash Equivalents at End of Period | $11959 | $10237 |
| Supplemental Information: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash paid for interest | $3744 | $4311 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash paid for state income taxes | 27 | 4 |
| Non-Cash Investing and Financing Activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capitalize default interest into senior secured debt | $549 | $3850 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shares granted in lieu of board of director fees | 77 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock options granted in lieu of cash bonus | 117 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Right-of-use assets obtained in exchange for lease liabilities | 430 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lease liabilities reduced upon lease modification | 99 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchases of property and equipment in accounts payable | 45 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;RSUs granted in exchange for services | 10 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shares issued for settlement of debt | - | 8513 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Write off deferred merger costs | - | 1225 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Warrants issued in conjunction with senior secured promissory note payable and convertible promissory notes payable | - | 3557 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Conversion of warrants to common stock | - | 41380 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Conversion of asset-based secured promissory notes to convertible promissory notes | - | 4584 |

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