# EDGAR Filing Document

**Accession Number:** 0002038439
**File Stem:** 0001731122-25-001469
**Filing Date:** 2025-11
**Character Count:** 503150
**Document Hash:** 9d9b73b77e5a9df3d8f51fe5c5669c5c
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001731122-25-001469.hdr.sgml**: 20251104

**ACCESSION NUMBER**: 0001731122-25-001469

**CONFORMED SUBMISSION TYPE**: 10-Q/A

**PUBLIC DOCUMENT COUNT**: 74

**CONFORMED PERIOD OF REPORT**: 20250630

**FILED AS OF DATE**: 20251104

**DATE AS OF CHANGE**: 20251104

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** VisionWave Holdings, Inc.
- **CENTRAL INDEX KEY:** 0002038439
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-PREPACKAGED SOFTWARE [7372]
- **ORGANIZATION NAME:** 06 Technology
- **EIN:** 995002777
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q/A
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-42741
- **FILM NUMBER:** 251449083

**BUSINESS ADDRESS:**
- **STREET 1:** 1063 N. SPAULDING AVE
- **CITY:** WEST HOLLYWOOD
- **STATE:** CA
- **ZIP:** 90046
- **BUSINESS PHONE:** (302) 305-4790

**MAIL ADDRESS:**
- **STREET 1:** 300 DELAWARE AVE. SUITE 210 #301
- **CITY:** WILMINGTON
- **STATE:** DE
- **ZIP:** 19801

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

**UNITED STATES SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 10-Q/A**

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

**For the quarterly period ended**

 **June 30, 2025**

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

**For the transition period from to**

---

| |
|:---|
| **VisionWave Holdings, Inc.** |
| (Exact Name of Registrant as Specified in its Charter) |

---

---

| | | |
|:---|:---|:---|
| **Delaware** | **001-72741** | **99-5002777** |
| (State or other jurisdiction of<br> incorporation) | (Commission File Number) | (I.R.S. Employer<br> Identification No.) |

---

---

| | |
|:---|:---|
| **300 Delaware Ave., Suite 210 # 301<br> Wilmington, DE.** | **19801** |
| (Address of Principal Executive Offices) | (Zip Code) |

---

---

| |
|:---|
| Registrant's telephone number, including area code: **(302) 305-4790** |
| N/A |
| (Former name or former address, if changed since last report) |

---

Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading<br> Symbol(s)** | **Name of each exchange on which registered** |
| **Common Stock** | **VWAV** | **The Nasdaq Stock Market LLC** |
| **Warrants** | **VWAVW** | **The Nasdaq Stock Market LLC** |

---

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

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

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

Large accelerated filer ☐ Accelerated filer ☐ <br> Non-accelerated filer ☒ Smaller reporting company ☒ <br> Emerging growth company ☒

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

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

As of November 4, 2025, 14,996,603 shares of common stock, par value $0.01 per share, were issued and outstanding.

**Explanatory Note:**

*This Amendment No. 1 (the "**Amendment**") to the Quarterly Report on Form 10-Q of VisionWave Holdings Inc. for the quarter ended June 30, 2025 (the "**Original Report**") is being filed solely to include the **separate financial statements** of VisionWave Holdings Inc. (the accounting acquirer) and Bannix Acquisition Corp. (the legal acquirer) for periods prior to their business combination, as required by **Rule 15-01(e) of Regulation S-X**.*

 

*On July 14, 2025, VisionWave Technologies Inc. ("VW Tech") completed its business combination with Bannix Acquisition Corp. ("Bannix") pursuant to a double-dummy merger structure. The business combination, consummated on July 14, 2025, was accounted for as a reverse recapitalization under ASC 805-40. As part of the transaction, both VW Tech and Bannix became wholly owned subsidiaries of a newly formed parent company, VisionWave Holdings Inc. ("the Company"). This Quarterly Report on Form 10-Q is filed by VisionWave Holdings Inc. under its current name and CIK. However, because the business combination closed after the period covered by this report (June 30, 2025), the financial statements and related disclosures presented herein reflect the historical operations of Bannix Acquisition Corp. The operations of VW Tech will be included in the Company's consolidated financial statements beginning with the Form 10-Q for the quarter ending September 30, 2025.*

 

*Except as described above, conforming related references in the Management's Discussion and Analysis and the Index to Financial Statements, and updating Note 11—Subsequent Events,this Amendment does not modify, update, or amend any other information set forth in the Original Report and does not reflect events occurring after the filing of the Original Report.*

**VISIONWAVE HOLDINGS, INC.**

**FORM 10-Q FOR THE QUARTER ENDED JUNE 30, 2025**

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
|  | **Page** |
| [Part I. Financial Information](#a_001) | F-2 |
| &nbsp;&nbsp;&nbsp;Item 1. Financial Statements |  |
| &nbsp;&nbsp;&nbsp;VisionWave Holdings, Inc. (Successor) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;[Condensed Consolidated Balance Sheets as of June 30, 2025 (unaudited) and December 31, 2024](#a_002) | F-2 |
| &nbsp;&nbsp;&nbsp;&nbsp;[Unaudited Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2025 and 2024](#a_003) | F-3 |
| &nbsp;&nbsp;&nbsp;&nbsp;[Unaudited Condensed Consolidated Statements of Changes in Stockholders' Deficit for the three and six months ended June 30, 2025 and 2024](#a_004) | F-4 |
| &nbsp;&nbsp;&nbsp;&nbsp;[Unaudited Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2025 and 2024](#a_005) | F-5 |
| &nbsp;&nbsp;&nbsp;&nbsp;[Notes to Unaudited Condensed Consolidated Financial Statements](#a_006) | F-6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Bannix Acquisition Corp. (Predecessor) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;[Condensed Balance Sheets as of June 30, 2025 (unaudited) and December 31, 2024](#a_007) | F-40 |
| &nbsp;&nbsp;&nbsp;&nbsp;[Unaudited Condensed Statements of Operations for the three and six months ended June 30, 2025 and 2024](#a_008) | F-41 |
| &nbsp;&nbsp;&nbsp;&nbsp;[Unaudited Condensed Statements of Changes in Stockholders' Deficit for the three and six months ended June 30, 2025 and 2024](#a_009) | F-42 |
| &nbsp;&nbsp;&nbsp;&nbsp;[Unaudited Condensed Statements of Cash Flows for the six months ended June 30, 2025 and 2024](#a_010) | F-43 |
| &nbsp;&nbsp;&nbsp;&nbsp;[Notes to Unaudited Condensed Financial Statements](#a_011) | F-44 |
| &nbsp;&nbsp;&nbsp;&nbsp;VisionWave Holdings, Inc. (Predecessor) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;[Unaudited Condensed Consolidated Balance Sheets as of June 30, 2025 and December 31, 2024](#a_012) | F-77 |
| &nbsp;&nbsp;&nbsp;&nbsp;[Unaudited Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2025](#a_013) | F-78 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Unaudited Condensed Consolidated Statements of Changes in Stockholder's Deficit for the three and six months ended June 30, 2025](#a_014) | F-79 |
| &nbsp;&nbsp;&nbsp;&nbsp;[Unaudited Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2025](#a_015) | F-80 |
| &nbsp;&nbsp;&nbsp;&nbsp;[Notes to Unaudited Condensed Consolidated Financial Statements](#a_016) | F-81 |
| &nbsp;&nbsp;&nbsp;[Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](#a_017) | 1 |
| &nbsp;&nbsp;&nbsp;[Item 3. Quantitative and Qualitative Disclosures Regarding Market Risk](#a_018) | 21 |
| &nbsp;&nbsp;&nbsp;[Item 4. Controls and Procedures](#a_019) | 21 |
| [Part II. Other Information](#a_020) | 23 |
| &nbsp;&nbsp;&nbsp;[Item 1. Legal Proceedings](#a_021) | 23 |
| &nbsp;&nbsp;&nbsp;[Item 1A. Risk Factors](#a_022) | 23 |
| &nbsp;&nbsp;&nbsp;[Item 2. Unregistered Sales of Equity Securities and Use of Proceeds from Registered Securities](#a_023) | 24 |
| &nbsp;&nbsp;&nbsp;[Item 3. Defaults Upon Senior Securities](#a_024) | 26 |
| &nbsp;&nbsp;&nbsp;[Item 4. Mine Safety Disclosures](#a_025) | 26 |
| &nbsp;&nbsp;&nbsp;[Item 5. Other Information](#a_026) | 26 |
| &nbsp;&nbsp;&nbsp;[Item 6. Exhibits](#a_027) | 27 |
| [Part III. Signatures](#a_028) | 29 |

---

 **PART I – FINANCIAL INFORMATION**

 **VISIONWAVE HOLDINGS, INC. (SUCCESSOR)**

**CONDENSED CONSOLIDATED BALANCE SHEETS**

---

| | | |
|:---|:---|:---|
|  | **June 30, 2025** | **December 31, 2024** |
|  | **(Unaudited)** | |
| **Assets** |  |  |
| **Current Assets:** |  |  |
| &nbsp;&nbsp;&nbsp;Cash | $885 | $9754 |
| &nbsp;&nbsp;&nbsp;Prepaid expense and other | 3930 | 3930 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Current Assets** | 4815 | 13684 |
| &nbsp;&nbsp;&nbsp;Cash held in Trust Account | 1168644 | 3749377 |
| **Total Assets** | $**1173459** | $**3763061** |
| **Liabilities, Redeemable Common Stock and Stockholders' Deficit** |  |  |
| **Current liabilities:** |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | $1265056 | $969883 |
| &nbsp;&nbsp;&nbsp;Income taxes payable | 955887 | 888426 |
| &nbsp;&nbsp;&nbsp;Excise tax payable | 913292 | 750608 |
| &nbsp;&nbsp;&nbsp;Promissory notes - Evie | 1003995 | 1003995 |
| &nbsp;&nbsp;&nbsp;Due to related parties | 2153962 | 1811700 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Current Liabilities** | **6292192** | **5424612** |
| Warrant liability | 25984 | 12180 |
| Redemptions payable | 972722 |  |
| Deferred underwriters' discount | 225000 | 225000 |
| &nbsp;&nbsp;&nbsp;**Total Liabilities** | **7515898** | **5661792** |
| **Commitments and Contingencies** |  |  |
| Common stock subject to possible redemption 16,353 and 324,748 at redemption value on June 30, 2025 and December 31, 2024, respectively | 608298 | 4084139 |
| **Stockholders' Deficit** |  |  |
| Preferred stock, $0.01 par value; 1,000,000 shares authorized; no shares issued or outstanding |  |  |
| Common stock, par value $0.01; authorized 100,000,000 shares; issued 4,061,166 and 4,286,248 shares; and outstanding 2,524,000 and 2,524,000 shares (excluding 16,353 and 324,748 shares subject to redemption and 1,437,500 Treasury Stock shares) on June 30, 2025 and December 31, 2024, respectively | 39615 | 39615 |
| Additional paid-in capital |  |  |
| Accumulated deficit | (6975977) | (6008110) |
| Less Treasury Stock; at cost; 1,437,500 common shares | (14375) | (14375) |
| **Total Stockholders' Deficit** | **(6950737)** | **(5982870)** |
| **Total Liabilities, Redeemable Common Stock and Stockholders' Deficit** | $**1173459** | $**3763061** |

---

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

**VISIONWAVE HOLDINGS, INC. (SUCCESSOR) UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| Operating costs | $340625 | $348402 | $687995 | $768454 |
| &nbsp;&nbsp;&nbsp;**Loss from operations** | **(340625)** | **(348402)** | **(687995)** | **(768454)** |
| Other (expense) income: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest income on trust account | 6000 | 200064 | 34720 | 566267 |
| &nbsp;&nbsp;&nbsp;Gain on forgiven of payables |  |  |  | 33750 |
| &nbsp;&nbsp;&nbsp;Excise tax interest/penalty | (59193) |  | (127219) |  |
| &nbsp;&nbsp;&nbsp;Income tax interest/penalties | (20246) |  | (60376) |  |
| &nbsp;&nbsp;&nbsp;Change in fair value of warrant liabilities | (19894) | 4060 | (13804) | (4060) |
| &nbsp;&nbsp;&nbsp;Total other (expense) income, net | (93333) | 204124 | (166679) | 595957 |
| Loss before provision for income taxes | (433958) | (144278) | (854674) | (172497) |
| Provision for income taxes | (336) | (8826) | (7085) | (8826) |
| **Net loss** | $**(434294)** | $**(153104)** | $**(861759)** | $**(181323)** |
| Basic and diluted weighted average shares outstanding | 2587045 | 4081747 | 2692303 | 4734717 |
| **Basic and diluted net loss per share** | $**(0.17)** | $**(0.04)** | $**(0.32)** | $**(0.04)** |

---

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

 **VISIONWAVE HOLDINGS, INC. (SUCCESSOR) UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIT**

**FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2025**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Common stock** | **Common stock** | | | | |
|  | **Share <sup>(1)</sup>** | **Amount** |<br>**Additional Paid-in Capital** |<br>**Accumulated Deficit** |<br>**Treasury Stock** |<br>**Total Stockholders' Deficit** |
| **Balance as of January 1, 2025** | **3961500** | $**39615** | $**—** | $**(6008110)** | $**(14375)** | $**(5982870)** |
| Net loss |  |  |  | (427465) |  | (427465) |
| Excise tax imposed on common stock redemptions |  |  |  | (25738) |  | (25738) |
| Accretion of common stock subject to possible redemption to redemption value |  |  |  | (54828) |  | (54828) |
| **Balance as of March 31, 2025** | **3961500** | $**39615** | $**—** | $**(6516141)** | $**(14375)** | $**(6490901)** |
| Net loss |  |  |  | (434294) |  | (434294) |
| Excise tax imposed on common stock redemptions |  |  |  | (9727) |  | (9727) |
| Accretion of common stock subject to possible redemption to redemption value |  |  |  | (15815) |  | (15815) |
| **Balance as of June 30, 2025** | **3961500** | $**39615** | $**—** | $**(6975977)** | $**(14375)** | $**(6950737)** |

---

**FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2024**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Common stock** | **Common stock** | | | | |
|  | **Share <sup>(1)</sup>** | **Amount** |<br>**Additional Paid-in Capital** |<br>**Accumulated Deficit** |<br>**Treasury Stock** |<br>**Total Stockholders' Deficit** |
| **Balance as of January 1, 2024** | **3961500** | $**39615** | $— | $**(3678428)** | $**(14375)** | $**(3653188)** |
| Net loss |  |  |  | (28219) |  | (28219) |
| Excise tax imposed on common stock redemptions |  |  |  | (151344) |  | (151344) |
| Accretion of common stock subject to possible redemption to redemption value |  |  |  | (491203) |  | (491203) |
| **Balance as of March 31, 2024** | **3961500** | $**39615** | $**—** | $**(4349194)** | $**(14375)** | $**(4323954)** |
| Net loss |  |  |  | (153104) |  | (153104) |
| Accretion of common stock subject to possible redemption to redemption value |  |  |  | (230038) |  | (230038) |
| **Balance as of June 30, 2024** | **3961500** | $**39615** | $**—** | $**(4732336)** | $**(14375)** | $**(4707096)** |

---

(1) Includes 1,437,500 shares classified as treasury stock (See Notes 8).

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

**VISIONWAVE HOLDINGS, INC. (SUCCESSOR) UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS**

---

| | | |
|:---|:---|:---|
|  | **For the Six Months Ended June 30,** | **For the Six Months Ended June 30,** |
|  | **2025** | **2024** |
| **Cash flows from Operating Activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net loss | $(861759) | $(181323) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments to reconcile net loss to net cash used in operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of warrant liability | 13804 | 4060 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on forgiven payables |  | (33750) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest income on Trust Account | (34720) | (566267) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in current assets and current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Prepaid expenses |  | (39) |
| &nbsp;&nbsp;&nbsp;Income taxes payable | 67461 | 8826 |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | 295173 | 199025 |
| &nbsp;&nbsp;&nbsp;Excise tax payable | 127219 |  |
| &nbsp;&nbsp;&nbsp;Due to related parties, net | 147500 | 149810 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net cash used in operating activities** | **(245322)** | **(419658)** |
| **Cash flows from Investing Activities:** |  |  |
| Investment of cash into Trust Account | (52408) | (250000) |
| Redemptions from Trust Account | 2573762 | 15134429 |
| Withdrawal from Trust Account to pay taxes | 94099 | 422094 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net cash provided by investing activities** | **2615453** | **15306523** |
| **Cash flows from Financing Activities:** |  |  |
| Redemption of Class A common stock subject to possible redemption | (2573762) | (15134429) |
| Advances from affiliated related parties | 215762 |  |
| Promissory notes – Evie |  | 29980 |
| Payment of advances to related parties | (21000) | (15000) |
| Proceeds from promissory note to new Sponsors |  | 30000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net cash used in financing activities** | **(2379000)** | **(15089449)** |
| **Net change in cash** | **(8869)** | **(202584)** |
| Cash, beginning of the period | 9754 | 232278 |
| **Cash, end of the period** | $**885** | $**29694** |
| **Supplemental disclosure of noncash financing activities:** |  |  |
| Accretion of common stock subject to possible redemption to redemption value | $70643 | $721241 |
| Redemptions payable | $972722 | $— |
| Excise tax liability accrued for common stock redemptions | $35465 | $151344 |

---

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

**VISIONWAVE HOLDINGS, INC. (SUCCESSOR)**

**NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**Note 1—Organization and Business Operations**

**Organization and General**

In connection with the closing of its proposed business combination with VisionWave Technologies, Inc., discussed below (see also note for subsequent events), VisionWave Holdings, Inc. (successor) ("VW Holdings" or the "Company") is the successor to Bannix Acquisition Corp., ("Bannix") a blank check company incorporated in the state of Delaware on January 21, 2021. Bannix was formed for the purpose of effecting mergers, capital stock exchange, asset acquisitions, stock purchases, reorganization or similar business combinations with one or more businesses ("Business Combination").

As of June 30, 2025, the Company had not commenced any operations. All activity for the period from January 21, 2021 (inception) through June 30, 2025 relates to the Company's formation, the initial public offering (the "IPO") (as defined below) and the Company's search for a target and the consummation of an initial Business Combination. The Company will not generate any operating revenues until after the completion of its initial Business Combination, at the earliest. The Company generates non-operating income in the form of interest income on cash from the proceeds derived from the IPO and non-operating income or expense from the changes in the fair value of warrant liabilities. Until the closing of its business combination with VisionWave Technologies, Inc., the Company is an early stage and emerging growth company and, as such, the Company is subject to all of the risks associated with early stage and emerging growth companies.

**Sponsors and Officers**

The Company's original sponsors were Subash Menon and Sudeesh Yezhuvath (through their investment entity Bannix Management LLP), Suresh Yezhuvath ("Yezhuvath") and Seema Rao ("Rao") (collectively, the "Former Sponsor").

On October 20, 2022, pursuant to a Securities Purchase Agreement ("SPA"), Instant Fame LLC, a Nevada limited liability company controlled by a U.S. person ("Instant Fame") (the "Sponsor"), acquired an aggregate of 385,000 shares of common stock of the Company from Bannix Management LLP, Balaji Venugopal Bhat, Nicholos Hellyer, Subbanarasimhaiah Arun, Vishant Vora and Suresh Yezhuvath and 90,000 private placement units from Suresh Yezhuvath (collectively, the "Sellers") in a private transaction. The Sellers immediately loaned the entire proceeds to the Company for the working capital requirements of the Company. In connection with this transaction, all parties agreed to certain changes to the Board of Directors.

As a result of the above, Subash Menon resigned as Chief Executive Officer and Chairman of the Board of Directors of the Company and Nicholas Hellyer resigned as Chief Financial Officer, Secretary and Head of Strategy. Douglas Davis was appointed as the Chief Executive Officer of the Company. Further, Balaji Venugopal Bhat, Subbanarasimhaiah Arun and Vishant Vora resigned as Directors of the Company. Mr. Bhat, Mr. Arun and Mr. Vora served on the Audit Committee with Mr. Bhat serving as the committee chair. Mr. Bhat, Mr. Arun and Mr. Vora served on the Compensation Committee with Mr. Arun serving as the committee chair.

The Board was also increased from two to seven and Craig Marshak and Douglas Davis were appointed as Co-Chairmen of the Board of Directors effective immediately. Further, Jamal Khurshid, Eric T. Shuss and Ned L. Siegel were appointed to the Board of Directors of the Company. The resignations referenced above were not the result of any disagreement with management or the Board.

On November 10, 2022, Sudeesh Yezhuvath resigned as a director of the Company for personal reasons. The resignation was not the result of any disagreements with management or the Board.

Due to vacancies as results of board members departure, on November 11, 2022 the Board made the following decisions: (i) Jamie Khurshid, Ned Siegel and Eric Shuss each have been identified as being financially literate and independent under the SEC and Nasdaq Rules have been appointed to the Audit Committee to serve until their successors are qualified and appointed with such appointment subject to the mailing of that certain Schedule 14F Information Statement. Mr. Khurshid chairs the audit committee. (ii) Mr. Siegel, Mr. Shuss and Craig Marshak each have been identified as being independent under the SEC and Nasdaq Rules were appointed to the Compensation Committee to serve until their successors are qualified and appointed with such appointment subject to the mailing of that certain Schedule 14F Information Statement. (iii) Messrs. Davis and Marshak have been appointed as Class III directors, Subash Menon has been appointed as a Class I director and, subject to the mailing of the Schedule 14F Information Statement, Messrs. Khurshid, Siegel and Shuss have been appointed as the Class II directors. The Schedule 14F Information Statement was mailed on or about November 15, 2022.

On May 19, 2023, the Company entered into an Executive Retention Agreement with Mr. Davis, Chief Executive Officer and Co-Chairman of the Board of Directors, providing for an at-will employment arrangement that may be terminated by either party at any time, which provides for the payment of an annual salary of $240,000 to Mr. Davis. Additionally, the Company entered into a letter agreement with Subash Menon, a director of the Company, for services in connection with the review and advice pertaining to the proposed Business Combination (discussed below) providing for a payment in the amount of $200,000 upon the closing of a Business Combination.

On April 10, 2024, Erik Klinger was appointed by the Company to serve as the Chief Financial Officer of the Company. There is no understanding or arrangement between Mr. Klinger and any other person pursuant to which he was appointed as an executive officer. Mr. Klinger does not have any family relationship with any director, executive officer or person nominated or chosen by us to become an executive officer. The employment of Mr. Klinger is at will and may be terminated at any time, with or without formal cause.

**Initial Public Offering**

The registration statements for the Company's IPO were declared effective on September 9, 2021 and September 10, 2021 (the "Effective Date"). On September 14, 2021, the Company consummated its IPO of 6,900,000 units at $10.00 per unit (the "Units"), which is discussed in Note 3. Each Unit consists of one share of common stock (the "Public Shares"), one redeemable warrant to purchase one share of common stock at a price of $11.50 per share and one right. Each right entitles the holder thereof to receive one-tenth (1/10) of one share of common stock upon the consummation of the Business Combination.

Concurrent with the IPO, the Company consummated the issuance of 406,000 private placement units (the "Private Placement Units") as follows: the Company sold 181,000 Private Placement Units to certain investors for aggregate cash proceeds of $2,460,000 and issued an additional 225,000 Private Placement Units to the Former Sponsor in exchange for the cancellation of $1,105,000 in loans and a promissory note due to them (see Notes 4 and 6). Each Private Placement Unit consists of one share of common stock, one redeemable warrant to purchase one share of common stock at a price of $11.50 per whole share and one right. Each right entitles the holder thereof to receive one-tenth (1/10) of one share of common stock upon the consummation of the Business Combination. The Company's management has broad discretion with respect to the specific application of the net proceeds of the IPO and the Private Placement Units, although substantially all of the net proceeds are intended to be generally applied toward consummating a Business Combination.

**Trust Account and Extensions**

Following the closing of the IPO on September 14, 2021, an amount of $69,690,000 ($10.10 per Unit) from the net proceeds of the sale of the Units in the IPO and Private Placement Units was placed in a trust account (the "Trust Account") and invested in U.S. government securities, within the meaning set forth in Section 2(a)(16) of the Investment Company Act, with a maturity of 180 days or less or in any open-ended investment company that holds itself out as a money market fund meeting the conditions of Rule 2a-7 of the Investment Company Act, as determined by the Company. The Company has since divested its investments in the Trust Account and placed the funds in an interest-bearing demand deposit account. Except with respect to interest earned on the funds held in the Trust Account that may be released to the Company to pay its franchise and income tax obligations (less up to $100,000 of interest to pay dissolution expenses), the proceeds from this offering and the sale of the Private Placement Units will not be released from the Trust Account until the earliest of (a) the completion of the Company's initial Business Combination, (b) the redemption of any Public Shares properly submitted in connection with a stockholder vote to amend the Company's amended and restated certificate of incorporation, and (c) the redemption of the Company's Public Shares if the Company is unable to complete the initial Business Combination within 15 months from the closing of this offering, or within any period of extension, subject to applicable law. The proceeds deposited in the Trust Account could become subject to the claims of the Company's creditors, if any, which could have priority over the claims of the Company's public stockholders.

*March 8, 2023 Special Meeting*

The Company held a Special Meeting of Stockholders on March 8, 2023 (the "Special Meeting"). At the Special Meeting, the stockholders approved the filing of an amendment to its Amended and Restated Certificate of Incorporation with the Delaware Secretary of State (the "Extension Amendment"), to extend the date (the "Extension") by which the Company must (1) complete a merger, share exchange, asset acquisition, stock purchase, recapitalization, reorganization or similar business combination involving the Company and one or more businesses (an "initial Business Combination"), (2) cease its operations except for the purpose of winding up if it fails to complete such initial Business Combination and (3) redeem 100% of the Company's common stock ("common stock") included as part of the Units sold in the Company's initial public offering that was consummated on September 14, 2021 (the "IPO"), from March 14, 2023, and to allow the Company, without another stockholder vote, to further extend the date to consummate a Business Combination on a monthly basis up to twelve (12) times by an additional one (1) month each time after March 14, 2023 or later extended deadline date, by resolution of the Company's board of directors (the "Board"), if requested by Instant Fame upon five days' advance notice prior to the applicable deadline date, until March 14, 2024, or a total of up to twelve (12) months after March 14, 2023 (such date as extended, the "Deadline Date"), unless the closing of a Business Combination shall have occurred prior thereto.

At the Special Meeting, stockholders holding a total of 3,960,387 shares of the Company's common stock exercised their right to redeem such shares for a pro rata portion of the funds in the Company's Trust Account. As a result, $41,077,199 (approximately $10.37 per share) was removed from the Company's Trust Account to pay such holders. Following redemptions, the Company had 5,463,613 shares outstanding.

*March 8, 2024 Annual Meeting*

On March 8, 2024, the Company held its Annual Meeting of Stockholders of the Company (the "Annual Meeting"), whereby the Company's stockholders approved an amendment to its Amended and Restated Certificate of Incorporation with the Delaware Secretary of State (the "March 2024 Amendment"), to extend the Deadline Date from March 14, 2024, as extended, and to allow the Company, without another stockholder vote, to further extend the date to consummate a Business Combination on a monthly basis up to six (6) times by an additional one (1) month each time after March 14, 2024 or later extended deadline date, by resolution of the Company's Board of Directors, if requested by the Company's Sponsor, until September 14, 2024, or a total of up to six (6) months after March 14, 2024, unless the closing of a Business Combination shall have occurred prior thereto (the "Extension Amendment").

Additionally, the Company's stockholders approved an amendment to remove from the Amended and Restated Certificate of Incorporation the redemption limitation contained under Section 9.2(a) preventing the Company from closing a Business Combination if it would have less than $5,000,001 of net tangible assets (the "NTA Amendment").

At the Annual Meeting, stockholders holding a total of 1,381,866 shares of the Company's common stock exercised their right to redeem such shares for a pro rata portion of the funds in the Company's Trust Account. As a result, $15,134,429 (approximately $10.95 per share) was removed from the Company's Trust Account to pay such holders. Following redemptions, the Company had 4,081,747 shares outstanding.

*September 6, 2024 Special Meeting*

On September 6, 2024, the Company held a Special Meeting of Stockholders of the Company (the "September 2024 Special Meeting"), whereby the Company's stockholders approved an amendment to its Amended and Restated Certificate of Incorporation with the Delaware Secretary of State (the "September 2024 Amendment"), to extend the Deadline Date from September 14, 2024, as extended, and to allow the Company, without another stockholder vote, to further extend the date to consummate a Business Combination on a monthly basis up to six (6) times by an additional one (1) month each time after September 14, 2024 or later extended deadline date, by resolution of the Company's Board of Directors, if requested by the Company's Sponsor, until March 14, 2025, or a total of up to six (6) months after September 14, 2024, unless the closing of a Business Combination shall have occurred prior thereto (the "September 2024 Extension Amendment").

Additionally, beginning in September 2024, the Sponsor or its designees will deposit into the Trust Account, as a loan, $16,237 or $0.05 per public share multiplied by the number of public shares outstanding (the "Contribution"), in connection with each Extension.

At the September 2024 Special Meeting, stockholders holding a total of 1,232,999 shares of the Company's common stock exercised their right to redeem such shares for a pro rata portion of the funds in the Company's Trust Account. As a result, $13,790,479 (approximately $11.18 per share) was removed from the Company's Trust Account to pay such holders. Following redemptions, the Company had 2,848,748 shares outstanding.

*March 7, 2025 Special Meeting*

On March 7, 2025, the Company held a Special Meeting of Stockholders of the Company (the "March 2025 Special Meeting"), whereby the Company's stockholders approved an amendment to its Amended and Restated Certificate of Incorporation with the Delaware Secretary of State (the "March 2025 Amendment"), to extend the Deadline Date from March 14, 2025, as extended, and to allow the Company, without another stockholder vote, to further extend the date to consummate a Business Combination on a monthly basis up to three (3) times by an additional one (1) month each time after March 14, 2025 or later extended deadline date, by resolution of the Company's Board of Directors, if requested by the Company's Sponsor, until June 14, 2025, or a total of up to three (3) months after March 14, 2025, unless the closing of a Business Combination shall have occurred prior thereto (the "March 2025 Extension Amendment").

Additionally, beginning in March 2025, the Sponsor or its designees will deposit into the Trust Account, as a loan, $4,983 or $0.05 per public share multiplied by the number of public shares outstanding (the "Contribution"), in connection with each Extension.

In connection with the vote on the March 2025 Extension Amendment at the March 2025 Special Meeting, stockholders holding a total of 225,082 shares of the Company's common stock exercised their right to redeem such shares for a pro rata portion of the funds in the Company's Trust Account. As a result, $2,573,762 (approximately $11.43 per share) was removed from the Company's Trust Account to pay such holders. Following redemptions, the Company had 2,623,666 shares outstanding.

*May 22, 2025 Special Meeting*

On May 22, 2025, the Company held a special meeting of stockholders (the "May 2025 Special Meeting") whereby the Company's stockholders approved the proposals described in the Company's definitive proxy statement filed with the Securities and Exchange Commission on May 9, 2025 (the "May 9, 2025 Proxy Statement"). The approved proposals include (i) the proposed Business Combination (2) the stock issuance plan, (3) the incentive plan proposal and (4) the director election proposal.

In connection with the vote at the May 2025 Special Meeting, stockholders holding a total of 83,313 shares of the Company's common stock exercised their right to redeem such shares for a pro rata portion of the funds in the Company's Trust Account. As a result, $972,722 (approximately $11.67 per share) will be removed from the Company's Trust Account to pay such holders. Following redemptions, the Company will have 2,540,353 shares outstanding prior to the Merger.

As of June 30, 2025, the Company had not paid the redeeming stockholders for their redeemed shares and recognized a redemption payable on the condensed consolidated balance sheet for $972,722. In July 2025, the Company paid the redeeming stockholders for their redeemed shares.

In association with the Company's special meetings and annual meeting, as of the filing of this Form 10-Q, the Company has deposited an aggregate of $1,857,358 into the Trust Account to extend the Deadline Date.

**Deadline Date Extension**

In connection with the March 7, 2025 Special Meeting, the stockholders of the Company approved the extension of the Deadline date to March 14, 2025 or later extended deadline date, by resolution of the Company's Board of Directors, if requested by the Company's Sponsor, until June 14, 2025.

Prior to the June 14, 2025 Deadline Date, management of the Company, representing a majority of the Company's stockholders, held a meeting with the trustee of the Trust Account to request the Trust Account not be liquidated due to the pending regulatory approval of the proposed Business Combination, discussed below. The trustee exercised administrative authority and agreed to the temporary extension of the Deadline Date pending a stockholder meeting. Before a stockholder meeting could be held to extend the Deadline Date, final regulatory approval was granted by Nasdaq and the Company closed on its proposed Business Combination and terminated the Trust Account.

**Initial Business Combination**

The Company had until June 14, 2025 (as extended) to (1) complete a Business Combination, (2) cease its operations except for the purpose of winding up if it fails to complete such Business Combination, and (3) redeem 100% of the Company's common stock included as part of the units sold in the Company's initial public offering.

In the event that the Company receives notice from Instant Fame five days prior to the applicable deadline of its wish for the Company to effect an extension, the Company intends to issue a press release announcing such intention at least three days prior to the applicable deadline. In addition, the Company intends to issue a press release the day after the applicable deadline announcing whether or not the funds had been timely deposited. Instant Fame and its affiliates or designees are not obligated to fund the Trust Account to extend the time for the Company to complete the initial Business Combination. If the Company is unable to consummate the initial Business Combination within the applicable time period, the Company will, promptly but not more than ten business days thereafter, redeem the Public Shares for a pro rata portion of the funds held in the Trust Account and promptly following such redemption, subject to the approval of the remaining stockholders and the board of directors, dissolve and liquidate, subject in each case to the obligations under Delaware law to provide for claims of creditors and the requirements of other applicable law. In such event, the rights and warrants will be worthless. Additionally, any initial Business Combination must be approved by a majority of the independent directors.

The Company anticipates structuring the initial Business Combination so that the post-transaction company in which the public stockholders' own shares will own or acquire substantially all of the equity interests or assets of the target business or businesses. The Company may, however, structure the initial Business Combination such that the post-transaction company owns or acquires less than substantially all of such interests or assets of the target business in order to meet certain objectives of the target management team or stockholders or for other reasons, but the Company will only complete such Business Combination if the post-transaction company owns or acquires 50% or more of the outstanding voting securities of the target or otherwise acquires a controlling interest in the target sufficient for it not to be required to register as an investment company under the Investment Company Act of 1940, as amended (the "Investment Company Act"). Even if the post-transaction company owns or acquires 50% or more of the voting securities of the target, the stockholders prior to the initial Business Combination may collectively own a minority interest in the post-transaction company, depending on valuations ascribed to the target and the Company in the Business Combination transaction. For example, the Company could pursue a transaction in which the Company issue a substantial number of new shares in exchange for all of the outstanding capital stock of shares or other equity interests. In this case, the Company would acquire a 100% controlling interest in the target. However, as a result of the issuance of a substantial number of new shares, the stockholders immediately prior to the initial Business Combination could own less than a majority of the outstanding shares subsequent to the initial Business Combination. If less than 100% of the equity interests or assets of a target business or businesses are owned or acquired by the post-transaction company, the portion of such business or businesses that is owned or acquired is what will be valued for purposes of the 80% of net assets test. If the initial Business Combination involves more than one target business, the 80% of net assets test will be based on the aggregate value of all of the target businesses even if the acquisitions of the target businesses are not closed simultaneously.

The Company cannot ascertain the capital requirements for any particular transaction. If the net proceeds currently held in the Trust Account prove to be insufficient, either because of the size of the Business Combination, the depletion of the available net proceeds in search of a target business, or because the Company becomes obligated to redeem a significant number of the Public Shares upon consummation of the initial Business Combination, the Company will be required to seek additional financing, in which case the Company may issue additional securities or incur debt in connection with such Business Combination. Furthermore, the Company may issue a substantial number of additional shares of common or preferred stock to complete the initial Business Combination or under an employee incentive plan upon or after consummation of the initial Business Combination. The Company does not have a maximum debt leverage ratio or a policy with respect to how much debt the Company may incur. The amount of debt the Company will be willing to incur will depend on the facts and circumstances of the proposed Business Combination and market conditions at the time of the potential Business Combination. At this time, the Company is not party to any arrangement or understanding with any third party with respect to raising additional funds through the sale of the securities or the incurrence of debt. Subject to compliance with applicable securities laws, the Company would only consummate such financing simultaneously with the consummation of the initial Business Combination.

Nasdaq rules require that the initial Business Combination must occur with one or more target businesses that together have an aggregate fair market value of at least 80% of the assets held in the Trust Account (excluding advisory fees and taxes payable on the income earned on the Trust Account) at the time of the agreement to enter into the initial Business Combination. If the board is not able to independently determine the fair market value of the target business or businesses, the Company will obtain an opinion from an independent investment banking firm or an independent accounting firm with respect to the satisfaction of such criteria. The Company does not intend to purchase multiple businesses in unrelated industries in connection with the initial Business Combination.

The Company will provide its public stockholders with the opportunity to redeem all or a portion of their Public Shares upon the completion of the initial Business Combination either (i) in connection with a stockholder meeting called to approve the initial Business Combination or (ii) by means of a tender offer. The decision as to whether the Company will seek stockholder approval of a proposed initial Business Combination or conduct a tender offer will be made by the Company, solely at its discretion. The stockholders will be entitled to redeem their shares for a pro rata portion of the amount then on deposit in the Trust Account (initially $10.10 per share, plus any pro rata interest earned on the funds held in the Trust Account and not previously released to the Company to pay its tax obligations plus additional deposits to extend the Combination Period).

Related to the redemption of the Company's public shares, the Company's has no limitation on its net tangible assets either immediately before or after the consummation of the Business Combination. Redemptions of the Company's public shares may be subject to a net tangible asset test or cash requirement pursuant to an agreement relating to a Business Combination. For example, the Business Combination may require: (i) cash consideration to be paid to the target or its owners, (ii) cash to be transferred to the target for working capital or other general corporate purposes or (iii) the retention of cash to satisfy other conditions in accordance with the terms of the Business Combination. In the event the aggregate cash consideration the Company would be required to pay for all shares of common stock that are validly submitted for redemption plus any amount required to satisfy cash conditions pursuant to the terms of the Business Combination exceed the aggregate amount of cash available to the Company, it will not complete the Business Combination or redeem any shares, and all shares of common stock submitted for redemption will be returned to the holders thereof.

The Sponsor, officers and directors and Representative (as defined in Note 6) have agreed to (i) waive their redemption rights with respect to their Founder Shares and Public Shares in connection with the completion of the initial Business Combination, (ii) waive their redemption rights with respect to their Founder Shares (as defined below) and Public Shares in connection with a stockholder vote to approve an amendment to the Company's amended and restated certificate of incorporation, and (iii) waive their rights to liquidating distributions from the Trust Account with respect to their Founder Shares if the Company fails to complete the initial Business Combination within the Combination Period.

The Company's Sponsor has agreed to be liable to the Company if and to the extent any claims by a third party for services rendered or products sold to the Company, or a prospective target business with which the Company has entered into a written letter of intent, confidentiality or similar agreement or Business Combination agreement, reduce the amount of funds in the Trust Account to below the lesser of (i) $10.95 per Public Share (subject to increase of up to an additional $4,983 per month in the event that the Sponsors elects to extend the period of time to consummate a Business Combination as set forth in the March 2025 Extension Amendment) and (ii) the actual amount per Public Share held in the Trust Account as of the date of the liquidation of the Trust Account, if less than $10.95 per share due to reductions in the value of the trust assets, less taxes payable, provided that such liability will not apply to any claims by a third party or prospective target business who executed a waiver of any and all rights to the monies held in the Trust Account (whether or not such waiver is enforceable) nor will it apply to any claims under the Company's indemnity of the underwriters of this offering against certain liabilities, including liabilities under the Securities Act. However, the Company has not asked its Sponsor to reserve for such indemnification obligations, nor has the Company independently verified whether its Sponsor has sufficient funds to satisfy its indemnity obligations and believe that the Company's Sponsor's only assets are securities of the Company. Therefore, the Company cannot assure that its Sponsor would be able to satisfy those obligations.

Pursuant to the Company's Investment Management Trust Agreement with Continental Stock Transfer & Trust Company (the "Trustee"), dated as of September 10, 2021 (the "Trust Agreement"), as amended, upon a liquidation and termination of the Trust Account as a result of the Company failing to complete a Business Combination, the Company is authorized to withdrawal $100,000 of interest that may be released to the Company to pay dissolution expenses (the "Allowance"). On January 30, 2025, the Company assigned the Trustee $100,000 of the Allowance only in the event of a dissolution and termination of the Trust Account as a result of the Company failing to complete a Business Combination. The Trustee is authorized to offset $100,000 from the Trust Account interest against the Company's outstanding invoice.

**Proposed Business Combination – VisionWave Technologies**

Prior to the succession of Bannix by VW Holdings, on March 26, 2024, Bannix entered into a Business Combination Agreement (the "Original Agreement"), by and among Bannix, VisionWave Technologies, Inc., a Nevada corporation ("Target" or "VisionWave Technologies") and the shareholders of Target.

On September 6, 2024, Bannix entered into a Merger Agreement and Plan of Reorganization (the "Merger Agreement"), by and among Bannix, VisionWave Holdings, Inc., a Delaware corporation and a direct, wholly owned subsidiary of Bannix ("VisionWave"), BNIX Merger Sub, Inc., a Delaware corporation and a direct, wholly owned subsidiary of VisionWave ("Parent Merger Sub"), BNIX VW Merger Sub, Inc., a Nevada corporation and direct, wholly owned subsidiary of VisionWave ("Company Merger Sub"), and Target. The Merger Agreement and the transactions contemplated thereby were approved by the boards of directors of each of Bannix, VisionWave, Parent Merger Sub, Company Merger Sub, and Target.

On July 14, 2025, the Company closed its proposed Business Combination with VisionWave Technologies.

*The Mergers*

Pursuant to and in accordance with the terms set forth in the Merger Agreement, (a) Parent Merger Sub will merge with and into Bannix, with Bannix continuing as the surviving entity (the "Parent Merger"), as a result of which, (i) Bannix will become a wholly owned subsidiary of VisionWave, and (ii) each issued and outstanding security of Bannix immediately prior to the effective time of the Parent Merger (the "Parent Merger Effective Time") (other than shares of Bannix Common Stock that have been redeemed or are owned by Bannix or any of its direct or indirect subsidiaries as treasury shares and any Dissenting Parent Shares) shall no longer be outstanding and shall automatically be cancelled in exchange for the issuance to the holder thereof of a substantially equivalent security of VisionWave (other than the Parent Rights, which shall be automatically converted into shares of VisionWave), and, (b) immediately following the consummation of the Parent Merger but on the same day, Company Merger Sub will merge with and into Target, with Target continuing as the surviving entity (the "Company Merger" and, together with the Parent Merger, the "Mergers"), as a result of which, (i) Target will become a wholly owned subsidiary of VisionWave, and (ii) each issued and outstanding security of Target immediately prior to the effective time of the Company Merger (the "Company Merger Effective Time") (other than any Cancelled Shares or Dissenting Shares) shall no longer be outstanding and shall automatically be cancelled in exchange for the issuance to the holder thereof of a substantially equivalent security of VisionWave. The Mergers and the other transactions contemplated by the Merger Agreement are hereinafter referred to as the "Business Combination."

The Business Combination is expected to close in the third quarter of 2025, subject to customary closing conditions, including the satisfaction of the minimum available cash condition, the receipt of certain governmental approvals and the required approval by the stockholders of Bannix and Target.

*Consideration*

Pursuant to and in accordance with the terms set forth in the Merger Agreement, at the Parent Merger Effective Time, (a) each share of Bannix common stock, par value $0.001 per share ("Bannix Common Stock") outstanding immediately prior to the Parent Merger Effective Time that has not been redeemed, is not owned by Bannix or any of its direct or indirect subsidiaries as treasury shares and is not a Dissenting Parent Share will automatically convert into one share of common stock, par value $0.001, of VisionWave (each, a share of "VisionWave Common Stock"), (b) each Bannix Warrant shall automatically convert into one warrant to purchase shares of VisionWave Common Stock (each, a "VisionWave Warrant") on substantially the same terms and conditions; and (c) each Bannix Right will be automatically converted into the number of shares of VisionWave Common Stock that would have been received by the holder of such Bannix Right if it had been converted upon the consummation of a Business Combination in accordance with Bannix's organizational documents.

In accordance with the terms and subject to the conditions of the Merger Agreement, at the Company Merger Effective Time, (a) each share of issued and outstanding Target common stock, par value $0.01 ("Target Common Stock"), shall be cancelled and converted into 4,041 shares of VisionWave Common Stock.

*Governance*

Subject to approval of shareholders, the parties have agreed to take actions such that, effective immediately after the Closing of the Business Combination, the Company's board of directors shall consist of five directors, consisting of Haggai Ravid, Chuck Hansen, Eric T. Shuss, Douglas Davis and Noam Kenig. Additionally, certain current Target management personnel may become officers of VisionWave.

*Representations and Warranties; Covenants*

The Merger Agreement contains representations, warranties and covenants of each of the parties thereto that are customary for transactions of this type, including, among others, covenants providing for (i) certain limitations on the operation of the parties' respective businesses prior to consummation of the Business Combination, (ii) the parties' efforts to satisfy conditions to consummation of the Business Combination, including by obtaining any necessary approvals from governmental agencies, (iii) prohibitions on the parties soliciting alternative transactions, (iv) VisionWave preparing and filing a registration statement on Form S-4 with the Securities and Exchange Commission (the "SEC") and taking certain other actions to obtain the requisite approval of Bannix's stockholders to vote in favor of certain matters, including the adoption of the Merger Agreement and approval of the Business Combination, at a special meeting to be called for the approval of such matters, and (v) the protection of, and access to, confidential information of the parties.

On May 5, 2025, the SEC declared the Company's registration statement on Form S-4 to be effective.

The representations, warranties and covenants in the Merger Agreement were made solely for the benefit of the parties to the Merger Agreement and are subject to limitations agreed upon by the contracting parties, including being qualified by confidential disclosures made the parties to the Merger Agreement which are not filed publicly and which are subject to a contractual standard of materiality different from that generally applicable to stockholders and were used for the purpose of allocating risk among the parties rather than establishing matters as facts. Bannix does not believe that these schedules contain information that is material to an investment decision.

In addition, VisionWave has agreed to adopt an equity incentive plan, as described in the Merger Agreement.

*Conditions to the Closing*

The obligations of Bannix, VisionWave, Parent Merger Sub and Company Merger Sub (the "Bannix Parties") and Target to consummate the Business Combination are subject to certain closing conditions, including, but not limited to, (i) the approval of Bannix's stockholders, (ii) the approval of Target's stockholders, and (iii) the Company's Form S-4 registration statement becoming effective.

In addition, the obligations of the Bannix Parties to consummate the Business Combination are also subject to the fulfillment (or waiver) of other closing conditions, including, but not limited to, (i) the representations and warranties of Target being true and correct to the standards applicable to such representations and warranties and each of the covenants of Target having been performed or complied with in all material respects, (ii) delivery of certain ancillary agreements required to be executed and delivered in connection with the Business Combination, and (iii) no Material Adverse Effect having occurred.

The obligation of Target to consummate the Business Combination is also subject to the fulfillment (or waiver) of other closing conditions, including, but not limited to, (i) the representations and warranties of the Bannix Parties being true and correct to the standards applicable to such representations and warranties and each of the covenants of the Bannix Parties having been performed or complied with in all material respects and (ii) the shares of VisionWave Common Stock issuable in connection with the Business Combination being listed on the Nasdaq Stock Market.

*Termination Rights*

The Merger Agreement may be terminated under certain customary and limited circumstances prior to the Closing of the Business Combination, including, but not limited to, (i) by mutual written consent of Bannix and Target, (ii) by Bannix, on the one hand, or Target, on the other hand, if there is any breach of the representations, warranties, covenant or agreement of the other party as set forth in the Merger Agreement, in each case,

such that certain conditions to closing cannot be satisfied and the breach or breaches of such representations or warranties or the failure to perform such covenant or agreement, as applicable, are not cured or cannot be cured within certain specified time periods, (iii) by either Bannix or Target if the Business Combination is not consummated, (iv) by either Bannix or Target if a meeting of Bannix's stockholders is held to vote on proposals relating to the Business Combination and the stockholders do not approve the proposals, and (v) by Bannix if the Target stockholders do not approve the Merger Agreement.

*Permitted Financings*

The Merger Agreement contemplates that Target (a) may enter into agreements to raise capital in one or more private placement transactions prior to the Closing for aggregate gross proceeds of up to $20,000,000 or (b) consummate an initial sale of any shares of capital stock of Target in an underwritten public offering registered under the Securities Act or any direct listing of any shares of capital stock of Target on a securities exchange or securities market ("Permitted Financings").

*Stockholder Support Agreement*

In accordance with the Merger Agreement, within thirty (30) days following the execution of the Merger Agreement, Bannix, VisionWave, Target, and certain stockholders of Target representing the requisite votes necessary to approve the Merger Agreement (the "Target Equity Holders") are expected to enter into a Stockholder Support Agreement pursuant to which the Target Equity Holders will: (a) agree to vote in favor of the adoption of the Merger Agreement and approve the Mergers and the other Transactions to which Target is a party; and (b) agree to waive any appraisal or similar rights they may have pursuant to Nevada law with respect to the Mergers and the other Transactions.

*Potential Private Placement* 

On April 9, 2025, VisionWave Technologies entered into a non-exclusive placement agent engagement agreement (the "Engagement Agreement") with Maxim Group LLC ("Maxim"), pursuant to which Maxim will act as VisionWave Technologies' non-exclusive placement agent in connection with a potential private placement of up to $10 million of equity or equity-linked securities (the "Offering"). The Offering is expected to be conducted on a "commercially reasonable efforts" basis, and there is no assurance that the Offering will be completed, or that any definitive agreements with investors will be entered into. Under the terms of the Engagement Agreement, VisionWave Technologies retains full discretion to accept or reject any investment proposals and will determine the final terms and structure of the Offering, subject to market conditions and investor interest. Maxim will be entitled to a cash placement fee equal to seven percent (7.0%) of the gross proceeds received by VisionWave Technologies from any investor introduced by Maxim. In addition, VisionWave Technologies agreed to reimburse Maxim for up to $25,000 in out-of-pocket expenses incurred in connection with the engagement, subject to certain conditions and prior approvals.

The Engagement Agreement includes a limited right of first refusal for a period of nine (9) months following the final closing of the Offering, Maxim shall have the right to act as sole managing underwriter or sole placement agent for any subsequent public or private offerings of equity, equity-linked, or debt securities of VisionWave Technologies, subject to Maxim matching the material terms offered by any third party. VisionWave Technologies has not yet launched the Offering, and no securities have been issued as of the date of this filing.

There can be no assurance that VisionWave Technologies will consummate the Offering or receive any proceeds from it.

***Nasdaq Notices***

On September 13, 2024, Bannix received a letter from the Listing Qualifications Department of Nasdaq stating that, because it did not complete a Business Combination within 36 months of the effectiveness of its IPO registration statement, Bannix's securities were subject to delisting from The Nasdaq Stock Market ("Nasdaq") under Nasdaq Listing Rule IM-5101-2.

The letter further stated that unless Bannix appealed Nasdaq's determination by September 20, 2024, trading of the Bannix's securities would be suspended at the opening of business on September 24, 2024, and a Form 25-NSE would be filed with the SEC to remove the Bannix's securities from listing and registration on Nasdaq.

Bannix appealed Nasdaq's determination to a Hearings Panel (the "Panel") and on December 2, 2024, the Panel granted the Bannix's request for an exception to the Nasdaq Listing Rule IM-5101-2 to allow continued listing on Nasdaq. Bannix has been was granted an extension until March 12, 2025, to complete its proposed Business Combination.

On November 19, 2024, the Bannix a written notice (the "Notice") from the Nasdaq Listing Qualifications department indicating that Bannix is not in compliance with the minimum Market Value of Listed Securities ("MVLS") requirement of $35 million for continued listing as set forth in Nasdaq Listing Rule 5550(b)(2) (the "MVLS Rule"). The Notice is only a notification of deficiency, not of imminent delisting, and has no current effect on the listing or trading of the Bannix's securities. In accordance with Nasdaq Listing Rule 5810(c)(3)(C), Bannix had will have 180 calendar days (the "Compliance Period") to regain compliance with the MVLS Rule. To regain compliance with the MVLS Rule, the MVLS for Bannix must be at least $35 million for a minimum of ten consecutive business days at any time during this Compliance Period. If the Bannix regained compliance with the MVLS Rule, Nasdaq would provide Bannix with written confirmation and would close the matter. If the Bannix did not regain compliance with the MVLS Rule by the Compliance Date, Nasdaq would provide written notification that its securities would be subject to delisting. In the event of such notification, the Nasdaq rules permit the Bannix an opportunity to appeal Nasdaq's determination.

On March 13, 2025, the Bannix received a letter from the Panel notifying the Company that it would be suspended from trading on Nasdaq due to the Company's inability to satisfy the terms outlined in the Panel's December 2, 2024 decision. As a result, the trading in the Bannix's securities moved to the OTC Pink at the open of trading on March 17, 2025, under the trading symbols of BNIX, BNIXR and BNIXW. As the successor to Bannix, upon the consummation of the Business Combination, VisionWave Common Stock and VisionWave Warrants began trading on July 15, 2025 on the NASDAQ under the symbols "VWAV and "VWAV" respectively and Bannix's securities stopped trading.

***Certificate of Correction to Certificate of Amendment***

On February 8, 2024, Bannix filed a Certificate of Correction to its Certificate of Amendment to its Amended and Restated Certificate of Incorporation (the "Certificate of Correction") filed with the Secretary of State of the State of Delaware on March 9, 2023 (the "Certificate of Amendment"). The Certificate of Amendment inadvertently removed the provisions relating to Bannix's obligation to wind up and liquidate the Company and redeem the public shares if the Bannix had not consummated an initial Business Combination within the specified time. The Certificate of Correction corrects this error to the Certificate of Amendment. The corrections made by the Certificate of Correction are retroactively effective as of March 9, 2023, the original filing date of the Certificate of Amendment.

**Liquidity, Capital Resources, and Going Concern**

As of June 30, 2025, the Company had $885 in cash and a working capital deficit of $6,287,377.

The Company's liquidity needs through June 30, 2025, were satisfied through (1) a capital contribution from the Sponsors of $28,750 for common stock ("Founder Shares") and (2) loans from Former Sponsor and Sponsor and related parties in order to pay offering costs and other working capital needs. In addition, in order to fund transaction costs in connection with a possible Business Combination, the Company's Sponsor, an affiliate of the Sponsor, and/or certain of the Company's officers and directors may, but are not obligated to, provide the Company Working Capital Loans. As of June 30, 2025 and December 31, 2024, there were no loans associated with Working Capital Loans. As of June 30, 2025 and December 31, 2024, the Company owed $2,153,962 and $1,811,700 to the Former Sponsor, the Sponsor, related parties and affiliated related parties, respectively. See Note 6 for further disclosure of Former Sponsor, Sponsor, related parties and affiliated related party loans.

As additional sources of funding, the Company issued unsecured promissory notes to Evie Autonomous LTD ("Evie") with a principal amount of $1,003,995 (the "Evie Autonomous Extension Notes"). The Evie Autonomous Extension Notes bear no interest and are repayable in full upon the earlier of (a) the date of the consummation of the Company's initial Business Combination, or (b) the date of the Company's liquidation. If the Company does not consummate an initial Business Combination by the Deadline Date, the Evie Autonomous Extension Notes will be repaid only from funds held outside of the Trust Account or will be forfeited, eliminated or otherwise forgiven.

On December 26, 2024 and revised on February 4, 2025, April 19, 2025 and May 25, 2025, the Company entered into several agreements to defer certain transaction costs and obligations associated with its proposed Business Combination until after the closing of the proposed Business Combination. The deferred obligations include:

● transaction costs of approximately $300,000 related to legal and financial advisory services provided in connection with the proposed Business Combination. These costs will be payable no later than three (3) months following the closing of the proposed Business Combination,

● promissory notes - Evie in the amount of $1,003,995 due only after any Pre-Paid Advance issued in connection with the SEPA is repaid in full, see Note 11,

● an aggregate of $2,019,200 owed to the Sponsor and its affiliates, including promissory notes, administrative support fees, and advances due only after any Pre-Paid Advance issued in connection with the SEPA is repaid in full, see Note 11.

On January 19, 2025, the CEO of the Company agreed to defer $110,400 of compensation expense due him. These costs would have been payable no later than three (3) months following the closing of the proposed Business Combination. On May 25, 2025, the agreement was modified such that the payable is due only after any Pre-Paid Advance issued in connection with the SEPA is repaid in full, see Note 11.

All deferred payments will be made exclusively from the working capital of the post-closing entity or funds raised following the closing. These deferments provide the Company with the financial flexibility to focus on completing the transaction while ensuring that all obligations are met within the agreed timeframes.

On April 8, 2025, with an effective date of March 31, 2025, the Company entered into a Funding Support Agreement with Stanley Hills, LLC ("Stanley Hills"), the principal shareholder of VisionWave Technologies. Pursuant to the agreement, Stanley Hills irrevocably and unconditionally committed to provide financial support to the Company, sufficient to fund the working capital needs through August 13, 2026. The funding may be provided by Stanley Hills in the form of direct payments to third parties, advances or intercompany loans, or capital contributions, as mutually determined by the parties. Unless otherwise agreed in writing, any such advances will be non-interest bearing and repayable only at such time as determined by the Board of Directors, and only to the extent such repayment would not impair the Company's liquidity or ability to continue as a going concern. The agreement may not be terminated by Stanley Hills prior to the twelve-month period from the date of release of the financial statement.

Based on the foregoing, management believes that the funds the Company has available is sufficient to meet its operating needs through the consummation of a Business Combination through the temporarily extended Deadline Date. Over this time period, the Company will be utilizing the funds available to it to pay existing accounts payable and consummating the proposed Business Combination.

The Company is within 12 months of its mandatory liquidation date as of June 30, 2025. In connection with the Company's assessment of going concern considerations, the Company had a temporarily extended deadline date beyond the June 14, 2025 Deadline Date to consummate a Business Combination. The Company closed on its proposed Business Combination on July 14, 2025 alleviating the mandatory liquidation requirement.

On April 9, 2025, VisionWave Technologies entered into a non-exclusive placement agent engagement agreement (the "Engagement Agreement") with Maxim Group LLC ("Maxim"), pursuant to which Maxim will act as VisionWave's non-exclusive placement agent in connection with a potential private placement of up to $10 million of equity or equity-linked securities (the "Offering"). The Offering is expected to be conducted on a "commercially reasonable efforts" basis, and there is no assurance that the Offering will be completed, or that any definitive agreements with investors will be entered into. Under the terms of the Engagement Agreement, VisionWave retains full discretion to accept or reject any investment proposals and will determine the final terms and structure of the Offering, subject to market conditions and investor interest. Maxim will be entitled to a cash placement fee equal to seven percent (7.0%) of the gross proceeds received by VisionWave from any investor introduced by Maxim and listed in exhibit to the Engagement Agreement. In addition, VisionWave agreed to reimburse Maxim for up to $25,000 in out-of-pocket expenses incurred in connection with the engagement, subject to certain conditions and prior approvals.

***Risks and Uncertainties***

In February 2022, the Russian Federation and Belarus commenced a military action with the country of Ukraine. And in October 2023, the Hamas Terror Organization attacked the Southern part of Israel, which in turn, commenced a military action with Gaza Strip. As a result, these actions, and the possibility of escalating military actions, have created and are expected to create global economic consequences. The specific impact on the Company's financial condition, results of operations, and cash flows is also not determinable as of the date of these consolidated financial statements.

***Consideration of Inflation Reduction Act Excise Tax***

On August 16, 2022, the Inflation Reduction Act of 2022 (the "IR Act") was signed into federal law. The IR Act provides for, among other things, a 1% federal excise tax on certain repurchases of stock by publicly traded U.S. domestic corporations and certain U.S. domestic subsidiaries of publicly traded foreign corporations occurring on or after January 1, 2023. The excise tax is imposed on the repurchasing corporation itself, not its shareholders from which shares are repurchased. The amount of the excise tax is generally 1% of the fair market value of the shares repurchased at the time of the repurchase. However, for purposes of calculating the excise tax, repurchasing corporations are permitted to net the fair market value of certain new stock issuances against the fair market value of stock repurchases during the same taxable year. In addition, certain exceptions apply to the excise tax. The U.S. Department of the Treasury (the "Treasury") has been given authority to provide regulations and other guidance to carry out and prevent the abuse or avoidance of the excise tax.

On December 27, 2022, the Treasury published Notice 2023-2, which provided clarification on some aspects of the application of the excise tax. The notice generally provides that if a publicly traded U.S. corporation completely liquidates and dissolves, distributions in such complete liquidation and other distributions by such corporation in the same taxable year in which the final distribution in complete liquidation and dissolution is made are not subject to the excise tax. Although such notice clarifies certain aspects of the excise tax, the interpretation and operation of aspects of the excise tax (including its application and operation with respect to SPACs) remain unclear and such interim operating rules are subject to change.

Because the application of this excise tax is not entirely clear, any redemption or other repurchase effected by the Company, in connection with a Business Combination, extension vote or otherwise, may be subject to this excise tax. Because any such excise tax would be payable by the Company and not by the redeeming holders, it could cause a reduction in the value of the Company's Class A common stock, cash available with which to effectuate a Business Combination or cash available for distribution in a subsequent liquidation. Whether and to what extent the Company would be subject to the excise tax in connection with a Business Combination will depend on a number of factors, including (i) the structure of the Business Combination, (ii) the fair market value of the redemptions and repurchases in connection with the Business Combination, (iii) the nature and amount of any "PIPE" or other equity issuances in connection with the Business Combination (or any other equity issuances within the same taxable year of the Business Combination) and (iv) the content of any subsequent regulations, clarifications, and other guidance issued by the Treasury. Further, the application of the excise tax in respect of distributions pursuant to a liquidation of a publicly traded U.S. corporation is uncertain and has not been addressed by the Treasury in regulations, and it is possible that the proceeds held in the Trust Account could be used to pay any excise tax owed by the Company in the event the Company is unable to complete a Business Combination in the required time and redeem 100% of the remaining Class A common stock in accordance with the Company's amended and restated certificate of incorporation, in which case the amount that would otherwise be received by the public stockholders in connection with the Company's liquidation would be reduced.

Any redemption or other repurchase that occurs after December 31, 2022, in connection with a Business Combination, extension vote or otherwise, may be subject to the excise tax. Whether and to what extent the Company would be subject to the excise tax in connection with a Business Combination, extension vote or otherwise would depend on a number of factors, including (i) the fair market value of the redemptions and repurchases in connection with the Business Combination, extension or otherwise, (ii) the structure of a Business Combination, (iii) the nature and amount of any PIPE or other equity issuances in connection with a Business Combination (or otherwise issued not in connection with a Business Combination, but issued within the same taxable year of a Business Combination) and (iv) the content of regulations and other guidance from the Treasury. In addition, because the excise tax would be payable by the Company and not by the redeeming holder, the mechanics of any required payment of the excise tax have not been determined. The foregoing could cause a reduction in the cash available on hand to complete a Business Combination and in the Company's ability to complete a Business Combination.

During the second quarter of 2024, the Internal Revenue Service issued final regulations with respect to the timing and payment of the excise tax. These regulations provided that the filing and payment deadline for any liability incurred during the period from January 1, 2023 to December 31, 2023 would be October 31, 2024. The Company is currently evaluating its options with respect to this obligation. Any amount of such excise tax not paid in full, will be subject to additional interest and penalties which are currently estimated at 8% interest per annum, a 0.5% underpayment penalty per month or portion of a month up to 25% of the total liability for any amount that is unpaid from November 1, 2024 until paid in full, and a failure to file penalty of 5% per month.

As of the filing of the Form 10-Q, the Company has not filed its 2024 excise tax return and no amounts have been paid. As of June 30, 2025 and December 31, 2024, the Company is reporting $177,806 and $50,587 in excise tax interest and penalties payable on the unaudited condensed consolidated balance sheets.

***Investment Company Act 1940***

Under the current rules and regulations of the SEC we are not deemed an investment company for purposes of the Investment Company Act; however, on March 30, 2022, the SEC proposed new rules (the "Proposed Rules") relating, among other matters, to the circumstances in which SPACs such as the Company could potentially be subject to the Investment Company Act and the regulations thereunder. The Proposed Rules provide a safe harbor for companies from the definition of "investment company" under Section 3(a)(1)(A) of the Investment Company Act, provided that a SPAC satisfies certain criteria. To comply with the duration limitation of the proposed safe harbor, a SPAC would have a limited time period to announce and complete a de-SPAC transaction. Specifically, to comply with the safe harbor, the Proposed Rules would require a company to file a Current Report on Form 8-K announcing that it has entered into an agreement with a target company for an initial Business Combination no later than 18 months after the effective date of the SPAC's registration statement for its IPO. The Company would then be required to complete its initial Business Combination no later than 24 months after the effective date of such registration statement. There is currently uncertainty concerning the applicability of the Investment Company Act to a SPAC, including this Company. Although the Company entered into a definitive Business Combination agreement within 18 months after the effective date of the registration statement relating to the IPO, there is a risk that the Company may not complete an initial Business Combination within 24 months of such date. As a result, it is possible that a claim could be made that the Company has been operating as an unregistered investment company. If the Company were deemed to be an investment company for purposes of the Investment Company Act, the Company may be forced to abandon its efforts to complete an initial Business Combination and instead be required to liquidate. If the Company is required to liquidate, the investors would not be able to realize the benefits of owning stock in a successor operating business, including the potential appreciation in the value of our stock and warrants following such a transaction.

The Investment Company Act defines an investment company as any issuer which (i) is or holds itself out as being engaged primarily, or proposes to engage primarily, in the business of investing, reinvesting, or trading in securities; (ii) is engaged or proposes to engage in the business of issuing face-amount certificates of the installment type, or has been engaged in such business and has any such certificate outstanding; or (iii) is engaged or proposes to engage in the business of investing, reinvesting, owning, holding, or trading in securities, and owns or proposes to acquire investment securities having a value exceeding 40% of the value of its total assets (exclusive of Government securities and cash items) on an unconsolidated basis. The Company has assessed its primary line of business and the value of its investment securities as compared to the value of total assets to determine whether the Company may be deemed an investment company. The longer that the funds in the Trust Account are held in money market funds, there is a greater risk that the Company may be considered an unregistered investment company. As a result, the Company has switched all funds to cash, will likely receive minimal interest, if any, on the funds held in the Trust Account after such time, which would reduce the dollar amount our public stockholders would receive upon any redemption or liquidation of our Company. Currently, the funds in the Trust Account are held in a demand deposit account and meeting certain conditions under Rule 2a-7 under the Investment Company Act.

Failure to meet these criteria could result in the SPAC being deemed an unregistered investment company under the Act, requiring liquidation and potentially preventing completion of the proposed transaction. Bannix completed its IPO within the SEC's safe harbor timeline, having entered into a definitive Business Combination Agreement with VisionWave Technologies Inc. on March 26, 2024, less than 42 months after its IPO. The transaction is expected to close within the SEC's prescribed 42-month timeline. Currently, Bannix does not hold itself out as being engaged in investing, reinvesting, or trading in securities. All funds in the Trust Account are held in demand deposit accounts that comply with Rule 2a-7 under the Investment Company Act. The funds are not invested in marketable securities to avoid the risk of being deemed an unregistered investment company. As of the date of this filing,

Bannix's Trust Account remains compliant with the safe harbor criteria outlined in SEC Release No. 33-11265. If Bannix were deemed to be an unregistered investment company under the Investment Company Act, it could be forced to abandon the Business Combination and liquidate. In such a scenario, public stockholders would lose the opportunity to benefit from potential appreciation in the value of Bannix's stock and warrants following the Business Combination. In conclusion, Bannix is committed to ensuring compliance with the Investment Company Act and the updated SEC guidance. By adhering to the safe harbor provisions, Bannix seeks to mitigate risks associated with the potential application of the Investment Company Act.

**Note 2—Significant Accounting Policies**

**Basis of Presentation**

The accompanying unaudited condensed consolidated financial statements of the Company are presented in U.S. dollars in conformity with accounting principles generally accepted in the United States of America for interim financial information ("US GAAP") and pursuant to Rule 8-03 of Regulation S-X promulgated by the SEC. Accordingly, they do not include all of the information and footnotes required by US GAAP. In the opinion of management, the unaudited condensed consolidated financial statements reflect all adjustments, which include only normal recurring adjustments necessary for the fair statement of the balances and results for the period presented. Operating results for the three and six months ended June 30, 2025 are not necessarily indicative of the results that may be expected through December 31, 2025.

Certain information and footnote disclosures normally included in the annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. These unaudited condensed consolidated financial statements should be read in conjunction with the Company's audited financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the period through December 31, 2024 filed with the SEC on February 28, 2025. The balance sheet as of June 30, 2025 contained herein has been derived from the audited financial statements as of December 31, 2024, but does not include all disclosures required by U.S. GAAP.

**Principles of Consolidation**

The accompanying consolidated financial statements include the accounts of Bannix (prior to the succession by Vision Wave Holdings) and its wholly-owned subsidiaries: (i) VisionWave Holdings, Inc., (ii) BNIX Merger Sub, Inc., and (iii) BNIX VW Merger Sub, Inc. All intercompany transactions have been eliminated. VisionWave Holdings, Inc (prior to the succession of Bannix) includes the wholly-owned subsidiaries: (i) BNIX Merger Sub, Inc., and (iii) BNIX VW Merger Sub, Inc.

**Segment Reporting**

The Company complies with ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures ("ASU 2023-07"), which improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses among other disclosure requirements.

**Emerging Growth Company Status**

The Company is an "emerging growth company," as defined in Section 2(a) of the Securities Act of 1933, as amended, (the "Securities Act"), as modified by the Jumpstart our Business Startups Act of 2012, (the "JOBS Act"), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and shareholder approval of any golden parachute payments not previously approved.

Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies,

the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company's financial statements with another public company which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used.

**Use of Estimates**

The preparation of these unaudited condensed consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements and the reported amounts of expenses during the reporting period.

Making estimates requires management to exercise significant judgement. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the unaudited condensed consolidated financial statements, which management considered in formulating its estimate, could change in the near term due to one or more future confirming events. Significant estimates include assumptions made in the valuation of our Private Placement Warrants. Accordingly, the actual results could differ from those estimates.

**Cash and Cash Equivalents**

The Company considers all short-term investments with an original maturity of three months or less when purchased to be cash equivalents. The Company did not have any cash equivalents as of June 30, 2025 and December 31, 2024 other than its investments held in the Trust Account.

**Concentration of Credit Risk**

Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash accounts in a financial institution, which, at times may exceed the Federal Depository Insurance Coverage of $250,000. At June 30, 2025 and December 31, 2024, the Company had no deposits in excess of the Federal Depository Insurance Coverage, respectively. The Company has not experienced losses on these accounts.

**Fair Value of Financial Instruments**

The fair value of the Company's cash, current assets and current liabilities approximates the carrying amounts represented in the accompanying unaudited condensed consolidated balance sheets, due to their short-term nature.

Fair value is defined as the price which would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-tier fair value hierarchy which prioritizes the inputs used in the valuation methodologies is as follows:

Level 1 Inputs - Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date.

Level 2 Inputs - Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, volatilities, prepayment speeds, credit risks, etc.) or inputs that are derived principally from or corroborated by market data by correlation or other means.

Level 3 Inputs - Unobservable inputs for determining the fair values of assets or liabilities that reflect an entity's own assumptions about the assumptions that market participants would use in pricing the assets or liabilities.

**Fair Value of Trust Account**

As of June 30, 2025 and December 31, 2024, the assets in the Trust Account were held in a demand deposit account at a bank. These demand deposit accounts were accounted for at fair value on a recurring basis within Level 1 fair value hierarchy.

**Offsetting Balances**

In accordance with ASC Topic 210 "Balance Sheet", the Company's accounting policy is to offset assets and liabilities when a right of offset exist. Accordingly, the unaudited condensed consolidated balance sheets include transactions with the Sponsor and affiliated parties on a net basis.

**Fair Value of Warrant Liability**

The Company accounted for the 7,306,000 warrants issued in connection with the IPO and private placement in accordance with the guidance contained in ASC Topic 815, "Derivatives and Hedging" whereby under that provision, the Private Warrants did not meet the criteria for equity treatment and were recorded as a liability and the Public Warrants met the criteria for equity treatment. Accordingly, the Company classified its Private Warrants as a liability at fair value upon issuance and adjusts them to fair value at each reporting period. This liability is re-measured at each balance sheet date until the Private Warrants are exercised or expire, and any change in fair value will be recognized in the Company's statements of operations.

**Common Stock Subject to Possible Redemption**

The Company accounts for its Common Stock subject to possible redemption in accordance with the guidance in ASC Topic 480, "Distinguishing Liabilities from Equity". Common stock subject to mandatory redemption (if any) is classified as a liability instrument and is measured at fair value. Conditionally redeemable common stock (including shares that feature redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company's control) is classified as temporary equity. At all other times, shares of common stock are classified as stockholders' equity.

The Common Stock sold as part of the Units in the IPO contain a redemption feature which allows for the redemption of such public shares in connection with the Company's liquidation, if there is a shareholder vote or tender offer in connection with the Business Combination and in connection with certain amendments to the Company's amended and restated certificate of incorporation. In accordance with the accounting treatment for redeemable equity instruments, which has been codified in ASC 480-10-S99, redemption provisions not solely within the control of the Company require Common Stock subject to redemption to be classified outside of permanent equity. Therefore, all shares of Common Stock subject to redemption have been classified outside of permanent equity.

The Company recognizes changes in redemption value immediately as they occur and adjusts the carrying value of redeemable Common Stock to equal the redemption value at the end of each reporting period. Increases or decreases in the carrying amount of redeemable Common Stock are affected by charges against additional paid-in-capital (to the extent available) and accumulated deficit.

The Company recorded an increase in the redemption value because of earnings on the Trust Account and additional deposits that exceed amounts payable for taxes. While the Company may use earnings on the Trust Account to pay its tax obligations, during the six months ended June 30, 2025 and 2024 $94,099 and $422,094, respectively has been withdrawn by the Company from the Trust Account to pay its tax obligations.

At the May 2025 Special Meeting, stockholders redeemed 83,313 shares of the Company's common stock for $972,722. As of June 30, 2025 the redeeming stockholders were not paid for the redeeming shares. The Company reports this amount as redemptions payable, a non-current liability on the condensed consolidated balance sheet, as the settlement of this liability does not require the use of current assets to settle the liability

Prior to the June 14, 2025 Deadline Date, management of the Company, representing a majority of the Company's stockholders, held a meeting with the trustee of the Trust Account to request the Trust Account not be liquidated due to the pending regulatory approval of the proposed Business Combination, discussed below. The trustee exercised administrative authority and agreed to the temporary extension of the Deadline Date pending a stockholder meeting. Before a stockholder meeting could be held to extend the Deadline Date, final regulatory approval was granted by Nasdaq and the Company closed on its proposed Business Combination and terminated the trust.

On June 30, 2025 and December 31, 2024, the common stock subject to redemption reflected in the condensed consolidated balance sheets is reconciled in the following table:

---

| | | |
|:---|:---|:---|
| **Common stock subject to possible redemption** | | |
|  |<br>**Shares** |<br>**Amount** |
| **Balance - December 31, 2023** | **2939613** | $**31839150** |
| Less: |  |  |
| Redemptions from Trust Account | (2614865) | (28924908) |
| Plus: |  |  |
| Remeasurement of shares subject to redemption |  | 1169897 |
| **Balance - December 31, 2024** | **324748** | $**4084139** |
| Less: |  |  |
| Redemptions from Trust Account | (225082) | (2573762) |
| Remeasurement of shares subject to redemption |  | 54827 |
| **Balance – March 31, 2025** | **99666** | $**1565205** |
| Less: |  |  |
| Redemptions payable from Trust Account | **(83313)** | **(972722)** |
| Plus: |  |  |
| Remeasurement of shares subject to redemption |  | 15815 |
| **Balance - June 30, 2025** | **16353** | $**608298** |

---

**Net Loss Per Share**

Basic net loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period.

For purposes of calculating diluted loss per common stock, the denominator includes both the weighted-average number of shares of common stock outstanding during the period and the number of common stock equivalents if the inclusion of such common stock equivalents is dilutive. Dilutive common stock equivalents potentially include shares and warrants using the treasury stock method.

As of June 30, 2025 and 2024, 7,306,000 warrants were excluded from the diluted loss per share calculation since the exercise price of the warrants is greater than the average market price of the common stock. As a result, this would have been anti-dilutive and therefore net loss per share is the same as basic loss per share for the period presented.

**Reconciliation of Loss per Share of Common Stock**

Basic and diluted loss per share for common stock is calculated as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three months ended June 30,** | **Three months ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| **Loss per share of common stock:** |  |  |  |  |
| Net Loss | $(434294) | $(153104) | $(861759) | $(181323) |
| Weighted Average Shares of common stock | 2587045 | 4081747 | 2692303 | 4734717 |
| Basic and diluted loss per share | $(0.17) | $(0.04) | $(0.32) | $(0.04) |

---

**Income Taxes**

The Company accounts for income taxes under ASC 740, "Income Taxes." ASC 740, Income Taxes, requires the recognition of deferred tax assets and liabilities for both the expected impact of differences between the financial statements and tax basis of assets and liabilities and for the expected future tax benefit to be derived from tax loss and tax credit carry forwards. ASC 740 additionally requires a valuation allowance to be established when it is more likely than not that all or a portion of deferred tax assets will not be realized. As of June 30, 2025 and December 31, 2024,

the Company's deferred tax asset had a full valuation allowance recorded against it. The Company's effective tax rate was (0.1)% and (6.1)% for the three months ended June 30, 2025 and 2024, respectively, and (0.8)% and (5.1)% for the six months ended June 30, 2025 and 2024, respectively. The effective tax rate differs from the statutory tax rate of 21% for the three and six months ended June 30, 2025 and 2024, due to state taxes, permanent differences related to Business Combination expenses, and changes in the valuation allowance on the deferred tax assets.

ASC 740 also clarifies the accounting for uncertainty in income taxes recognized in an enterprise's financial statements and prescribes a recognition threshold and measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. ASC 740 also provides guidance on derecognition, classification, interest and penalties, accounting in interim period, disclosure and transition.

The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. As of June 30, 2025 and December 31, 2024, the company accrued $266,576 and $206,200 in interest and penalties for the non-payment of its income taxes. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position.

The Company has identified the United States, the State of California, and the State of Delaware as its only "major" tax jurisdiction. The Company is subject to income taxation by major taxing authorities since inception. These examinations may include questioning the timing and amount of deductions, the nexus of income among various tax jurisdictions and compliance with federal and state tax laws. The Company's management does not expect that the total amount of unrecognized tax benefits will materially change over the next twelve months.

**Recent Accounting Pronouncements**

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (ASU 2023-09), which requires disclosure of incremental income tax information within the rate reconciliation and expanded disclosures of income taxes paid, among other disclosure requirements. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company's management does not believe the adoption of ASU 2023-09 will have a material impact on its financial statements and disclosures.

The Company's management does not believe that any other recently issued, but not yet effective, accounting pronouncements, if currently adopted, would have a material effect on the Company's unaudited condensed consolidated financial statements.

**Stock Based Compensation**

The Company complies with ASC 718 Compensation — Stock Compensation regarding Founder Shares granted to directors and an officer of the Company. The acquired shares shall vest upon the Company consummating an initial Business Combination (the "Vesting Date"). The Founder Shares owned by the directors or officer (1) may not be sold or transferred, until one year after the consummation of a Business Combination, (2) not be entitled to redemption from the funds held in the Trust Account, or any liquidating distributions. The Company has until June 14, 2025 (as extended) to consummate a Business Combination, and if a Business Combination is not consummated, the Company will liquidate and the shares will become worthless.

The Founder Shares were issued on September 8, 2021, and the Founder Shares vest, not upon a fixed date, but upon consummation of an initial Business Combination. Since the approach in ASC 718 is to determine the fair value without regard to the vesting date, the Company has determined the valuation of the Founder Shares as of September 8, 2021. The valuation resulted in a fair value of $7.48 per share as of September 8, 2021, or an aggregate of $972,400 for the 130,000 Founder Shares. The Founder Shares were granted at no cost to the recipients. The excess fair value over the amount paid is $972,400, which is the amount of share-based compensation expense which the Company will recognize upon consummation of an initial business combination.

**NOTE 3 — INITIAL PUBLIC OFFERING**

On September 14, 2021, the Company consummated its IPO and sold 6,900,000 Units at a purchase price of $10.00 per Unit, which was inclusive of the underwriters' full exercise of their over-allotment option, generating gross proceeds of $69,000,000. Each Unit that the Company sold had a price of $10.00 and consisted of one share of common stock, one warrant to purchase one share of common stock and one right. Each warrant will entitle the holder to purchase one share of common stock at a price of $11.50 per share, subject to adjustment. Each warrant will become exercisable on the completion of the initial Business Combination and will expire five years after the completion of the initial Business Combination, or earlier upon redemption or liquidation. Each right entitles the holder to buy one tenth of one share of common stock. The common stock, warrants and rights comprising the Units have begun separate trading. At the time that the common stock, warrants and rights comprising the Units began separate trading, holders will hold the separate securities and no longer hold Units (without any action needing to be taken by the holders), and the Units will no longer trade.

All of the shares of common stock sold as part of the Units in the IPO contain a redemption feature which allows for the redemption of such public shares in connection with the Company's liquidation, if there is a stockholder vote or tender offer in connection with the Business Combination and in connection with certain amendments to the Company's certificate of incorporation. In accordance with SEC and its staff's guidance on redeemable equity instruments, which has been codified in ASC 480-10-S99, redemption provisions not solely within the control of the Company require common stock subject to redemption to be classified outside of permanent equity.

**NOTE 4 — PRIVATE PLACEMENT**

Simultaneously with the closing of the IPO and the sale of the Units, the Company sold 181,000 Private Placement Units to certain investors for aggregate cash proceeds of $2,460,000 and issued an additional 225,000 Private Placement Units to the Former Sponsor in exchange for the cancellation of approximately $1,105,000 in loans and a promissory note due to them. Each Private Placement Unit consisted of one share of common stock, one redeemable warrant to purchase one share of common stock at a price of $11.50 per whole share and one right.

**NOTE 5 — PROMISSORY NOTE TO EVIE AUTONOMOUS LTD AND EVIE AUTONOMOUS GROUP LTD.**

The Company's unsecured Evie Autonomous Extension Notes bear no interest and are repayable in full upon the earlier of (a) the date of the consummation of the Company's initial Business Combination, or (b) the date of the Company's liquidation. If the Company does not consummate an initial Business Combination by the Deadline Date, the Evie Autonomous Extension Notes will be repaid only from funds held outside of the Trust Account or will be forfeited, eliminated or otherwise forgiven.

At June 30, 2025 and December 31, 2024, the Company owes Evie Autonomous LTD $1,003,995 and reports this as promissory notes – Evie on the unaudited condensed consolidated balance sheets.

On December 26, 2024 and amended on May 27, 2025, the Company entered into an agreement to defer payment of the Evie Autonomous Extension Notes. Under the deferment agreement, these amounts will not become payable until any Pre-Paid Advance issued in connection with the SEPA is repaid in full, see Note 11.

**NOTE 6—RELATED PARTY TRANSACTIONS**

**Founder Shares**

On October 20, 2022, pursuant to an SPA, the Sponsor acquired an aggregate of 385,000 shares of common stock of the Company from Bannix Management LLP, Balaji Venugopal Bhat, Nicholos Hellyer, Subbanarasimhaiah Arun, Vishant Vora and Suresh Yezhuvath and 90,000 private placement units from Suresh Yezhuvath (collectively, the "Sellers") in a private transaction.

The Former Sponsor, Sponsor, Other Investors, Anchor Investors, directors and officer have agreed not to transfer, assign or sell the Founder Shares until the earlier to occur of: (A) one year after the completion of the initial Business Combination or (B) the date on which the Company completes a liquidation, merger, stock exchange or other similar transaction after the initial Business Combination that results in all of the public stockholders having the right to exchange their shares of common stock for cash,

securities or other property. The Company refers to such transfer restrictions as the "lock-up". Notwithstanding the foregoing, if the last sale price of the common stock equals or exceeds $12.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) for any 20 trading days within any 30-trading day period commencing at least 150 days after the initial Business Combination, the Founder Shares will be released from the lock-up.

At June 30, 2025 and December 31, 2024, there were 2,524,000 non-redeemable shares outstanding owned or controlled by the Former Sponsor, Sponsor, Other Investors, Anchor Investors, directors and officers.

**Working Capital Loans – Former Sponsor and Sponsor**

In order to finance transaction costs in connection with a Business Combination, the Sponsor or an affiliate of the Sponsor or certain of the Company's officers and directors may, but are not obligated to, loan the Company funds as may be required. If the Company completes a Business Combination, the Company would repay the loans out of the proceeds of the Trust Account released to the Company. Otherwise, the loans would be repaid only out of funds held outside the Trust Account. In the event that a Business Combination does not close, the Company may use a portion of the working capital held outside the Trust Account to repay the loans but no proceeds from the Trust Account would be used to repay the loans. On June 30, 2025 and December 31, 2024, there were no loans outstanding under the working capital loan program.

**Commitment of Funds – Former Sponsor**

Yezhuvath agreed to contribute to the Company of $225,000 as a capital contribution at the time of the Business Combination with the proceeds to be used to pay the deferred underwriters' discount. Yezhuvath has agreed to forgive this amount without any additional securities being issued against it.

**Transactions with a Related Party**

In October 2024, a company related to one of the board members was engaged to perform consulting services. The Company paid $8,000 for the services performed. As of June 30, 2025 and December 31, 2024, no amounts were due the related party company for services performed.

**Due to Related Parties**

The balance on June 30, 2025 and December 31, 2024 in Due to Related Parties totaled $2,153,962 and $1,811,700, respectively, consists of the following transactions:

---

| | | |
|:---|:---|:---|
|  | **June 30,**<br>**2025** | **December 31,**<br>**2024** |
| Amounts due Suresh Yezhuvath | $23960 | $23960 |
| Amounts due Subash Menon | 1180 | 1180 |
| Repurchase 700,000 shares of common stock from Bannix Management LLP | 10557 | 10557 |
| Amounts due to Doug Davis – Accrued Compensation | 210000 | 125000 |
| Amounts due to Erik Klinger – Accrued Compensation | 58750 | 26250 |
| Administrative Support Agreement (2)(4) | 228333 | 198333 |
| Securities Purchase Agreement | 200000 | 200000 |
| Promissory Notes with Instant Fame and affiliated parties (3)(4) | 840000 | 840000 |
| Advances from affiliated related parties, net (1) (4) | 581182 | 386420 |
|  | $2153962 | $1811700 |

---

(1) Net of $21,000 and $15,000 paid to an affiliated related party at June 30, 2025 and December 31, 2024, respectively.

For the six months ended June 30, 2025 and the year ended December 31, 2024, $21,000 and $15,000, respectively, was paid to an affiliate of a related party. The Company has a legal right of offset and as such, the net amount is reported on the unaudited condensed consolidated balance sheet.

**(2) Administrative Support Agreement**

The Company has agreed to pay an affiliate of the Sponsor for office space, secretarial and administrative services provided to members of the management team, in the amount of $5,000 per month. Upon completion of the initial Business Combination or the Company's liquidation, it will cease paying these monthly fees. For the three and six months ended June 30, 2025 and 2024, the Company incurred $15,000 and $30,000, respectively, pursuant to the agreement and owed $228,333 and $198,333 related to the Administrative Support Agreement at June 30, 2025 and December 31, 2024, respectively. These amounts are reported as a component of due to related parties on the consolidated condensed balance sheets.

**(3) Promissory Notes with Instant Fame and Affiliated Parties**

On December 13, 2022, the Company issued an unsecured promissory note in favor of Instant Fame, in the principal amount of $690,000. In March and April 2023, the Company issued additional unsecured promissory notes to Instant Fame for $75,000 for each promissory note. At June 30, 2025 and December 31, 2024, there was $1,421,182 and 1,226,420, respectively, outstanding on these promissory notes and included in due to related parties on the unaudited condensed consolidated balance sheet.

**(4) Deferment of Related Party Transactions**

The Company entered into an agreement to defer payment of certain related party obligations. Under the deferment agreements, all amounts owed to the Sponsor and its affiliates, including promissory notes, administrative support fees, and advances due only after any Pre-Paid Advance issued in connection with the SEPA is repaid in full, see Note 11.

**NOTE 7 — COMMITMENTS**

**Registration Rights**

The holders of the Founder Shares, Private Placement Units and warrants that may be issued upon conversion of related party loans will have registration rights to require the Company to register a sale of any of its securities held by them pursuant to a registration rights agreement to be signed prior to or on the effective date of this offering. These holders will be entitled to make up to three demands, excluding short form registration demands, that the Company registers such securities for sale under the Securities Act. In addition, these holders will have "piggy-back" registration rights to include their securities in other registration statements filed by the Company.

**Underwriters Agreement**

The underwriters are entitled to a deferred underwriting discount of $225,000 solely in the event that the Company completes a Business Combination, subject to the terms of the underwriting agreement. Additionally, the underwriters are entitled to a Business Combination marketing fee of 3.5% of the gross proceeds of the sale of Units in the IPO upon the completion of the Company's initial Business Combination subject to the terms of the underwriting agreement.

On June 9, 2025, the Company entered into an amendment to the underwriting agreement. Pursuant to the amendment, payments of the Business Combination marketing fee will be modified as follows:

● $500,000 shall be paid in cash, deferred until the later of (i) twelve (12) months after closing or (ii) the date when a key financing facility of the post-combination company is fully equitized.

● $1,300,000 shall be paid in shares of the post-combination company's common stock, calculated based on the 30-day VWAP immediately following the closing date. These shares will be subject to piggyback registration rights and a lock-up that expires upon the termination or full amortization of the referenced financing facility.

The Company issued the underwriter (and/or its designees) (the "Representative") 393,000 shares of Common Stock for $0.01 per share (the "Representative Shares") upon the consummation of the IPO. The Company accounted for the estimated fair value ($2,861,000) of the Representative Shares as an offering cost of the IPO and allocated such cost against temporary equity for the amount allocated to the redeemable shares and to expense for the allocable portion relating to the warrant liability. These shares of Common Stock issued to the underwriter are subject to an agreement in which the underwriter has agreed (i) not to transfer, assign or sell any such shares until the completion of the Business Combination. In addition, the underwriter (and/or its designees) has agreed (i) to waives its redemption rights with respect to such shares in connection with the completion of the Business Combination and (ii) to waive its rights to liquidating distributions from the Trust Account with respect to such shares if it fails to complete the Business Combination within the time specified in its certificate of incorporation. Accordingly, the fair value of such shares is included in stockholders' equity. As of June 30, 2025 and December 31, 2024, the Representative has not yet paid for these shares, and the amount owed of $3,930 is included in prepaid expenses on the condensed consolidated balance sheets.

**Excise Tax**

In connection with the Company's May 2025 Special Meeting, March 2025 Special Meeting, September 2024 Special Meeting, Special Meeting and Annual Meeting, stockholders holding an aggregate of 6,883,647 shares of the Company's common stock exercised their right to redeem such shares for a pro rata portion of the funds in the Company's Trust Account. As a result, $72,575,869 was removed from the Company's Trust Account to pay such holders and an additional $972,722 is payable to the stockholders that redeemed shares at the May 2025 Special Meeting. As such, the Company has recorded a 1% excise tax liability in the amount of $913,292 and $750,608, respectively, on the condensed consolidated balance sheets as of June 30, 2025 and December 31, 2024, including $177,806 and $50,587, respectively, in excise tax interest and penalties. The excise tax liability does not impact the unaudited condensed consolidated statements of operations and is offset against additional paid-in capital or accumulated deficit if additional paid-in capital is not available. The unaudited condensed consolidated statement of operation includes $59,193 and $127,219, respectively, in excise tax interest and penalties for the three and six months ended June 30, 2025. The unaudited condensed consolidated statement of operation includes $0 in excise tax interest and penalties for the three and six months ended June 30, 2024.

The 2024 excise tax return for redemptions that occurred in 2023 was due on October 31, 2024. As of the filing of this Form 10-Q, the Company has not filed its 2024 excise tax return and no amounts have been paid resulting in the excise tax interest and penalties.

**Other Investors**

Other Investors were granted an aggregate of 16,668 Founder Shares at no costs from Suresh Yezhuvath in March 2021.

The Other Investors have not been granted any stockholder or other rights that are in addition to those granted to the Company's other public stockholders. The Other Investors will have no rights to the funds held in the Trust Account with respect to the Founder Shares held by them. The Other Investors will have the same rights to the funds held in the Trust Account with respect to the Common Stock underlying the Units they purchase at the IPO as the rights afforded to the Company's other public stockholders.

**Anchor Investors**

The Anchor Investors entered into separate letter agreements with the Company and the Former Sponsor pursuant to which, subject to the conditions set forth therein, the Anchor Investors purchased, upon the closing of the IPO on September 14, 2021, 181,000 Private Placement Units and 762,500 Founder Shares on September 9, 2021 ("Anchor Shares" in the total).

The Anchor Investors have not been granted any stockholder or other rights that are in addition to those granted to the Company's other public stockholders and purchased the Founder Shares for nominal consideration. Each Anchor Investor has agreed in its individually negotiated letter agreement entered into with the Company to vote its Anchor Shares to approve the Company's initial Business Combination. The Anchor Investors will have no rights to the funds held in the Trust Account with respect to the Anchor Shares held by them. The Anchor Investors will have the same rights to the funds held in the Trust Account with respect to the Common Stock underlying the Units they purchase at the IPO (excluding the Common Stock included in the Private Placement Units purchased) as the rights afforded to the Company's other public stockholders.

**Litigation**

From time to time, the Company may be subject to routine litigation, claims or disputes in the ordinary course of business. The Company defends itself vigorously in all such matters. However, we cannot predict the outcome or effect of any of the potential litigation, claims or disputes.

The Company is not subject to any litigation at the present time.

**NOTE 8 — STOCKHOLDERS' DEFICIT**

***Preferred Stock*—** The Company is authorized to issue 1,000,000 shares of preferred stock, par value $0.01 per share, with such designations, voting and other rights and preferences as may be determined from time to time by the Company's board of directors. As of June 30, 2025 and December 31, 2024, there were no shares of preferred stock issued or outstanding.

***Common Stock***— The Company is authorized to issue 100,000,000 shares of common stock with par value of $0.01 each. As of June 30, 2025 and December 31, 2024, there were 3,977,853 and 4,286,248 shares of Common Stock issued, respectively, and 2,524,000 shares of Common Stock outstanding, excluding 16,353 and 324,748 shares subject to possible redemption, respectively. Each share of Common Stock entitles the holder to one vote.

***Treasury Stock*** — On June 21, 2021 the Former Sponsor agreed to deliver the Company 1,437,500 shares of common stock beneficially owned by the Former Sponsors.

***Rights*** — Except in cases where the Company is not the surviving company in the Business Combination, each holder of a right will automatically receive one-tenth (1/10) of a share of common stock upon consummation of the Business Combination, even if the holder of a right converted all shares held by him, her or it in connection with the Business Combination or an amendment to the Company's Certificate of Incorporation with respect to its pre-Business Combination activities. In the event that the Company will not be the surviving company upon completion of the Business Combination, each holder of a right will be required to affirmatively convert his, her or its rights in order to receive the one-tenth (1/10) of a share of common stock underlying each right upon consummation of the Business Combination. No additional consideration will be required to be paid by a holder of rights in order to receive his, her or its additional share of common stock upon consummation of Business Combination. The shares issuable upon exchange of the rights will be freely tradable (except to the extent held by affiliates of the Company). If the Company enters into a definitive agreement for a Business Combination in which the Company will not be the surviving entity, the definitive agreement will provide for the holders of the rights to receive the same per share consideration the holders of shares of common stock will receive in the transaction on an as-converted into common stock basis.

**NOTE 9 — WARRANT LIABILITY**

The Company accounted for the 7,306,000 warrants issued in connection with the IPO and private placement in accordance with the guidance contained in ASC Topic 815 "Derivatives and Hedging" whereby under that provision, the Private Warrants did not meet the criteria for equity treatment and were recorded as a liability. Accordingly, the Company classified the Private Warrants as a liability at fair value and adjusts them to fair value at each reporting period. This liability is re-measured at each balance sheet date until the Private Warrants are exercised or expire, and any change in fair value will be recognized in the Company's statement of operations. The fair value of the Private Warrants was estimated using a modified Black-Scholes model. The valuation models utilize inputs such as assumed share prices, volatility, discount factors and other assumptions and may not be reflective of the price at which they can be settled. Such Private Warrant classification is also subject to re-evaluation at each reporting period. The Public Warrants met the classification for equity treatment.

Each warrant entitles the holder to purchase one share of the Company's Common Stock at a price of $11.50 per share, subject to adjustment as discussed herein. In addition, if (x) the Company issues additional shares or equity-linked securities for capital raising purposes in connection with the closing of its initial Business Combination at an issue price or effective issue price of less than $9.20 per share of Common Stock (with such issue price or effective issue price to be determined in good faith by the Company's board of directors and,

in the case of any such issuance to the Company's Former Sponsor, Sponsors or its affiliates, without taking into account any Founder Shares held by the Company's Former Sponsor, Sponsors or its affiliates, prior to such issuance) (the "Newly Issued Price"), (y) the aggregate gross proceeds from such issuances represent more than 60% of the total equity proceeds, and interest thereon, available for the funding of the initial Business Combination on the date of the consummation of the initial Business Combination (net of redemptions), and (z) the volume weighted average trading price of the Company's Common Stock during the 20 trading day period starting on the trading day prior to the day on which the Company consummates the initial Business Combination (such price, the "Market Value") is below $9.20 per share, the exercise price of the warrants will be adjusted (to the nearest cent) to be equal to 115% of the Market Value, and the $18.00 per share redemption trigger price described below under "Redemption of warrants" will be adjusted (to the nearest cent) to be equal to 180% of the Market Value.

The warrants will become exercisable on the later of 12 months from the closing of this offering or upon completion of its initial Business Combination and will expire five years after the completion of the Company's initial Business Combination, at 5:00 p.m., Eastern Time, or earlier upon redemption or liquidation.

***Redemption of warrants***

The Company may call the warrants for redemption (excluding the private warrants, and any warrants underlying Units issued to the Sponsors, initial stockholders, officers, directors or their affiliates in payment of related party loans made to the Company), in whole and not in part, at a price of $0.01 per warrant:

● at any time
 while the warrants are exercisable,

● upon not less than 30 days prior written notice of redemption to each warrant holder,

● if,
 and only if, the reported last sale price of the common stock equals or exceeds $18.00 per share (as adjusted for stock splits, stock
 dividends, reorganizations and recapitalizations), for any 20 trading days within a 30 -trading day period ending on the third trading
 business day prior to the notice of redemption to warrant holders, and

● if,
 and only if, there is a current registration statement in effect with respect to the issuance of the shares underlying such warrants
 at the time of redemption and for the entire 30 -day trading period referred to above and continuing each day until the date of redemption.

If the Company calls the warrants for redemption as described above, the management will have the option to require any holder that wishes to exercise its warrant to do so on a "cashless basis." If management takes advantage of this option, all holders of warrants would pay the exercise price by surrendering their warrants for that number of shares of common stock equal to the quotient obtained by dividing (x) the product of the number of shares of common stock underlying the warrants, multiplied by the excess of the "fair market value" (defined below) over the exercise price of the warrants by (y) the fair market value. The "fair market value" shall mean the average reported last sale price of the common stock for the 10 trading days ending on the third trading day prior to the date on which the notice of redemption is sent to the holders of warrants.

If the Company is unable to complete an initial Business Combination within the Combination Period and the Company liquidates the funds held in the Trust Account, holders of warrants will not receive any of such funds with respect to their warrants, nor will they receive any distribution from the Company's assets held outside of the Trust Account with respect to such warrants. Accordingly, the warrants may expire worthless.

The following presents the Company's fair value hierarchy for the 406,000 Private Warrants issued which are classified as liabilities measured at fair value as of June 30, 2025:

---

| | | | |
|:---|:---|:---|:---|
|  | **Level 1** | **Level 2** | **Level 3** |
| Private Warrants | $— | $— | $25984 |
| &nbsp;&nbsp;&nbsp;Total | $— | $— | $25984 |

---

The following presents the Company's fair value hierarchy for the 406,000 Private Warrants issued which are classified as liabilities measured at fair value as of December 31, 2024:

---

| | | | |
|:---|:---|:---|:---|
|  | **Level 1** | **Level 2** | **Level 3** |
| Private Warrants | $— | $— | $12180 |
| &nbsp;&nbsp;&nbsp;Total | $— | $— | $12180 |

---

The following table summarizes key inputs and the models used in the valuation of the Company's Private Warrants:

---

| | | |
|:---|:---|:---|
|  | **June 30,**<br>**2025** | **December 31,**<br>**2024** |
| Valuation Method Utilized | Modified Black Scholes | Modified Black Scholes |
| Stock Price | $15.00 | $11.20 |
| Exercise Price | $11.50 | $11.50 |
| Expected Term (years) | 5.04 | 5.25 |
| Volatility | 5.0% | 1.25% |
| Risk-free rate | 3.72% | 4.38% |
| Market adjustment | 1.2% | 9% |

---

The following table provides a reconciliation of changes in fair value of the beginning and ending balances for the Company's warrants classified as Level 3 for the period ended June 30, 2025 and 2024:

---

| | |
|:---|:---|
| Private Warrants |  |
|  | Level 3 |
| Fair value at December 31, 2024 | $12180 |
| Change in fair value | (6090) |
| Fair value at March 31, 2025 | $6090 |
| Change in fair value | 19894 |
| Fair value at June 30, 2025 | $25984 |

---

---

| | |
|:---|:---|
| Private Warrants |  |
|  | Level 3 |
| Fair value at December 31, 2023 | $4060 |
| Change in fair value | 8120 |
| Fair value at March 31, 2024 | $12180 |
| Change in fair value | (4060) |
| Fair value at June 30, 2024 | $8120 |

---

**NOTE 10 — SEGMENT INFORMATION**

ASC Topic 280 establishes standards for companies to report financial statement information about operating segments, products, services, geographic areas, and major customers. Operating segments are defined as components of an enterprise for which separate financial information is available that is regularly evaluated by the Company's chief operating decision maker ("CODM"), or group, in deciding how to allocate resources and assess performance.

The CODM has been identified as the Chief Financial Officer, who reviews the operating results for the Company as a whole to make decisions about allocating resources and assessing financial performance. Accordingly, management has determined that the Company only has one operating segment.

The CODM assesses performance for the single segment and decides how to allocate resources based on net income or loss that also is reported on the unaudited condensed consolidated statements of operations as net income or loss. The measure of segment assets is reported on the condensed consolidated balance sheets as total assets. When evaluating the Company's performance and making key decisions regarding resource allocation the CODM reviews several key metrics, which include the following:

---

| | | | | |
|:---|:---|:---|:---|:---|
| Schedule of segment assets |  |  |  |  |
|  | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| Operating costs | $340625 | $348402 | $687995 | $768454 |
| Interest income on trust account | $6000 | $200064 | $34720 | $566267 |

---

The key metrics included in segment profit or loss reviewed by the CODM are interest income on Trust Account and operating costs. The CODM reviews interest income on Trust Account to measure and monitor stockholder value and determine the most effective strategy of investment with the Trust Account funds while maintaining compliance with the trust agreement. Operating costs are reviewed and monitored by the CODM to manage and forecast cash to ensure enough capital is available to complete a Business Combination within the Business Combination period. The CODM also reviews operating costs to manage, maintain and enforce all contractual agreements to ensure costs are aligned with all agreements and budget.

**Note 11—Subsequent Events**

The Company evaluated subsequent events and transactions that occurred after the balance sheet date up to the date of the filing of this report (October 31, 2025). The Company did not identify any subsequent events, other than disclosed in the Notes and discussed below, that would have required adjustment or disclosure in these unaudited condensed consolidated financial statements.

On July 10, 2025 pursuant to the requirements of Section 12 of the Securities Exchange Act of 1934 the Company filed Form 8-A registering the securities declared effective by the SEC.

**Close of Business Combination**

On July 14, 2025, the Company closed its proposed Business Combination and liquidated its Trust Account. In association with the liquidation of the Trust Account, stockholders redeeming their shares of common stock at the May 2025 Special Meeting were paid for their redeeming shares. As the close of the Business Combination occurred after June 30, 2025, financial statement of the Target are not complete and not included in this Form 10-Q.

**Business Combination Consideration**

As a result of the Business Combination, all of the outstanding shares of common stock, par value $0.01 per share, of Bannix ("Bannix Common Stock") were cancelled in exchange for the right to receive a pro-rata portion of 2,540,353 shares of common stock of VisionWave ("VisionWave Common Stock"). Each issued and outstanding security of Bannix immediately prior to the Parent Merger Effective Time shall no longer be outstanding and shall automatically be cancelled in exchange for the issuance to the holder thereof of a substantially equivalent security of VisionWave.

**Closing**

After the closing of the Mergers, VisionWave has 14,270,953 shares of common stock outstanding and Warrants to purchase 7,306,000 shares of common stock outstanding. Upon the consummation of the Business Combination, VisionWave Common Stock and VisionWave Warrants began trading on July 15, 2025 on the NASDAQ under the symbols "VWAV and "VWAV" respectively.

In addition to the 2,540,353 shares of VisionWave Common Stock issued upon closing of the Business Combination, 11,000,000 shares of VisionWave Common Stock were issued to Target shareholders. Additionally, 690,000 public rights and 40,600 private rights were issued.

Additionally, in association with the closing of the Business Combination, authorized capital has increased. Authorized shares of preferred stock increased from 1,000,000 shares to 10,000,000 shares. There was no change in the par value. Authorized shares of common stock increased from 100,000,000 shares to 150,000,000 shares. There was no change in the par value.

**Short Term Funding**

On July 15, 2025, the Company entered into a Securities Purchase Agreements (the "July 2025 SPAs") with two unaffiliated accredited investors ("July 2025 Lenders"), pursuant to which the Company issued promissory notes (the "July 2025 Notes") to the July 2025 Lenders in the aggregate principal amount of $354,200, which includes an aggregate original issue discount of $46,200, for a purchase price of $308,000. The July 2025 Notes bear interest at a one-time charge of 12% applied on the issuance date, mature on May 15, 2026, and is repayable in five monthly payments commencing January 15, 2026. The July 2025 Notes are convertible into shares of the Company's common stock, par value $0.01 per share (the "Common Stock"), solely upon an event of default, at a conversion price equal to 75% of the lowest trading price during the ten trading days prior to conversion. The Company also entered into an irrevocable transfer agent instructions letter with its transfer agent in connection with the July 2025 Notes. The proceeds from the issuances of the July 2025 Notes will be used for general working capital purposes. The July 2025 Lenders have piggyback registration rights and have agreed not to engage in short sales of the Company's common stock during the term of the July 2025 Notes. The July 2025 Notes include customary representations, warranties, covenants, and default provisions. The Company may prepay the July 2025 Notes within the first 180 days.

The loan pursuant to the July 2025 Notes closed and funded on July 17, 2025.

The July 2025 Notes were issued in reliance on the exemption from registration provided by Section 4(a)(2) of the Securities Act of 1933, as amended (the "Securities Act"), as the issuances did not involve a public offering, and no underwriters were involved. The July 2025 Lenders represented that they are accredited investors as defined in Rule 501(a) of Regulation D under the Securities Act.

**Policies**

On July 16, 2025, the Board of Directors of the Company adopted the following policies:

● A Policy on Granting Equity Awards, which establishes procedures for granting equity awards under the Company's equity compensation plans, including authority, timing, and error correction processes.

● A Code of Ethics, which sets forth standards of conduct for the Company's associates, including honesty, avoidance of conflicts of interest, compliance with laws, and proper accounting practices.

● An Insider Trading Policy, which prohibits insider trading, defines material non-public information, establishes blackout periods, and imposes additional restrictions on certain personnel.

Additionally, on May 29, 2025, the Board of Directors adopted a Compensation Recovery Policy, effective as of such date, which provides for the recovery of erroneously awarded incentive-based compensation from executive officers in the event of an accounting restatement due to material noncompliance with financial reporting requirements, in accordance with Nasdaq listing rules and Rule 10D-1 under the Exchange Act.

**Standby Equity Purchase Agreement**

On July 25, 2025, the Company entered into the Standby Equity Purchase Agreement ("SEPA") with YA II PN, LTD, a Cayman Islands exempt limited partnership ("Investor") pursuant to which the Company has the right to sell to Investor up to $50 million of its shares of common stock, subject to certain limitations and conditions set forth in the SEPA, from time to time during the term of the SEPA, from time to time during the term of the SEPA.

Upon the satisfaction of the conditions to Investor's purchase obligation set forth in the SEPA, including having a registration statement registering the resale of the shares of common stock issuable under the SEPA declared effective by the SEC, the Company will have the right, but not the obligation, from time to time at its discretion until the SEPA is terminated to direct Investor to purchase a specified number of shares of common stock ("Advance") by delivering written notice to Investor ("Advance Notice"). While there is no mandatory minimum amount for any Advance, it may not exceed an amount equal to 100% of the average of the daily traded amount during the five consecutive trading days immediately preceding an Advance Notice.

The shares of common stock purchased pursuant to an Advance delivered by the Company will be purchased at a price equal to 97% of the lowest daily VWAP of the shares of common stock during the three consecutive trading days commencing on the date of the delivery of the Advance Notice, other than the daily VWAP on a day in which the daily VWAP is less than a minimum acceptable price as stated by the Company in the Advance Notice or there is no VWAP on the subject trading day. The Company may establish a minimum acceptable price in each Advance Notice below which the Company will not be obligated to make any sales to Investor. "VWAP" is defined as the daily volume weighted average price of the shares of common stock for such trading day on the Nasdaq Stock Market during regular trading hours as reported by Bloomberg L.P.

In connection with the SEPA, and subject to the condition set forth therein, Investor has agreed to advance to the Company in the form of convertible promissory notes (the "Convertible Notes") an aggregate principal amount of $5.0 million (the "Pre-Paid Advance"). The first Pre-Paid Advance was disbursed on July 25, 2025 with respect to $3.0 million and the balance of $2.0 million will be disbursed upon the registration statement registering the resale of the shares of common stock issuable under the SEPA being declared effective. The purchase price for the Pre-Paid Advance is 94% of the principal amount of the Pre-Paid Advance. Interest shall accrue on the outstanding balance of any Pre-Paid Advance at an annual rate equal to 6.0%, subject to an increase to 18% upon an event of default as described in the Convertible Notes. The maturity date will be 12-months after the closing of each tranche of the Pre-Paid Advance. Investor may convert the Convertible Notes into shares of the Company's common stock at a conversion price equal to the lower of $10.00 or 93% of the lowest daily VWAP during the five consecutive trading days immediately preceding the conversion (the "Conversion Price"), which in no event may the Conversion Price be lower than $1.00 (the "Floor Price"). In addition, upon the occurrence and during the continuation of an event of default, the Convertible Notes shall become immediately due and payable and the Company shall pay to Investor the principal and interest due thereunder. In no event shall Investor be allowed to effect a conversion if such conversion, along with all other shares of common stock beneficially owned by Investor and its affiliates would exceed 4.99% of the outstanding shares of the common stock of the Company. If any time on or after the issuance of the Convertible Notes (i) the daily VWAP is less than the Floor Price for five trading days during a period of seven consecutive trading days ("Floor Price Trigger"), or (ii) the Company has issued in excess of 99% of the shares of common stock available under the Exchange Cap, where applicable ("Exchange Cap Trigger" and collectively with the Floor Price Trigger, the "Trigger")), then the Company shall make monthly payments to Investor beginning on the seventh trading day after the Trigger and continuing monthly in the amount of $750,000 plus an 5.0% premium and accrued and unpaid interest. The Exchange Cap Trigger will not apply in the event the Company has obtained the approval from its stockholders in accordance with the rules of Nasdaq Stock Market for the issuance of shares of common stock pursuant to the transactions contemplated in the Convertible Note and the SEPA in excess of 19.99% of the aggregate number of shares of common stock issued and outstanding as of the effective date of the SEPA (the "Exchange Cap").

Investor, in its sole discretion and providing that there is a balance remaining outstanding under the Convertible Notes, may deliver a notice under the SEPA requiring the issuance and sale of shares of common stock to Investor at the Conversion Price in consideration of an offset of the Convertible Notes ("Investor Advance"). Investor, in its sole discretion, may select the amount of any Investor Advance, provided that the number of shares issued does not cause Investor to exceed the 4.99% ownership limitation, does not exceed the Exchange Cap or the number of shares of common stock that are registered. As a result of a Investor Advance, the amounts payable under the Convertible Notes will be offset by such amount subject to each Investor Advance.

The Company will control the timing and amount of any sales of shares of common stock to Investor, except with respect to Investor Advances. Actual sales of shares of common stock to Investor as an Advance under the SEPA will depend on a variety of factors to be determined by the Company from time to time, which may include, among other things, market conditions, the trading price of the Company's common stock and determinations by the Company as to the appropriate sources of funding for our business and operations.

The SEPA will automatically terminate on the earliest to occur of (i) the 24-month anniversary of the date of the SEPA or (ii) the date on which Investor shall have made payment of Advances pursuant to the SEPA for shares of common stock equal to $50,000,000. We have the right to terminate the SEPA at no cost or penalty upon five (5) trading days' prior written notice to Investor, provided that there are no outstanding Advance Notices for which shares of common stock need to be issued and the Company has paid all amounts owed to Investor pursuant to the Convertible Notes. The Company and Investor may also agree to terminate the SEPA by mutual written consent. Neither the Company nor Investor may assign or transfer our respective rights and obligations under the SEPA, and no provision of the SEPA may be modified or waived by us or Investor other than by an instrument in writing signed by both parties.

As consideration for Investor's commitment to purchase the shares of common stock pursuant the SEPA, the Company paid Investor, (i) a structuring fee in the amount of $35,000 and (ii) 200,000 shares of common stock as an equity fee. Further, the Company is required to pay Investor a commitment fee of $500,000 of which $250,000 shall be due and payable on the earlier of the effective date of the initial registration statement, or 60 days following the date hereof and the remaining $250,000 shall be due and payable on the date that is 90 days following the initial due date to be paid by the issuance of such number of common shares that is equal to the applicable portion of the commitment fee divided by the average of the daily VWAPs of the common shares during the three trading days immediately prior to the applicable due date.

The SEPA contains customary representations, warranties, conditions and indemnification obligations of the parties. The representations, warranties and covenants contained in such agreements were made only for purposes of such agreements and as of specific dates, were solely for the benefit of the parties to such agreements and may be subject to limitations agreed upon by the contracting parties.

The net proceeds under the SEPA to the Company will depend on the frequency and prices at which the Company sells its shares of common stock to Investor. The Company expects that any proceeds received from such sales to Investor will be used for working capital and general corporate purposes.

**Omnibus Equity Incentive Plan**

On August 5, 2025, the Board of Directors (the "Board") of the Company adopted the Company's 2025 Omnibus Equity Incentive Plan (the "Plan"), which authorizes the issuance of up to 7,000,000 shares of the Company's common stock, par value $0.01 per share (the "Common Stock"). The Plan is subject to approval by the Company's shareholders within twelve (12) months of the Board's adoption date. If shareholder approval is obtained, the Plan will become effective as of August 5, 2025. The Plan provides for the grant of various equity-based awards, including non-qualified stock options, incentive stock options, restricted stock awards, restricted stock unit awards, stock appreciation rights, performance stock awards, performance unit awards, unrestricted stock awards, distribution equivalent rights, or any combination thereof. The Plan is intended to assist the Company in attracting, retaining, and incentivizing key management employees, directors, and consultants, and to align their interests with those of the Company's shareholders.

**Executive's Employment Agreements**

On August 6, 2025, the Company entered into employment agreements (each, an "Employment Agreement") with Douglas Davis, as Executive Chairman, Noam Kenig, as Chief Executive Officer, and Danny Rittman, as Chief Technology Officer (collectively, the "Executives"). Each Employment Agreement has an initial term of three (3) years, commencing on August 6, 2025, and is subject to automatic one-year renewals thereafter unless terminated by either party with at least thirty (30) days' prior written notice.

Under the Employment Agreements:

● Mr. Davis and Mr. Kenig will each receive an initial base salary of $150,000 per year, increasing to $300,000 upon the Company achieving $3,000,000 in revenue during any ninety (90)-day period, and further increasing to $600,000 upon achieving $6,000,000 in revenue during any ninety (90)-day period, with subsequent adjustments to fair market rates.

● Mr. Rittman will receive an initial base salary of $120,000 per year, increasing to $240,000 upon the Company achieving $3,000,000 in revenue during any ninety (90)-day period, and further increasing to $360,000 upon achieving $6,000,000 in revenue during any ninety (90)-day period, with subsequent adjustments to fair market rates.

● Mr. Davis and Mr. Kenig are each eligible for an annual performance bonus targeted at 2% of the Company's net income as reflected in its financial statements filed with the Securities and Exchange Commission (the "SEC").

● Each Executive is eligible for four (4) weeks of paid vacation per year, participation in the Company's benefit plans (including medical, dental, vision, disability, life insurance, and 401(k) plans), and reimbursement of reasonable business expenses.

● In the event of termination without cause or resignation for good reason, each Executive is entitled to severance equal to the greater of $600,000 or two (2) times their then-current base salary, payable within six (6) months of termination, subject to execution of a general release.

● Upon a change in control followed by termination within three (3) months, all outstanding equity awards vest immediately, and severance becomes payable.

● Each Employment Agreement includes standard provisions for termination for cause, death, disability, or without good reason, with limited payments in such cases.

Additionally, as a condition to entering into the Employment Agreements, each Executive entered into a Proprietary & Confidential Information, Inventions Assignment, Non-Solicitation and Non-Competition Agreement and a Mutual Agreement to Arbitrate with the Company.

Additionally, pursuant to the Employment Agreements and under the Plan (subject to shareholder approval thereof), the Company granted nonstatutory stock options (each, an "Option") to the Executives as follows:

● Mr. Davis and Mr. Kenig were each granted Options to purchase 2,000,000 shares of Common Stock.

● Mr. Rittman was granted an Option to purchase 500,000 shares of Common Stock.

Each Option has an exercise price of $7.20 per share (to be determined as the fair market value on the grant date) and vests in twelve (12) equal quarterly installments over four (4) years, commencing on the date of shareholder approval of the Plan (the "Approval Date"). The Options are exercisable for five (5) years from the grant date and allow for cashless exercise. The grants are contingent upon shareholder approval of the Plan; if not approved, the Options will be null and void.

**Shares to Vendor**

At June 30, 2025, the Company owed a vendor $87,500 for services rendered. On July 28, 2025, the Company and the vendor agreed to satisfy the outstanding balance with the Company issuing 22,500 VisionWave Holdings' Common Shares to the vendor.

**Joint Venture**

On August 25, 2025, the Company entered into a Strategic Joint Venture Agreement (the "AIPHEX Agreement") with AIPHEX LTD ("AIPHEX"), GBT Tokenize Corp. ("TOKENIZE"), and GBT Technologies, Inc. ("GBT"). Pursuant to the AIPHEX Agreement, the parties agreed to form a joint venture limited liability company in the State of Nevada (the "JV LLC") for the purpose of collaborating on certain designated defense and technology projects (the "Designated Projects and Background IP").

**Employment Agreements**

On September 2, 2025, the Company entered into employment agreements (each, an "Employment Agreement") with Elad Shoval, as Chief Revenue Officer, David Allon, as Chief Operating Officer, and Jaz Williman, as Senior Systems Engineer – UGV (collectively, the "Executives"). Each Employment Agreement has an initial term of three (3) years, commencing on September 2, 2025, and is subject to automatic one-year renewals thereafter unless terminated by either party with at least thirty (30) days' prior written notice.

**Memorandum of Understanding**

On September 2, 2025, the Company entered into a Memorandum of Understanding (the "MoU") with VEDA Aeronautics Private Limited ("VEDA"), a company incorporated under the Companies Act, 2013, of India.

Pursuant to the MoU, the Company and VEDA intend to collaborate on several Indian Ministry of Defense ("MoD") procurement programs (the "Programs"), including but not limited to: (a) Drone Kill System (Make-2) – interceptor drone development; (b) ALTV (New Generation Light Tank) – 357 tanks, with Company subsystems proposed as onboard modules; (c) FRCV (Main Battle Tank Program) – 1,770 main battle tanks; and (d) T72/T90 Retrofit Program for tanks. Under the MoU, VEDA has invited the Company to supply and develop core subsystems, including counter-UAS systems, tactical drones, radar technologies, advance protection systems (APS) systems, sensor fusion technologies, and unmanned platforms for defense and homeland security applications. The parties intend to collaborate in technical proposals, demonstrations, and joint pursuit of contracts for these Programs.

***Revision to Board Members***

On September 9, 2025, the Board of Directors (the "Board") of the Company approved Independent Director Agreements (each, an "Director Agreement") with Eric Shuss, Chuck Hansen, and Haggai Ravid, pursuant to which each will serve as an independent director of the Company.

Under the terms of each of the Director Agreements, the independent director will receive:

● An annual cash retainer of $36,000 , payable quarterly, and $10,000 per annum for serving as the audit committee chair, $5,000 for compensation committee chair and the governance committee chair;

● Reimbursement for reasonable expenses incurred in connection with Board service; and

● An annual equity grant under the Company's 2024 Omnibus Equity Incentive Plan (the "Plan") with a grant date fair value of $60,000 , consisting of restricted stock vesting in full after one year of service.

As a result of the above, the Company issued 5,245 shares of common stock to Messrs Shuss, Hansen and Ravid for their service in 2025. The Director Agreements also include standard provisions regarding indemnification, confidentiality, and compliance with applicable laws and Company policies. Each Director Agreement has an initial term of one year, subject to renewal upon mutual agreement or election at the annual stockholder meeting.

Further, as compensation for his service as a director prior to the Business Combination with Bannix Acquisition Corp. ("Bannix"), the Company entered into Compensation Agreements (each, a "Compensation Agreement") with Mr. Shuss and two other former directors who served as an independent director on the Board of Directors of Bannix from October 2022 until July 2025. Pursuant to the Compensation Agreement, effective as of September 9, 2025, Mr. Shuss will receive a one-time lump sum compensation of $150,000, payable in cash, fully vested shares of the Company's common stock issued under the Company's Plan, or a combination thereof, at Mr. Shuss' election. If shares are elected, the number of shares will be determined by dividing the elected portion by the closing price of the Company's common stock on the NASDAQ Stock Market immediately prior to the effective date of the Compensation Agreement. Mr. Shuss has elected to receive 6,556 shares of common stock using a closing price of $11.44 as of September 8, 2025. The shares will be fully vested upon issuance but subject to resale restrictions under Rule 144 of the Securities Act of 1933, as amended. Payment or issuance will occur within 10 business days after the election (or default to cash if no election is made within 10 business days).

**Standby Equity Purchase Agreement**

On September 11, 2025, the Company entered into a letter agreement (the "Letter Agreement") with YA II PN, Ltd., a Cayman Islands exempt limited partnership (the "Investor"), pursuant to the Standby Equity Purchase Agreement, dated as of July 25, 2025 (as may be amended, amended and restated, extended, supplemented or otherwise modified in writing from time to time, the "SEPA"), between the Company and the Investor.

Pursuant to the Letter Agreement, the Investor advanced the second tranche of the Pre-Paid Advance in a principal amount of $2,000,000 (the "Second Pre-Paid Advance") on September 11, 2025, in connection with the issuance by the Company of a convertible promissory note in the principal amount of $2,000,000 (the "Second Note"). The Investor waived the condition precedent set forth in the SEPA relating to the effectiveness of a registration statement for the Second Pre-Paid Advance. The purchase price for the Second Note is $1,880,000 (94% of the principal amount, reflecting a 6% discount).

In addition, pursuant to the Letter Agreement, the Investor agreed to fund an additional $2,000,000 in principal amount (the "Additional Advance") under the terms of a new convertible promissory note in the principal amount of $2,000,000 (the "New Note" and, together with the Second Note, the "Additional Notes") upon the effectiveness of the registration statement filed by the Company on August 29, 2025, in connection with the SEPA (the "Registration Statement"). The purchase price for the New Note will be $1,880,000 (94% of the principal amount, reflecting a 6% discount). The Company acknowledged in the Letter Agreement that it is not required to modify, amend, or supplement the existing Registration Statement to include any shares underlying the New Note, and, other than as may be set forth in the New Note, the Company is not obligated to file a new registration statement relating to such shares.

***Terms of the Second Note***

The Second Note has a maturity date of September 11, 2026 (as may be extended at the option of the Investor). Interest accrues on the outstanding principal balance at an annual rate of 6%, which increases to 18% upon the occurrence of an event of default (for so long as such event remains uncured). Interest is calculated based on a 365-day year and the actual number of days elapsed.

If an Amortization Event occurs (defined as a Floor Price Event, Exchange Cap Event, or Registration Event, as set forth in the Second Note), the Company must make monthly cash payments beginning on the 10th trading day after the Amortization Event Date and continuing on the same day of each successive calendar month until the entire outstanding principal amount is repaid. Each monthly payment equals the sum of (i) $750,000 of principal (or the outstanding principal if less), (ii) a 7% payment premium on such principal amount, and (iii) accrued and unpaid interest. The obligation to make such payments ceases if the Amortization Event is cured.

The Company may, at its option, redeem early a portion or all amounts outstanding under the Second Note by providing written notice to the Investor, provided the VWAP of the common stock was less than the fixed conversion price on the notice date (unless otherwise agreed). The redemption amount includes the principal being redeemed, a 5% redemption premium, and accrued interest. The Investor has 10 trading days to elect to convert any portion of the Second Note before redemption.

The Second Note is convertible at any time into shares of the Company's common stock, par value $0.01 per share (the "Common Stock"), at the lower of (i) $10.00 per share (the "Fixed Price") or (ii) 93% of the lowest daily VWAP during the 5 consecutive trading days immediately preceding the conversion date (the "Variable Price"), but not lower than the floor price of $1.00 per share (adjustable downwards to 20% of the average VWAP for the five trading days prior to the earlier of the Registration Statement effectiveness or the six-month anniversary of the SEPA date, or further reduced by the Company). The Fixed Price resets downwards on the 30-day anniversary of a merger transaction to the average VWAP for the five trading days prior. Conversions are subject to a 4.99% beneficial ownership limitation and the Exchange Cap (19.99% of outstanding shares without stockholder approval).

The Second Note includes customary events of default, representations, warranties, covenants, and indemnification provisions. Upon an event of default, the Investor may accelerate the note or convert at the conversion price. The Company may not engage in variable rate transactions while the Second Note is outstanding, subject to exceptions.

***Terms of the New Note***

The New Note will have a maturity date of 12 months from its issuance date (as may be extended at the option of the Investor). Interest will accrue on the outstanding principal balance at an annual rate of 12%, which increases to 18% upon the occurrence of an event of default (for so long as such event remains uncured). Interest is calculated based on a 365-day year and the actual number of days elapsed.

Beginning on the three-month anniversary of the issuance date and continuing monthly, the Company must repay $200,000 of principal (or the outstanding principal if less), plus a 7% payment premium and accrued interest (the "Installment Amount"). The Company may pay the Installment Amount in cash or by submitting Advance Notices under the SEPA (with proceeds offsetting the Installment Amount). Any Advance Notice while the New Note is outstanding is treated as repayment first.

The Company may, at its option, redeem early a portion or all amounts outstanding under the New Note by providing written notice to the Investor, provided the VWAP of the Common Stock was less than the conversion price on the notice date (unless otherwise agreed). The redemption amount includes the principal being redeemed, a 5% redemption premium, and accrued interest. The Investor has 10 trading days to elect to convert any portion of the New Note before redemption.

The New Note is convertible at any time into shares of Common Stock at $12.00 per share, subject to adjustments for stock splits, combinations, reclassifications, and dilutive issuances below the conversion price (with certain exclusions). Conversions are subject to a 4.99% beneficial ownership limitation.

The New Note includes customary events of default, representations, warranties, covenants, and indemnification provisions. Upon an event of default, the Investor may accelerate the note or convert at the conversion price. The Company may not engage in variable rate transactions while the New Note is outstanding, subject to exceptions.

***Additional Covenants in the Letter Agreement***

Pursuant to the Letter Agreement, the Company granted the Investor a right of first refusal for 12 months following September 11, 2025, with respect to any financing transaction involving the issuance or sale of securities (including debt, equity, equity-linked securities, notes, or debentures, but excluding ATM offerings at prevailing market prices). The Company must provide written notice of any such proposed transaction, and the Investor has 10 business days to elect to participate. If the Investor declines, the Company may proceed with a third party on terms no more beneficial than those offered to the Investor, within 60 days.

**Consulting Agreement**

On September 26, 2025, the Company entered into a Consulting Agreement (the "CTMG Agreement") with Crypto Treasury Management Group, LLC ("CTMG"), pursuant to which CTMG will provide advisory and strategic services to assist the Company in establishing a digital asset treasury reserve. The services include, among other things, developing a crypto treasury strategy, recommending custodians, designing staking protocols (if applicable), assisting with capital formation in collaboration with a licensed securities underwriter, and supporting regulatory and tax compliance efforts.

The CTMG Agreement has an initial term of two years, subject to earlier termination under certain conditions, including for convenience with 60 days' notice or for material breach. In consideration for the services, the Company has agreed to pay CTMG: (i) a retainer fee of $50,000 upon signing, which was pre-paid as an advance on September 24, 2025, with an additional $50,000 due upon execution of binding definitive agreements related to the crypto treasury transaction; (ii) a success fee of 17 Bitcoin (or cash equivalent) upon successful deployment of at least $20 million into crypto assets for the Company's treasury; and (iii) 250,000 shares of the Company's common stock upon closing of the crypto treasury transaction, subject to SEC Rule 144 restrictions and inclusion in future registration statements where applicable. The Company will also reimburse CTMG for pre-approved reasonable expenses.

The CTMG Agreement contemplates a potential capital formation structure of up to $300 million, with allocations into crypto assets such as Bitcoin and Solana, subject to the Company's approval and market conditions; however, there can be no assurance that the transaction will close or that it will be consummated on the anticipated terms or at all. In the event this strategy is successfully implemented, which is not guaranteed and depends on various factors including management's ability to execute effectively, the Company has committed to staking a minimum of 70% of its crypto treasury assets for at least two years, although such implementation may face challenges or fail to achieve expected outcomes due to market volatility, regulatory changes, or other risks. CTMG will not act as a broker-dealer or engage in activities requiring such registration. The Company, in an effort to replace its current financing structure, intends to structure the transaction and use the non-staked portion as funding for its defense business and potentially leverage the stakeable portion for M&A activity in the defense arena, though these intentions are forward-looking and subject to uncertainties that could prevent or alter their realization.

The CTMG Agreement includes standard provisions regarding confidentiality, non-circumvention, independent contractor status, compliance with laws (including securities, AML/KYC, and tax regulations), warranties, indemnification, limitation of liability, and governing law (Delaware).

The proposed adoption of a crypto reserve strategy, including the establishment of a digital asset treasury as contemplated in the Agreement will only be implemented upon obtaining regulatory approval, if any, from relevant authorities, including compliance with Nasdaq listing requirements. Additionally, the implementation of the crypto reserve strategy may require shareholder approval to the extent such approval is deemed necessary by the Company's board of directors or required by regulatory bodies. The Company will ensure all necessary approvals are obtained prior to the execution of the crypto reserve strategy and will provide further updates as required by law.

The foregoing description of the Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the Agreement, a copy of which is filed as Exhibit 10.1 to the Form 8-K filed with the SEC on September 30, 2025.

**AI Infrastructure Agreement**

On October 5, 2025, the Company entered into an Order Form (the "Agreement") with PVML Ltd., a Tel Aviv–based provider of secure data-AI infrastructure. The Agreement establishes a strategic collaboration to integrate PVML's secure, real-time data-AI infrastructure with the Company's radar and AI-driven computer-vision technologies to enable secure, autonomous mission-data systems for defense and homeland-security applications.

The terms of the Agreement include:

● The initial term is twelve (12) months, automatically renewable for successive one-year periods unless either party gives 60-days' prior notice of non-renewal.

● The Company will pay total consideration of $600,000, consisting of (i) a cash component of $250,000 payable upon execution and (ii) an equity component valued at $350,000, to be settled through the issuance of 35,000 shares of the Company's common stock valued at $10.00 per share .

● The Agreement provides for a yearly platform fee covering 2.4 million PVML Units ("PUs") of data-processing capacity, with usage fees for consumption beyond that level.

● Each party retains ownership of its respective intellectual property, and the Company will own all outputs and derivatives generated through its use of the PVML platform.

**BANNIX ACQUISITION CORP. (PREDECESSOR)**

**CONDENSED BALANCE SHEETS**

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| | | |
|:---|:---|:---|
|  | **June 30, 2025** | **December 31, 2024** |
|  | **(Unaudited)** | |
| **Assets** |  |  |
| **Current Assets:** |  |  |
| &nbsp;&nbsp;&nbsp;Cash | $885 | $9754 |
| &nbsp;&nbsp;&nbsp;Prepaid expense and other | 3930 | 3930 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Current Assets** | 4815 | 13684 |
| &nbsp;&nbsp;&nbsp;Cash held in Trust Account | 1168644 | 3749377 |
| **Total Assets** | $**1173459** | $**3763061** |
| **Liabilities, Redeemable Common Stock and Stockholders' Deficit** |  |  |
| **Current liabilities:** |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | $1231500 | $969883 |
| &nbsp;&nbsp;&nbsp;Income taxes payable | 955887 | 888426 |
| &nbsp;&nbsp;&nbsp;Excise tax payable | 913292 | 750608 |
| &nbsp;&nbsp;&nbsp;Promissory notes - Evie | 1003995 | 1003995 |
| &nbsp;&nbsp;&nbsp;Due to related parties | 2106406 | 1805644 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Current Liabilities** | **6211080** | **5418556** |
| Warrant liability | 25984 | 12180 |
| Redemptions payable | 972722 |  |
| Deferred underwriters' discount | 225000 | 225000 |
| &nbsp;&nbsp;&nbsp;**Total Liabilities** | **7434786** | **5655736** |
| **Commitments and Contingencies** |  |  |
| Common stock subject to possible redemption 16,353 and 324,748 at redemption value on June 30, 2025 and December 31, 2024, respectively | 608298 | 4084139 |
| **Stockholders' Deficit** |  |  |
| Preferred stock, $0.01 par value; 1,000,000 shares authorized; no shares issued or outstanding |  |  |
| Common stock, par value $0.01; authorized 100,000,000 shares; issued 4,061,166 and 4,286,248 shares; and outstanding 2,524,000 and 2,524,000 shares (excluding 16,353 and 324,748 shares subject to redemption and 1,437,500 Treasury Stock shares) on June 30, 2025 and December 31, 2024, respectively | 39615 | 39615 |
| Additional paid-in capital |  |  |
| Accumulated deficit | (6894865) | (6002054) |
| Less Treasury Stock; at cost; 1,437,500 common shares | (14375) | (14375) |
| **Total Stockholders' Deficit** | **(6869625)** | **(5976814)** |
| **Total Liabilities, Redeemable Common Stock and Stockholders' Deficit** | $**1173459** | $**3763061** |

---

The accompanying notes are an integral part of these unaudited condensed financial statements.

**BANNIX ACQUISITION CORP. (PREDECESSOR) UNAUDITED CONDENSED STATEMENTS OF OPERATIONS**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| Operating costs | $325822 | $348402 | $612939 | $768454 |
| &nbsp;&nbsp;&nbsp;**Loss from operations** | **(325822)** | **(348402)** | **(612939)** | **(768454)** |
| Other (expense) income: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest income on trust account | 6000 | 200064 | 34720 | 566267 |
| &nbsp;&nbsp;&nbsp;Gain on forgiven of payables |  |  |  | 33750 |
| &nbsp;&nbsp;&nbsp;Excise tax interest/penalty | (59193) |  | (127219) |  |
| &nbsp;&nbsp;&nbsp;Income tax interest/penalties | (20246) |  | (60376) |  |
| &nbsp;&nbsp;&nbsp;Change in fair value of warrant liabilities | (19894) | 4060 | (13804) | (4060) |
| Total other (expense) income, net | (93333) | 204124 | (166679) | 595957 |
| Loss before provision for income taxes | (419155) | (144278) | (779618) | (172497) |
| Provision for income taxes | (336) | (8826) | (7085) | (8826) |
| **Net loss** | $**(419491)** | $**(153104)** | $**(786703)** | $**(181323)** |
| Basic and diluted weighted average shares outstanding | 2587045 | 4081747 | 2692303 | 4734717 |
| **Basic and diluted net loss per share** | $**(0.16)** | $**(0.04)** | $**(0.29)** | $**(0.04)** |

---

The accompanying notes are an integral part of these unaudited condensed financial statements.

 **BANNIX ACQUISITION CORP. (PREDECESSOR) UNAUDITED CONDENSED STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIT**

**FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2025**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Common stock** | **Common stock** | | | | |
|  | **Share <sup>(1)</sup>** | **Amount** |<br>**Additional Paid-in Capital** |<br>**Accumulated Deficit** |<br>**Treasury Stock** |<br>**Total Stockholders' Deficit** |
| **Balance as of January 1, 2025** | **3961500** | $**39615** | $**—** | $**(6002054)** | $**(14375)** | $**(5976814)** |
| Net loss |  |  |  | (367212) |  | (367212) |
| Excise tax imposed on common stock redemptions |  |  |  | (25738) |  | (25738) |
| Accretion of common stock subject to possible redemption to redemption value |  |  |  | (54828) |  | (54828) |
| **Balance as of March 31, 2025** | **3961500** | $**39615** | $**—** | $**(6449832)** | $**(14375)** | $**(6424592)** |
| Net loss |  |  |  | (419491) |  | (419491) |
| Excise tax imposed on common stock redemptions |  |  |  | (9727) |  | (9727) |
| Accretion of common stock subject to possible redemption to redemption value |  |  |  | (15815) |  | (15815) |
| **Balance as of June 30, 2025** | **3961500** | $**39615** | $**—** | $**(6894865)** | $**(14375)** | $**(6869625)** |

---

**FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2024**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Common stock** | **Common stock** | | | | |
|  | **Share <sup>(1)</sup>** | **Amount** |<br>**Additional Paid-in Capital** |<br>**Accumulated Deficit** |<br>**Treasury Stock** |<br>**Total Stockholders' Deficit** |
| **Balance as of January 1, 2024** | **3961500** | $**39615** | $— | $**(3678428)** | $**(14375)** | $**(3653188)** |
| Net loss |  |  |  | (28219) |  | (28219) |
| Excise tax imposed on common stock redemptions |  |  |  | (151344) |  | (151344) |
| Accretion of common stock subject to possible redemption to redemption value |  |  |  | (491203) |  | (491203) |
| **Balance as of March 31, 2024** | **3961500** | $**39615** | $**—** | $**(4349194)** | $**(14375)** | $**(4323954)** |
| Net loss |  |  |  | (153104) |  | (153104) |
| Accretion of common stock subject to possible redemption to redemption value |  |  |  | (230038) |  | (230038) |
| **Balance as of June 30, 2024** | **3961500** | $**39615** | $**—** | $**(4732336)** | $**(14375)** | $**(4707096)** |

---

(1) Includes 1,437,500 shares classified as treasury stock (See Notes 8).

The accompanying notes are an integral part of these unaudited condensed financial statements.

**BANNIX ACQUISITION CORP. (PREDECESSOR) UNAUDITED CONDENSED STATEMENTS OF CASH FLOWS**

---

| | | |
|:---|:---|:---|
|  | **For the Six Months Ended June 30,** | **For the Six Months Ended June 30,** |
|  | **2025** | **2024** |
| **Cash flows from Operating Activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net loss | $(786703) | $(181323) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments to reconcile net loss to net cash used in operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of warrant liability | 13804 | 4060 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on forgiven payables |  | (33750) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest income on Trust Account | (34720) | (566267) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in current assets and current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Prepaid expenses |  | (39) |
| &nbsp;&nbsp;&nbsp;Income taxes payable | 67461 | 8826 |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | 261617 | 199025 |
| &nbsp;&nbsp;&nbsp;Excise tax payable | 127219 |  |
| &nbsp;&nbsp;&nbsp;Due to related parties, net | 150500 | 149810 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net cash used in operating activities** | **(200822)** | **(419658)** |
| **Cash flows from Investing Activities:** |  |  |
| Investment of cash into Trust Account | (52408) | (250000) |
| Redemptions from Trust Account | 2573762 | 15134429 |
| Withdrawal from Trust Account to pay taxes | 94099 | 422094 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net cash provided by investing activities** | **2615453** | **15306523** |
| **Cash flows from Financing Activities:** |  |  |
| Redemption of Class A common stock subject to possible redemption | (2573762) | (15134429) |
| Advances from affiliated related parties | 171262 |  |
| Promissory notes – Evie |  | 29980 |
| Payment of advances to related parties | (21000) | (15000) |
| Proceeds from promissory note to new Sponsors |  | 30000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net cash used in financing activities** | **(2423500)** | **(15089449)** |
| **Net change in cash** | **(8869)** | **(202584)** |
| Cash, beginning of the period | 9754 | 232278 |
| **Cash, end of the period** | $**885** | $**29694** |
| **Supplemental disclosure of noncash financing activities:** |  |  |
| Accretion of common stock subject to possible redemption to redemption value | $70643 | $721241 |
| Redemptions payable | $972722 | $— |
| Excise tax liability accrued for common stock redemptions | $35465 | $151344 |

---

The accompanying notes are an integral part of these unaudited condensed financial statements.

**BANNIX ACQUISITION CORP. (PREDECESSOR)**

**NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS**

**JUNE 30, 2025**

**Note 1—Organization and Business Operations**

**Organization and General**

In connection with the closing of its proposed business combination with VisionWave Technologies, Inc., discussed below (see also note for subsequent events), VisionWave Holdings, Inc. ("VW Holdings" or the "Company") is the successor to Bannix Acquisition Corp., ("Bannix") a blank check company incorporated in the state of Delaware on January 21, 2021. Bannix was formed for the purpose of effecting mergers, capital stock exchange, asset acquisitions, stock purchases, reorganization or similar business combinations with one or more businesses ("Business Combination").

As of June 30, 2025, Bannix had not commenced any operations. All activity for the period from January 21, 2021 (inception) through June 30, 2025 relates to Bannix's formation, the initial public offering (the "IPO") (as defined below) and Bannix's search for a target and the consummation of an initial Business Combination. Bannix will not generate any operating revenues until after the completion of its initial Business Combination, at the earliest. Bannix generates non-operating income in the form of interest income on cash from the proceeds derived from the IPO and non-operating income or expense from the changes in the fair value of warrant liabilities. Until the closing of its business combination with VisionWave Technologies, Inc., Bannix is an early stage and emerging growth company and, as such, Bannix is subject to all of the risks associated with early stage and emerging growth companies.

**Sponsors and Officers**

Bannix's original sponsors were Subash Menon and Sudeesh Yezhuvath (through their investment entity Bannix Management LLP), Suresh Yezhuvath ("Yezhuvath") and Seema Rao ("Rao") (collectively, the "Former Sponsor").

On October 20, 2022, pursuant to a Securities Purchase Agreement ("SPA"), Instant Fame LLC, a Nevada limited liability company controlled by a U.S. person ("Instant Fame") (the "Sponsor"), acquired an aggregate of 385,000 shares of common stock of Bannix from Bannix Management LLP, Balaji Venugopal Bhat, Nicholos Hellyer, Subbanarasimhaiah Arun, Vishant Vora and Suresh Yezhuvath and 90,000 private placement units from Suresh Yezhuvath (collectively, the "Sellers") in a private transaction. The Sellers immediately loaned the entire proceeds to Bannix for the working capital requirements of Bannix. In connection with this transaction, all parties agreed to certain changes to the Board of Directors.

As a result of the above, Subash Menon resigned as Chief Executive Officer and Chairman of the Board of Directors of Bannix and Nicholas Hellyer resigned as Chief Financial Officer, Secretary and Head of Strategy. Douglas Davis was appointed as the Chief Executive Officer of Bannix. Further, Balaji Venugopal Bhat, Subbanarasimhaiah Arun and Vishant Vora resigned as Directors of Bannix. Mr. Bhat, Mr. Arun and Mr. Vora served on the Audit Committee with Mr. Bhat serving as the committee chair. Mr. Bhat, Mr. Arun and Mr. Vora served on the Compensation Committee with Mr. Arun serving as the committee chair.

The Board was also increased from two to seven and Craig Marshak and Douglas Davis were appointed as Co-Chairmen of the Board of Directors effective immediately. Further, Jamal Khurshid, Eric T. Shuss and Ned L. Siegel were appointed to the Board of Directors of Bannix. The resignations referenced above were not the result of any disagreement with management or the Board.

On November 10, 2022, Sudeesh Yezhuvath resigned as a director of Bannix for personal reasons. The resignation was not the result of any disagreements with management or the Board.

Due to vacancies as results of board members departure, on November 11, 2022 the Board made the following decisions: (i) Jamie Khurshid, Ned Siegel and Eric Shuss each have been identified as being financially literate and independent under the SEC and Nasdaq Rules have been appointed to the Audit Committee to serve until their successors are qualified and appointed with such appointment subject to the mailing of that certain Schedule 14F Information Statement. Mr. Khurshid chairs the audit committee. (ii) Mr. Siegel, Mr. Shuss and Craig Marshak each have been identified as being independent under the SEC and Nasdaq Rules were appointed to the Compensation Committee to serve until their successors are qualified and appointed with such appointment subject to the mailing of that certain Schedule 14F Information Statement. (iii) Messrs. Davis and Marshak have been appointed as Class III directors,

Subash Menon has been appointed as a Class I director and, subject to the mailing of the Schedule 14F Information Statement, Messrs. Khurshid, Siegel and Shuss have been appointed as the Class II directors. The Schedule 14F Information Statement was mailed on or about November 15, 2022.

On May 19, 2023, Bannix entered into an Executive Retention Agreement with Mr. Davis, Chief Executive Officer and Co-Chairman of the Board of Directors, providing for an at-will employment arrangement that may be terminated by either party at any time, which provides for the payment of an annual salary of $240,000 to Mr. Davis. Additionally, Bannix entered into a letter agreement with Subash Menon, a director of Bannix, for services in connection with the review and advice pertaining to the proposed Business Combination (discussed below) providing for a payment in the amount of $200,000 upon the closing of a Business Combination.

On April 10, 2024, Erik Klinger was appointed by Bannix to serve as the Chief Financial Officer of Bannix. There is no understanding or arrangement between Mr. Klinger and any other person pursuant to which he was appointed as an executive officer. Mr. Klinger does not have any family relationship with any director, executive officer or person nominated or chosen by us to become an executive officer. The employment of Mr. Klinger is at will and may be terminated at any time, with or without formal cause.

**Initial Public Offering**

The registration statements for Bannix's IPO were declared effective on September 9, 2021 and September 10, 2021 (the "Effective Date"). On September 14, 2021, Bannix consummated its IPO of 6,900,000 units at $10.00 per unit (the "Units"), which is discussed in Note 3. Each Unit consists of one share of common stock (the "Public Shares"), one redeemable warrant to purchase one share of common stock at a price of $11.50 per share and one right. Each right entitles the holder thereof to receive one-tenth (1/10) of one share of common stock upon the consummation of the Business Combination.

Concurrent with the IPO, Bannix consummated the issuance of 406,000 private placement units (the "Private Placement Units") as follows: Bannix sold 181,000 Private Placement Units to certain investors for aggregate cash proceeds of $2,460,000 and issued an additional 225,000 Private Placement Units to the Former Sponsor in exchange for the cancellation of $1,105,000 in loans and a promissory note due to them (see Notes 4 and 6). Each Private Placement Unit consists of one share of common stock, one redeemable warrant to purchase one share of common stock at a price of $11.50 per whole share and one right. Each right entitles the holder thereof to receive one-tenth (1/10) of one share of common stock upon the consummation of the Business Combination. Bannix's management has broad discretion with respect to the specific application of the net proceeds of the IPO and the Private Placement Units, although substantially all of the net proceeds are intended to be generally applied toward consummating a Business Combination.

**Trust Account and Extensions**

Following the closing of the IPO on September 14, 2021, an amount of $69,690,000 ($10.10 per Unit) from the net proceeds of the sale of the Units in the IPO and Private Placement Units was placed in a trust account (the "Trust Account") and invested in U.S. government securities, within the meaning set forth in Section 2(a)(16) of the Investment Company Act, with a maturity of 180 days or less or in any open-ended investment company that holds itself out as a money market fund meeting the conditions of Rule 2a-7 of the Investment Company Act, as determined by Bannix. Bannix has since divested its investments in the Trust Account and placed the funds in an interest-bearing demand deposit account. Except with respect to interest earned on the funds held in the Trust Account that may be released to Bannix to pay its franchise and income tax obligations (less up to $100,000 of interest to pay dissolution expenses), the proceeds from this offering and the sale of the Private Placement Units will not be released from the Trust Account until the earliest of (a) the completion of Bannix's initial Business Combination, (b) the redemption of any Public Shares properly submitted in connection with a stockholder vote to amend Bannix's amended and restated certificate of incorporation, and (c) the redemption of Bannix's Public Shares if Bannix is unable to complete the initial Business Combination within 15 months from the closing of this offering, or within any period of extension, subject to applicable law. The proceeds deposited in the Trust Account could become subject to the claims of Bannix's creditors, if any, which could have priority over the claims of Bannix's public stockholders.

*March 8, 2023 Special Meeting*

Bannix held a Special Meeting of Stockholders on March 8, 2023 (the "Special Meeting"). At the Special Meeting, the stockholders approved the filing of an amendment to its Amended and Restated Certificate of Incorporation with the Delaware Secretary of State (the "Extension Amendment"), to extend the date (the "Extension") by which Bannix must (1) complete a merger, share exchange, asset acquisition, stock purchase, recapitalization, reorganization or similar business combination involving Bannix and one or more businesses (an "initial Business Combination"), (2) cease its operations except for the purpose of winding up if it fails to complete such initial Business Combination and (3) redeem 100% of Bannix's common stock ("common stock") included as part of the Units sold in Bannix's initial public offering that was consummated on September 14, 2021 (the "IPO"), from March 14, 2023, and to allow Bannix, without another stockholder vote, to further extend the date to consummate a Business Combination on a monthly basis up to twelve (12) times by an additional one (1) month each time after March 14, 2023 or later extended deadline date, by resolution of Bannix's board of directors (the "Board"), if requested by Instant Fame upon five days' advance notice prior to the applicable deadline date, until March 14, 2024, or a total of up to twelve (12) months after March 14, 2023 (such date as extended, the "Deadline Date"), unless the closing of a Business Combination shall have occurred prior thereto.

At the Special Meeting, stockholders holding a total of 3,960,387 shares of Bannix's common stock exercised their right to redeem such shares for a pro rata portion of the funds in Bannix's Trust Account. As a result, $41,077,199 (approximately $10.37 per share) was removed from Bannix's Trust Account to pay such holders. Following redemptions, Bannix had 5,463,613 shares outstanding.

*March 8, 2024 Annual Meeting*

On March 8, 2024, Bannix held its Annual Meeting of Stockholders of Bannix (the "Annual Meeting"), whereby Bannix's stockholders approved an amendment to its Amended and Restated Certificate of Incorporation with the Delaware Secretary of State (the "March 2024 Amendment"), to extend the Deadline Date from March 14, 2024, as extended, and to allow Bannix, without another stockholder vote, to further extend the date to consummate a Business Combination on a monthly basis up to six (6) times by an additional one (1) month each time after March 14, 2024 or later extended deadline date, by resolution of Bannix's Board of Directors, if requested by Bannix's Sponsor, until September 14, 2024, or a total of up to six (6) months after March 14, 2024, unless the closing of a Business Combination shall have occurred prior thereto (the "Extension Amendment").

Additionally, Bannix's stockholders approved an amendment to remove from the Amended and Restated Certificate of Incorporation the redemption limitation contained under Section 9.2(a) preventing Bannix from closing a Business Combination if it would have less than $5,000,001 of net tangible assets (the "NTA Amendment").

At the Annual Meeting, stockholders holding a total of 1,381,866 shares of Bannix's common stock exercised their right to redeem such shares for a pro rata portion of the funds in Bannix's Trust Account. As a result, $15,134,429 (approximately $10.95 per share) was removed from Bannix's Trust Account to pay such holders. Following redemptions, Bannix had 4,081,747 shares outstanding.

*September 6, 2024 Special Meeting*

On September 6, 2024, Bannix held a Special Meeting of Stockholders of Bannix (the "September 2024 Special Meeting"), whereby Bannix's stockholders approved an amendment to its Amended and Restated Certificate of Incorporation with the Delaware Secretary of State (the "September 2024 Amendment"), to extend the Deadline Date from September 14, 2024, as extended, and to allow Bannix, without another stockholder vote, to further extend the date to consummate a Business Combination on a monthly basis up to six (6) times by an additional one (1) month each time after September 14, 2024 or later extended deadline date, by resolution of Bannix's Board of Directors, if requested by Bannix's Sponsor, until March 14, 2025, or a total of up to six (6) months after September 14, 2024, unless the closing of a Business Combination shall have occurred prior thereto (the "September 2024 Extension Amendment").

Additionally, beginning in September 2024, the Sponsor or its designees will deposit into the Trust Account, as a loan, $16,237 or $0.05 per public share multiplied by the number of public shares outstanding (the "Contribution"), in connection with each Extension.

At the September 2024 Special Meeting, stockholders holding a total of 1,232,999 shares of Bannix's common stock exercised their right to redeem such shares for a pro rata portion of the funds in Bannix's Trust Account. As a result, $13,790,479 (approximately $11.18 per share) was removed from Bannix's Trust Account to pay such holders. Following redemptions, Bannix had 2,848,748 shares outstanding.

*March 7, 2025 Special Meeting*

On March 7, 2025, Bannix held a Special Meeting of Stockholders of Bannix (the "March 2025 Special Meeting"), whereby Bannix's stockholders approved an amendment to its Amended and Restated Certificate of Incorporation with the Delaware Secretary of State (the "March 2025 Amendment"), to extend the Deadline Date from March 14, 2025, as extended, and to allow Bannix, without another stockholder vote, to further extend the date to consummate a Business Combination on a monthly basis up to three (3) times by an additional one (1) month each time after March 14, 2025 or later extended deadline date, by resolution of Bannix's Board of Directors, if requested by Bannix's Sponsor, until June 14, 2025, or a total of up to three (3) months after March 14, 2025, unless the closing of a Business Combination shall have occurred prior thereto (the "March 2025 Extension Amendment").

Additionally, beginning in March 2025, the Sponsor or its designees will deposit into the Trust Account, as a loan, $4,983 or $0.05 per public share multiplied by the number of public shares outstanding (the "Contribution"), in connection with each Extension.

In connection with the vote on the March 2025 Extension Amendment at the March 2025 Special Meeting, stockholders holding a total of 225,082 shares of Bannix's common stock exercised their right to redeem such shares for a pro rata portion of the funds in Bannix's Trust Account. As a result, $2,573,762 (approximately $11.43 per share) was removed from Bannix's Trust Account to pay such holders. Following redemptions, Bannix had 2,623,666 shares outstanding.

*May 22, 2025 Special Meeting*

On May 22, 2025, Bannix held a special meeting of stockholders (the "May 2025 Special Meeting") whereby Bannix's stockholders approved the proposals described in Bannix's definitive proxy statement filed with the Securities and Exchange Commission on May 9, 2025 (the "May 9, 2025 Proxy Statement"). The approved proposals include (i) the proposed Business Combination (2) the stock issuance plan, (3) the incentive plan proposal and (4) the director election proposal.

In connection with the vote at the May 2025 Special Meeting, stockholders holding a total of 83,313 shares of Bannix's common stock exercised their right to redeem such shares for a pro rata portion of the funds in Bannix's Trust Account. As a result, $972,722 (approximately $11.67 per share) will be removed from Bannix's Trust Account to pay such holders. Following redemptions, Bannix will have 2,540,353 shares outstanding prior to the Merger.

As of June 30, 2025, Bannix had not paid the redeeming stockholders for their redeemed shares and recognized a redemption payable on the condensed balance sheet for $972,722. In July 2025, Bannix paid the redeeming stockholders for their redeemed shares.

In association with Bannix's special meetings and annual meeting, as of the filing of this Form 10-Q, Bannix has deposited an aggregate of $1,857,358 into the Trust Account to extend the Deadline Date.

**Deadline Date Extension**

In connection with the March 7, 2025 Special Meeting, the stockholders of Bannix approved the extension of the Deadline date to March 14, 2025 or later extended deadline date, by resolution of Bannix's Board of Directors, if requested by Bannix's Sponsor, until June 14, 2025.

Prior to the June 14, 2025 Deadline Date, management of Bannix, representing a majority of Bannix's stockholders, held a meeting with the trustee of the Trust Account to request the Trust Account not be liquidated due to the pending regulatory approval of the proposed Business Combination, discussed below. The trustee exercised administrative authority and agreed to the temporary extension of the Deadline Date pending a stockholder meeting. Before a stockholder meeting could be held to extend the Deadline Date, final regulatory approval was granted by Nasdaq and Bannix closed on its proposed Business Combination and terminated the Trust Account.

**Initial Business Combination**

Bannix had until June 14, 2025 (as extended) to (1) complete a Business Combination, (2) cease its operations except for the purpose of winding up if it fails to complete such Business Combination, and (3) redeem 100% of Bannix's common stock included as part of the units sold in Bannix's initial public offering.

In the event that Bannix receives notice from Instant Fame five days prior to the applicable deadline of its wish for Bannix to effect an extension, Bannix intends to issue a press release announcing such intention at least three days prior to the applicable deadline. In addition, Bannix intends to issue a press release the day after the applicable deadline announcing whether or not the funds had been timely deposited. Instant Fame and its affiliates or designees are not obligated to fund the Trust Account to extend the time for Bannix to complete the initial Business Combination. If Bannix is unable to consummate the initial Business Combination within the applicable time period, Bannix will, promptly but not more than ten business days thereafter, redeem the Public Shares for a pro rata portion of the funds held in the Trust Account and promptly following such redemption, subject to the approval of the remaining stockholders and the board of directors, dissolve and liquidate, subject in each case to the obligations under Delaware law to provide for claims of creditors and the requirements of other applicable law. In such event, the rights and warrants will be worthless. Additionally, any initial Business Combination must be approved by a majority of the independent directors.

Bannix anticipates structuring the initial Business Combination so that the post-transaction company in which the public stockholders' own shares will own or acquire substantially all of the equity interests or assets of the target business or businesses. Bannix may, however, structure the initial Business Combination such that the post-transaction company owns or acquires less than substantially all of such interests or assets of the target business in order to meet certain objectives of the target management team or stockholders or for other reasons, but Bannix will only complete such Business Combination if the post-transaction company owns or acquires 50% or more of the outstanding voting securities of the target or otherwise acquires a controlling interest in the target sufficient for it not to be required to register as an investment company under the Investment Company Act of 1940, as amended (the "Investment Company Act"). Even if the post-transaction company owns or acquires 50% or more of the voting securities of the target, the stockholders prior to the initial Business Combination may collectively own a minority interest in the post-transaction company, depending on valuations ascribed to the target and Bannix in the Business Combination transaction. For example, Bannix could pursue a transaction in which Bannix issue a substantial number of new shares in exchange for all of the outstanding capital stock of shares or other equity interests. In this case, Bannix would acquire a 100% controlling interest in the target. However, as a result of the issuance of a substantial number of new shares, the stockholders immediately prior to the initial Business Combination could own less than a majority of the outstanding shares subsequent to the initial Business Combination. If less than 100% of the equity interests or assets of a target business or businesses are owned or acquired by the post-transaction company, the portion of such business or businesses that is owned or acquired is what will be valued for purposes of the 80% of net assets test. If the initial Business Combination involves more than one target business, the 80% of net assets test will be based on the aggregate value of all of the target businesses even if the acquisitions of the target businesses are not closed simultaneously.

Bannix cannot ascertain the capital requirements for any particular transaction. If the net proceeds currently held in the Trust Account prove to be insufficient, either because of the size of the Business Combination, the depletion of the available net proceeds in search of a target business, or because Bannix becomes obligated to redeem a significant number of the Public Shares upon consummation of the initial Business Combination, Bannix will be required to seek additional financing, in which case Bannix may issue additional securities or incur debt in connection with such Business Combination. Furthermore, Bannix may issue a substantial number of additional shares of common or preferred stock to complete the initial Business Combination or under an employee incentive plan upon or after consummation of the initial Business Combination. Bannix does not have a maximum debt leverage ratio or a policy with respect to how much debt Bannix may incur. The amount of debt Bannix will be willing to incur will depend on the facts and circumstances of the proposed Business Combination and market conditions at the time of the potential Business Combination. At this time, Bannix is not party to any arrangement or understanding with any third party with respect to raising additional funds through the sale of the securities or the incurrence of debt. Subject to compliance with applicable securities laws, Bannix would only consummate such financing simultaneously with the consummation of the initial Business Combination.

Nasdaq rules require that the initial Business Combination must occur with one or more target businesses that together have an aggregate fair market value of at least 80% of the assets held in the Trust Account (excluding advisory fees and taxes payable on the income earned on the Trust Account) at the time of the agreement to enter into the initial Business Combination. If the board is not able to independently determine the fair market value of the target business or businesses, Bannix will obtain an opinion from an independent investment banking firm or an independent accounting firm with respect to the satisfaction of such criteria. Bannix does not intend to purchase multiple businesses in unrelated industries in connection with the initial Business Combination.

Bannix will provide its public stockholders with the opportunity to redeem all or a portion of their Public Shares upon the completion of the initial Business Combination either (i) in connection with a stockholder meeting called to approve the initial Business Combination or (ii) by means of a tender offer. The decision as to whether Bannix will seek stockholder approval of a proposed initial Business Combination or conduct a tender offer will be made by Bannix, solely at its discretion. The stockholders will be entitled to redeem their shares for a pro rata portion of the amount then on deposit in the Trust Account (initially $10.10 per share, plus any pro rata interest earned on the funds held in the Trust Account and not previously released to Bannix to pay its tax obligations plus additional deposits to extend the Combination Period).

Related to the redemption of Bannix's public shares, Bannix's has no limitation on its net tangible assets either immediately before or after the consummation of the Business Combination. Redemptions of Bannix's public shares may be subject to a net tangible asset test or cash requirement pursuant to an agreement relating to a Business Combination. For example, the Business Combination may require: (i) cash consideration to be paid to the target or its owners, (ii) cash to be transferred to the target for working capital or other general corporate purposes or (iii) the retention of cash to satisfy other conditions in accordance with the terms of the Business Combination. In the event the aggregate cash consideration Bannix would be required to pay for all shares of common stock that are validly submitted for redemption plus any amount required to satisfy cash conditions pursuant to the terms of the Business Combination exceed the aggregate amount of cash available to Bannix, it will not complete the Business Combination or redeem any shares, and all shares of common stock submitted for redemption will be returned to the holders thereof.

The Sponsor, officers and directors and Representative (as defined in Note 6) have agreed to (i) waive their redemption rights with respect to their Founder Shares and Public Shares in connection with the completion of the initial Business Combination, (ii) waive their redemption rights with respect to their Founder Shares (as defined below) and Public Shares in connection with a stockholder vote to approve an amendment to Bannix's amended and restated certificate of incorporation, and (iii) waive their rights to liquidating distributions from the Trust Account with respect to their Founder Shares if Bannix fails to complete the initial Business Combination within the Combination Period.

Bannix's Sponsor has agreed to be liable to Bannix if and to the extent any claims by a third party for services rendered or products sold to Bannix, or a prospective target business with which Bannix has entered into a written letter of intent, confidentiality or similar agreement or Business Combination agreement, reduce the amount of funds in the Trust Account to below the lesser of (i) $10.95 per Public Share (subject to increase of up to an additional $4,983 per month in the event that the Sponsors elects to extend the period of time to consummate a Business Combination as set forth in the March 2025 Extension Amendment) and (ii) the actual amount per Public Share held in the Trust Account as of the date of the liquidation of the Trust Account, if less than $10.95 per share due to reductions in the value of the trust assets, less taxes payable, provided that such liability will not apply to any claims by a third party or prospective target business who executed a waiver of any and all rights to the monies held in the Trust Account (whether or not such waiver is enforceable) nor will it apply to any claims under Bannix's indemnity of the underwriters of this offering against certain liabilities, including liabilities under the Securities Act. However, Bannix has not asked its Sponsor to reserve for such indemnification obligations, nor has Bannix independently verified whether its Sponsor has sufficient funds to satisfy its indemnity obligations and believe that Bannix's Sponsor's only assets are securities of Bannix. Therefore, Bannix cannot assure that its Sponsor would be able to satisfy those obligations.

Pursuant to Bannix's Investment Management Trust Agreement with Continental Stock Transfer & Trust Company (the "Trustee"), dated as of September 10, 2021 (the "Trust Agreement"), as amended, upon a liquidation and termination of the Trust Account as a result of Bannix failing to complete a Business Combination, Bannix is authorized to withdrawal $100,000 of interest that may be released to Bannix to pay dissolution expenses (the "Allowance"). On January 30, 2025, Bannix assigned the Trustee $100,000 of the Allowance only in the event of a dissolution and termination of the Trust Account as a result of Bannix failing to complete a Business Combination. The Trustee is authorized to offset $100,000 from the Trust Account interest against Bannix's outstanding invoice.

**Proposed Business Combination – VisionWave Technologies**

Prior to the succession of Bannix by VW Holdings, on March 26, 2024, Bannix entered into a Business Combination Agreement (the "Original Agreement"), by and among Bannix, VisionWave Technologies, Inc., a Nevada corporation ("Target" or "VisionWave Technologies") and the shareholders of Target.

On September 6, 2024, Bannix entered into a Merger Agreement and Plan of Reorganization (the "Merger Agreement"), by and among Bannix, VisionWave Holdings, Inc., a Delaware corporation and a direct, wholly owned subsidiary of Bannix ("VisionWave"), BNIX Merger Sub, Inc., a Delaware corporation and a direct, wholly owned subsidiary of VisionWave ("Parent Merger Sub"), BNIX VW Merger Sub, Inc., a Nevada corporation and direct, wholly owned subsidiary of VisionWave ("Company Merger Sub"), and Target. The Merger Agreement and the transactions contemplated thereby were approved by the boards of directors of each of Bannix, VisionWave, Parent Merger Sub, Company Merger Sub, and Target.

On July 14, 2025, Bannix closed its proposed Business Combination with VisionWave Technologies.

*The Mergers*

Pursuant to and in accordance with the terms set forth in the Merger Agreement, (a) Parent Merger Sub will merge with and into Bannix, with Bannix continuing as the surviving entity (the "Parent Merger"), as a result of which, (i) Bannix will become a wholly owned subsidiary of VisionWave, and (ii) each issued and outstanding security of Bannix immediately prior to the effective time of the Parent Merger (the "Parent Merger Effective Time") (other than shares of Bannix Common Stock that have been redeemed or are owned by Bannix or any of its direct or indirect subsidiaries as treasury shares and any Dissenting Parent Shares) shall no longer be outstanding and shall automatically be cancelled in exchange for the issuance to the holder thereof of a substantially equivalent security of VisionWave (other than the Parent Rights, which shall be automatically converted into shares of VisionWave), and, (b) immediately following the consummation of the Parent Merger but on the same day, Company Merger Sub will merge with and into Target, with Target continuing as the surviving entity (the "Company Merger" and, together with the Parent Merger, the "Mergers"), as a result of which, (i) Target will become a wholly owned subsidiary of VisionWave, and (ii) each issued and outstanding security of Target immediately prior to the effective time of Bannix Merger (the "Company Merger Effective Time") (other than any Cancelled Shares or Dissenting Shares) shall no longer be outstanding and shall automatically be cancelled in exchange for the issuance to the holder thereof of a substantially equivalent security of VisionWave. The Mergers and the other transactions contemplated by the Merger Agreement are hereinafter referred to as the "Business Combination."

The Business Combination is expected to close in the third quarter of 2025, subject to customary closing conditions, including the satisfaction of the minimum available cash condition, the receipt of certain governmental approvals and the required approval by the stockholders of Bannix and Target.

*Consideration*

Pursuant to and in accordance with the terms set forth in the Merger Agreement, at the Parent Merger Effective Time, (a) each share of Bannix common stock, par value $0.001 per share ("Bannix Common Stock") outstanding immediately prior to the Parent Merger Effective Time that has not been redeemed, is not owned by Bannix or any of its direct or indirect subsidiaries as treasury shares and is not a Dissenting Parent Share will automatically convert into one share of common stock, par value $0.001, of VisionWave (each, a share of "VisionWave Common Stock"), (b) each Bannix Warrant shall automatically convert into one warrant to purchase shares of VisionWave Common Stock (each, a "VisionWave Warrant") on substantially the same terms and conditions; and (c) each Bannix Right will be automatically converted into the number of shares of VisionWave Common Stock that would have been received by the holder of such Bannix Right if it had been converted upon the consummation of a Business Combination in accordance with Bannix's organizational documents.

In accordance with the terms and subject to the conditions of the Merger Agreement, at Bannix Merger Effective Time, (a) each share of issued and outstanding Target common stock, par value $0.01 ("Target Common Stock"), shall be cancelled and converted into 4,041 shares of VisionWave Common Stock.

*Governance*

Subject to approval of shareholders, the parties have agreed to take actions such that, effective immediately after the Closing of the Business Combination, Bannix's board of directors shall consist of five directors, consisting of Haggai Ravid, Chuck Hansen, Eric T. Shuss, Douglas Davis and Noam Kenig. Additionally, certain current Target management personnel may become officers of VisionWave.

*Representations and Warranties; Covenants*

The Merger Agreement contains representations, warranties and covenants of each of the parties thereto that are customary for transactions of this type, including, among others, covenants providing for (i) certain limitations on the operation of the parties' respective businesses prior to consummation of the Business Combination, (ii) the parties' efforts to satisfy conditions to consummation of the Business Combination, including by obtaining any necessary approvals from governmental agencies, (iii) prohibitions on the parties soliciting alternative transactions, (iv) VisionWave preparing and filing a registration statement on Form S-4 with the Securities and Exchange Commission (the "SEC") and taking certain other actions to obtain the requisite approval of Bannix's stockholders to vote in favor of certain matters, including the adoption of the Merger Agreement and approval of the Business Combination, at a special meeting to be called for the approval of such matters, and (v) the protection of, and access to, confidential information of the parties.

On May 5, 2025, the SEC declared Bannix's registration statement on Form S-4 to be effective.

The representations, warranties and covenants in the Merger Agreement were made solely for the benefit of the parties to the Merger Agreement and are subject to limitations agreed upon by the contracting parties, including being qualified by confidential disclosures made the parties to the Merger Agreement which are not filed publicly and which are subject to a contractual standard of materiality different from that generally applicable to stockholders and were used for the purpose of allocating risk among the parties rather than establishing matters as facts. Bannix does not believe that these schedules contain information that is material to an investment decision.

In addition, VisionWave has agreed to adopt an equity incentive plan, as described in the Merger Agreement.

*Conditions to the Closing*

The obligations of Bannix, VisionWave, Parent Merger Sub and Company Merger Sub (the "Bannix Parties") and Target to consummate the Business Combination are subject to certain closing conditions, including, but not limited to, (i) the approval of Bannix's stockholders, (ii) the approval of Target's stockholders, and (iii) Bannix's Form S-4 registration statement becoming effective.

In addition, the obligations of the Bannix Parties to consummate the Business Combination are also subject to the fulfillment (or waiver) of other closing conditions, including, but not limited to, (i) the representations and warranties of Target being true and correct to the standards applicable to such representations and warranties and each of the covenants of Target having been performed or complied with in all material respects, (ii) delivery of certain ancillary agreements required to be executed and delivered in connection with the Business Combination, and (iii) no Material Adverse Effect having occurred.

The obligation of Target to consummate the Business Combination is also subject to the fulfillment (or waiver) of other closing conditions, including, but not limited to, (i) the representations and warranties of the Bannix Parties being true and correct to the standards applicable to such representations and warranties and each of the covenants of the Bannix Parties having been performed or complied with in all material respects and (ii) the shares of VisionWave Common Stock issuable in connection with the Business Combination being listed on the Nasdaq Stock Market.

*Termination Rights*

The Merger Agreement may be terminated under certain customary and limited circumstances prior to the Closing of the Business Combination, including, but not limited to, (i) by mutual written consent of Bannix and Target, (ii) by Bannix, on the one hand, or Target, on the other hand, if there is any breach of the representations, warranties, covenant or agreement of the other party as set forth in the Merger Agreement, in each case, such that certain conditions to closing cannot be satisfied and the breach or breaches of such representations or warranties or the failure to perform such covenant or agreement, as applicable,

are not cured or cannot be cured within certain specified time periods, (iii) by either Bannix or Target if the Business Combination is not consummated, (iv) by either Bannix or Target if a meeting of Bannix's stockholders is held to vote on proposals relating to the Business Combination and the stockholders do not approve the proposals, and (v) by Bannix if the Target stockholders do not approve the Merger Agreement.

*Permitted Financings*

The Merger Agreement contemplates that Target (a) may enter into agreements to raise capital in one or more private placement transactions prior to the Closing for aggregate gross proceeds of up to $20,000,000 or (b) consummate an initial sale of any shares of capital stock of Target in an underwritten public offering registered under the Securities Act or any direct listing of any shares of capital stock of Target on a securities exchange or securities market ("Permitted Financings").

*Stockholder Support Agreement*

In accordance with the Merger Agreement, within thirty (30) days following the execution of the Merger Agreement, Bannix, VisionWave, Target, and certain stockholders of Target representing the requisite votes necessary to approve the Merger Agreement (the "Target Equity Holders") are expected to enter into a Stockholder Support Agreement pursuant to which the Target Equity Holders will: (a) agree to vote in favor of the adoption of the Merger Agreement and approve the Mergers and the other Transactions to which Target is a party; and (b) agree to waive any appraisal or similar rights they may have pursuant to Nevada law with respect to the Mergers and the other Transactions.

*Potential Private Placement* 

On April 9, 2025, VisionWave Technologies entered into a non-exclusive placement agent engagement agreement (the "Engagement Agreement") with Maxim Group LLC ("Maxim"), pursuant to which Maxim will act as VisionWave Technologies' non-exclusive placement agent in connection with a potential private placement of up to $10 million of equity or equity-linked securities (the "Offering"). The Offering is expected to be conducted on a "commercially reasonable efforts" basis, and there is no assurance that the Offering will be completed, or that any definitive agreements with investors will be entered into. Under the terms of the Engagement Agreement, VisionWave Technologies retains full discretion to accept or reject any investment proposals and will determine the final terms and structure of the Offering, subject to market conditions and investor interest. Maxim will be entitled to a cash placement fee equal to seven percent (7.0%) of the gross proceeds received by VisionWave Technologies from any investor introduced by Maxim. In addition, VisionWave Technologies agreed to reimburse Maxim for up to $25,000 in out-of-pocket expenses incurred in connection with the engagement, subject to certain conditions and prior approvals.

The Engagement Agreement includes a limited right of first refusal for a period of nine (9) months following the final closing of the Offering, Maxim shall have the right to act as sole managing underwriter or sole placement agent for any subsequent public or private offerings of equity, equity-linked, or debt securities of VisionWave Technologies, subject to Maxim matching the material terms offered by any third party. VisionWave Technologies has not yet launched the Offering, and no securities have been issued as of the date of this filing.

There can be no assurance that VisionWave Technologies will consummate the Offering or receive any proceeds from it.

***Nasdaq Notices***

On September 13, 2024, Bannix received a letter from the Listing Qualifications Department of Nasdaq stating that, because it did not complete a Business Combination within 36 months of the effectiveness of its IPO registration statement, Bannix's securities were subject to delisting from The Nasdaq Stock Market ("Nasdaq") under Nasdaq Listing Rule IM-5101-2.

The letter further stated that unless Bannix appealed Nasdaq's determination by September 20, 2024, trading of the Bannix's securities would be suspended at the opening of business on September 24, 2024, and a Form 25-NSE would be filed with the SEC to remove the Bannix's securities from listing and registration on Nasdaq.

Bannix appealed Nasdaq's determination to a Hearings Panel (the "Panel") and on December 2, 2024, the Panel granted the Bannix's request for an exception to the Nasdaq Listing Rule IM-5101-2 to allow continued listing on Nasdaq. Bannix has been was granted an extension until March 12, 2025, to complete its proposed Business Combination.

On November 19, 2024, the Bannix a written notice (the "Notice") from the Nasdaq Listing Qualifications department indicating that Bannix is not in compliance with the minimum Market Value of Listed Securities ("MVLS") requirement of $35 million for continued listing as set forth in Nasdaq Listing Rule 5550(b)(2) (the "MVLS Rule"). The Notice is only a notification of deficiency, not of imminent delisting, and has no current effect on the listing or trading of the Bannix's securities. In accordance with Nasdaq Listing Rule 5810(c)(3)(C), Bannix had will have 180 calendar days (the "Compliance Period") to regain compliance with the MVLS Rule. To regain compliance with the MVLS Rule, the MVLS for Bannix must be at least $35 million for a minimum of ten consecutive business days at any time during this Compliance Period. If the Bannix regained compliance with the MVLS Rule, Nasdaq would provide Bannix with written confirmation and would close the matter. If the Bannix did not regain compliance with the MVLS Rule by the Compliance Date, Nasdaq would provide written notification that its securities would be subject to delisting. In the event of such notification, the Nasdaq rules permit the Bannix an opportunity to appeal Nasdaq's determination.

On March 13, 2025, the Bannix received a letter from the Panel notifying Bannix that it would be suspended from trading on Nasdaq due to Bannix's inability to satisfy the terms outlined in the Panel's December 2, 2024 decision. As a result, the trading in the Bannix's securities moved to the OTC Pink at the open of trading on March 17, 2025, under the trading symbols of BNIX, BNIXR and BNIXW. As the successor to Bannix, upon the consummation of the Business Combination, VisionWave Common Stock and VisionWave Warrants began trading on July 15, 2025 on the NASDAQ under the symbols "VWAV and "VWAV" respectively and Bannix's securities stopped trading.

***Certificate of Correction to Certificate of Amendment***

On February 8, 2024, Bannix filed a Certificate of Correction to its Certificate of Amendment to its Amended and Restated Certificate of Incorporation (the "Certificate of Correction") filed with the Secretary of State of the State of Delaware on March 9, 2023 (the "Certificate of Amendment"). The Certificate of Amendment inadvertently removed the provisions relating to Bannix's obligation to wind up and liquidate Bannix and redeem the public shares if the Bannix had not consummated an initial Business Combination within the specified time. The Certificate of Correction corrects this error to the Certificate of Amendment. The corrections made by the Certificate of Correction are retroactively effective as of March 9, 2023, the original filing date of the Certificate of Amendment.

**Liquidity, Capital Resources, and Going Concern**

As of June 30, 2025, Bannix had $885 in cash and a working capital deficit of $6,206,265.

Bannix's liquidity needs through June 30, 2025, were satisfied through (1) a capital contribution from the Sponsors of $28,750 for common stock ("Founder Shares") and (2) loans from Former Sponsor and Sponsor and related parties in order to pay offering costs and other working capital needs. In addition, in order to fund transaction costs in connection with a possible Business Combination, Bannix's Sponsor, an affiliate of the Sponsor, and/or certain of Bannix's officers and directors may, but are not obligated to, provide Bannix Working Capital Loans. As of June 30, 2025 and December 31, 2024, there were no loans associated with Working Capital Loans. As of June 30, 2025 and December 31, 2024, Bannix owed $2,106,406 and $1,811,700 to the Former Sponsor, the Sponsor, related parties and affiliated related parties, respectively. See Note 6 for further disclosure of Former Sponsor, Sponsor, related parties and affiliated related party loans.

As additional sources of funding, Bannix issued unsecured promissory notes to Evie Autonomous LTD ("Evie") with a principal amount of $1,003,995 (the "Evie Autonomous Extension Notes"). The Evie Autonomous Extension Notes bear no interest and are repayable in full upon the earlier of (a) the date of the consummation of Bannix's initial Business Combination, or (b) the date of Bannix's liquidation. If Bannix does not consummate an initial Business Combination by the Deadline Date, the Evie Autonomous Extension Notes will be repaid only from funds held outside of the Trust Account or will be forfeited, eliminated or otherwise forgiven.

On December 26, 2024 and revised on February 4, 2025, April 19, 2025 and May 25, 2025, Bannix entered into several agreements to defer certain transaction costs and obligations associated with its proposed Business Combination until after the closing of the proposed Business Combination. The deferred obligations include:

● transaction costs of approximately $300,000 related to legal and financial advisory services provided in connection with the proposed Business Combination. These costs will be payable no later than three (3) months following the closing of the proposed Business Combination,

● promissory notes - Evie in the amount of $1,003,995 due only after any Pre-Paid Advance issued in connection with the SEPA is repaid in full, see Note 11,

● an aggregate of $2,019,200 owed to the Sponsor and its affiliates, including promissory notes, administrative support fees, and advances due only after any Pre-Paid Advance issued in connection with the SEPA is repaid in full, see Note 11.

On January 19, 2025, the CEO of Bannix agreed to defer $110,400 of compensation expense due him. These costs would have been payable no later than three (3) months following the closing of the proposed Business Combination. On May 25, 2025, the agreement was modified such that the payable is due only after any Pre-Paid Advance issued in connection with the SEPA is repaid in full, see Note 11.

All deferred payments will be made exclusively from the working capital of the post-closing entity or funds raised following the closing. These deferments provide Bannix with the financial flexibility to focus on completing the transaction while ensuring that all obligations are met within the agreed timeframes.

On April 8, 2025, with an effective date of March 31, 2025, Bannix entered into a Funding Support Agreement with Stanley Hills, LLC ("Stanley Hills"), the principal shareholder of VisionWave Technologies. Pursuant to the agreement, Stanley Hills irrevocably and unconditionally committed to provide financial support to Bannix, sufficient to fund the working capital needs through August 13, 2026. The funding may be provided by Stanley Hills in the form of direct payments to third parties, advances or intercompany loans, or capital contributions, as mutually determined by the parties. Unless otherwise agreed in writing, any such advances will be non-interest bearing and repayable only at such time as determined by the Board of Directors, and only to the extent such repayment would not impair Bannix's liquidity or ability to continue as a going concern. The agreement may not be terminated by Stanley Hills prior to the twelve-month period from the date of release of the financial statement.

Based on the foregoing, management believes that the funds Bannix has available is sufficient to meet its operating needs through the consummation of a Business Combination through the temporarily extended Deadline Date. Over this time period, Bannix will be utilizing the funds available to it to pay existing accounts payable and consummating the proposed Business Combination.

Bannix is within 12 months of its mandatory liquidation date as of June 30, 2025. In connection with Bannix's assessment of going concern considerations, Bannix had a temporarily extended deadline date beyond the June 14, 2025 Deadline Date to consummate a Business Combination. Bannix closed on its proposed Business Combination on July 14, 2025 alleviating the mandatory liquidation requirement.

On April 9, 2025, VisionWave Technologies entered into a non-exclusive placement agent engagement agreement (the "Engagement Agreement") with Maxim Group LLC ("Maxim"), pursuant to which Maxim will act as VisionWave's non-exclusive placement agent in connection with a potential private placement of up to $10 million of equity or equity-linked securities (the "Offering"). The Offering is expected to be conducted on a "commercially reasonable efforts" basis, and there is no assurance that the Offering will be completed, or that any definitive agreements with investors will be entered into. Under the terms of the Engagement Agreement, VisionWave retains full discretion to accept or reject any investment proposals and will determine the final terms and structure of the Offering, subject to market conditions and investor interest. Maxim will be entitled to a cash placement fee equal to seven percent (7.0%) of the gross proceeds received by VisionWave from any investor introduced by Maxim and listed in exhibit to the Engagement Agreement. In addition, VisionWave agreed to reimburse Maxim for up to $25,000 in out-of-pocket expenses incurred in connection with the engagement, subject to certain conditions and prior approvals.

***Risks and Uncertainties***

In February 2022, the Russian Federation and Belarus commenced a military action with the country of Ukraine. And in October 2023, the Hamas Terror Organization attacked the Southern part of Israel, which in turn, commenced a military action with Gaza Strip. As a result, these actions, and the possibility of escalating military actions, have created and are expected to create global economic consequences. The specific impact on Bannix's financial condition, results of operations, and cash flows is also not determinable as of the date of these financial statements.

***Consideration of Inflation Reduction Act Excise Tax***

On August 16, 2022, the Inflation Reduction Act of 2022 (the "IR Act") was signed into federal law. The IR Act provides for, among other things, a 1% federal excise tax on certain repurchases of stock by publicly traded U.S. domestic corporations and certain U.S. domestic subsidiaries of publicly traded foreign corporations occurring on or after January 1, 2023. The excise tax is imposed on the repurchasing corporation itself, not its shareholders from which shares are repurchased. The amount of the excise tax is generally 1% of the fair market value of the shares repurchased at the time of the repurchase. However, for purposes of calculating the excise tax, repurchasing corporations are permitted to net the fair market value of certain new stock issuances against the fair market value of stock repurchases during the same taxable year. In addition, certain exceptions apply to the excise tax. The U.S. Department of the Treasury (the "Treasury") has been given authority to provide regulations and other guidance to carry out and prevent the abuse or avoidance of the excise tax.

On December 27, 2022, the Treasury published Notice 2023-2, which provided clarification on some aspects of the application of the excise tax. The notice generally provides that if a publicly traded U.S. corporation completely liquidates and dissolves, distributions in such complete liquidation and other distributions by such corporation in the same taxable year in which the final distribution in complete liquidation and dissolution is made are not subject to the excise tax. Although such notice clarifies certain aspects of the excise tax, the interpretation and operation of aspects of the excise tax (including its application and operation with respect to SPACs) remain unclear and such interim operating rules are subject to change.

Because the application of this excise tax is not entirely clear, any redemption or other repurchase effected by Bannix, in connection with a Business Combination, extension vote or otherwise, may be subject to this excise tax. Because any such excise tax would be payable by Bannix and not by the redeeming holders, it could cause a reduction in the value of Bannix's Class A common stock, cash available with which to effectuate a Business Combination or cash available for distribution in a subsequent liquidation. Whether and to what extent Bannix would be subject to the excise tax in connection with a Business Combination will depend on a number of factors, including (i) the structure of the Business Combination, (ii) the fair market value of the redemptions and repurchases in connection with the Business Combination, (iii) the nature and amount of any "PIPE" or other equity issuances in connection with the Business Combination (or any other equity issuances within the same taxable year of the Business Combination) and (iv) the content of any subsequent regulations, clarifications, and other guidance issued by the Treasury. Further, the application of the excise tax in respect of distributions pursuant to a liquidation of a publicly traded U.S. corporation is uncertain and has not been addressed by the Treasury in regulations, and it is possible that the proceeds held in the Trust Account could be used to pay any excise tax owed by Bannix in the event Bannix is unable to complete a Business Combination in the required time and redeem 100% of the remaining Class A common stock in accordance with Bannix's amended and restated certificate of incorporation, in which case the amount that would otherwise be received by the public stockholders in connection with Bannix's liquidation would be reduced.

Any redemption or other repurchase that occurs after December 31, 2022, in connection with a Business Combination, extension vote or otherwise, may be subject to the excise tax. Whether and to what extent Bannix would be subject to the excise tax in connection with a Business Combination, extension vote or otherwise would depend on a number of factors, including (i) the fair market value of the redemptions and repurchases in connection with the Business Combination, extension or otherwise, (ii) the structure of a Business Combination, (iii) the nature and amount of any PIPE or other equity issuances in connection with a Business Combination (or otherwise issued not in connection with a Business Combination, but issued within the same taxable year of a Business Combination) and (iv) the content of regulations and other guidance from the Treasury. In addition, because the excise tax would be payable by Bannix and not by the redeeming holder, the mechanics of any required payment of the excise tax have not been determined. The foregoing could cause a reduction in the cash available on hand to complete a Business Combination and in Bannix's ability to complete a Business Combination.

During the second quarter of 2024, the Internal Revenue Service issued final regulations with respect to the timing and payment of the excise tax. These regulations provided that the filing and payment deadline for any liability incurred during the period from January 1, 2023 to December 31, 2023 would be October 31, 2024. Bannix is currently evaluating its options with respect to this obligation. Any amount of such excise tax not paid in full, will be subject to additional interest and penalties which are currently estimated at 8% interest per annum, a 0.5% underpayment penalty per month or portion of a month up to 25% of the total liability for any amount that is unpaid from November 1, 2024 until paid in full, and a failure to file penalty of 5% per month.

As of the filing of the Form 10-Q, Bannix has not filed its 2024 excise tax return and no amounts have been paid. As of June 30, 2025 and December 31, 2024, Bannix is reporting $177,806 and $50,587 in excise tax interest and penalties payable on the unaudited condensed balance sheets.

***Investment Company Act 1940***

Under the current rules and regulations of the SEC we are not deemed an investment company for purposes of the Investment Company Act; however, on March 30, 2022, the SEC proposed new rules (the "Proposed Rules") relating, among other matters, to the circumstances in which SPACs such as Bannix could potentially be subject to the Investment Company Act and the regulations thereunder. The Proposed Rules provide a safe harbor for companies from the definition of "investment company" under Section 3(a)(1)(A) of the Investment Company Act, provided that a SPAC satisfies certain criteria. To comply with the duration limitation of the proposed safe harbor, a SPAC would have a limited time period to announce and complete a de-SPAC transaction. Specifically, to comply with the safe harbor, the Proposed Rules would require a company to file a Current Report on Form 8-K announcing that it has entered into an agreement with a target company for an initial Business Combination no later than 18 months after the effective date of the SPAC's registration statement for its IPO. Bannix would then be required to complete its initial Business Combination no later than 24 months after the effective date of such registration statement. There is currently uncertainty concerning the applicability of the Investment Company Act to a SPAC, including this Company. Although Bannix entered into a definitive Business Combination agreement within 18 months after the effective date of the registration statement relating to the IPO, there is a risk that Bannix may not complete an initial Business Combination within 24 months of such date. As a result, it is possible that a claim could be made that Bannix has been operating as an unregistered investment company. If Bannix were deemed to be an investment company for purposes of the Investment Company Act, Bannix may be forced to abandon its efforts to complete an initial Business Combination and instead be required to liquidate. If Bannix is required to liquidate, the investors would not be able to realize the benefits of owning stock in a successor operating business, including the potential appreciation in the value of our stock and warrants following such a transaction.

The Investment Company Act defines an investment company as any issuer which (i) is or holds itself out as being engaged primarily, or proposes to engage primarily, in the business of investing, reinvesting, or trading in securities; (ii) is engaged or proposes to engage in the business of issuing face-amount certificates of the installment type, or has been engaged in such business and has any such certificate outstanding; or (iii) is engaged or proposes to engage in the business of investing, reinvesting, owning, holding, or trading in securities, and owns or proposes to acquire investment securities having a value exceeding 40% of the value of its total assets (exclusive of Government securities and cash items) on an unconsolidated basis. Bannix has assessed its primary line of business and the value of its investment securities as compared to the value of total assets to determine whether Bannix may be deemed an investment company. The longer that the funds in the Trust Account are held in money market funds, there is a greater risk that Bannix may be considered an unregistered investment company. As a result, Bannix has switched all funds to cash, will likely receive minimal interest, if any, on the funds held in the Trust Account after such time, which would reduce the dollar amount our public stockholders would receive upon any redemption or liquidation of our Company. Currently, the funds in the Trust Account are held in a demand deposit account and meeting certain conditions under Rule 2a-7 under the Investment Company Act.

Failure to meet these criteria could result in the SPAC being deemed an unregistered investment company under the Act, requiring liquidation and potentially preventing completion of the proposed transaction. Bannix completed its IPO within the SEC's safe harbor timeline, having entered into a definitive Business Combination Agreement with VisionWave Technologies Inc. on March 26, 2024, less than 42 months after its IPO. The transaction is expected to close within the SEC's prescribed 42-month timeline. Currently,

Bannix does not hold itself out as being engaged in investing, reinvesting, or trading in securities. All funds in the Trust Account are held in demand deposit accounts that comply with Rule 2a-7 under the Investment Company Act. The funds are not invested in marketable securities to avoid the risk of being deemed an unregistered investment company. As of the date of this filing, Bannix's Trust Account remains compliant with the safe harbor criteria outlined in SEC Release No. 33-11265. If Bannix were deemed to be an unregistered investment company under the Investment Company Act, it could be forced to abandon the Business Combination and liquidate. In such a scenario, public stockholders would lose the opportunity to benefit from potential appreciation in the value of Bannix's stock and warrants following the Business Combination. In conclusion, Bannix is committed to ensuring compliance with the Investment Company Act and the updated SEC guidance. By adhering to the safe harbor provisions, Bannix seeks to mitigate risks associated with the potential application of the Investment Company Act.

**Note 2—Significant Accounting Policies**

**Basis of Presentation**

The accompanying unaudited condensed financial statements of Bannix are presented in U.S. dollars in conformity with accounting principles generally accepted in the United States of America for interim financial information ("US GAAP") and pursuant to Rule 8-03 of Regulation S-X promulgated by the SEC. Accordingly, they do not include all of the information and footnotes required by US GAAP. In the opinion of management, the unaudited condensed financial statements reflect all adjustments, which include only normal recurring adjustments necessary for the fair statement of the balances and results for the period presented. Operating results for the three and six months ended June 30, 2025 are not necessarily indicative of the results that may be expected through December 31, 2025.

Certain information and footnote disclosures normally included in the annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. These unaudited condensed financial statements should be read in conjunction with Bannix's audited financial statements and notes thereto included in Bannix's Annual Report on Form 10-K for the period through December 31, 2024 filed with the SEC on February 28, 2025. The balance sheet as of June 30, 2025 contained herein has been derived from the audited financial statements as of December 31, 2024, but does not include all disclosures required by U.S. GAAP.

**Segment Reporting**

Bannix complies with ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures ("ASU 2023-07"), which improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses among other disclosure requirements.

**Emerging Growth Company Status**

Bannix is an "emerging growth company," as defined in Section 2(a) of the Securities Act of 1933, as amended, (the "Securities Act"), as modified by the Jumpstart our Business Startups Act of 2012, (the "JOBS Act"), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and shareholder approval of any golden parachute payments not previously approved.

Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. Bannix has elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, Bannix, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of Bannix's financial statements with another public company which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used.

**Use of Estimates**

The preparation of these unaudited condensed financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited condensed financial statements and the reported amounts of expenses during the reporting period.

Making estimates requires management to exercise significant judgement. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the unaudited condensed financial statements, which management considered in formulating its estimate, could change in the near term due to one or more future confirming events. Significant estimates include assumptions made in the valuation of our Private Placement Warrants. Accordingly, the actual results could differ from those estimates.

**Cash and Cash Equivalents**

Bannix considers all short-term investments with an original maturity of three months or less when purchased to be cash equivalents. Bannix did not have any cash equivalents as of June 30, 2025 and December 31, 2024 other than its investments held in the Trust Account.

**Concentration of Credit Risk**

Financial instruments that potentially subject Bannix to concentrations of credit risk consist of cash accounts in a financial institution, which, at times may exceed the Federal Depository Insurance Coverage of $250,000. At June 30, 2025 and December 31, 2024, Bannix had no deposits in excess of the Federal Depository Insurance Coverage, respectively. Bannix has not experienced losses on these accounts.

**Fair Value of Financial Instruments**

The fair value of Bannix's cash, current assets and current liabilities approximates the carrying amounts represented in the accompanying unaudited condensed balance sheets, due to their short-term nature.

Fair value is defined as the price which would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-tier fair value hierarchy which prioritizes the inputs used in the valuation methodologies is as follows:

Level 1 Inputs - Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date.

Level 2 Inputs - Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, volatilities, prepayment speeds, credit risks, etc.) or inputs that are derived principally from or corroborated by market data by correlation or other means.

Level 3 Inputs - Unobservable inputs for determining the fair values of assets or liabilities that reflect an entity's own assumptions about the assumptions that market participants would use in pricing the assets or liabilities.

**Fair Value of Trust Account**

As of June 30, 2025 and December 31, 2024, the assets in the Trust Account were held in a demand deposit account at a bank. These demand deposit accounts were accounted for at fair value on a recurring basis within Level 1 fair value hierarchy.

**Offsetting Balances**

In accordance with ASC Topic 210 "Balance Sheet", Bannix's accounting policy is to offset assets and liabilities when a right of offset exist. Accordingly, the unaudited condensed balance sheets include transactions with the Sponsor and affiliated parties on a net basis.

**Fair Value of Warrant Liability**

Bannix accounted for the 7,306,000 warrants issued in connection with the IPO and private placement in accordance with the guidance contained in ASC Topic 815, "Derivatives and Hedging" whereby under that provision, the Private Warrants did not meet the criteria for equity treatment and were recorded as a liability and the Public Warrants met the criteria for equity treatment. Accordingly, Bannix classified its Private Warrants as a liability at fair value upon issuance and adjusts them to fair value at each reporting period. This liability is re-measured at each balance sheet date until the Private Warrants are exercised or expire, and any change in fair value will be recognized in Bannix's statements of operations.

**Common Stock Subject to Possible Redemption**

Bannix accounts for its Common Stock subject to possible redemption in accordance with the guidance in ASC Topic 480, "Distinguishing Liabilities from Equity". Common stock subject to mandatory redemption (if any) is classified as a liability instrument and is measured at fair value. Conditionally redeemable common stock (including shares that feature redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within Bannix's control) is classified as temporary equity. At all other times, shares of common stock are classified as stockholders' equity.

The Common Stock sold as part of the Units in the IPO contain a redemption feature which allows for the redemption of such public shares in connection with Bannix's liquidation, if there is a shareholder vote or tender offer in connection with the Business Combination and in connection with certain amendments to Bannix's amended and restated certificate of incorporation. In accordance with the accounting treatment for redeemable equity instruments, which has been codified in ASC 480-10-S99, redemption provisions not solely within the control of Bannix require Common Stock subject to redemption to be classified outside of permanent equity. Therefore, all shares of Common Stock subject to redemption have been classified outside of permanent equity.

Bannix recognizes changes in redemption value immediately as they occur and adjusts the carrying value of redeemable Common Stock to equal the redemption value at the end of each reporting period. Increases or decreases in the carrying amount of redeemable Common Stock are affected by charges against additional paid-in-capital (to the extent available) and accumulated deficit.

Bannix recorded an increase in the redemption value because of earnings on the Trust Account and additional deposits that exceed amounts payable for taxes. While Bannix may use earnings on the Trust Account to pay its tax obligations, during the six months ended June 30, 2025 and 2024 $94,099 and $422,094, respectively has been withdrawn by Bannix from the Trust Account to pay its tax obligations.

At the May 2025 Special Meeting, stockholders redeemed 83,313 shares of Bannix's common stock for $972,722. As of June 30, 2025 the redeeming stockholders were not paid for the redeeming shares. Bannix reports this amount as redemptions payable, a non-current liability on the condensed balance sheet, as the settlement of this liability does not require the use of current assets to settle the liability

Prior to the June 14, 2025 Deadline Date, management of Bannix, representing a majority of Bannix's stockholders, held a meeting with the trustee of the Trust Account to request the Trust Account not be liquidated due to the pending regulatory approval of the proposed Business Combination, discussed below. The trustee exercised administrative authority and agreed to the temporary extension of the Deadline Date pending a stockholder meeting. Before a stockholder meeting could be held to extend the Deadline Date, final regulatory approval was granted by Nasdaq and Bannix closed on its proposed Business Combination and terminated the trust.

On June 30, 2025 and December 31, 2024, the common stock subject to redemption reflected in the condensed balance sheets is reconciled in the following table:

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| | | |
|:---|:---|:---|
| **Common stock subject to possible redemption** | | |
|  |<br>**Shares** |<br>**Amount** |
| **Balance - December 31, 2023** | **2939613** | $**31839150** |
| Less: |  |  |
| Redemptions from Trust Account | (2614865) | (28924908) |
| Plus: |  |  |
| Remeasurement of shares subject to redemption |  | 1169897 |
| **Balance - December 31, 2024** | **324748** | $**4084139** |
| Less: |  |  |
| Redemptions from Trust Account | (225082) | (2573762) |
| Remeasurement of shares subject to redemption |  | 54827 |
| **Balance – March 31, 2025** | **99666** | $**1565205** |
| Less: |  |  |
| Redemptions payable from Trust Account | **(83313)** | **(972722)** |
| Plus: |  |  |
| Remeasurement of shares subject to redemption |  | 15815 |
| **Balance - June 30, 2025** | **16353** | $**608298** |

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**Net Loss Per Share**

Basic net loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period.

For purposes of calculating diluted loss per common stock, the denominator includes both the weighted-average number of shares of common stock outstanding during the period and the number of common stock equivalents if the inclusion of such common stock equivalents is dilutive. Dilutive common stock equivalents potentially include shares and warrants using the treasury stock method.

As of June 30, 2025 and 2024, 7,306,000 warrants were excluded from the diluted loss per share calculation since the exercise price of the warrants is greater than the average market price of the common stock. As a result, this would have been anti-dilutive and therefore net loss per share is the same as basic loss per share for the period presented.

**Reconciliation of Loss per Share of Common Stock**

Basic and diluted loss per share for common stock is calculated as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three months ended June 30,** | **Three months ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| **Loss per share of common stock:** |  |  |  |  |
| Net Loss | $(419491) | $(153104) | $(786703) | $(181323) |
| Weighted Average Shares of common stock | 2587045 | 4081747 | 2692303 | 4734717 |
| Basic and diluted loss per share | $(0.16) | $(0.04) | $(0.29) | $(0.04) |

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**Income Taxes**

Bannix accounts for income taxes under ASC 740, "Income Taxes." ASC 740, Income Taxes, requires the recognition of deferred tax assets and liabilities for both the expected impact of differences between the financial statements and tax basis of assets and liabilities and for the expected future tax benefit to be derived from tax loss and tax credit carry forwards. ASC 740 additionally requires a valuation allowance to be established when it is more likely than not that all or a portion of deferred tax assets will not be realized. As of June 30, 2025 and December 31, 2024,

Bannix's deferred tax asset had a full valuation allowance recorded against it. Bannix's effective tax rate was (0.1)% and (6.1)% for the three months ended June 30, 2025 and 2024, respectively, and (0.9)% and (5.1)% for the six months ended June 30, 2025 and 2024, respectively. The effective tax rate differs from the statutory tax rate of 21% for the three and six months ended June 30, 2025 and 2024, due to state taxes, permanent differences related to Business Combination expenses, and changes in the valuation allowance on the deferred tax assets.

ASC 740 also clarifies the accounting for uncertainty in income taxes recognized in an enterprise's financial statements and prescribes a recognition threshold and measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. ASC 740 also provides guidance on derecognition, classification, interest and penalties, accounting in interim period, disclosure and transition.

Bannix recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. As of June 30, 2025 and December 31, 2024, Bannix accrued $266,576 and $206,200 in interest and penalties for the non-payment of its income taxes. Bannix is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position.

Bannix has identified the United States, the State of California, and the State of Delaware as its only "major" tax jurisdiction. Bannix is subject to income taxation by major taxing authorities since inception. These examinations may include questioning the timing and amount of deductions, the nexus of income among various tax jurisdictions and compliance with federal and state tax laws. Bannix's management does not expect that the total amount of unrecognized tax benefits will materially change over the next twelve months.

**Recent Accounting Pronouncements**

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (ASU 2023-09), which requires disclosure of incremental income tax information within the rate reconciliation and expanded disclosures of income taxes paid, among other disclosure requirements. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. Bannix's management does not believe the adoption of ASU 2023-09 will have a material impact on its financial statements and disclosures.

Bannix's management does not believe that any other recently issued, but not yet effective, accounting pronouncements, if currently adopted, would have a material effect on Bannix's unaudited condensed financial statements.

**Stock Based Compensation**

Bannix complies with ASC 718 Compensation — Stock Compensation regarding Founder Shares granted to directors and an officer of Bannix. The acquired shares shall vest upon Bannix consummating an initial Business Combination (the "Vesting Date"). The Founder Shares owned by the directors or officer (1) may not be sold or transferred, until one year after the consummation of a Business Combination, (2) not be entitled to redemption from the funds held in the Trust Account, or any liquidating distributions. Bannix has until June 14, 2025 (as extended) to consummate a Business Combination, and if a Business Combination is not consummated, Bannix will liquidate and the shares will become worthless.

The Founder Shares were issued on September 8, 2021, and the Founder Shares vest, not upon a fixed date, but upon consummation of an initial Business Combination. Since the approach in ASC 718 is to determine the fair value without regard to the vesting date, Bannix has determined the valuation of the Founder Shares as of September 8, 2021. The valuation resulted in a fair value of $7.48 per share as of September 8, 2021, or an aggregate of $972,400 for the 130,000 Founder Shares. The Founder Shares were granted at no cost to the recipients. The excess fair value over the amount paid is $972,400, which is the amount of share-based compensation expense which Bannix will recognize upon consummation of an initial business combination.

**NOTE 3 — INITIAL PUBLIC OFFERING**

On September 14, 2021, Bannix consummated its IPO and sold 6,900,000 Units at a purchase price of $10.00 per Unit, which was inclusive of the underwriters' full exercise of their over-allotment option, generating gross proceeds of $69,000,000. Each Unit that Bannix sold had a price of $10.00 and consisted of one share of common stock, one warrant to purchase one share of common stock and one right. Each warrant will entitle the holder to purchase one share of common stock at a price of $11.50 per share, subject to adjustment. Each warrant will become exercisable on the completion of the initial Business Combination and will expire five years after the completion of the initial Business Combination, or earlier upon redemption or liquidation. Each right entitles the holder to buy one tenth of one share of common stock. The common stock, warrants and rights comprising the Units have begun separate trading. At the time that the common stock, warrants and rights comprising the Units began separate trading, holders will hold the separate securities and no longer hold Units (without any action needing to be taken by the holders), and the Units will no longer trade.

All of the shares of common stock sold as part of the Units in the IPO contain a redemption feature which allows for the redemption of such public shares in connection with Bannix's liquidation, if there is a stockholder vote or tender offer in connection with the Business Combination and in connection with certain amendments to Bannix's certificate of incorporation. In accordance with SEC and its staff's guidance on redeemable equity instruments, which has been codified in ASC 480-10-S99, redemption provisions not solely within the control of Bannix require common stock subject to redemption to be classified outside of permanent equity.

**NOTE 4 — PRIVATE PLACEMENT**

Simultaneously with the closing of the IPO and the sale of the Units, Bannix sold 181,000 Private Placement Units to certain investors for aggregate cash proceeds of $2,460,000 and issued an additional 225,000 Private Placement Units to the Former Sponsor in exchange for the cancellation of approximately $1,105,000 in loans and a promissory note due to them. Each Private Placement Unit consisted of one share of common stock, one redeemable warrant to purchase one share of common stock at a price of $11.50 per whole share and one right.

**NOTE 5 — PROMISSORY NOTE TO EVIE AUTONOMOUS LTD AND EVIE AUTONOMOUS GROUP LTD.**

Bannix's unsecured Evie Autonomous Extension Notes bear no interest and are repayable in full upon the earlier of (a) the date of the consummation of Bannix's initial Business Combination, or (b) the date of Bannix's liquidation. If Bannix does not consummate an initial Business Combination by the Deadline Date, the Evie Autonomous Extension Notes will be repaid only from funds held outside of the Trust Account or will be forfeited, eliminated or otherwise forgiven.

At June 30, 2025 and December 31, 2024, Bannix owes Evie Autonomous LTD $1,003,995 and reports this as promissory notes – Evie on the unaudited condensed balance sheets.

On December 26, 2024 and amended on May 27, 2025, Bannix entered into an agreement to defer payment of the Evie Autonomous Extension Notes. Under the deferment agreement, these amounts will not become payable until any Pre-Paid Advance issued in connection with the SEPA is repaid in full, see Note 11.

**NOTE 6—RELATED PARTY TRANSACTIONS**

**Founder Shares**

On October 20, 2022, pursuant to an SPA, the Sponsor acquired an aggregate of 385,000 shares of common stock of Bannix from Bannix Management LLP, Balaji Venugopal Bhat, Nicholos Hellyer, Subbanarasimhaiah Arun, Vishant Vora and Suresh Yezhuvath and 90,000 private placement units from Suresh Yezhuvath (collectively, the "Sellers") in a private transaction.

The Former Sponsor, Sponsor, Other Investors, Anchor Investors, directors and officer have agreed not to transfer, assign or sell the Founder Shares until the earlier to occur of: (A) one year after the completion of the initial Business Combination or (B) the date on which Bannix completes a liquidation, merger, stock exchange or other similar transaction after the initial Business Combination that results in all of the public stockholders having the right to exchange their shares of common stock for cash, securities or other property. Bannix refers to such transfer restrictions as the "lock-up". Notwithstanding the foregoing, if the last sale price of the common stock equals or exceeds $12.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) for any 20 trading days within any 30-trading day period commencing at least 150 days after the initial Business Combination, the Founder Shares will be released from the lock-up.

At June 30, 2025 and December 31, 2024, there were 2,524,000 non-redeemable shares outstanding owned or controlled by the Former Sponsor, Sponsor, Other Investors, Anchor Investors, directors and officers.

**Working Capital Loans – Former Sponsor and Sponsor**

In order to finance transaction costs in connection with a Business Combination, the Sponsor or an affiliate of the Sponsor or certain of Bannix's officers and directors may, but are not obligated to, loan Bannix funds as may be required. If Bannix completes a Business Combination, Bannix would repay the loans out of the proceeds of the Trust Account released to Bannix. Otherwise, the loans would be repaid only out of funds held outside the Trust Account. In the event that a Business Combination does not close, Bannix may use a portion of the working capital held outside the Trust Account to repay the loans but no proceeds from the Trust Account would be used to repay the loans. On June 30, 2025 and December 31, 2024, there were no loans outstanding under the working capital loan program.

**Commitment of Funds – Former Sponsor**

Yezhuvath agreed to contribute to Bannix of $225,000 as a capital contribution at the time of the Business Combination with the proceeds to be used to pay the deferred underwriters' discount. Yezhuvath has agreed to forgive this amount without any additional securities being issued against it.

**Transactions with a Related Party**

In October 2024, a company related to one of the board members was engaged to perform consulting services. Bannix paid $8,000 for the services performed. As of June 30, 2025 and December 31, 2024, no amounts were due the related party company for services performed.

**Due to Related Parties**

The balance on June 30, 2025 and December 31, 2024 in Due to Related Parties totaled $2,153,962 and $1,811,700, respectively, consists of the following transactions:

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| | | |
|:---|:---|:---|
|  | **June 30,**<br>**2025** | **December 31,**<br>**2024** |
| Amounts due Suresh Yezhuvath | $23960 | $23960 |
| Amounts due Subash Menon | 1180 | 1180 |
| Repurchase 700,000 shares of common stock from Bannix Management LLP | 10557 | 10557 |
| Amounts due to Doug Davis – Accrued Compensation | 210000 | 125000 |
| Amounts due to Erik Klinger – Accrued Compensation | 58750 | 26250 |
| Administrative Support Agreement (2)(4) | 228333 | 198333 |
| Securities Purchase Agreement | 200000 | 200000 |
| Promissory Notes with Instant Fame and affiliated parties (3)(4) | 840000 | 840000 |
| Advances from affiliated related parties, net (1) (4) | 533626 | 386420 |
|  | $2106406 | $1811700 |

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(1) Net of $21,000 and $15,000 paid to an affiliated related party at June 30, 2025 and December 31, 2024, respectively.

For the six months ended June 30, 2025 and the year ended December 31, 2024, $21,000 and $15,000, respectively, was paid to an affiliate of a related party. Bannix has a legal right of offset and as such, the net amount is reported on the unaudited condensed balance sheet.

**(2) Administrative Support Agreement**

Bannix has agreed to pay an affiliate of the Sponsor for office space, secretarial and administrative services provided to members of the management team, in the amount of $5,000 per month. Upon completion of the initial Business Combination or Bannix's liquidation, it will cease paying these monthly fees. For the three and six months ended June 30, 2025 and 2024, Bannix incurred $15,000 and $30,000, respectively, pursuant to the agreement and owed $228,333 and $198,333 related to the Administrative Support Agreement at June 30, 2025 and December 31, 2024, respectively. These amounts are reported as a component of due to related parties on the condensed balance sheets.

**(3) Promissory Notes with Instant Fame and Affiliated Parties**

On December 13, 2022, Bannix issued an unsecured promissory note in favor of Instant Fame, in the principal amount of $690,000. In March and April 2023, Bannix issued additional unsecured promissory notes to Instant Fame for $75,000 for each promissory note. At June 30, 2025 and December 31, 2024, there was $1,421,182 and 1,226,420, respectively, outstanding on these promissory notes and included in due to related parties on the unaudited condensed balance sheet.

**(4) Deferment of Related Party Transactions**

Bannix entered into an agreement to defer payment of certain related party obligations. Under the deferment agreements, all amounts owed to the Sponsor and its affiliates, including promissory notes, administrative support fees, and advances due only after any Pre-Paid Advance issued in connection with the SEPA is repaid in full, see Note 11.

**NOTE 7 — COMMITMENTS**

**Registration Rights**

The holders of the Founder Shares, Private Placement Units and warrants that may be issued upon conversion of related party loans will have registration rights to require Bannix to register a sale of any of its securities held by them pursuant to a registration rights agreement to be signed prior to or on the effective date of this offering. These holders will be entitled to make up to three demands, excluding short form registration demands, that Bannix registers such securities for sale under the Securities Act. In addition, these holders will have "piggy-back" registration rights to include their securities in other registration statements filed by Bannix.

**Underwriters Agreement**

The underwriters are entitled to a deferred underwriting discount of $225,000 solely in the event that Bannix completes a Business Combination, subject to the terms of the underwriting agreement. Additionally, the underwriters are entitled to a Business Combination marketing fee of 3.5% of the gross proceeds of the sale of Units in the IPO upon the completion of Bannix's initial Business Combination subject to the terms of the underwriting agreement.

On June 9, 2025, Bannix entered into an amendment to the underwriting agreement. Pursuant to the amendment, payments of the Business Combination marketing fee will be modified as follows:

● $500,000 shall be paid in cash, deferred until the later of (i) twelve (12) months after closing or (ii) the date when a key financing facility of the post-combination company is fully equitized.

● $1,300,000 shall be paid in shares of the post-combination company's common stock, calculated based on the 30-day VWAP immediately following the closing date. These shares will be subject to piggyback registration rights and a lock-up that expires upon the termination or full amortization of the referenced financing facility.

Bannix issued the underwriter (and/or its designees) (the "Representative") 393,000 shares of Common Stock for $0.01 per share (the "Representative Shares") upon the consummation of the IPO. Bannix accounted for the estimated fair value ($2,861,000) of the Representative Shares as an offering cost of the IPO and allocated such cost against temporary equity for the amount allocated to the redeemable shares and to expense for the allocable portion relating to the warrant liability. These shares of Common Stock issued to the underwriter are subject to an agreement in which the underwriter has agreed (i) not to transfer, assign or sell any such shares until the completion of the Business Combination. In addition, the underwriter (and/or its designees) has agreed (i) to waives its redemption rights with respect to such shares in connection with the completion of the Business Combination and (ii) to waive its rights to liquidating distributions from the Trust Account with respect to such shares if it fails to complete the Business Combination within the time specified in its certificate of incorporation. Accordingly, the fair value of such shares is included in stockholders' equity. As of June 30, 2025 and December 31, 2024, the Representative has not yet paid for these shares, and the amount owed of $3,930 is included in prepaid expenses on the condensed balance sheets.

**Excise Tax**

In connection with Bannix's May 2025 Special Meeting, March 2025 Special Meeting, September 2024 Special Meeting, Special Meeting and Annual Meeting, stockholders holding an aggregate of 6,883,647 shares of Bannix's common stock exercised their right to redeem such shares for a pro rata portion of the funds in Bannix's Trust Account. As a result, $72,575,869 was removed from Bannix's Trust Account to pay such holders and an additional $972,722 is payable to the stockholders that redeemed shares at the May 2025 Special Meeting. As such,

Bannix has recorded a 1% excise tax liability in the amount of $913,292 and $750,608, respectively, on the condensed balance sheets as of June 30, 2025 and December 31, 2024, including $177,806 and $50,587, respectively, in excise tax interest and penalties. The excise tax liability does not impact the unaudited condensed statements of operations and is offset against additional paid-in capital or accumulated deficit if additional paid-in capital is not available. The unaudited condensed statement of operation includes $59,193 and $127,219, respectively, in excise tax interest and penalties for the three and six months ended June 30, 2025. The unaudited condensed statement of operation includes $0 in excise tax interest and penalties for the three and six months ended June 30, 2024.

The 2024 excise tax return for redemptions that occurred in 2023 was due on October 31, 2024. As of the filing of this Form 10-Q, Bannix has not filed its 2024 excise tax return and no amounts have been paid resulting in the excise tax interest and penalties.

**Other Investors**

Other Investors were granted an aggregate of 16,668 Founder Shares at no costs from Suresh Yezhuvath in March 2021.

The Other Investors have not been granted any stockholder or other rights that are in addition to those granted to Bannix's other public stockholders. The Other Investors will have no rights to the funds held in the Trust Account with respect to the Founder Shares held by them. The Other Investors will have the same rights to the funds held in the Trust Account with respect to the Common Stock underlying the Units they purchase at the IPO as the rights afforded to Bannix's other public stockholders.

**Anchor Investors**

The Anchor Investors entered into separate letter agreements with Bannix and the Former Sponsor pursuant to which, subject to the conditions set forth therein, the Anchor Investors purchased, upon the closing of the IPO on September 14, 2021, 181,000 Private Placement Units and 762,500 Founder Shares on September 9, 2021 ("Anchor Shares" in the total).

The Anchor Investors have not been granted any stockholder or other rights that are in addition to those granted to Bannix's other public stockholders and purchased the Founder Shares for nominal consideration. Each Anchor Investor has agreed in its individually negotiated letter agreement entered into with Bannix to vote its Anchor Shares to approve Bannix's initial Business Combination. The Anchor Investors will have no rights to the funds held in the Trust Account with respect to the Anchor Shares held by them. The Anchor Investors will have the same rights to the funds held in the Trust Account with respect to the Common Stock underlying the Units they purchase at the IPO (excluding the Common Stock included in the Private Placement Units purchased) as the rights afforded to Bannix's other public stockholders.

**Litigation**

From time to time, Bannix may be subject to routine litigation, claims or disputes in the ordinary course of business. Bannix defends itself vigorously in all such matters. However, we cannot predict the outcome or effect of any of the potential litigation, claims or disputes.

Bannix is not subject to any litigation at the present time.

**NOTE 8 — STOCKHOLDERS' DEFICIT**

***Preferred Stock*—** Bannix is authorized to issue 1,000,000 shares of preferred stock, par value $0.01 per share, with such designations, voting and other rights and preferences as may be determined from time to time by Bannix's board of directors. As of June 30, 2025 and December 31, 2024, there were no shares of preferred stock issued or outstanding.

***Common Stock***— Bannix is authorized to issue 100,000,000 shares of common stock with par value of $0.01 each. As of June 30, 2025 and December 31, 2024, there were 3,977,853 and 4,286,248 shares of Common Stock issued, respectively, and 2,524,000 shares of Common Stock outstanding, excluding 16,353 and 324,748 shares subject to possible redemption, respectively. Each share of Common Stock entitles the holder to one vote.

***Treasury Stock*** — On June 21, 2021 the Former Sponsor agreed to deliver Bannix 1,437,500 shares of common stock beneficially owned by the Former Sponsors.

***Rights*** — Except in cases where Bannix is not the surviving company in the Business Combination, each holder of a right will automatically receive one-tenth (1/10) of a share of common stock upon consummation of the Business Combination, even if the holder of a right converted all shares held by him, her or it in connection with the Business Combination or an amendment to Bannix's Certificate of Incorporation with respect to its pre-Business Combination activities. In the event that Bannix will not be the surviving company upon completion of the Business Combination, each holder of a right will be required to affirmatively convert his, her or its rights in order to receive the one-tenth (1/10) of a share of common stock underlying each right upon consummation of the Business Combination. No additional consideration will be required to be paid by a holder of rights in order to receive his, her or its additional share of common stock upon consummation of Business Combination. The shares issuable upon exchange of the rights will be freely tradable (except to the extent held by affiliates of Bannix). If Bannix enters into a definitive agreement for a Business Combination in which Bannix will not be the surviving entity, the definitive agreement will provide for the holders of the rights to receive the same per share consideration the holders of shares of common stock will receive in the transaction on an as-converted into common stock basis.

**NOTE 9 — WARRANT LIABILITY**

Bannix accounted for the 7,306,000 warrants issued in connection with the IPO and private placement in accordance with the guidance contained in ASC Topic 815 "Derivatives and Hedging" whereby under that provision, the Private Warrants did not meet the criteria for equity treatment and were recorded as a liability. Accordingly, Bannix classified the Private Warrants as a liability at fair value and adjusts them to fair value at each reporting period. This liability is re-measured at each balance sheet date until the Private Warrants are exercised or expire, and any change in fair value will be recognized in Bannix's statement of operations. The fair value of the Private Warrants was estimated using a modified Black-Scholes model. The valuation models utilize inputs such as assumed share prices, volatility, discount factors and other assumptions and may not be reflective of the price at which they can be settled. Such Private Warrant classification is also subject to re-evaluation at each reporting period. The Public Warrants met the classification for equity treatment.

Each warrant entitles the holder to purchase one share of Bannix's Common Stock at a price of $11.50 per share, subject to adjustment as discussed herein. In addition, if (x) Bannix issues additional shares or equity-linked securities for capital raising purposes in connection with the closing of its initial Business Combination at an issue price or effective issue price of less than $9.20 per share of Common Stock (with such issue price or effective issue price to be determined in good faith by Bannix's board of directors and, in the case of any such issuance to Bannix's Former Sponsor, Sponsors or its affiliates, without taking into account any Founder Shares held by Bannix's Former Sponsor, Sponsors or its affiliates, prior to such issuance) (the "Newly Issued Price"),

(y) the aggregate gross proceeds from such issuances represent more than 60% of the total equity proceeds, and interest thereon, available for the funding of the initial Business Combination on the date of the consummation of the initial Business Combination (net of redemptions), and (z) the volume weighted average trading price of Bannix's Common Stock during the 20 trading day period starting on the trading day prior to the day on which Bannix consummates the initial Business Combination (such price, the "Market Value") is below $9.20 per share, the exercise price of the warrants will be adjusted (to the nearest cent) to be equal to 115% of the Market Value, and the $18.00 per share redemption trigger price described below under "Redemption of warrants" will be adjusted (to the nearest cent) to be equal to 180% of the Market Value.

The warrants will become exercisable on the later of 12 months from the closing of this offering or upon completion of its initial Business Combination and will expire five years after the completion of Bannix's initial Business Combination, at 5:00 p.m., Eastern Time, or earlier upon redemption or liquidation.

***Redemption of warrants***

Bannix may call the warrants for redemption (excluding the private warrants, and any warrants underlying Units issued to the Sponsors, initial stockholders, officers, directors or their affiliates in payment of related party loans made to Bannix), in whole and not in part, at a price of $0.01 per warrant:

● at any time
 while the warrants are exercisable,

● upon not less than 30 days prior written notice of redemption to each warrant holder,

● if,
 and only if, the reported last sale price of the common stock equals or exceeds $18.00 per share (as adjusted for stock splits, stock
 dividends, reorganizations and recapitalizations), for any 20 trading days within a 30 -trading day period ending on the third trading
 business day prior to the notice of redemption to warrant holders, and

● if,
 and only if, there is a current registration statement in effect with respect to the issuance of the shares underlying such warrants
 at the time of redemption and for the entire 30 -day trading period referred to above and continuing each day until the date of redemption.

If Bannix calls the warrants for redemption as described above, the management will have the option to require any holder that wishes to exercise its warrant to do so on a "cashless basis." If management takes advantage of this option, all holders of warrants would pay the exercise price by surrendering their warrants for that number of shares of common stock equal to the quotient obtained by dividing (x) the product of the number of shares of common stock underlying the warrants, multiplied by the excess of the "fair market value" (defined below) over the exercise price of the warrants by (y) the fair market value. The "fair market value" shall mean the average reported last sale price of the common stock for the 10 trading days ending on the third trading day prior to the date on which the notice of redemption is sent to the holders of warrants.

If Bannix is unable to complete an initial Business Combination within the Combination Period and Bannix liquidates the funds held in the Trust Account, holders of warrants will not receive any of such funds with respect to their warrants, nor will they receive any distribution from Bannix's assets held outside of the Trust Account with respect to such warrants. Accordingly, the warrants may expire worthless.

The following presents Bannix's fair value hierarchy for the 406,000 Private Warrants issued which are classified as liabilities measured at fair value as of June 30, 2025:

---

| | | | |
|:---|:---|:---|:---|
|  | **Level 1** | **Level 2** | **Level 3** |
| Private Warrants | $— | $— | $25984 |
| &nbsp;&nbsp;&nbsp;Total | $— | $— | $25984 |

---

The following presents Bannix's fair value hierarchy for the 406,000 Private Warrants issued which are classified as liabilities measured at fair value as of December 31, 2024:

---

| | | | |
|:---|:---|:---|:---|
|  | **Level 1** | **Level 2** | **Level 3** |
| Private Warrants | $— | $— | $12180 |
| &nbsp;&nbsp;&nbsp;Total | $— | $— | $12180 |

---

The following table summarizes key inputs and the models used in the valuation of Bannix's Private Warrants:

---

| | | |
|:---|:---|:---|
|  | **June 30,**<br>**2025** | **December 31,**<br>**2024** |
| Valuation Method Utilized | Modified Black Scholes | Modified Black Scholes |
| Stock Price | $15.00 | $11.20 |
| Exercise Price | $11.50 | $11.50 |
| Expected Term (years) | 5.04 | 5.25 |
| Volatility | 5.0% | 1.25% |
| Risk-free rate | 3.72% | 4.38% |
| Market adjustment | 1.2% | 9% |

---

The following table provides a reconciliation of changes in fair value of the beginning and ending balances for Bannix's warrants classified as Level 3 for the period ended June 30, 2025 and 2024:

---

| | |
|:---|:---|
| Private Warrants |  |
|  | Level 3 |
| Fair value at December 31, 2024 | $12180 |
| Change in fair value | (6090) |
| Fair value at March 31, 2025 | $6090 |
| Change in fair value | 19894 |
| Fair value at June 30, 2025 | $25984 |

---

---

| | |
|:---|:---|
| Private Warrants |  |
|  | Level 3 |
| Fair value at December 31, 2023 | $4060 |
| Change in fair value | 8120 |
| Fair value at March 31, 2024 | $12180 |
| Change in fair value | (4060) |
| Fair value at June 30, 2024 | $8120 |

---

**NOTE 10 — SEGMENT INFORMATION**

ASC Topic 280 establishes standards for companies to report financial statement information about operating segments, products, services, geographic areas, and major customers. Operating segments are defined as components of an enterprise for which separate financial information is available that is regularly evaluated by Bannix's chief operating decision maker ("CODM"), or group, in deciding how to allocate resources and assess performance.

The CODM has been identified as the Chief Financial Officer, who reviews the operating results for Bannix as a whole to make decisions about allocating resources and assessing financial performance. Accordingly, management has determined that Bannix only has one operating segment.

The CODM assesses performance for the single segment and decides how to allocate resources based on net income or loss that also is reported on the unaudited condensed statements of operations as net income or loss. The measure of segment assets is reported on the condensed balance sheets as total assets. When evaluating Bannix's performance and making key decisions regarding resource allocation the CODM reviews several key metrics, which include the following:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| Operating costs | $325822 | $348402 | $612939 | $768454 |
| Interest income on trust account | $6000 | $200064 | $34720 | $566267 |

---

The key metrics included in segment profit or loss reviewed by the CODM are interest income on Trust Account and operating costs. The CODM reviews interest income on Trust Account to measure and monitor stockholder value and determine the most effective strategy of investment with the Trust Account funds while maintaining compliance with the trust agreement. Operating costs are reviewed and monitored by the CODM to manage and forecast cash to ensure enough capital is available to complete a Business Combination within the Business Combination period. The CODM also reviews operating costs to manage, maintain and enforce all contractual agreements to ensure costs are aligned with all agreements and budget.

**Note 11—Subsequent Events**

Bannix evaluated subsequent events and transactions that occurred after the balance sheet date up to the date of the filing of this report (October 31, 2025). Bannix did not identify any subsequent events, other than disclosed in the Notes and discussed below, that would have required adjustment or disclosure in these unaudited condensed financial statements.

On July 10, 2025 pursuant to the requirements of Section 12 of the Securities Exchange Act of 1934 Bannix filed Form 8-A registering the securities declared effective by the SEC.

**Close of Business Combination**

On July 14, 2025, Bannix closed its proposed Business Combination and liquidated its Trust Account. In association with the liquidation of the Trust Account, stockholders redeeming their shares of common stock at the May 2025 Special Meeting were paid for their redeeming shares. As the close of the Business Combination occurred after June 30, 2025, financial statement of the Target are not complete and not included in this Form 10-Q.

**Business Combination Consideration**

As a result of the Business Combination, all of the outstanding shares of common stock, par value $0.01 per share, of Bannix ("Bannix Common Stock") were cancelled in exchange for the right to receive a pro-rata portion of 2,540,353 shares of common stock of VisionWave ("VisionWave Common Stock"). Each issued and outstanding security of Bannix immediately prior to the Parent Merger Effective Time shall no longer be outstanding and shall automatically be cancelled in exchange for the issuance to the holder thereof of a substantially equivalent security of VisionWave.

**Closing**

After the closing of the Mergers, VisionWave has 14,270,953 shares of common stock outstanding and Warrants to purchase 7,306,000 shares of common stock outstanding. Upon the consummation of the Business Combination, VisionWave Common Stock and VisionWave Warrants began trading on July 15, 2025 on the NASDAQ under the symbols "VWAV and "VWAV" respectively.

In addition to the 2,540,353 shares of VisionWave Common Stock issued upon closing of the Business Combination, 11,000,000 shares of VisionWave Common Stock were issued to Target shareholders. Additionally, 690,000 public rights and 40,600 private rights were issued.

Additionally, in association with the closing of the Business Combination, authorized capital has increased. Authorized shares of preferred stock increased from 1,000,000 shares to 10,000,000 shares. There was no change in the par value. Authorized shares of common stock increased from 100,000,000 shares to 150,000,000 shares. There was no change in the par value.

**Short Term Funding**

On July 15, 2025, Bannix entered into a Securities Purchase Agreements (the "July 2025 SPAs") with two unaffiliated accredited investors ("July 2025 Lenders"), pursuant to which Bannix issued promissory notes (the "July 2025 Notes") to the July 2025 Lenders in the aggregate principal amount of $354,200, which includes an aggregate original issue discount of $46,200, for a purchase price of $308,000. The July 2025 Notes bear interest at a one-time charge of 12% applied on the issuance date, mature on May 15, 2026, and is repayable in five monthly payments commencing January 15, 2026. The July 2025 Notes are convertible into shares of Bannix's common stock, par value $0.01 per share (the "Common Stock"), solely upon an event of default, at a conversion price equal to 75% of the lowest trading price during the ten trading days prior to conversion. Bannix also entered into an irrevocable transfer agent instructions letter with its transfer agent in connection with the July 2025 Notes. The proceeds from the issuances of the July 2025 Notes will be used for general working capital purposes. The July 2025 Lenders have piggyback registration rights and have agreed not to engage in short sales of Bannix's common stock during the term of the July 2025 Notes. The July 2025 Notes include customary representations, warranties, covenants, and default provisions. Bannix may prepay the July 2025 Notes within the first 180 days.

The loan pursuant to the July 2025 Notes closed and funded on July 17, 2025.

The July 2025 Notes were issued in reliance on the exemption from registration provided by Section 4(a)(2) of the Securities Act of 1933, as amended (the "Securities Act"), as the issuances did not involve a public offering, and no underwriters were involved. The July 2025 Lenders represented that they are accredited investors as defined in Rule 501(a) of Regulation D under the Securities Act.

**Policies**

On July 16, 2025, the Board of Directors of Bannix adopted the following policies:

● A Policy on Granting Equity Awards, which establishes procedures for granting equity awards under Bannix's equity compensation plans, including authority, timing, and error correction processes.

● A Code of Ethics, which sets forth standards of conduct for Bannix's associates, including honesty, avoidance of conflicts of interest, compliance with laws, and proper accounting practices.

● An Insider Trading Policy, which prohibits insider trading, defines material non-public information, establishes blackout periods, and imposes additional restrictions on certain personnel.

Additionally, on May 29, 2025, the Board of Directors adopted a Compensation Recovery Policy, effective as of such date, which provides for the recovery of erroneously awarded incentive-based compensation from executive officers in the event of an accounting restatement due to material noncompliance with financial reporting requirements, in accordance with Nasdaq listing rules and Rule 10D-1 under the Exchange Act.

**Standby Equity Purchase Agreement**

On July 25, 2025, Bannix entered into the Standby Equity Purchase Agreement ("SEPA") with YA II PN, LTD, a Cayman Islands exempt limited partnership ("Investor") pursuant to which Bannix has the right to sell to Investor up to $50 million of its shares of common stock, subject to certain limitations and conditions set forth in the SEPA, from time to time during the term of the SEPA, from time to time during the term of the SEPA.

Upon the satisfaction of the conditions to Investor's purchase obligation set forth in the SEPA, including having a registration statement registering the resale of the shares of common stock issuable under the SEPA declared effective by the SEC, Bannix will have the right, but not the obligation, from time to time at its discretion until the SEPA is terminated to direct Investor to purchase a specified number of shares of common stock ("Advance") by delivering written notice to Investor ("Advance Notice"). While there is no mandatory minimum amount for any Advance, it may not exceed an amount equal to 100% of the average of the daily traded amount during the five consecutive trading days immediately preceding an Advance Notice.

The shares of common stock purchased pursuant to an Advance delivered by Bannix will be purchased at a price equal to 97% of the lowest daily VWAP of the shares of common stock during the three consecutive trading days commencing on the date of the delivery of the Advance Notice, other than the daily VWAP on a day in which the daily VWAP is less than a minimum acceptable price as stated by Bannix in the Advance Notice or there is no VWAP on the subject trading day. Bannix may establish a minimum acceptable price in each Advance Notice below which Bannix will not be obligated to make any sales to Investor. "VWAP" is defined as the daily volume weighted average price of the shares of common stock for such trading day on the Nasdaq Stock Market during regular trading hours as reported by Bloomberg L.P.

In connection with the SEPA, and subject to the condition set forth therein, Investor has agreed to advance to Bannix in the form of convertible promissory notes (the "Convertible Notes") an aggregate principal amount of $5.0 million (the "Pre-Paid Advance"). The first Pre-Paid Advance was disbursed on July 25, 2025 with respect to $3.0 million and the balance of $2.0 million will be disbursed upon the registration statement registering the resale of the shares of common stock issuable under the SEPA being declared effective. The purchase price for the Pre-Paid Advance is 94% of the principal amount of the Pre-Paid Advance. Interest shall accrue on the outstanding balance of any Pre-Paid Advance at an annual rate equal to 6.0%, subject to an increase to 18% upon an event of default as described in the Convertible Notes. The maturity date will be 12-months after the closing of each tranche of the Pre-Paid Advance. Investor may convert the Convertible Notes into shares of Bannix's common stock at a conversion price equal to the lower of $10.00 or 93% of the lowest daily VWAP during the five consecutive trading days immediately preceding the conversion (the "Conversion Price"), which in no event may the Conversion Price be lower than $1.00 (the "Floor Price"). In addition, upon the occurrence and during the continuation of an event of default, the Convertible Notes shall become immediately due and payable and Bannix shall pay to Investor the principal and interest due thereunder. In no event shall Investor be allowed to effect a conversion if such conversion, along with all other shares of common stock beneficially owned by Investor and its affiliates would exceed 4.99% of the outstanding shares of the common stock of Bannix. If any time on or after the issuance of the Convertible Notes (i) the daily VWAP is less than the Floor Price for five trading days during a period of seven consecutive trading days ("Floor Price Trigger"), or (ii) Bannix has issued in excess of 99% of the shares of common stock available under the Exchange Cap, where applicable ("Exchange Cap Trigger" and collectively with the Floor Price Trigger, the "Trigger")), then Bannix shall make monthly payments to Investor beginning on the seventh trading day after the Trigger and continuing monthly in the amount of $750,000 plus an 5.0% premium and accrued and unpaid interest. The Exchange Cap Trigger will not apply in the event Bannix has obtained the approval from its stockholders in accordance with the rules of Nasdaq Stock Market for the issuance of shares of common stock pursuant to the transactions contemplated in the Convertible Note and the SEPA in excess of 19.99% of the aggregate number of shares of common stock issued and outstanding as of the effective date of the SEPA (the "Exchange Cap").

Investor, in its sole discretion and providing that there is a balance remaining outstanding under the Convertible Notes, may deliver a notice under the SEPA requiring the issuance and sale of shares of common stock to Investor at the Conversion Price in consideration of an offset of the Convertible Notes ("Investor Advance"). Investor, in its sole discretion, may select the amount of any Investor Advance, provided that the number of shares issued does not cause Investor to exceed the 4.99% ownership limitation, does not exceed the Exchange Cap or the number of shares of common stock that are registered. As a result of a Investor Advance, the amounts payable under the Convertible Notes will be offset by such amount subject to each Investor Advance.

Bannix will control the timing and amount of any sales of shares of common stock to Investor, except with respect to Investor Advances. Actual sales of shares of common stock to Investor as an Advance under the SEPA will depend on a variety of factors to be determined by Bannix from time to time, which may include, among other things, market conditions, the trading price of Bannix's common stock and determinations by Bannix as to the appropriate sources of funding for our business and operations.

The SEPA will automatically terminate on the earliest to occur of (i) the 24-month anniversary of the date of the SEPA or (ii) the date on which Investor shall have made payment of Advances pursuant to the SEPA for shares of common stock equal to $50,000,000. We have the right to terminate the SEPA at no cost or penalty upon five (5) trading days' prior written notice to Investor, provided that there are no outstanding Advance Notices for which shares of common stock need to be issued and Bannix has paid all amounts owed to Investor pursuant to the Convertible Notes. Bannix and Investor may also agree to terminate the SEPA by mutual written consent. Neither Bannix nor Investor may assign or transfer our respective rights and obligations under the SEPA, and no provision of the SEPA may be modified or waived by us or Investor other than by an instrument in writing signed by both parties.

As consideration for Investor's commitment to purchase the shares of common stock pursuant the SEPA, Bannix paid Investor, (i) a structuring fee in the amount of $35,000 and (ii) 200,000 shares of common stock as an equity fee. Further, Bannix is required to pay Investor a commitment fee of $500,000 of which $250,000 shall be due and payable on the earlier of the effective date of the initial registration statement, or 60 days following the date hereof and the remaining $250,000 shall be due and payable on the date that is 90 days following the initial due date to be paid by the issuance of such number of common shares that is equal to the applicable portion of the commitment fee divided by the average of the daily VWAPs of the common shares during the three trading days immediately prior to the applicable due date.

The SEPA contains customary representations, warranties, conditions and indemnification obligations of the parties. The representations, warranties and covenants contained in such agreements were made only for purposes of such agreements and as of specific dates, were solely for the benefit of the parties to such agreements and may be subject to limitations agreed upon by the contracting parties.

The net proceeds under the SEPA to Bannix will depend on the frequency and prices at which Bannix sells its shares of common stock to Investor. Bannix expects that any proceeds received from such sales to Investor will be used for working capital and general corporate purposes.

**Omnibus Equity Incentive Plan**

On August 5, 2025, the Board of Directors (the "Board") of Bannix adopted Bannix's 2025 Omnibus Equity Incentive Plan (the "Plan"), which authorizes the issuance of up to 7,000,000 shares of Bannix's common stock, par value $0.01 per share (the "Common Stock"). The Plan is subject to approval by Bannix's shareholders within twelve (12) months of the Board's adoption date. If shareholder approval is obtained, the Plan will become effective as of August 5, 2025. The Plan provides for the grant of various equity-based awards, including non-qualified stock options, incentive stock options, restricted stock awards, restricted stock unit awards, stock appreciation rights, performance stock awards, performance unit awards, unrestricted stock awards, distribution equivalent rights, or any combination thereof. The Plan is intended to assist Bannix in attracting, retaining, and incentivizing key management employees, directors, and consultants, and to align their interests with those of Bannix's shareholders.

**Executive's Employment Agreements**

On August 6, 2025, Bannix entered into employment agreements (each, an "Employment Agreement") with Douglas Davis, as Executive Chairman, Noam Kenig, as Chief Executive Officer, and Danny Rittman, as Chief Technology Officer (collectively, the "Executives"). Each Employment Agreement has an initial term of three (3) years, commencing on August 6, 2025, and is subject to automatic one-year renewals thereafter unless terminated by either party with at least thirty (30) days' prior written notice.

Under the Employment Agreements:

● Mr. Davis and Mr. Kenig will each receive an initial base salary of $150,000 per year, increasing to $300,000 upon Bannix achieving $3,000,000 in revenue during any ninety (90)-day period, and further increasing to $600,000 upon achieving $6,000,000 in revenue during any ninety (90)-day period, with subsequent adjustments to fair market rates.

● Mr. Rittman will receive an initial base salary of $120,000 per year, increasing to $240,000 upon Bannix achieving $3,000,000 in revenue during any ninety (90)-day period, and further increasing to $360,000 upon achieving $6,000,000 in revenue during any ninety (90)-day period, with subsequent adjustments to fair market rates.

● Mr. Davis and Mr. Kenig are each eligible for an annual performance bonus targeted at 2% of Bannix's net income as reflected in its financial statements filed with the Securities and Exchange Commission (the "SEC").

● Each Executive is eligible for four (4) weeks of paid vacation per year, participation in Bannix's benefit plans (including medical, dental, vision, disability, life insurance, and 401(k) plans), and reimbursement of reasonable business expenses.

● In the event of termination without cause or resignation for good reason, each Executive is entitled to severance equal to the greater of $600,000 or two (2) times their then-current base salary, payable within six (6) months of termination, subject to execution of a general release.

● Upon a change in control followed by termination within three (3) months, all outstanding equity awards vest immediately, and severance becomes payable.

● Each Employment Agreement includes standard provisions for termination for cause, death, disability, or without good reason, with limited payments in such cases.

Additionally, as a condition to entering into the Employment Agreements, each Executive entered into a Proprietary & Confidential Information, Inventions Assignment, Non-Solicitation and Non-Competition Agreement and a Mutual Agreement to Arbitrate with Bannix.

Additionally, pursuant to the Employment Agreements and under the Plan (subject to shareholder approval thereof), Bannix granted nonstatutory stock options (each, an "Option") to the Executives as follows:

● Mr. Davis and Mr. Kenig were each granted Options to purchase 2,000,000 shares of Common Stock.

● Mr. Rittman was granted an Option to purchase 500,000 shares of Common Stock.

Each Option has an exercise price of $7.20 per share (to be determined as the fair market value on the grant date) and vests in twelve (12) equal quarterly installments over four (4) years, commencing on the date of shareholder approval of the Plan (the "Approval Date"). The Options are exercisable for five (5) years from the grant date and allow for cashless exercise. The grants are contingent upon shareholder approval of the Plan; if not approved, the Options will be null and void.

**Shares to Vendor**

At June 30, 2025, Bannix owed a vendor $87,500 for services rendered. On July 28, 2025, Bannix and the vendor agreed to satisfy the outstanding balance with Bannix issuing 22,500 VisionWave Holdings' Common Shares to the vendor.

**Joint Venture**

On August 25, 2025, Bannix entered into a Strategic Joint Venture Agreement (the "AIPHEX Agreement") with AIPHEX LTD ("AIPHEX"), GBT Tokenize Corp. ("TOKENIZE"), and GBT Technologies, Inc. ("GBT"). Pursuant to the AIPHEX Agreement, the parties agreed to form a joint venture limited liability company in the State of Nevada (the "JV LLC") for the purpose of collaborating on certain designated defense and technology projects (the "Designated Projects and Background IP").

**Employment Agreements**

On September 2, 2025, Bannix entered into employment agreements (each, an "Employment Agreement") with Elad Shoval, as Chief Revenue Officer, David Allon, as Chief Operating Officer, and Jaz Williman, as Senior Systems Engineer – UGV (collectively, the "Executives"). Each Employment Agreement has an initial term of three (3) years, commencing on September 2, 2025, and is subject to automatic one-year renewals thereafter unless terminated by either party with at least thirty (30) days' prior written notice.

**Memorandum of Understanding**

On September 2, 2025, Bannix entered into a Memorandum of Understanding (the "MoU") with VEDA Aeronautics Private Limited ("VEDA"), a company incorporated under the Companies Act, 2013, of India.

Pursuant to the MoU, Bannix and VEDA intend to collaborate on several Indian Ministry of Defense ("MoD") procurement programs (the "Programs"), including but not limited to: (a) Drone Kill System (Make-2) – interceptor drone development; (b) ALTV (New Generation Light Tank) – 357 tanks, with Company subsystems proposed as onboard modules; (c) FRCV (Main Battle Tank Program) – 1,770 main battle tanks; and (d) T72/T90 Retrofit Program for tanks. Under the MoU, VEDA has invited Bannix to supply and develop core subsystems, including counter-UAS systems, tactical drones, radar technologies, advance protection systems (APS) systems, sensor fusion technologies, and unmanned platforms for defense and homeland security applications. The parties intend to collaborate in technical proposals, demonstrations, and joint pursuit of contracts for these Programs.

***Revision to Board Members***

On September 9, 2025, the Board of Directors (the "Board") of Bannix approved Independent Director Agreements (each, an "Director Agreement") with Eric Shuss, Chuck Hansen, and Haggai Ravid, pursuant to which each will serve as an independent director of Bannix.

Under the terms of each of the Director Agreements, the independent director will receive:

● An annual cash retainer of $36,000 , payable quarterly, and $10,000 per annum for serving as the audit committee chair, $5,000 for compensation committee chair and the governance committee chair;

● Reimbursement for reasonable expenses incurred in connection with Board service; and

● An annual equity grant under Bannix's 2024 Omnibus Equity Incentive Plan (the "Plan") with a grant date fair value of $60,000 , consisting of restricted stock vesting in full after one year of service.

As a result of the above, Bannix issued 5,245 shares of common stock to Messrs Shuss, Hansen and Ravid for their service in 2025. The Director Agreements also include standard provisions regarding indemnification, confidentiality, and compliance with applicable laws and Company policies. Each Director Agreement has an initial term of one year, subject to renewal upon mutual agreement or election at the annual stockholder meeting.

Further, as compensation for his service as a director prior to the Business Combination with Bannix Acquisition Corp. ("Bannix"), Bannix entered into Compensation Agreements (each, a "Compensation Agreement") with Mr. Shuss and two other former directors who served as an independent director on the Board of Directors of Bannix from October 2022 until July 2025. Pursuant to the Compensation Agreement, effective as of September 9, 2025, Mr. Shuss will receive a one-time lump sum compensation of $150,000, payable in cash, fully vested shares of Bannix's common stock issued under Bannix's Plan, or a combination thereof, at Mr. Shuss' election. If shares are elected, the number of shares will be determined by dividing the elected portion by the closing price of Bannix's common stock on the NASDAQ Stock Market immediately prior to the effective date of the Compensation Agreement. Mr. Shuss has elected to receive 6,556 shares of common stock using a closing price of $11.44 as of September 8, 2025. The shares will be fully vested upon issuance but subject to resale restrictions under Rule 144 of the Securities Act of 1933, as amended. Payment or issuance will occur within 10 business days after the election (or default to cash if no election is made within 10 business days).

**Standby Equity Purchase Agreement**

On September 11, 2025, Bannix entered into a letter agreement (the "Letter Agreement") with YA II PN, Ltd., a Cayman Islands exempt limited partnership (the "Investor"), pursuant to the Standby Equity Purchase Agreement, dated as of July 25, 2025 (as may be amended, amended and restated, extended, supplemented or otherwise modified in writing from time to time, the "SEPA"), between Bannix and the Investor.

Pursuant to the Letter Agreement, the Investor advanced the second tranche of the Pre-Paid Advance in a principal amount of $2,000,000 (the "Second Pre-Paid Advance") on September 11, 2025, in connection with the issuance by Bannix of a convertible promissory note in the principal amount of $2,000,000 (the "Second Note"). The Investor waived the condition precedent set forth in the SEPA relating to the effectiveness of a registration statement for the Second Pre-Paid Advance. The purchase price for the Second Note is $1,880,000 (94% of the principal amount, reflecting a 6% discount).

In addition, pursuant to the Letter Agreement, the Investor agreed to fund an additional $2,000,000 in principal amount (the "Additional Advance") under the terms of a new convertible promissory note in the principal amount of $2,000,000 (the "New Note" and, together with the Second Note, the "Additional Notes") upon the effectiveness of the registration statement filed by Bannix on August 29, 2025, in connection with the SEPA (the "Registration Statement"). The purchase price for the New Note will be $1,880,000 (94% of the principal amount, reflecting a 6% discount). Bannix acknowledged in the Letter Agreement that it is not required to modify, amend, or supplement the existing Registration Statement to include any shares underlying the New Note, and, other than as may be set forth in the New Note, Bannix is not obligated to file a new registration statement relating to such shares.

***Terms of the Second Note***

The Second Note has a maturity date of September 11, 2026 (as may be extended at the option of the Investor). Interest accrues on the outstanding principal balance at an annual rate of 6%, which increases to 18% upon the occurrence of an event of default (for so long as such event remains uncured). Interest is calculated based on a 365-day year and the actual number of days elapsed.

If an Amortization Event occurs (defined as a Floor Price Event, Exchange Cap Event, or Registration Event, as set forth in the Second Note), Bannix must make monthly cash payments beginning on the 10th trading day after the Amortization Event Date and continuing on the same day of each successive calendar month until the entire outstanding principal amount is repaid. Each monthly payment equals the sum of (i) $750,000 of principal (or the outstanding principal if less), (ii) a 7% payment premium on such principal amount, and (iii) accrued and unpaid interest. The obligation to make such payments ceases if the Amortization Event is cured.

Bannix may, at its option, redeem early a portion or all amounts outstanding under the Second Note by providing written notice to the Investor, provided the VWAP of the common stock was less than the fixed conversion price on the notice date (unless otherwise agreed). The redemption amount includes the principal being redeemed, a 5% redemption premium, and accrued interest. The Investor has 10 trading days to elect to convert any portion of the Second Note before redemption.

The Second Note is convertible at any time into shares of Bannix's common stock, par value $0.01 per share (the "Common Stock"), at the lower of (i) $10.00 per share (the "Fixed Price") or (ii) 93% of the lowest daily VWAP during the 5 consecutive trading days immediately preceding the conversion date (the "Variable Price"), but not lower than the floor price of $1.00 per share (adjustable downwards to 20% of the average VWAP for the five trading days prior to the earlier of the Registration Statement effectiveness or the six-month anniversary of the SEPA date, or further reduced by Bannix). The Fixed Price resets downwards on the 30-day anniversary of a merger transaction to the average VWAP for the five trading days prior. Conversions are subject to a 4.99% beneficial ownership limitation and the Exchange Cap (19.99% of outstanding shares without stockholder approval).

The Second Note includes customary events of default, representations, warranties, covenants, and indemnification provisions. Upon an event of default, the Investor may accelerate the note or convert at the conversion price. Bannix may not engage in variable rate transactions while the Second Note is outstanding, subject to exceptions.

***Terms of the New Note***

The New Note will have a maturity date of 12 months from its issuance date (as may be extended at the option of the Investor). Interest will accrue on the outstanding principal balance at an annual rate of 12%, which increases to 18% upon the occurrence of an event of default (for so long as such event remains uncured). Interest is calculated based on a 365-day year and the actual number of days elapsed.

Beginning on the three-month anniversary of the issuance date and continuing monthly, Bannix must repay $200,000 of principal (or the outstanding principal if less), plus a 7% payment premium and accrued interest (the "Installment Amount"). Bannix may pay the Installment Amount in cash or by submitting Advance Notices under the SEPA (with proceeds offsetting the Installment Amount). Any Advance Notice while the New Note is outstanding is treated as repayment first.

Bannix may, at its option, redeem early a portion or all amounts outstanding under the New Note by providing written notice to the Investor, provided the VWAP of the Common Stock was less than the conversion price on the notice date (unless otherwise agreed). The redemption amount includes the principal being redeemed, a 5% redemption premium, and accrued interest. The Investor has 10 trading days to elect to convert any portion of the New Note before redemption.

The New Note is convertible at any time into shares of Common Stock at $12.00 per share, subject to adjustments for stock splits, combinations, reclassifications, and dilutive issuances below the conversion price (with certain exclusions). Conversions are subject to a 4.99% beneficial ownership limitation.

The New Note includes customary events of default, representations, warranties, covenants, and indemnification provisions. Upon an event of default, the Investor may accelerate the note or convert at the conversion price. Bannix may not engage in variable rate transactions while the New Note is outstanding, subject to exceptions.

***Additional Covenants in the Letter Agreement***

Pursuant to the Letter Agreement, Bannix granted the Investor a right of first refusal for 12 months following September 11, 2025, with respect to any financing transaction involving the issuance or sale of securities (including debt, equity, equity-linked securities, notes, or debentures, but excluding ATM offerings at prevailing market prices). Bannix must provide written notice of any such proposed transaction, and the Investor has 10 business days to elect to participate. If the Investor declines, Bannix may proceed with a third party on terms no more beneficial than those offered to the Investor, within 60 days.

**Consulting Agreement**

On September 26, 2025, Bannix entered into a Consulting Agreement (the "CTMG Agreement") with Crypto Treasury Management Group, LLC ("CTMG"), pursuant to which CTMG will provide advisory and strategic services to assist Bannix in establishing a digital asset treasury reserve. The services include, among other things, developing a crypto treasury strategy, recommending custodians, designing staking protocols (if applicable), assisting with capital formation in collaboration with a licensed securities underwriter, and supporting regulatory and tax compliance efforts.

The CTMG Agreement has an initial term of two years, subject to earlier termination under certain conditions, including for convenience with 60 days' notice or for material breach. In consideration for the services, Bannix has agreed to pay CTMG: (i) a retainer fee of $50,000 upon signing, which was pre-paid as an advance on September 24, 2025, with an additional $50,000 due upon execution of binding definitive agreements related to the crypto treasury transaction; (ii) a success fee of 17 Bitcoin (or cash equivalent) upon successful deployment of at least $20 million into crypto assets for Bannix's treasury; and (iii) 250,000 shares of Bannix's common stock upon closing of the crypto treasury transaction, subject to SEC Rule 144 restrictions and inclusion in future registration statements where applicable. Bannix will also reimburse CTMG for pre-approved reasonable expenses.

The CTMG Agreement contemplates a potential capital formation structure of up to $300 million, with allocations into crypto assets such as Bitcoin and Solana, subject to Bannix's approval and market conditions; however, there can be no assurance that the transaction will close or that it will be consummated on the anticipated terms or at all. In the event this strategy is successfully implemented, which is not guaranteed and depends on various factors including management's ability to execute effectively, Bannix has committed to staking a minimum of 70% of its crypto treasury assets for at least two years, although such implementation may face challenges or fail to achieve expected outcomes due to market volatility, regulatory changes, or other risks. CTMG will not act as a broker-dealer or engage in activities requiring such registration. Bannix, in an effort to replace its current financing structure, intends to structure the transaction and use the non-staked portion as funding for its defense business and potentially leverage the stakeable portion for M&A activity in the defense arena, though these intentions are forward-looking and subject to uncertainties that could prevent or alter their realization.

The CTMG Agreement includes standard provisions regarding confidentiality, non-circumvention, independent contractor status, compliance with laws (including securities, AML/KYC, and tax regulations), warranties, indemnification, limitation of liability, and governing law (Delaware).

The proposed adoption of a crypto reserve strategy, including the establishment of a digital asset treasury as contemplated in the Agreement will only be implemented upon obtaining regulatory approval, if any, from relevant authorities, including compliance with Nasdaq listing requirements. Additionally, the implementation of the crypto reserve strategy may require shareholder approval to the extent such approval is deemed necessary by Bannix's board of directors or required by regulatory bodies. Bannix will ensure all necessary approvals are obtained prior to the execution of the crypto reserve strategy and will provide further updates as required by law.

The foregoing description of the Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the Agreement, a copy of which is filed as Exhibit 10.1 to the Form 8-K filed with the SEC on September 30, 2025.

**VISIONWAVE HOLDINGS, INC. (PREDECESSOR)**

 **UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS**

---

| | | |
|:---|:---|:---|
|  | **June 30, 2025** | **December 31, 2024** |
| **Assets** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Current Assets** | $— | $— |
| **Total Assets** | $— | $— |
| **Liabilities and Stockholder's Deficit** |  |  |
| **Current liabilities:** |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | $33556 | $— |
| &nbsp;&nbsp;&nbsp;Due to related parties | 47556 | 6056 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Current Liabilities** | **81112** | **6056** |
| &nbsp;&nbsp;&nbsp;**Total Liabilities** | **81112** | **6056** |
| **Commitments and Contingencies** |  |  |
| **Stockholder's Deficit** |  |  |
| Common stock, par value $0.01; authorized 1,000 shares; issued and outstanding 1 share |  |  |
| Additional paid-in capital |  |  |
| Accumulated deficit | (81112) | (6056) |
| **Total Stockholders' Deficit** | **(81112)** | **(6056)** |
| **Total Liabilities Stockholder's Deficit** | $— | $— |

---

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

**VISIONWAVE HOLDINGS, INC. (PREDECESSOR) UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS**

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** |
| Operating costs | $14803 | $75056 |
| &nbsp;&nbsp;&nbsp;**Loss from operations** | **(14803)** | **(75056)** |
| **Net loss** | $**(14803)** | $**(75506)** |
| Basic and diluted weighted average shares outstanding | 1 | 1 |
| **Basic and diluted net loss per share** | $**(14803)** | $**(75056)** |

---

VisionWave Holdings, Inc. was formed on September 24, 2024, No comparative financial information is available.

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

 **VISIONWAVE HOLDINGS, INC. (PREDECESSOR) UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDER'S DEFICIT**

**FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2025**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Common stock** | **Common stock** | | | | |
|  | **Share** | **Amount** |<br>**Additional Paid-in Capital** |<br>**Accumulated Deficit** |<br>**Treasury Stock** |<br>**Total Stockholder's Deficit** |
| **Balance as of January 1, 2025** | **1** | $**—** | $**—** | $**(6056)** | $**—** | $**(6056)** |
| Net loss |  |  |  | (60253) |  | (60253) |
| **Balance as of March 31, 2025** | **1** | $**—** | $**—** | $**(66309)** | $**—** | $**(66309)** |
| Net loss |  |  |  | (14803) |  | (14803) |
| **Balance as of June 30, 2025** | **1** | $**—** | $**—** | $**(81112)** | $**—** | $**(81112)** |

---

VisionWave Holdings, Inc. was formed on September 24, 2024, No comparative financial information is available.

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

**VISIONWAVE HOLDINGS, INC. (PREDECESSOR) UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS**

---

| | |
|:---|:---|
|  | **For the Six Months Ended June 30, 2025** |
| **Cash flows from Operating Activities:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net loss | $(75056) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in current assets and current liabilities: |  |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | 33556 |
| &nbsp;&nbsp;&nbsp;Due to related parties, net | (3000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net cash used in operating activities** | **(44500)** |
| **Cash flows from Financing Activities:** |  |
| Advances from affiliated related parties | 44500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net cash used in financing activities** | **(44500)** |
| **Net change in cash** |  |
| Cash, beginning of the period |  |
| **Cash, end of the period** | $— |

---

VisionWave Holdings, Inc. was formed on September 24, 2024, No comparative financial information is available.

The accompanying notes are an integral part of these unaudited condensed financial statements.

**VISIONWAVE HOLDINGS, INC. (PREDECESSOR)**

**NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**June 30, 2025**

**Note 1—Organization and Business Operations**

**Organization and General**

*Description of Business*

VisionWave Holdings, Inc. (predecessor) ("VWH predecessor") was incorporated in Delaware on September 3, 2024, and VWH predecessor's registered office is at 108 W. 13<sup>th</sup> Street, Suite 100, City of Wilmington, Delaware. VWH predecessor was formed as a wholly- owned subsidiary of Bannix.

VWH predecessor has selected September 30 as its fiscal year end. However, VWH predecessor used December 31 as the fiscal year in the unaudited condensed consolidated financial statements.

BNIX Merger Sub, Inc. ("Parent Merger Sub") was incorporated in Delaware on September 3, 2024, and Parent Merger Sub's registered office is at 108 W. 13<sup>th</sup> Street, Suite 100, City of Wilmington, Delaware. Parent Merger Sub was formed as a wholly- owned subsidiary of VWH predecessor.

BNIX VW Merger Sub, Inc. ("Company Merger Sub") was incorporated in Nevada on September 4, 2024, and Company Merger Sub's registered office is at 701 S. Carson Street, Suite 200, Carson City, Nevada 89701. Company Merger Sub was formed as a wholly-owned subsidiary of VWH predecessor.

*Proposed Business Combination*

On September 6, 2024, Bannix entered into a Merger Agreement and Plan of Reorganization (the "Merger Agreement"), by and among Bannix, VWH predecessor, BNIX Merger Sub, Inc. ("Parent Merger Sub"), a Delaware corporation and a direct, wholly owned subsidiary of VWH predecessor, BNIX VW Merger Sub, Inc. ("Company Merger Sub"), a Nevada corporation and direct, wholly owned subsidiary of VWH predecessor, and VisionWave Technologies, Inc., a Nevada corporation ("Target"). The Merger Agreement and the transactions contemplated thereby were approved by the boards of directors of each of Bannix, VWH predecessor, Parent Merger Sub, Company Merger Sub, and Target.

The Business Combination was expected to close before June 30, 2025, subject to customary closing conditions, including the satisfaction of the minimum available cash condition, the receipt of certain governmental approvals and the required approval by the stockholders of Bannix and Target.

*Liquidity, Capital Resources and Going Concern*

VWH predecessor was formed for the purpose of consummating a Business Combination and is not anticipated to exist upon consummation of the Merger Agreement.

The parent company, Bannix, is within 12 months of its mandatory liquidation date as of June 30, 2025. In connection with VWH predecessor's assessment of going concern considerations, VWH predecessor had a temporarily extended deadline date beyond the June 14, 2025 Deadline Date to consummate a Business Combination. VWH predecessor closed on its proposed Business Combination on July 14, 2025 alleviating the mandatory liquidation requirement.

In connection with preparing the financial statements for the three and six months ended June 30, 2025, management evaluated whether there were conditions and events, considered in the aggregate, that raised substantial doubt about VWH predecessor's ability to continue as a going concern within one year from the date that the consolidated financial statements are issued.

As of June 30, 2025, VWH predecessor had no cash, a working capital deficit of $81,112 and no sources of funding other than funds that may be obtained from related parties.

Ordinarily, conditions or events that raise substantial doubt about an entity's ability to continue as a going concern relate to the entity's ability to meet its obligations as they become due.

VWH predecessor evaluated its ability to meet its obligations as they become due within one year from the date that the financial statements are issued by considering the following:

On April 8, 2025, with an effective date of March 31, 2025, Bannix, together with VWH predecessor, entered into a Funding Support Agreement with Stanley Hills, LLC ("Stanley Hills"), the principal shareholder of the VisionWave Technologies, Inc. And on October 3, 2025, the Funding Support Agreement was revised such that VWH predecessor was included as the primary party to the Funding Support Agreement. Pursuant to the agreement, Stanley Hills irrevocably and unconditionally committed to provide financial support to Bannix, sufficient to fund working capital needs for a period not less than twelve (12) months from the date of release/issuance of the financial statement.

The funding may be provided by Stanley Hills in the form of direct payments to third parties, advances or intercompany loans, or capital contributions, as mutually determined by the parties. Unless otherwise agreed in writing, any such advances will be non-interest bearing and repayable only at such time as determined by the applicable entity's Board of Directors, and only to the extent such repayment would not impair VWH predecessor's liquidity or ability to continue as a going concern. The agreement may not be terminated by Stanley Hills prior to the twelve-month period from the date of release of the financial statement.

Management has determined that the agreement with Stanley Hills and closing of the business combination elevated the risk about VWH predecessor's ability to continue as a going concern for a reasonable period of time, which is considered to be one year from the issuance of the financial statements.

The merger closing triggered substantial, actionable, and committed below funding access:

● Investor A is actively pushing to draw $2 million immediately and has committed to a $50 million equity line.

● Investor B has offered VWH predecessor $2 million in $300K tranches, and is likewise eager for us to proceed post-closing.

● Investor C is to finalize their $18 million ELOC and a $5 million pre-paid advance.

**Note 2—Significant Accounting Policies**

**Basis of Presentation**

The accompanying unaudited condensed consolidated financial statements of VWH predecessor are presented in U.S. dollars in conformity with accounting principles generally accepted in the United States of America for interim financial information ("US GAAP") and pursuant to Rule 8-03 of Regulation S-X promulgated by the SEC. Accordingly, they do not include all of the information and footnotes required by US GAAP. In the opinion of management, the unaudited condensed consolidated financial statements reflect all adjustments, which include only normal recurring adjustments necessary for the fair statement of the balances and results for the period presented. Operating results for the three and six months ended June 30, 2025 are not necessarily indicative of the results that may be expected through September 30, 2025.

Certain information and footnote disclosures normally included in the annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. These unaudited condensed consolidated financial statements should be read in conjunction with VWH predecessor's audited consolidated financial statements and notes thereto for the period from September 3, 2024 (inception) through September 30, 2024. The balance sheet as of June 30, 2025 contained herein has been derived from the audited financial statements as of September 30, 2024, but does not include all disclosures required by U.S. GAAP.

VWH predecessor incorporated on September 3, 2024, therefore no prior year comparative amounts are available for the statement of operations, statement of stockholder's deficit and statement of cash flows.

**Principles of Consolidation**

The accompanying unaudited condensed consolidated financial statements include the accounts of VWH predecessor and its wholly-owned subsidiaries, BNIX Merger Sub, Inc., and BNIX VW Merger Sub, Inc. All intercompany transactions have been eliminated.

**Segment Reporting**

VWH predecessor complies with ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (ASU 2023-07), which improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses among other disclosure requirements. VWH predecessor adopted ASU 2023- 07 on October 1, 2024. The amendments were applied retrospectively to all prior periods presented in the financial statements (see Note 6).

**Use of Estimates**

The preparation of condensed consolidated financial statements in conformity with GAAP requires VWH predecessor's management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period.

Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate is the effect of a condition, situation or set of circumstances that existed at the date of the condensed consolidated financial statements, which management considering in formulating its estimate, could change in the near term due to one or more future confirming events. Accordingly, the actual results could differ significantly from those estimates.

*Net Loss Per Share*

Basic net loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period.

For purposes of calculating diluted loss per common share, the denominator includes both the weighted average number of shares of common stock outstanding during the period and the number of common stock equivalents if the inclusion of such common stock equivalents is dilutive.

**Recently Issued Accounting Pronouncements**

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (ASU 2023-07), which improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses among other disclosure requirements. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. VWH predecessor adopted ASU 2023-07 on October 1, 2024. The amendments will be applied retrospectively to all prior periods presented in the financial statements. The adoption of ASU 2023-07 has not had a material impact on VWH predecessor's unaudited condensed consolidated financial statements and disclosures.

VWH predecessor has reviewed recently issued accounting pronouncements and plans to adopt those that are applicable to it.

VWH predecessor does not expect the adoption of any recently issued pronouncements to have a material impact on its results of operations or financial position.

**NOTE 3 — RELATED PARTY TRANSACTIONS**

On April 8, 2025, and made effective as of March 31, 2025, VWH predecessor entered into a funding agreement with Stanley Hills, LLC ("Stanley Hills"), the principal shareholder of VW Technologies, Inc., whereby Stanley Hills has agreed to fund VWH predecessor's working capital needs for a period of not less than twelve (12) months from March 31, 2025. This agreement is non-interest bearing, and repayable only at such time as determined by the respective Company's Board of Directors in its sole discretion, and only to the extent such repayment would not impair VWH predecessor's liquidity or going concern status.

The sponsor of the Bannix, Instant Fame LLC, a Nevada limited liability company ("Instant") and Stanley Hills have paid expenses on behalf of VWH predecessor and VWH predecessor's subsidiaries, and are expected to continue to pay other costs in the future. As of June 30, 2025 and December 31, 2024, VWH predecessor owes related parties $47,556 and $6,056, respectively. Instant or related parties are expected to pay the accrued expenses of VWH predecessor when they come due.

**NOTE 4 — STOCKHOLDER'S DEFICIT**

**Common stock**

VWH predecessor is authorized to issue 1,000 shares of common stock with a par value of $0.01 each. As of March 31, 2025 and September 30, 2024 there was 1one share of common stock issued and outstanding. Each share of common stock entitles the holder to one vote.

**NOTE 5 — COMMITMENTS AND CONTINGENCIES**

**Legal Proceedings**

In September 2025, a shareholder filed a lawsuit against VWH predecessor seeking from court a declaration that it is not an affiliate of VWH predecessor. VWH predecessor is contesting the shareholder's position. At each reporting date, VWH predecessor evaluates whether or not a potential loss amount or a potential range of loss is probable and reasonably estimable under the provisions of the authoritative guidance that addresses accounting for contingencies. At this phase VWH predecessor cannot estimate the results of said litigation. VWH predecessor expenses as incurred the costs related to such legal proceedings.

**NOTE 6—SEGMENT INFORMATION**

ASC Topic 280 establishes standards for companies to report in their financial statement information about operating segments, products, services, geographic areas, and major customers. Operating segments are defined as components of an enterprise for which separate financial information is available that is regularly evaluated by VWH predecessor's chief operating decision maker, or group, in deciding how to allocate resources and assess performance.

VWH predecessor's chief operating decision maker ("CODM") has been identified as the Chief Executive Officer, who reviews the consolidated operating results for VWH predecessor as a whole to make decisions about allocating resources and assessing financial performance. Accordingly, management has determined that VWH predecessor only has one operating segment.

The CODM assesses performance for the single segment and decides how to allocate resources based on net income or loss that also is reported on the statements of operations as net income or loss. When evaluating VWH predecessor's performance and making key decisions regarding resource allocation, the CODM reviews key metrics, which include the following:

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| | | |
|:---|:---|:---|
|  | **For the Three Months Ended**<br>**June 30,**<br>**2025** | **For the Six Months Ended**<br>**June 30,**<br>**2025** |
| Operating costs | $14803 | $75056 |

---

The key metrics included in segment profit or loss reviewed by the CODM are operating costs.

Operating costs are reviewed and monitored by the CODM to manage and forecast cash to ensure enough capital is available to complete a business combination within the combination period. The CODM also reviews operating costs to manage, maintain and enforce all contractual agreements to ensure costs are aligned with all agreements and budget.

**NOTE 7 — SUBSEQUENT EVENTS**

VWH predecessor evaluated subsequent events and transactions that occurred after the balance sheet date up to the date the unaudited condensed consolidated financial statements are issued (October 31, 2025). VWH predecessor did not identify any subsequent events that would have required adjustment or disclosure in these unaudited condensed consolidated financial statements, other than below.

On April 9, 2025, VWH predecessor entered into a non-exclusive placement agent engagement agreement (the "Engagement Agreement") with Maxim Group LLC ("Maxim"), pursuant to which Maxim will act as VWH predecessor's non-exclusive placement agent in connection with a potential private placement of up to $10 million of equity or equity-linked securities (the "Offering"). The Offering is expected to be conducted on a "commercially reasonable efforts" basis, and there is no assurance that the Offering will be completed, or that any definitive agreements with investors will be entered into. Under the terms of the Engagement Agreement, VWH predecessor retains full discretion to accept or reject any investment proposals and will determine the final terms and structure of the Offering, subject to market conditions and investor interest. Maxim will be entitled to a cash placement fee equal to seven percent (7.0%) of the gross proceeds received by VWH predecessor from any investor introduced by Maxim and listed in exhibit to the Engagement Agreement. In addition, VWH predecessor agreed to reimburse Maxim for up to $25,000 in out-of-pocket expenses incurred in connection with the engagement, subject to certain conditions and prior approvals.

The Engagement Agreement also includes customary confidentiality, indemnification, and contribution provisions, as well as a limited right of first refusal. Specifically, for a period of nine (9) months following the final closing of the Offering, Maxim shall have the right to act as sole managing underwriter or sole placement agent for any subsequent public or private offerings of equity, equity-linked, or debt securities of VWH predecessor, subject to Maxim matching the material terms offered by any third party. VWH predecessor has not yet launched the Offering, and no securities have been issued as of the date of this filing. The terms of the Offering will be subject to further negotiation, execution of definitive agreements with investors, satisfaction of customary closing conditions, and successful completion of Maxim's due diligence.

There can be no assurance that VWH predecessor will consummate the Offering or receive any proceeds from it. Any securities that may be issued in connection with the Offering will be offered and sold in reliance upon exemptions from registration under the Securities Act of 1933, as amended, and applicable state securities laws.

On April 18, 2025, VWH predecessor filed Form S-4/A with the SEC related to VWH predecessor's proposed Business Combination as discussed in Note 1.

On May 5, 2025, the Securities and Exchange Commission ("SEC") declared VWH predecessor's registration statement filed with the SEC on April 18, 2025 to be effective.

**Board of Directors**

On September 9, 2025, the Board of Directors (the "Board") of VWH predecessor approved Independent Director Agreements (each, an "Agreement") with Eric Shuss, Chuck Hansen, and Haggai Ravid, pursuant to which each will serve as an independent director of VWH predecessor.

Under the terms of each Agreement, the independent director will receive:

● An annual cash retainer of $36,000 , payable quarterly, and $10,000 per annum for serving as the audit committee chair, $5,000 for compensation committee chair and the governance committee chair;

● Reimbursement for reasonable expenses incurred in connection with Board service; and

● An annual equity grant under VWH predecessor's 2024 Omnibus Equity Incentive Plan (the "Plan") with a grant date fair value of $60,000 , consisting of restricted stock vesting in full after one year of service.

As a result of the above, VWH predecessor will issue 5,245 shares of common stock to Messrs Shuss, Hansen and Ravid for their service in 2025.

Further, as compensation for his service as a director prior to the Business Combination with Bannix Acquisition Corp. ("Bannix"), VWH predecessor entered into Compensation Agreements (each, a "Compensation Agreement") with Mr. Shuss and two other former directors who served as an independent director on the Board of Directors of Bannix from October 2022 until July 2025. Pursuant to the Compensation Agreement, effective as of September 9, 2025, Mr. Shuss will receive a one-time lump sum compensation of $150,000, payable in cash, fully vested shares of VWH predecessor's common stock issued under VWH predecessor's Plan, or a combination thereof, at Mr. Shuss' election. If shares are elected, the number of shares will be determined by dividing the elected portion by the closing price of VWH predecessor's common stock on the NASDAQ Stock Market immediately prior to the effective date of the Compensation Agreement. Mr. Shuss has elected to receive 6,556 shares of common stock using a closing price of $11.44 as of September 8, 2025. The shares will be fully vested upon issuance but subject to resale restrictions under Rule 144 of the Securities Act of 1933, as amended. Payment or issuance will occur within 10 business days after the election (or default to cash if no election is made within 10 business days).

**Financing**

On September 11, 2025, VWH predecessor entered into a letter agreement (the "Letter Agreement") with YA II PN, Ltd., a Cayman Islands exempt limited partnership (the "Investor"), pursuant to the Standby Equity Purchase Agreement, dated as of July 25, 2025 (as may be amended, amended and restated, extended, supplemented or otherwise modified in writing from time to time, the "SEPA"), between VWH predecessor and the Investor.

Pursuant to the Letter Agreement, the Investor advanced the second tranche of the Pre-Paid Advance in a principal amount of $2,000,000 (the "Second Pre-Paid Advance") on September 11, 2025, in connection with the issuance by VWH predecessor of a convertible promissory note in the principal amount of $2,000,000 (the "Second Note"). The Investor waived the condition precedent set forth in the SEPA relating to the effectiveness of a registration statement for the Second Pre-Paid Advance. The purchase price for the Second Note is $1,880,000 (94% of the principal amount, reflecting a 6% discount).

In addition, pursuant to the Letter Agreement, the Investor agreed to fund an additional $2,000,000 in principal amount (the "Additional Advance") under the terms of a new convertible promissory note in the principal amount of $2,000,000 (the "New Note" and, together with the Second Note, the "Additional Notes") upon the effectiveness of the registration statement filed by VWH predecessor on August 29, 2025, in connection with the SEPA (the "Registration Statement"). The purchase price for the New Note will be $1,880,000 (94% of the principal amount, reflecting a 6% discount). VWH predecessor acknowledged in the Letter Agreement that it is not required to modify, amend, or supplement the existing Registration Statement to include any shares underlying the New Note, and, other than as may be set forth in the New Note, VWH predecessor is not obligated to file a new registration statement relating to such shares.

*Terms of the Second Note*

The Second Note has a maturity date of September 11, 2026 (as may be extended at the option of the Investor). Interest accrues on the outstanding principal balance at an annual rate of 6%, which increases to 18% upon the occurrence of an event of default (for so long as such event remains uncured). Interest is calculated based on a 365-day year and the actual number of days elapsed.

If an Amortization Event occurs (defined as a Floor Price Event, Exchange Cap Event, or Registration Event, as set forth in the Second Note), VWH predecessor must make monthly cash payments beginning on the 10th trading day after the Amortization Event Date and continuing on the same day of each successive calendar month until the entire outstanding principal amount is repaid. Each monthly payment equals the sum of (i) $750,000 of principal (or the outstanding principal if less), (ii) a 7% payment premium on such principal amount, and (iii) accrued and unpaid interest. The obligation to make such payments ceases if the Amortization Event is cured.

VWH predecessor may, at its option, redeem early a portion or all amounts outstanding under the Second Note by providing written notice to the Investor, provided the VWAP of the common stock was less than the fixed conversion price on the notice date (unless otherwise agreed). The redemption amount includes the principal being redeemed, a 5% redemption premium, and accrued interest. The Investor has 10 trading days to elect to convert any portion of the Second Note before redemption.

The Second Note is convertible at any time into shares of VWH predecessor's common stock, par value $0.01 per share (the "Common Stock"), at the lower of (i) $10.00 per share (the "Fixed Price") or (ii) 93% of the lowest daily VWAP during the 5 consecutive trading days immediately preceding the conversion date (the "Variable Price"), but not lower than the floor price of $1.00 per share (adjustable downwards to 20% of the average VWAP for the five trading days prior to the earlier of the Registration Statement effectiveness or the six-month anniversary of the SEPA date, or further reduced by VWH predecessor). The Fixed Price resets downwards on the 30-day anniversary of a merger transaction to the average VWAP for the five trading days prior. Conversions are subject to a 4.99% beneficial ownership limitation and the Exchange Cap (19.99% of outstanding shares without stockholder approval).

*Terms of the New Note*

The New Note will have a maturity date of 12 months from its issuance date (as may be extended at the option of the Investor). Interest will accrue on the outstanding principal balance at an annual rate of 12%, which increases to 18% upon the occurrence of an event of default (for so long as such event remains uncured). Interest is calculated based on a 365-day year and the actual number of days elapsed.

Beginning on the three-month anniversary of the issuance date and continuing monthly, VWH predecessor must repay $200,000 of principal (or the outstanding principal if less), plus a 7% payment premium and accrued interest (the "Installment Amount"). VWH predecessor may pay the Installment Amount in cash or by submitting Advance Notices under the SEPA (with proceeds offsetting the Installment Amount). Any Advance Notice while the New Note is outstanding is treated as repayment first.

VWH predecessor may, at its option, redeem early a portion or all amounts outstanding under the New Note by providing written notice to the Investor, provided the VWAP of the Common Stock was less than the conversion price on the notice date (unless otherwise agreed). The redemption amount includes the principal being redeemed, a 5% redemption premium, and accrued interest. The Investor has 10 trading days to elect to convert any portion of the New Note before redemption.

The New Note is convertible at any time into shares of Common Stock at $12.00 per share, subject to adjustments for stock splits, combinations, reclassifications, and dilutive issuances below the conversion price (with certain exclusions). Conversions are subject to a 4.99% beneficial ownership limitation.

Pursuant to the Letter Agreement, VWH predecessor granted the Investor a right of first refusal for 12 months following September 11, 2025, with respect to any financing transaction involving the issuance or sale of securities (including debt, equity, equity-linked securities, notes, or debentures, but excluding ATM offerings at prevailing market prices). VWH predecessor must provide written notice of any such proposed transaction, and the Investor has 10 business days to elect to participate. If the Investor declines, VWH predecessor may proceed with a third party on terms no more beneficial than those offered to the Investor, within 60 days.

The New Note includes customary events of default, representations, warranties, covenants, and indemnification provisions. Upon an event of default, the Investor may accelerate the note or convert at the conversion price. VWH predecessor may not engage in variable rate transactions while the New Note is outstanding, subject to exceptions.

**Consulting Agreement**

On September 26, 2025, VWH predecessor finalized and entered into a Consulting Agreement (the "Agreement") with Crypto Treasury Management Group, LLC ("CTMG"), pursuant to which CTMG will provide advisory and strategic services to assist VWH predecessor in establishing a digital asset treasury reserve. The services include, among other things, developing a crypto treasury strategy, recommending custodians, designing staking protocols (if applicable), assisting with capital formation in collaboration with a licensed securities underwriter, and supporting regulatory and tax compliance efforts.

The Agreement has an initial term of two years, subject to earlier termination under certain conditions, including for convenience with 60 days' notice or for material breach. In consideration for the services, VWH predecessor has agreed to pay CTMG: (i) a retainer fee of $50,000 upon signing, which was pre-paid as an advance on September 24, 2025, with an additional $50,000 upon execution of binding definitive agreements related to the crypto treasury transaction; (ii) a success fee of 17 Bitcoin (or cash equivalent) upon successful deployment of at least $20 million into crypto assets for VWH predecessor's treasury; and (iii) 250,000 shares of VWH predecessor's common stock upon closing of the crypto treasury transaction, subject to SEC Rule 144 restrictions and inclusion in future registration statements where applicable. VWH predecessor will also reimburse CTMG for pre-approved reasonable expenses.

The Agreement contemplates a potential capital formation structure of up to $300 million, with allocations into crypto assets such as Bitcoin and Solana, subject to VWH predecessor's approval and market conditions; however, there can be no assurance that the transaction will close or that it will be consummated on the anticipated terms or at all. In the event this strategy is successfully implemented, which is not guaranteed and depends on various factors including management's ability to execute effectively, VWH predecessor has committed to staking a minimum of 70% of its crypto treasury assets for at least two years, although such implementation may face challenges or fail to achieve expected outcomes due to market volatility, regulatory changes, or other risks. CTMG will not act as a broker-dealer or engage in activities requiring such registration. VWH predecessor, in an effort to replace its current financing structure, intends to structure the transaction and use the non-staked portion as funding for its defense business and potentially leverage the stakeable portion for M&A activity in the defense arena, though these intentions are forward-looking and subject to uncertainties that could prevent or alter their realization.

The Agreement includes standard provisions regarding confidentiality, non-circumvention, independent contractor status, compliance with laws (including securities, AML/KYC, and tax regulations), warranties, indemnification, limitation of liability, and governing law (Delaware).

The proposed adoption of a crypto reserve strategy, including the establishment of a digital asset treasury as contemplated in the Agreement will only be implemented upon obtaining regulatory approval, if any, from relevant authorities, including compliance with Nasdaq listing requirements. Additionally, the implementation of the crypto reserve strategy may require shareholder approval to the extent such approval is deemed necessary by VWH predecessor's board of directors or required by regulatory bodies. VWH predecessor will ensure all necessary approvals are obtained prior to the execution of the crypto reserve strategy and will provide further updates as required by law.

**Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.**

References to "we", "us", "our" or the "Company" are to VisionWave Holdings, Inc. (successor) as the successor to Bannix Acquisition Corp., except where the context requires otherwise. The following discussion should be read in conjunction with our unaudited condensed consolidated financial statements and related notes thereto included elsewhere in this report.

**Cautionary Note Regarding Forward-Looking Statements**

*This Quarterly Report on Form 10-Q includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). We have based these forward-looking statements on our current expectations and projections about future events. These forward-looking statements are subject to known and unknown risks, uncertainties and assumptions about us that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as "may," "should," "could," "would," "expect," "plan," "anticipate," "believe," "estimate," "continue," or the negative of such terms or other similar expressions. Factors that might cause or contribute to such a discrepancy include, but are not limited to, those described in our other Securities and Exchange Commission ("SEC") filings.*

**Explanatory Note:**

*This Amendment No. 1 (the "**Amendment**") to the Quarterly Report on Form 10-Q of VisionWave Holdings Inc. for the quarter ended June 30, 2025 (the "**Original Report**") is being filed solely to include the **separate financial statements** of VisionWave Holdings Inc. (the accounting acquirer) and Bannix Acquisition Corp. (the legal acquirer) for periods prior to their business combination, as required by **Rule 15-01(e) of Regulation S-X**.*

 

*On July 14, 2025, VisionWave Technologies Inc. ("VW Tech") completed its business combination with Bannix Acquisition Corp. ("Bannix") pursuant to a double-dummy merger structure. The business combination, consummated on July 14, 2025, was accounted for as a **reverse recapitalization** under **ASC 805-40**. As part of the transaction, both VW Tech and Bannix became wholly owned subsidiaries of a newly formed parent company, VisionWave Holdings Inc. ("the Company"). This Quarterly Report on Form 10-Q is filed by VisionWave Holdings Inc. under its current name and CIK. However, because the business combination closed after the period covered by this report (June 30, 2025), the financial statements and related disclosures presented herein reflect the historical operations of Bannix Acquisition Corp. The operations of VW Tech will be included in the Company's consolidated financial statements beginning with the Form 10-Q for the quarter ending September 30, 2025.* 

 

*Except as described above, conforming related references in the Management's Discussion and Analysis and the Index to Financial Statements, and updating Note 11—Subsequent Events,this Amendment does not modify, update, or amend any other information set forth in the Original Report and does not reflect events occurring after the filing of the Original Report.*

**Overview**

We were a blank check company incorporated on January 21, 2021 as a Delaware corporation and formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses.

On September 14, 2021, we consummated our IPO of 6,900,000 units at $10.00 per unit (the "Units"). Each Unit consists of one share of our common stock (the "Public Shares"), one redeemable warrant to purchase one share of our common stock at a price of $11.50 per share and one right. Each right entitles the holder thereof to receive one-tenth (1/10) of one share of our common stock upon the consummation of the Business Combination.

Simultaneously with the closing of the IPO, we consummated the issuance of 406,000 private placement units (the "Private Placement Units") as follows: we sold 181,000 Private Placement Units to certain investors for aggregate cash proceeds of $2,460,000 and issued an additional 225,000 private placement units to our Former Sponsor in exchange for the cancellation of $1,105,000 in loans and a promissory note due to them. Each Private Placement Unit consists of one share of our common stock, one redeemable warrant to purchase one share of our common stock at a price of $11.50 per whole share and one right. Each right entitles the holder thereof to receive one-tenth (1/10) of one share of our common stock upon the consummation of our Business Combination. Our management has broad discretion with respect to the specific application of the net proceeds of the IPO and the Private Placement Units, although substantially all of the net proceeds are intended to be generally applied toward consummating our Business Combination.

Upon the closing of the initial public offering on September 14, 2021, a total of $69,690,000 of the net proceeds was deposited in a trust account established for the benefit of our public stockholders.

**Recent Developments**

*Stockholder Meetings*

As discussed throughout this report, the Company has held shareholder meetings on March 8, 2023, March 8, 2024, September 6, 2024 and March 7, 2025, pursuant to which the stockholders approved the filing of an amendment to its Amended and Restated Certificate of Incorporation with the Delaware Secretary of State (the "Extension Amendment"), to extend the date (the "Extension") by which the Company must (1) complete a merger, share exchange, asset acquisition, stock purchase, recapitalization, reorganization or similar business combination involving the Company and one or more businesses (an "initial Business Combination"), (2) cease its operations except for the purpose of winding up if it fails to complete such initial Business Combination, and (3) redeem 100% of the Company's common stock ("common stock") included as part of the units sold in the Company's initial public offering (the "IPO").

At the March 7, 2025, the Company's stockholders approved an Extension Amendment, to extend the Deadline Date from March 14, 2025, as extended, and to allow the Company, without another stockholder vote, to further extend the date to consummate a Business Combination on a monthly basis up to three (3) times by an additional one (1) month each time after March 14, 2025 or later extended deadline date, by resolution of the Company's Board of Directors, if requested by the Company's Sponsor, until June 14, 2025, or a total of up to three (3) months after March 14, 2025, unless the closing of a Business Combination shall have occurred prior thereto (the "March 2025 Extension Amendment"). The stockholders also approved the Trust Amendment to the Trust Agreement by and between the Company and the Trustee incorporating the terms as set forth in the above extension. Beginning in March 2025, the Sponsor or its designees deposited into the Trust Account, as a loan, $4,983 or $0.05 per public share multiplied by the number of public shares outstanding (the "Contribution"), in connection with each Extension. Further, at the March 8, 2024 meeting, the stockholders approved the removal of the Amended and Restated Certificate of Incorporation the redemption limitation contained under Section 9.2(a) preventing the Company from closing a Business Combination if it would have less than $5,000,001 of net tangible assets in order to expand the methods that the Company may employ so as not to become subject to the "penny stock" rules of the United States Securities and Exchange Commission (the "NTA Amendment").

In order to fund deposits required to allow for such extension, we obtained loans from Instant Fame, LLC and Evie Group evidenced by non-interest-bearing promissory notes that are payable upon the consummation of a business combination by us. If we fail to consummate a business combination, the outstanding debt under the promissory notes will be forgiven, except to the extent of any funds held outside of the trust account after paying all other fees and expenses of the Company.

If we have not completed our initial business combination by June 14, 2025, as extended, we will: (i) cease all operations except for the purpose of winding up, (ii) as promptly as reasonably possible but not more than ten business days thereafter, redeem the public shares, at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the trust account, including interest (which interest shall be net of taxes payable, and less up to $100,000 of interest to pay dissolution expenses) divided by the number of then outstanding public shares, which redemption will completely extinguish public stockholders' rights as stockholders (including the right to receive further liquidation distributions, if any), subject to applicable law, and (iii) as promptly as reasonably possible following such redemption, subject to the approval of our remaining stockholders and our board of directors, dissolve and liquidate, subject in each case to our obligations under Delaware law to provide for claims of creditors and the requirements of other applicable law.

At the aforementioned stockholder meetings, stockholders holding a total of 6,800,334 shares of the Company's common stock exercised their right to redeem such shares for a pro rata portion of the funds in the Company's Trust Account. As a result, $72,575,869 was removed from the Company's Trust Account to pay such holders.

On May 22, 2025, the Company held a special meeting of stockholders (the "May 2025 Special Meeting") whereby the Company's stockholders approved the proposals described in the Company's definitive proxy statement filed with the Securities and Exchange Commission on May 9, 2025 (the "May 9, 2025 Proxy Statement"). The approved proposals include (i) the proposed Business Combination (2) the stock issuance plan, (3) the incentive plan proposal and (4) the director election proposal.

In connection with the vote at the May 2025 Special Meeting, stockholders holding a 83,313 shares of the Company's common stock exercised their right to redeem such shares for a pro rata portion of the funds in the Company's trust account. As a result, $972,722 (approximately $11.67 per share) will be removed from the Company's Trust Account to pay such holders. On July 17, 2025 the stockholders redeeming their share at the May 22, 2025 Special Meeting were paid for their redeemed shares. Following redemptions, the Company had 2,540,353 shares outstanding prior to the Merger.

In association with the Company's special meetings and annual meeting, as of the filing of this Form 10-Q, the Company has deposited an aggregate of $1,857,358 into the Trust Account to extend the Deadline Date.

Associated with the special meetings and annual meeting, and related redemptions, the company recognized an excise tax equal to 1% of the value of the redeeming shares or $913,292. As of the filing of this Form 10-Q, the Company has not filed its 2024 excise tax return and no amounts have been paid. As of June 30, 2025, the Company's excise tax liability on its condensed consolidated balance sheet includes $177,806 in excise tax interest and penalties.

**Deadline Date Extension**

In connection with the March 7, 2025 Special Meeting, the stockholders of the Company approved the extension of the Deadline date to March 14, 2025 or later extended deadline date, by resolution of the Company's Board of Directors, if requested by the Company's Sponsor, until June 14, 2025.

Prior to the June 14, 2025, Deadline Date, management of the Company, representing a majority of the Company's stockholders, held a meeting with the trustee of the Trust Account to request the Trust Account not be liquidated due to the pending regulatory approval of the proposed Business Combination, discussed below. The trustee exercised administrative authority and agreed to the temporary extension of the Deadline Date pending a stockholder meeting. Before a stockholder meeting could be held to extend the Deadline Date, final regulatory approval was granted by Nasdaq and the Company closed on its proposed Business Combination.

**Proposed Business Combination – VisionWave Technologies**

Prior to the succession of VW Holdings of Bannix, on March 26, 2024, the Bannix entered into a Business Combination Agreement (the "Original Agreement"), by and among Bannix, VisionWave Technologies, Inc., a Nevada corporation ("Target" or "VisionWave Technologies") and the shareholders of Target.

On September 6, 2024, Bannix entered into a Merger Agreement and Plan of Reorganization (the "Merger Agreement"), by and among Bannix, VisionWave Holdings, Inc., a Delaware corporation and a direct, wholly owned subsidiary of Bannix ("VisionWave"), BNIX Merger Sub, Inc., a Delaware corporation and a direct, wholly owned subsidiary of VisionWave ("Parent Merger Sub"), BNIX VW Merger Sub, Inc., a Nevada corporation and direct, wholly owned subsidiary of VisionWave ("Company Merger Sub"), and Target. The Merger Agreement and the transactions contemplated thereby were approved by the boards of directors of each of Bannix, VisionWave, Parent Merger Sub, Company Merger Sub, and Target.

On July 14, 2025, the Company closed its proposed Business Combination with VisionWave Technologies.

*The Mergers*

Pursuant to and in accordance with the terms set forth in the Merger Agreement, (a) Parent Merger Sub will merge with and into Bannix, with Bannix continuing as the surviving entity (the "Parent Merger"), as a result of which, (i) Bannix will become a wholly owned subsidiary of VisionWave, and (ii) each issued and outstanding security of Bannix immediately prior to the effective time of the Parent Merger (the "Parent Merger Effective Time") (other than shares of Bannix Common Stock that have been redeemed or are owned by Bannix or any of its direct or indirect subsidiaries as treasury shares and any Dissenting Parent Shares) shall no longer be outstanding and shall automatically be cancelled in exchange for the issuance to the holder thereof of a substantially equivalent security of VisionWave (other than the Parent Rights, which shall be automatically converted into shares of VisionWave), and, (b) immediately following the consummation of the Parent Merger but on the same day, Company Merger Sub will merge with and into Target, with Target continuing as the surviving entity (the "Company Merger" and, together with the Parent Merger, the "Mergers"), as a result of which, (i) Target will become a wholly owned subsidiary of VisionWave, and (ii) each issued and outstanding security of Target immediately prior to the effective time of the Company Merger (the "Company Merger Effective Time") (other than any Cancelled Shares or Dissenting Shares) shall no longer be outstanding and shall automatically be cancelled in exchange for the issuance to the holder thereof of a substantially equivalent security of VisionWave. The Mergers and the other transactions contemplated by the Merger Agreement are hereinafter referred to as the "Business Combination."

The Business Combination is expected to close in the third quarter of 2025, subject to customary closing conditions, including the satisfaction of the minimum available cash condition, the receipt of certain governmental approvals and the required approval by the stockholders of Bannix and Target.

*Consideration*

Pursuant to and in accordance with the terms set forth in the Merger Agreement, at the Parent Merger Effective Time, (a) each share of Bannix common stock, par value $0.001 per share ("Bannix Common Stock") outstanding immediately prior to the Parent Merger Effective Time that has not been redeemed, is not owned by Bannix or any of its direct or indirect subsidiaries as treasury shares and is not a Dissenting Parent Share will automatically convert into one share of common stock, par value $0.001, of VisionWave (each, a share of "VisionWave Common Stock"),

(b) each Bannix Warrant shall automatically convert into one warrant to purchase shares of VisionWave Common Stock (each, a "VisionWave Warrant") on substantially the same terms and conditions; and (c) each Bannix Right will be automatically converted into the number of shares of VisionWave Common Stock that would have been received by the holder of such Bannix Right if it had been converted upon the consummation of a Business Combination in accordance with Bannix's organizational documents.

In accordance with the terms and subject to the conditions of the Merger Agreement, at the Company Merger Effective Time, (a) each share of issued and outstanding Target common stock, par value $0.01 ("Target Common Stock"), shall be cancelled and converted into 4,041 shares of VisionWave Common Stock.

*Governance*

Subject to approval of shareholders, the parties have agreed to take actions such that, effective immediately after the Closing of the Business Combination, VisionWave's board of directors shall consist of five directors, consisting of Haggai Ravid, Chuck Hansen, Eric T. Shuss, Douglas Davis and Noam Kenig. Additionally, certain current Target management personnel may become officers of VisionWave.

*Representations and Warranties; Covenants*

The Merger Agreement contains representations, warranties and covenants of each of the parties thereto that are customary for transactions of this type, including, among others, covenants providing for (i) certain limitations on the operation of the parties' respective businesses prior to consummation of the Business Combination, (ii) the parties' efforts to satisfy conditions to consummation of the Business Combination, including by obtaining any necessary approvals from governmental agencies, (iii) prohibitions on the parties soliciting alternative transactions, (iv) VisionWave preparing and filing a registration statement on Form S-4 with the Securities and Exchange Commission (the "SEC") and taking certain other actions to obtain the requisite approval of Bannix's stockholders to vote in favor of certain matters, including the adoption of the Merger Agreement and approval of the Business Combination, at a special meeting to be called for the approval of such matters, and (v) the protection of, and access to, confidential information of the parties.

On May 5, 2025, the SEC declared VisionWave's registration statement on Form S-4 to be effective.

The representations, warranties and covenants in the Merger Agreement were made solely for the benefit of the parties to the Merger Agreement and are subject to limitations agreed upon by the contracting parties, including being qualified by confidential disclosures made the parties to the Merger Agreement which are not filed publicly and which are subject to a contractual standard of materiality different from that generally applicable to stockholders and were used for the purpose of allocating risk among the parties rather than establishing matters as facts. Bannix does not believe that these schedules contain information that is material to an investment decision.

In addition, VisionWave has agreed to adopt an equity incentive plan, as described in the Merger Agreement.

*Conditions to the Closing*

The obligations of Bannix, VisionWave, Parent Merger Sub and Company Merger Sub (the "Bannix Parties") and Target to consummate the Business Combination are subject to certain closing conditions, including, but not limited to, (i) the approval of Bannix's stockholders, (ii) the approval of Target's stockholders, and (iii) VisionWave's Form S-4 registration statement becoming effective.

In addition, the obligations of the Bannix Parties to consummate the Business Combination are also subject to the fulfillment (or waiver) of other closing conditions, including, but not limited to, (i) the representations and warranties of Target being true and correct to the standards applicable to such representations and warranties and each of the covenants of Target having been performed or complied with in all material respects, (ii) delivery of certain ancillary agreements required to be executed and delivered in connection with the Business Combination, and (iii) no Material Adverse Effect having occurred.

The obligation of Target to consummate the Business Combination is also subject to the fulfillment (or waiver) of other closing conditions, including, but not limited to, (i) the representations and warranties of the Bannix Parties being true and correct to the standards applicable to such representations and warranties and each of the covenants of the Bannix Parties having been performed or complied with in all material respects and (ii) the shares of VisionWave Common Stock issuable in connection with the Business Combination being listed on the Nasdaq Stock Market.

*Termination Rights*

The Merger Agreement may be terminated under certain customary and limited circumstances prior to the Closing of the Business Combination, including, but not limited to, (i) by mutual written consent of Bannix and Target, (ii) by Bannix, on the one hand, or Target, on the other hand, if there is any breach of the representations, warranties, covenant or agreement of the other party as set forth in the Merger Agreement, in each case, such that certain conditions to closing cannot be satisfied and the breach or breaches of such representations or warranties or the failure to perform such covenant or agreement, as applicable, are not cured or cannot be cured within certain specified time periods, (iii) by either Bannix or Target if the Business Combination is not consummated, (iv) by either Bannix or Target if a meeting of Bannix's stockholders is held to vote on proposals relating to the Business Combination and the stockholders do not approve the proposals, and (v) by Bannix if the Target stockholders do not approve the Merger Agreement.

*Permitted Financings*

The Merger Agreement contemplates that Target (a) may enter into agreements to raise capital in one or more private placement transactions prior to the Closing for aggregate gross proceeds of up to $20,000,000 or (b) consummate an initial sale of any shares of capital stock of Target in an underwritten public offering registered under the Securities Act or any direct listing of any shares of capital stock of Target on a securities exchange or securities market ("Permitted Financings").

*Stockholder Support Agreement*

In accordance with the Merger Agreement, within thirty (30) days following the execution of the Merger Agreement, Bannix, VisionWave, Target, and certain stockholders of Target representing the requisite votes necessary to approve the Merger Agreement (the "Target Equity Holders") are expected to enter into a Stockholder Support Agreement pursuant to which the Target Equity Holders will: (a) agree to vote in favor of the adoption of the Merger Agreement and approve the Mergers and the other Transactions to which Target is a party; and (b) agree to waive any appraisal or similar rights they may have pursuant to Nevada law with respect to the Mergers and the other Transactions.

*Potential Private Placement* 

On April 9, 2025, VisionWave Technologies entered into a non-exclusive placement agent engagement agreement (the "Engagement Agreement") with Maxim Group LLC ("Maxim"), pursuant to which Maxim will act as VisionWave Technologies' non-exclusive placement agent in connection with a potential private placement of up to $10 million of equity or equity-linked securities (the "Offering"). The Offering is expected to be conducted on a "commercially reasonable efforts" basis, and there is no assurance that the Offering will be completed, or that any definitive agreements with investors will be entered into. Under the terms of the Engagement Agreement, VisionWave Technologies retains full discretion to accept or reject any investment proposals and will determine the final terms and structure of the Offering, subject to market conditions and investor interest. Maxim will be entitled to a cash placement fee equal to seven percent (7.0%) of the gross proceeds received by VisionWave Technologies from any investor introduced by Maxim. In addition, VisionWave Technologies agreed to reimburse Maxim for up to $25,000 in out-of-pocket expenses incurred in connection with the engagement, subject to certain conditions and prior approvals.

The Engagement Agreement includes a limited right of first refusal for a period of nine (9) months following the final closing of the Offering, Maxim shall have the right to act as sole managing underwriter or sole placement agent for any subsequent public or private offerings of equity, equity-linked, or debt securities of VisionWave Technologies, subject to Maxim matching the material terms offered by any third party. VisionWave Technologies has not yet launched the Offering, and no securities have been issued as of the date of this filing.

There can be no assurance that VisionWave Technologies will consummate the Offering or receive any proceeds from it.

On July 10, 2025 Pursuant to the requirements of Section 12 of the Securities Exchange Act of 1934 the Company filed Form 8-A registering the securities declared effective by the SEC.

**Close of Business Combination**

On July 14, 2025, the Company closed on its proposed Business Combination and liquidated its Trust Account. In association with the liquidation of the Trust Account, stockholders redeeming their shares of common stock at the May 2025 Special Meeting were paid for their redeeming shares. As the close of the Business Combination occurred after June 30, 2025, financial statement of the Target are not complete and not included in this Form 10-Q.

**Business Combination Consideration**

As a result of the Business Combination, all of the outstanding shares of common stock, par value $0.01 per share, of Bannix ("Bannix Common Stock") were cancelled in exchange for the right to receive a pro-rata portion of 2,540,353 shares of common stock of VisionWave ("VisionWave Common Stock"). Each issued and outstanding security of Bannix immediately prior to the Parent Merger Effective Time shall no longer be outstanding and shall automatically be cancelled in exchange for the issuance to the holder thereof of a substantially equivalent security of VisionWave.

**Closing**

After the closing of the Mergers, VisionWave has 14,270,953 shares of common stock outstanding and Warrants to purchase 7,306,000 shares of common stock outstanding. Upon the consummation of the Business Combination, VisionWave Common Stock and VisionWave Warrants began trading on July 15, 2025 on the NASDAQ under the symbols "VWAV and "VWAV" respectively.

In addition to the 2,540,353 shares of VisionWave Common Stock issued upon closing of the Business Combination, 11,000,000 shares of VisionWave Common Stock were issued to Target shareholders. Additionally, 690,000 public rights and 40,600 private rights were issued.

Additionally, in association with the closing of the Business Combination, authorized capital has increased. Authorized shares of preferred stock increased from 1,000,000 shares to 10,000,000 shares. There was no change in the par value. Authorized shares of common stock increased from 100,000,000 shares to 150,000,000 shares. There was no change in the par value.

**Short Term Funding**

On July 15, 2025, the Company entered into a Securities Purchase Agreements (the "July 2025 SPAs") with two unaffiliated accredited investors ("July 2025 Lenders"), pursuant to which the Company issued promissory notes (the "July 2025 Notes") to the July 2025 Lenders in the aggregate principal amount of $354,200, which includes an aggregate original issue discount of $46,200, for a purchase price of $308,000. The July 2025 Notes bear interest at a one-time charge of 12% applied on the issuance date, mature on May 15, 2026, and is repayable in five monthly payments commencing January 15, 2026. The July 2025 Notes are convertible into shares of the Company's common stock, par value $0.01 per share (the "Common Stock"), solely upon an event of default, at a conversion price equal to 75% of the lowest trading price during the ten trading days prior to conversion. The Company also entered into an irrevocable transfer agent instructions letter with its transfer agent in connection with the July 2025 Notes. The proceeds from the issuances of the July 2025 Notes will be used for general working capital purposes. The July 2025 Lenders have piggyback registration rights and have agreed not to engage in short sales of the Company's common stock during the term of the July 2025 Notes. The July 2025 Notes include customary representations, warranties, covenants, and default provisions. The Company may prepay the July 2025 Notes within the first 180 days.

The loan pursuant to the July 2025 Notes closed and funded on July 17, 2025.

The July 2025 Notes were issued in reliance on the exemption from registration provided by Section 4(a)(2) of the Securities Act of 1933, as amended (the "Securities Act"), as the issuances did not involve a public offering, and no underwriters were involved. The July 2025 Lenders represented that they are accredited investors as defined in Rule 501(a) of Regulation D under the Securities Act.

On July 16, 2025, the Board of Directors of the Company adopted the following policies:

● A Policy on Granting Equity Awards, which establishes procedures for granting equity awards under the Company's equity compensation plans, including authority, timing, and error correction processes.

● A Code of Ethics, which sets forth standards of conduct for the Company's associates, including honesty, avoidance of conflicts of interest, compliance with laws, and proper accounting practices.

● An Insider Trading Policy, which prohibits insider trading, defines material non-public information, establishes blackout periods, and imposes additional restrictions on certain personnel.

Additionally, on May 29, 2025, the Board of Directors adopted a Compensation Recovery Policy, effective as of such date, which provides for the recovery of erroneously awarded incentive-based compensation from executive officers in the event of an accounting restatement due to material noncompliance with financial reporting requirements, in accordance with Nasdaq listing rules and Rule 10D-1 under the Exchange Act.

**Standby Equity Purchase Agreement**

On July 25, 2025, the Company entered into the Standby Equity Purchase Agreement ("SEPA") with YA II PN, LTD, a Cayman Islands exempt limited partnership ("Investor") pursuant to which the Company has the right to sell to Investor up to $50 million of its shares of common stock, subject to certain limitations and conditions set forth in the SEPA, from time to time during the term of the SEPA, from time to time during the term of the SEPA.

Upon the satisfaction of the conditions to Investor's purchase obligation set forth in the SEPA, including having a registration statement registering the resale of the shares of common stock issuable under the SEPA declared effective by the SEC, the Company will have the right, but not the obligation, from time to time at its discretion until the SEPA is terminated to direct Investor to purchase a specified number of shares of common stock ("Advance") by delivering written notice to Investor ("Advance Notice"). While there is no mandatory minimum amount for any Advance, it may not exceed an amount equal to 100% of the average of the daily traded amount during the five consecutive trading days immediately preceding an Advance Notice.

The shares of common stock purchased pursuant to an Advance delivered by the Company will be purchased at a price equal to 97% of the lowest daily VWAP of the shares of common stock during the three consecutive trading days commencing on the date of the delivery of the Advance Notice, other than the daily VWAP on a day in which the daily VWAP is less than a minimum acceptable price as stated by the Company in the Advance Notice or there is no VWAP on the subject trading day. The Company may establish a minimum acceptable price in each Advance Notice below which the Company will not be obligated to make any sales to Investor. "VWAP" is defined as the daily volume weighted average price of the shares of common stock for such trading day on the Nasdaq Stock Market during regular trading hours as reported by Bloomberg L.P.

In connection with the SEPA, and subject to the condition set forth therein, Investor has agreed to advance to the Company in the form of convertible promissory notes (the "Convertible Notes") an aggregate principal amount of $5.0 million (the "Pre-Paid Advance"). The first Pre-Paid Advance was disbursed on July 25, 2025 with respect to $3.0 million and the balance of $2.0 million will be disbursed upon the registration statement registering the resale of the shares of common stock issuable under the SEPA being declared effective. The purchase price for the Pre-Paid Advance is 94% of the principal amount of the Pre-Paid Advance. Interest shall accrue on the outstanding balance of any Pre-Paid Advance at an annual rate equal to 6.0%, subject to an increase to 18% upon an event of default as described in the Convertible Notes. The maturity date will be 12-months after the closing of each tranche of the Pre-Paid Advance. Investor may convert the Convertible Notes into shares of the Company's common stock at a conversion price equal to the lower of $10.00 or 93% of the lowest daily VWAP during the five consecutive trading days immediately preceding the conversion (the "Conversion Price"),

which in no event may the Conversion Price be lower than $1.00 (the "Floor Price"). In addition, upon the occurrence and during the continuation of an event of default, the Convertible Notes shall become immediately due and payable and the Company shall pay to Investor the principal and interest due thereunder. In no event shall Investor be allowed to effect a conversion if such conversion, along with all other shares of common stock beneficially owned by Investor and its affiliates would exceed 4.99% of the outstanding shares of the common stock of the Company. If any time on or after the issuance of the Convertible Notes (i) the daily VWAP is less than the Floor Price for five trading days during a period of seven consecutive trading days ("Floor Price Trigger"), or (ii) the Company has issued in excess of 99% of the shares of common stock available under the Exchange Cap, where applicable ("Exchange Cap Trigger" and collectively with the Floor Price Trigger, the "Trigger")), then the Company shall make monthly payments to Investor beginning on the seventh trading day after the Trigger and continuing monthly in the amount of $750,000 plus an 5.0% premium and accrued and unpaid interest. The Exchange Cap Trigger will not apply in the event the Company has obtained the approval from its stockholders in accordance with the rules of Nasdaq Stock Market for the issuance of shares of common stock pursuant to the transactions contemplated in the Convertible Note and the SEPA in excess of 19.99% of the aggregate number of shares of common stock issued and outstanding as of the effective date of the SEPA (the "Exchange Cap").

Investor, in its sole discretion and providing that there is a balance remaining outstanding under the Convertible Notes, may deliver a notice under the SEPA requiring the issuance and sale of shares of common stock to Investor at the Conversion Price in consideration of an offset of the Convertible Notes ("Investor Advance"). Investor, in its sole discretion, may select the amount of any Investor Advance, provided that the number of shares issued does not cause Investor to exceed the 4.99% ownership limitation, does not exceed the Exchange Cap or the number of shares of common stock that are registered. As a result of a Investor Advance, the amounts payable under the Convertible Notes will be offset by such amount subject to each Investor Advance.

The Company will control the timing and amount of any sales of shares of common stock to Investor, except with respect to Investor Advances. Actual sales of shares of common stock to Investor as an Advance under the SEPA will depend on a variety of factors to be determined by the Company from time to time, which may include, among other things, market conditions, the trading price of the Company's common stock and determinations by the Company as to the appropriate sources of funding for our business and operations.

The SEPA will automatically terminate on the earliest to occur of (i) the 24-month anniversary of the date of the SEPA or (ii) the date on which Investor shall have made payment of Advances pursuant to the SEPA for shares of common stock equal to $50,000,000. We have the right to terminate the SEPA at no cost or penalty upon five (5) trading days' prior written notice to Investor, provided that there are no outstanding Advance Notices for which shares of common stock need to be issued and the Company has paid all amounts owed to Investor pursuant to the Convertible Notes. The Company and Investor may also agree to terminate the SEPA by mutual written consent. Neither the Company nor Investor may assign or transfer our respective rights and obligations under the SEPA, and no provision of the SEPA may be modified or waived by us or Investor other than by an instrument in writing signed by both parties.

As consideration for Investor's commitment to purchase the shares of common stock pursuant the SEPA, the Company paid Investor, (i) a structuring fee in the amount of $35,000 and (ii) 200,000 shares of common stock as an equity fee. Further, the Company is required to pay Investor a commitment fee of $500,000 of which $250,000 shall be due and payable on the earlier of the effective date of the initial registration statement, or 60 days following the date hereof and the remaining $250,000 shall be due and payable on the date that is 90 days following the initial due date to be paid by the issuance of such number of common shares that is equal to the applicable portion of the commitment fee divided by the average of the daily VWAPs of the common shares during the three trading days immediately prior to the applicable due date.

The SEPA contains customary representations, warranties, conditions and indemnification obligations of the parties. The representations, warranties and covenants contained in such agreements were made only for purposes of such agreements and as of specific dates, were solely for the benefit of the parties to such agreements and may be subject to limitations agreed upon by the contracting parties.

The net proceeds under the SEPA to the Company will depend on the frequency and prices at which the Company sells its shares of common stock to Investor. The Company expects that any proceeds received from such sales to Investor will be used for working capital and general corporate purposes.

**Omnibus Equity Incentive Plan**

On August 5, 2025, the Board of Directors (the "Board") of the Company adopted the Company's 2025 Omnibus Equity Incentive Plan (the "Plan"), which authorizes the issuance of up to 7,000,000 shares of the Company's common stock, par value $0.01 per share (the "Common Stock"). The Plan is subject to approval by 's shareholders within twelve (12) months of the Board's adoption date. If shareholder approval is obtained, the Plan will become effective as of August 5, 2025. The Plan provides for the grant of various equity-based awards, including non-qualified stock options, incentive stock options, restricted stock awards, restricted stock unit awards, stock appreciation rights, performance stock awards, performance unit awards, unrestricted stock awards, distribution equivalent rights, or any combination thereof. The Plan is intended to assist the Company in attracting, retaining, and incentivizing key management employees, directors, and consultants, and to align their interests with those of the Company's shareholders.

**Executives' Employment Agreements**

On August 6, 2025, the Company entered into employment agreements (each, an "Employment Agreement") with Douglas Davis, as Executive Chairman, Noam Kenig, as Chief Executive Officer, and Danny Rittman, as Chief Technology Officer (collectively, the "Executives"). Each Employment Agreement has an initial term of three (3) years, commencing on August 6, 2025, and is subject to automatic one-year renewals thereafter unless terminated by either party with at least thirty (30) days' prior written notice.

Under the Employment Agreements:

● Mr. Davis and Mr. Kenig will each receive an initial base salary of $150,000 per year, increasing to $300,000 upon the Company achieving $3,000,000 in revenue during any ninety (90)-day period, and further increasing to $600,000 upon achieving $6,000,000 in revenue during any ninety (90)-day period, with subsequent adjustments to fair market rates.

● Mr. Rittman will receive an initial base salary of $120,000 per year, increasing to $240,000 upon the Company achieving $3,000,000 in revenue during any ninety (90)-day period, and further increasing to $360,000 upon achieving $6,000,000 in revenue during any ninety (90)-day period, with subsequent adjustments to fair market rates.

● Mr. Davis and Mr. Kenig are each eligible for an annual performance bonus targeted at 2% of the Company's net income as reflected in its financial statements filed with the Securities and Exchange Commission (the "SEC").

● Each Executive is eligible for four (4) weeks of paid vacation per year, participation in the Company's benefit plans (including medical, dental, vision, disability, life insurance, and 401(k) plans), and reimbursement of reasonable business expenses.

● In the event of termination without cause or resignation for good reason, each Executive is entitled to severance equal to the greater of $600,000 or two (2) times their then-current base salary, payable within six (6) months of termination, subject to execution of a general release.

● Upon a change in control followed by termination within three (3) months, all outstanding equity awards vest immediately, and severance becomes payable.

● Each Employment Agreement includes standard provisions for termination for cause, death, disability, or without good reason, with limited payments in such cases.

Additionally, as a condition to entering into the Employment Agreements, each Executive entered into a Proprietary & Confidential Information, Inventions Assignment, Non-Solicitation and Non-Competition Agreement and a Mutual Agreement to Arbitrate with the Company.

Additionally, pursuant to the Employment Agreements and under the Plan (subject to shareholder approval thereof), the Company granted nonstatutory stock options (each, an "Option") to the Executives as follows:

● Mr. Davis and Mr. Kenig were each granted Options to purchase 2,000,000 shares of Common Stock.

● Mr. Rittman was granted an Option to purchase 500,000 shares of Common Stock.

Each Option has an exercise price of $7.20 per share (to be determined as the fair market value on the grant date) and vests in twelve (12) equal quarterly installments over four (4) years, commencing on the date of shareholder approval of the Plan (the "Approval Date"). The Options are exercisable for five (5) years from the grant date and allow for cashless exercise. The grants are contingent upon shareholder approval of the Plan; if not approved, the Options will be null and void.

**Joint Venture**

On August 25, 2025, the Company entered into a Strategic Joint Venture Agreement (the "AIPHEX Agreement") with AIPHEX LTD ("AIPHEX"), GBT Tokenize Corp. ("TOKENIZE"), and GBT Technologies, Inc. ("GBT"). Pursuant to the AIPHEX Agreement, the parties agreed to form a joint venture limited liability company in the State of Nevada (the "JV LLC") for the purpose of collaborating on certain designated defense and technology projects (the "Designated Projects and Background IP").

**Change in Management**

On September 2, 2025, the Company entered into employment agreements (each, an "Employment Agreement") with Elad Shoval, as Chief Revenue Officer, David Allon, as Chief Operating Officer, and Jaz Williman, as Senior Systems Engineer – UGV (collectively, the "Executives"). Each Employment Agreement has an initial term of three (3) years, commencing on September 2, 2025, and is subject to automatic one-year renewals thereafter unless terminated by either party with at least thirty (30) days' prior written notice.

**Memorandum of Understanding**

On September 2, 2025, the Company entered into a Memorandum of Understanding (the "MoU") with VEDA Aeronautics Private Limited ("VEDA"), a company incorporated under the Companies Act, 2013, of India.

Pursuant to the MoU, the Company and VEDA intend to collaborate on several Indian Ministry of Defense ("MoD") procurement programs (the "Programs"), including but not limited to: (a) Drone Kill System (Make-2) – interceptor drone development; (b) ALTV (New Generation Light Tank) – 357 tanks, with Company subsystems proposed as onboard modules; (c) FRCV (Main Battle Tank Program) – 1,770 main battle tanks; and (d) T72/T90 Retrofit Program for tanks. Under the MoU, VEDA has invited the Company to supply and develop core subsystems, including counter-UAS systems, tactical drones, radar technologies, advance protection systems (APS) systems, sensor fusion technologies, and unmanned platforms for defense and homeland security applications. The parties intend to collaborate in technical proposals, demonstrations, and joint pursuit of contracts for these Programs.

***Revision to Board Members***

On September 9, 2025, the Board of Directors (the "Board") of the Company approved Independent Director Agreements (each, an "Director Agreement") with Eric Shuss, Chuck Hansen, and Haggai Ravid, pursuant to which each will serve as an independent director of the Company.

Under the terms of each Director Agreement, the independent director will receive:

● An annual cash retainer of $36,000, payable quarterly, and $10,000 per annum for serving as the audit committee chair, $5,000 for compensation committee chair and the governance committee chair;

● Reimbursement for reasonable expenses incurred in connection with Board service; and

● An annual equity grant under the Company's 2024 Omnibus Equity Incentive Plan (the "Plan") with a grant date fair value of $60,000, consisting of restricted stock vesting in full after one year of service.

As a result of the above, the Company issued 5,245 shares of common stock to Messrs Shuss, Hansen and Ravid for their service in 2025. The Director Agreements also include standard provisions regarding indemnification, confidentiality, and compliance with applicable laws and Company policies. Each Director Agreement has an initial term of one year, subject to renewal upon mutual agreement or election at the annual stockholder meeting.

Further, as compensation for his service as a director prior to the Business Combination with Bannix Acquisition Corp. ("Bannix"), the Company entered into Compensation Agreements (each, a "Compensation Agreement") with Mr. Shuss and two other former directors who served as an independent director on the Board of Directors of Bannix from October 2022 until July 2025. Pursuant to the Compensation Agreement, effective as of September 9, 2025, Mr. Shuss will receive a one-time lump sum compensation of $150,000, payable in cash, fully vested shares of the Company's common stock issued under the Company's Plan, or a combination thereof, at Mr. Shuss' election. If shares are elected, the number of shares will be determined by dividing the elected portion by the closing price of the Company's common stock on the NASDAQ Stock Market immediately prior to the effective date of the Compensation Agreement. Mr. Shuss has elected to receive 6,556 shares of common stock using a closing price of $11.44 as of September 8, 2025. The shares will be fully vested upon issuance but subject to resale restrictions under Rule 144 of the Securities Act of 1933, as amended. Payment or issuance will occur within 10 business days after the election (or default to cash if no election is made within 10 business days).

**Standby Equity Purchase Agreement**

On September 11, 2025, the Company entered into a letter agreement (the "Letter Agreement") with YA II PN, Ltd., a Cayman Islands exempt limited partnership (the "Investor"), pursuant to the Standby Equity Purchase Agreement, dated as of July 25, 2025 (as may be amended, amended and restated, extended, supplemented or otherwise modified in writing from time to time, the "SEPA"), between the Company and the Investor.

Pursuant to the Letter Agreement, the Investor advanced the second tranche of the Pre-Paid Advance in a principal amount of $2,000,000 (the "Second Pre-Paid Advance") on September 11, 2025, in connection with the issuance by the Company of a convertible promissory note in the principal amount of $2,000,000 (the "Second Note"). The Investor waived the condition precedent set forth in the SEPA relating to the effectiveness of a registration statement for the Second Pre-Paid Advance. The purchase price for the Second Note is $1,880,000 (94% of the principal amount, reflecting a 6% discount).

In addition, pursuant to the Letter Agreement, the Investor agreed to fund an additional $2,000,000 in principal amount (the "Additional Advance") under the terms of a new convertible promissory note in the principal amount of $2,000,000 (the "New Note" and, together with the Second Note, the "Additional Notes") upon the effectiveness of the registration statement filed by the Company on August 29, 2025, in connection with the SEPA (the "Registration Statement"). The purchase price for the New Note will be $1,880,000 (94% of the principal amount, reflecting a 6% discount). The Company acknowledged in the Letter Agreement that it is not required to modify, amend, or supplement the existing Registration Statement to include any shares underlying the New Note, and, other than as may be set forth in the New Note, the Company is not obligated to file a new registration statement relating to such shares.

*Terms of the Second Note*

The Second Note has a maturity date of September 11, 2026 (as may be extended at the option of the Investor). Interest accrues on the outstanding principal balance at an annual rate of 6%, which increases to 18% upon the occurrence of an event of default (for so long as such event remains uncured). Interest is calculated based on a 365-day year and the actual number of days elapsed.

If an Amortization Event occurs (defined as a Floor Price Event, Exchange Cap Event, or Registration Event, as set forth in the Second Note), the Company must make monthly cash payments beginning on the 10th trading day after the Amortization Event Date and continuing on the same day of each successive calendar month until the entire outstanding principal amount is repaid. Each monthly payment equals the sum of (i) $750,000 of principal (or the outstanding principal if less), (ii) a 7% payment premium on such principal amount, and (iii) accrued and unpaid interest. The obligation to make such payments ceases if the Amortization Event is cured.

The Company may, at its option, redeem early a portion or all amounts outstanding under the Second Note by providing written notice to the Investor, provided the VWAP of the common stock was less than the fixed conversion price on the notice date (unless otherwise agreed). The redemption amount includes the principal being redeemed, a 5% redemption premium, and accrued interest. The Investor has 10 trading days to elect to convert any portion of the Second Note before redemption.

The Second Note is convertible at any time into shares of the Company's common stock, par value $0.01 per share (the "Common Stock"), at the lower of (i) $10.00 per share (the "Fixed Price") or (ii) 93% of the lowest daily VWAP during the 5 consecutive trading days immediately preceding the conversion date (the "Variable Price"), but not lower than the floor price of $1.00 per share (adjustable downwards to 20% of the average VWAP for the five trading days prior to the earlier of the Registration Statement effectiveness or the six-month anniversary of the SEPA date, or further reduced by the Company). The Fixed Price resets downwards on the 30-day anniversary of a merger transaction to the average VWAP for the five trading days prior. Conversions are subject to a 4.99% beneficial ownership limitation and the Exchange Cap (19.99% of outstanding shares without stockholder approval).

The Second Note includes customary events of default, representations, warranties, covenants, and indemnification provisions. Upon an event of default, the Investor may accelerate the note or convert at the conversion price. The Company may not engage in variable rate transactions while the Second Note is outstanding, subject to exceptions.

*Terms of the New Note*

The New Note will have a maturity date of 12 months from its issuance date (as may be extended at the option of the Investor). Interest will accrue on the outstanding principal balance at an annual rate of 12%, which increases to 18% upon the occurrence of an event of default (for so long as such event remains uncured). Interest is calculated based on a 365-day year and the actual number of days elapsed.

Beginning on the three-month anniversary of the issuance date and continuing monthly, the Company must repay $200,000 of principal (or the outstanding principal if less), plus a 7% payment premium and accrued interest (the "Installment Amount"). The Company may pay the Installment Amount in cash or by submitting Advance Notices under the SEPA (with proceeds offsetting the Installment Amount). Any Advance Notice while the New Note is outstanding is treated as repayment first.

The Company may, at its option, redeem early a portion or all amounts outstanding under the New Note by providing written notice to the Investor, provided the VWAP of the Common Stock was less than the conversion price on the notice date (unless otherwise agreed). The redemption amount includes the principal being redeemed, a 5% redemption premium, and accrued interest. The Investor has 10 trading days to elect to convert any portion of the New Note before redemption.

The New Note is convertible at any time into shares of Common Stock at $12.00 per share, subject to adjustments for stock splits, combinations, reclassifications, and dilutive issuances below the conversion price (with certain exclusions). Conversions are subject to a 4.99% beneficial ownership limitation.

The New Note includes customary events of default, representations, warranties, covenants, and indemnification provisions. Upon an event of default, the Investor may accelerate the note or convert at the conversion price. The Company may not engage in variable rate transactions while the New Note is outstanding, subject to exceptions.

*Additional Covenants in the Letter Agreement*

Pursuant to the Letter Agreement, the Company granted the Investor a right of first refusal for 12 months following September 11, 2025, with respect to any financing transaction involving the issuance or sale of securities (including debt, equity, equity-linked securities, notes, or debentures, but excluding ATM offerings at prevailing market prices). The Company must provide written notice of any such proposed transaction, and the Investor has 10 business days to elect to participate. If the Investor declines, the Company may proceed with a third party on terms no more beneficial than those offered to the Investor, within 60 days.

**Consulting Agreement**

On September 26, 2025, the Company entered into a Consulting Agreement (the "CTMG Agreement") with Crypto Treasury Management Group, LLC ("CTMG"), pursuant to which CTMG will provide advisory and strategic services to assist the Company in establishing a digital asset treasury reserve. The services include, among other things, developing a crypto treasury strategy, recommending custodians, designing staking protocols (if applicable), assisting with capital formation in collaboration with a licensed securities underwriter, and supporting regulatory and tax compliance efforts.

The CTMG Agreement has an initial term of two years, subject to earlier termination under certain conditions, including for convenience with 60 days' notice or for material breach. In consideration for the services, the Company has agreed to pay CTMG: (i) a retainer fee of $50,000 upon signing, which was pre-paid as an advance on September 24, 2025, with an additional $50,000 due upon execution of binding definitive agreements related to the crypto treasury transaction; (ii) a success fee of 17 Bitcoin (or cash equivalent) upon successful deployment of at least $20 million into crypto assets for the Company's treasury; and (iii) 250,000 shares of the Company's common stock upon closing of the crypto treasury transaction, subject to SEC Rule 144 restrictions and inclusion in future registration statements where applicable. The Company will also reimburse CTMG for pre-approved reasonable expenses.

The Agreement contemplates a potential capital formation structure of up to $300 million, with allocations into crypto assets such as Bitcoin and Solana, subject to the Company's approval and market conditions; however, there can be no assurance that the transaction will close or that it will be consummated on the anticipated terms or at all. In the event this strategy is successfully implemented, which is not guaranteed and depends on various factors including management's ability to execute effectively, the Company has committed to staking a minimum of 70% of its crypto treasury assets for at least two years, although such implementation may face challenges or fail to achieve expected outcomes due to market volatility, regulatory changes, or other risks. CTMG will not act as a broker-dealer or engage in activities requiring such registration. The Company, in an effort to replace its current financing structure, intends to structure the transaction and use the non-staked portion as funding for its defense business and potentially leverage the stakeable portion for M&A activity in the defense arena, though these intentions are forward-looking and subject to uncertainties that could prevent or alter their realization.

The CTMG Agreement includes standard provisions regarding confidentiality, non-circumvention, independent contractor status, compliance with laws (including securities, AML/KYC, and tax regulations), warranties, indemnification, limitation of liability, and governing law (Delaware).

The proposed adoption of a crypto reserve strategy, including the establishment of a digital asset treasury as contemplated in the Agreement will only be implemented upon obtaining regulatory approval, if any, from relevant authorities, including compliance with Nasdaq listing requirements. Additionally, the implementation of the crypto reserve strategy may require shareholder approval to the extent such approval is deemed necessary by the Company's board of directors or required by regulatory bodies. The Company will ensure all necessary approvals are obtained prior to the execution of the crypto reserve strategy and will provide further updates as required by law.

The foregoing description of the Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the Agreement, a copy of which is filed as Exhibit 10.1 to this Current Report on Form 8-K and incorporated herein by reference.

**Results of Operations - VisionWave Holdings, Inc. (Successor)**

Our entire activity since inception up to June 30, 2025 was in preparation for our initial public offering and since the initial public offering, the search for and efforts towards a suitable business combination. We will not generate any operating revenues until the closing and completion of our initial business combination, at the earliest.

For the three months ended June 30, 2025, we had a net loss of $434,294, which consisted of operating costs of $340,625, excise tax interest/penalty of $59,193, income tax interest/penalties of $20,246, unrealized loss from the change in fair value of Private Warrant liability of $19,894 and provision for income taxes of $336 partially offset by interest income on the trust account of $6,000.

For the six months ended June 30, 2025, we had a net loss of $861,759, which consisted of operating costs of $687,995, excise tax interest/penalty of $127,219, income tax interest/penalties of $60,376, unrealized loss from the change in fair value of Private Warrant liability of $13,804 and provision for income taxes of $7,085 partially offset by interest income on the trust account of $34,720.

For the three months ended June 30, 2024, we had a net loss of $153,104, which consisted of operating costs of $348,402 and provision for income taxes of $8,826 partially offset by interest income on the trust account of $200,064 and unrealized gain from the change in fair value of Private Warrant liability of $4,060.

For the six months ended June 30, 2024, we had a net loss of $181,323, which consisted of operating costs of $768,454, provision for income taxes of $8,826 and unrealized loss from the change in fair value of Private Warrant liability of $4,060 partially offset by interest income on the trust account of $566,267 and a gain on forgiven payables of $33,750.

**Results of Operations - Bannix Acquisition Corp. (Predecessor)**

Bannix's activity since inception up to June 30, 2025 was in preparation for the initial public offering and since the initial public offering, the search for and efforts towards a suitable business combination. Bannix will not generate any operating revenues until the closing and completion of Bannix's initial business combination, at the earliest.

For the three months ended June 30, 2025, we had a net loss of $419,491, which consisted of operating costs of $325,822, excise tax interest/penalty of $59,193, income tax interest/penalties of $20,246, unrealized loss from the change in fair value of Private Warrant liability of $19,894 and provision for income taxes of $336 partially offset by interest income on the trust account of $6,000.

For the six months ended June 30, 2025, we had a net loss of $786,703, which consisted of operating costs of $612,939, excise tax interest/penalty of $127,219, income tax interest/penalties of $60,376, unrealized loss from the change in fair value of Private Warrant liability of $13,804 and provision for income taxes of $7,085 partially offset by interest income on the trust account of $34,720.

For the three months ended June 30, 2024, we had a net loss of $153,104, which consisted of operating costs of $348,402 and provision for income taxes of $8,826 partially offset by interest income on the trust account of $200,064 and unrealized gain from the change in fair value of Private Warrant liability of $4,060.

For the six months ended June 30, 2024, we had a net loss of $181,323, which consisted of operating costs of $768,454, provision for income taxes of $8,826 and unrealized loss from the change in fair value of Private Warrant liability of $4,060 partially offset by interest income on the trust account of $566,267 and a gain on forgiven payables of $33,750.

**Results of Operations - VisionWave Holdings, Inc. (Predecessor)**

VWH predecessor was formed on September 24, 2024 for the purpose of consummating a business combination and is not anticipated to exist upon consummation of the Merger Agreement. We will not generate any operating revenues until the closing and completion of our initial business combination, at the earliest. VWH predecessor has selected September 30 as its fiscal year end. However, VWH predecessor used December 31 as the comparative for the results of operations.

For the three months ended June 30, 2025, we had a net loss of $14,803 which consisted of operating costs.

For the six months ended June 30, 2025, we had a net loss of $75,506 which consisted of operating costs.

**Liquidity, Capital Resources, and Going Concern - VisionWave Holdings, Inc. (Successor)**

As of June 30, 2025, the Company had $885 in cash and a working capital deficit of $6,287,377.

The Company's liquidity needs through June 30, 2025, were satisfied through (1) a capital contribution from the Sponsors of $28,750 for common stock ("Founder Shares") and (2) loans from Former Sponsor and Sponsor and related parties in order to pay offering costs and other working capital needs. In addition, in order to fund transaction costs in connection with a possible Business Combination, the Company's Sponsor, an affiliate of the Sponsor, and/or certain of the Company's officers and directors may, but are not obligated to, provide the Company Working Capital Loans. As of June 30, 2025 and December 31, 2024, there were no loans associated with Working Capital Loans. As of June 30, 2025 and December 31, 2024, the Company owed $2,153,962 and $1,811,700 to the Former Sponsor, the Sponsor, related parties and affiliated related parties, respectively. See Note 6 for further disclosure of Former Sponsor, Sponsor, related parties and affiliated related party loans.

As additional sources of funding, the Company issued unsecured promissory notes to Evie Autonomous LTD ("Evie") with a principal amount of $1,003,995 (the "Evie Autonomous Extension Notes"). The Evie Autonomous Extension Notes bear no interest and are repayable in full upon the earlier of (a) the date of the consummation of the Company's initial Business Combination, or (b) the date of the Company's liquidation. If the Company does not consummate an initial Business Combination by the Deadline Date, the Evie Autonomous Extension Notes will be repaid only from funds held outside of the Trust Account or will be forfeited, eliminated or otherwise forgiven.

On December 26, 2024 and revised on February 4, 2025, April 19, 2025 and May 25, 2025, the Company entered into several agreements to defer certain transaction costs and obligations associated with its proposed Business Combination until after the closing of the proposed Business Combination. The deferred obligations include:

● transaction costs of approximately $300,000 related to legal and financial advisory services provided in connection with the proposed Business Combination. These costs will be payable no later than three (3) months following the closing of the proposed Business Combination,

● promissory notes - Evie in the amount of $1,003,995 due only after any Pre-Paid Advance issued in connection with the SEPA is repaid in full, see Note 11,

● an aggregate of $2,019,200 owed to the Sponsor and its affiliates, including promissory notes, administrative support fees, and advances due only after any Pre-Paid Advance issued in connection with the SEPA is repaid in full, see Note 11.

On January 19, 2025, the CEO of the Company agreed to defer $110,400 of compensation expense due him. These costs would have been payable no later than three (3) months following the closing of the proposed Business Combination. On May 25, 2025, the agreement was modified such that the payable is due only after any Pre-Paid Advance issued in connection with the SEPA is repaid in full, see Note 11.

All deferred payments will be made exclusively from the working capital of the post-closing entity or funds raised following the closing. These deferments provide the Company with the financial flexibility to focus on completing the transaction while ensuring that all obligations are met within the agreed timeframes.

On April 8, 2025, with an effective date of March 31, 2025, the Company entered into a Funding Support Agreement with Stanley Hills, LLC ("Stanley Hills"), the principal shareholder of VisionWave Technologies. Pursuant to the agreement, Stanley Hills irrevocably and unconditionally committed to provide financial support to the Company, sufficient to fund the working capital needs through August 13, 2026. The funding may be provided by Stanley Hills in the form of direct payments to third parties, advances or intercompany loans, or capital contributions, as mutually determined by the parties. Unless otherwise agreed in writing, any such advances will be non-interest bearing and repayable only at such time as determined by the Board of Directors, and only to the extent such repayment would not impair the Company's liquidity or ability to continue as a going concern. The agreement may not be terminated by Stanley Hills prior to the twelve-month period from the date of release of the financial statement.

Based on the foregoing, management believes that the funds the Company has available is sufficient to meet its operating needs through the consummation of a Business Combination through the temporarily extended Deadline Date. Over this time period, the Company will be utilizing the funds available to it to pay existing accounts payable and consummating the proposed Business Combination.

The Company is within 12 months of its mandatory liquidation date as of June 30, 2025. In connection with the Company's assessment of going concern considerations, the Company had a temporarily extended deadline date beyond the June 14, 2025 Deadline Date to consummate a Business Combination. The Company closed on its proposed Business Combination on July 14, 2025 alleviating the mandatory liquidation requirement.

On April 9, 2025, VisionWave Technologies entered into a non-exclusive placement agent engagement agreement (the "Engagement Agreement") with Maxim Group LLC ("Maxim"), pursuant to which Maxim will act as VisionWave's non-exclusive placement agent in connection with a potential private placement of up to $10 million of equity or equity-linked securities (the "Offering"). The Offering is expected to be conducted on a "commercially reasonable efforts" basis, and there is no assurance that the Offering will be completed, or that any definitive agreements with investors will be entered into. Under the terms of the Engagement Agreement, VisionWave retains full discretion to accept or reject any investment proposals and will determine the final terms and structure of the Offering, subject to market conditions and investor interest. Maxim will be entitled to a cash placement fee equal to seven percent (7.0%) of the gross proceeds received by VisionWave from any investor introduced by Maxim and listed in exhibit to the Engagement Agreement. In addition, VisionWave agreed to reimburse Maxim for up to $25,000 in out-of-pocket expenses incurred in connection with the engagement, subject to certain conditions and prior approvals.

*Cash Flow Analysis*

For the six months ended June 30, 2025, cash used in operating activities was $245,322. Net loss of $861,759 was affected by interest income on Trust Account of $34,720, and a loss on the change in the fair value of warrant liability of $13,804. Changes in operating assets and liabilities benefited by $637,353 of cash for operating activities. Cash provided by investing activities was $2,615,453 including $94,099 withdrawn from the Trust Account to pay taxes, $2,573,762 cash withdrawn from trust account in connection with redemptions partially offset by $52,408 of deposits to the Trust Account. Cash used in financing activities was $2,379,000 including $2,573,762 redemption of common stock and $21,000 in repayment of advances to related parties, partially offset by $215,762 of advances from affiliated related parties.

For the six months ended June 30, 2024, cash used in operating activities was $419,658. Net loss of $181,323 was affected by interest income on Trust Account of $566,267, gain on forgiven payables of $33,750 and a loss on the change in the fair value of warrant liability of $4,060. Changes in operating assets and liabilities benefited by $357,622 of cash for operating activities. Cash provided by investing activities was $15,306,523 including $422,094 withdrawn from the Trust Account to pay taxes, $15,134,429 cash withdrawn from trust account in connection with redemptions partially offset by $250,000 of deposits to the Trust Account. Cash used in financing activities was $15,089,449 including $15,134,429 redemption of common stock and $15,000 in repayment of advances to related parties, partially offset by $30,000 of promissory note from Instant Fame and $29,980 of proceeds from the promissory notes - Evie.

As of June 30, 2025, we had cash held in the Trust Account of $1,168,644 consisting of demand deposit accounts (and including $972,722 payable to stockholders redeeming their shares at the May 2025 Special Meeting). Interest income on the balance in the Trust Account may be used by us to pay taxes. For the six months ended June 30, 2025, we have withdrawn $94,099 of interest earned on the Trust Account for the payment of franchise and income taxes.

We intend to use substantially all of the funds held in the Trust Account, including any amounts representing interest earned on the Trust Account (less taxes payable), to complete our Business Combination. To the extent that our capital stock or debt is used, in whole or in part, as consideration to complete our Business Combination, the remaining proceeds held in the Trust Account will be used as working capital to finance the operations of the target business or businesses, make other acquisitions and pursue our growth strategies.

**Liquidity, Capital Resources, and Going Concern - Bannix Acquisition Corp. (Predecessor)**

As of June 30, 2025, Bannix had $885 in cash and a working capital deficit of $6,206,265.

Bannix's liquidity needs through June 30, 2025, were satisfied through (1) a capital contribution from the Sponsors of $28,750 for common stock ("Founder Shares") and (2) loans from Former Sponsor and Sponsor and related parties in order to pay offering costs and other working capital needs. In addition, in order to fund transaction costs in connection with a possible Business Combination, Bannix's Sponsor, an affiliate of the Sponsor, and/or certain of Bannix's officers and directors may, but are not obligated to, provide Bannix Working Capital Loans. As of June 30, 2025 and December 31, 2024, there were no loans associated with Working Capital Loans. As of June 30, 2025 and December 31, 2024, Bannix owed $2,106,406 and $1,811,700 to the Former Sponsor, the Sponsor, related parties and affiliated related parties, respectively. See Note 6 for further disclosure of Former Sponsor, Sponsor, related parties and affiliated related party loans.

As additional sources of funding, Bannix issued unsecured promissory notes to Evie Autonomous LTD ("Evie") with a principal amount of $1,003,995 (the "Evie Autonomous Extension Notes"). The Evie Autonomous Extension Notes bear no interest and are repayable in full upon the earlier of (a) the date of the consummation of Bannix's initial Business Combination, or (b) the date of Bannix's liquidation. If Bannix does not consummate an initial Business Combination by the Deadline Date, the Evie Autonomous Extension Notes will be repaid only from funds held outside of the Trust Account or will be forfeited, eliminated or otherwise forgiven.

On December 26, 2024 and revised on February 4, 2025, April 19, 2025 and May 25, 2025, Bannix entered into several agreements to defer certain transaction costs and obligations associated with its proposed Business Combination until after the closing of the proposed Business Combination. The deferred obligations include:

● transaction costs of approximately $300,000 related to legal and financial advisory services provided in connection with the proposed Business Combination. These costs will be payable no later than three (3) months following the closing of the proposed Business Combination,

● promissory notes - Evie in the amount of $1,003,995 due only after any Pre-Paid Advance issued in connection with the SEPA is repaid in full, see Note 11,

● an aggregate of $2,019,200 owed to the Sponsor and its affiliates, including promissory notes, administrative support fees, and advances due only after any Pre-Paid Advance issued in connection with the SEPA is repaid in full, see Note 11.

On January 19, 2025, the CEO of Bannix agreed to defer $110,400 of compensation expense due him. These costs would have been payable no later than three (3) months following the closing of the proposed Business Combination. On May 25, 2025, the agreement was modified such that the payable is due only after any Pre-Paid Advance issued in connection with the SEPA is repaid in full, see Note 11.

All deferred payments will be made exclusively from the working capital of the post-closing entity or funds raised following the closing. These deferments provide Bannix with the financial flexibility to focus on completing the transaction while ensuring that all obligations are met within the agreed timeframes.

On April 8, 2025, with an effective date of March 31, 2025, Bannix entered into a Funding Support Agreement with Stanley Hills, LLC ("Stanley Hills"), the principal shareholder of VisionWave Technologies. Pursuant to the agreement, Stanley Hills irrevocably and unconditionally committed to provide financial support to Bannix, sufficient to fund the working capital needs through August 13, 2026. The funding may be provided by Stanley Hills in the form of direct payments to third parties, advances or intercompany loans, or capital contributions, as mutually determined by the parties. Unless otherwise agreed in writing, any such advances will be non-interest bearing and repayable only at such time as determined by the Board of Directors, and only to the extent such repayment would not impair Bannix's liquidity or ability to continue as a going concern. The agreement may not be terminated by Stanley Hills prior to the twelve-month period from the date of release of the financial statement.

Based on the foregoing, management believes that the funds Bannix has available is sufficient to meet its operating needs through the consummation of a Business Combination through the temporarily extended Deadline Date. Over this time period, Bannix will be utilizing the funds available to it to pay existing accounts payable and consummating the proposed Business Combination.

Bannix is within 12 months of its mandatory liquidation date as of June 30, 2025. In connection with Bannix's assessment of going concern considerations, Bannix had a temporarily extended deadline date beyond the June 14, 2025 Deadline Date to consummate a Business Combination. Bannix closed on its proposed Business Combination on July 14, 2025 alleviating the mandatory liquidation requirement.

On April 9, 2025, VisionWave Technologies entered into a non-exclusive placement agent engagement agreement (the "Engagement Agreement") with Maxim Group LLC ("Maxim"), pursuant to which Maxim will act as VisionWave's non-exclusive placement agent in connection with a potential private placement of up to $10 million of equity or equity-linked securities (the "Offering"). The Offering is expected to be conducted on a "commercially reasonable efforts" basis, and there is no assurance that the Offering will be completed, or that any definitive agreements with investors will be entered into. Under the terms of the Engagement Agreement, VisionWave retains full discretion to accept or reject any investment proposals and will determine the final terms and structure of the Offering, subject to market conditions and investor interest. Maxim will be entitled to a cash placement fee equal to seven percent (7.0%) of the gross proceeds received by VisionWave from any investor introduced by Maxim and listed in exhibit to the Engagement Agreement. In addition, VisionWave agreed to reimburse Maxim for up to $25,000 in out-of-pocket expenses incurred in connection with the engagement, subject to certain conditions and prior approvals.

*Cash Flow Analysis*

For the six months ended June 30, 2025, cash used in operating activities was $200,822. Net loss of $786,703 was affected by interest income on Trust Account of $34,720, and a loss on the change in the fair value of warrant liability of $13,804. Changes in operating assets and liabilities benefited by $606,797 of cash for operating activities. Cash provided by investing activities was $2,615,453 including $94,099 withdrawn from the Trust Account to pay taxes, $2,573,762 cash withdrawn from trust account in connection with redemptions partially offset by $52,408 of deposits to the Trust Account. Cash used in financing activities was $2,379,000 including $2,573,762 redemption of common stock and $21,000 in repayment of advances to related parties, partially offset by $215,762 of advances from affiliated related parties.

For the six months ended June 30, 2024, cash used in operating activities was $419,658. Net loss of $181,323 was affected by interest income on Trust Account of $566,267, gain on forgiven payables of $33,750 and a loss on the change in the fair value of warrant liability of $4,060. Changes in operating assets and liabilities benefited by $357,622 of cash for operating activities. Cash provided by investing activities was $15,306,523 including $422,094 withdrawn from the Trust Account to pay taxes, $15,134,429 cash withdrawn from trust account in connection with redemptions partially offset by $250,000 of deposits to the Trust Account. Cash used in financing activities was $15,089,449 including $15,134,429 redemption of common stock and $15,000 in repayment of advances to related parties, partially offset by $30,000 of promissory note from Instant Fame and $29,980 of proceeds from the promissory notes - Evie.

As of June 30, 2025, we had cash held in the Trust Account of $1,168,644 consisting of demand deposit accounts (and including $972,722 payable to stockholders redeeming their shares at the May 2025 Special Meeting). Interest income on the balance in the Trust Account may be used by us to pay taxes. For the six months ended June 30, 2025, we have withdrawn $94,099 of interest earned on the Trust Account for the payment of franchise and income taxes.

We intend to use substantially all of the funds held in the Trust Account, including any amounts representing interest earned on the Trust Account (less taxes payable), to complete our Business Combination. To the extent that our capital stock or debt is used, in whole or in part, as consideration to complete our Business Combination, the remaining proceeds held in the Trust Account will be used as working capital to finance the operations of the target business or businesses, make other acquisitions and pursue our growth strategies.

**Liquidity, Capital Resources, and Going Concern - VisionWave Holdings, Inc. (Predecessor)**

VWH predecessor was formed on September 24, 2024 for the purpose of consummating a business combination and is not anticipated to exist upon consummation of the Merger Agreement. VWH predecessor has selected September 30 as its fiscal year end. However, VWH predecessor used December 31 as the comparative for the results of operations.

The parent company, Bannix, is within 12 months of its mandatory liquidation date as of June 30, 2025. In connection with VWH predecessor's assessment of going concern considerations, VWH predecessor had a temporarily extended deadline date beyond the June 14, 2025 Deadline Date to consummate a Business Combination. Bannix closed on its proposed Business Combination on July 14, 2025 alleviating the mandatory liquidation requirement.

Based on the foregoing, management believes that the funds VWH predecessor has available is sufficient to meet its operating needs through the consummation of a Business Combination through the temporarily extended Deadline Date. Over this time period, VWH predecessor will be utilizing the funds available to it to pay existing accounts payable and consummating the proposed Business Combination.

In connection with preparing the financial statements for the Three and Six months ended June 30, 2025, management evaluated whether there were conditions and events, considered in the aggregate, that raised substantial doubt about VWH predecessor's ability to continue as a going concern within one year from the date that the consolidated financial statements are issued.

As of June 30, 2025, VWH predecessor had no cash, a working capital deficit of $66,309 and no sources of funding other than funds that may be obtained from related parties.

Ordinarily, conditions or events that raise substantial doubt about an entity's ability to continue as a going concern relate to the entity's ability to meet its obligations as they become due.

VWH predecessor evaluated its ability to meet its obligations as they become due within one year from the date that the financial statements are issued by considering the following:

On April 8, 2025, with an effective date of March 31, 2025, Bannix, together with VWH predecessor, entered into a Funding Support Agreement with Stanley Hills, LLC ("Stanley Hills"), the principal shareholder of the VisionWave Technologies, Inc. Pursuant to the agreement, Stanley Hills irrevocably and unconditionally committed to provide financial support to Bannix, sufficient to fund working capital needs for a period not less than twelve (12) months from the date of release/issuance of the financial statement.

The funding may be provided by Stanley Hills in the form of direct payments to third parties, advances or intercompany loans, or capital contributions, as mutually determined by the parties. Unless otherwise agreed in writing, any such advances will be non-interest bearing and repayable only at such time as determined by the applicable entity's Board of Directors, and only to the extent such repayment would not impair Bannix's liquidity or ability to continue as a going concern. The agreement may not be terminated by Stanley Hills prior to the twelve-month period from the date of release of the financial statement.

Management has determined that the agreement with Stanley Hills and closing of the business combination elevated the risk about VWH predecessor's ability to continue as a going concern for a reasonable period of time, which is considered to be one year from the issuance of the financial statements.

The merger closing triggered substantial, actionable, and committed below funding access:

● Investor A is actively pushing to draw $2 million immediately and has committed to a $50 million equity line.

● Investor B has offered the Company $2 million in $300K tranches, and is likewise eager for us to proceed post-closing.

● Investor C is to finalize their $18 million ELOC and a $5 million pre-paid advance.

*Cash Flow Analysis*

For the six months ended June 30, 2025, cash used in operating activities was $44,500. VWH predecessor had a net loss of $75,056. We benefited by changes in operating assets and liabilities of $30,556. Cash provided by financing activities was $44,500 which was proceeds from related parties.

**Critical Accounting Estimates - VisionWave Holdings, Inc. (Successor)**

The preparation of these financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates. We have identified the following as our critical accounting policies:

*Fair Value of Warrant Liability*

The Company accounted for the Private Placement Warrants issued in connection with the IPO and private placement in accordance with the guidance contained in ASC Topic 815, "Derivatives and Hedging" whereby under that provision, the Private Warrants did not meet the criteria for equity treatment and were recorded as a liability. Accordingly, the Company classified the Private Warrants as a liability at fair value and adjusts them to fair value at each reporting period. This liability is re-measured at each balance sheet date until the Private Warrants are exercised or expire, and any change in fair value is recognized in the Company's statements of operations. The Public Warrants are classified as equity.

**Critical Accounting Estimates - Bannix Acquisition Corp. (Predecessor)**

The preparation of these financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates. We have identified the following as our critical accounting policies:

*Fair Value of Warrant Liability*

Bannix accounted for the Private Placement Warrants issued in connection with the IPO and private placement in accordance with the guidance contained in ASC Topic 815, "Derivatives and Hedging" whereby under that provision, the Private Warrants did not meet the criteria for equity treatment and were recorded as a liability. Accordingly, Bannix classified the Private Warrants as a liability at fair value and adjusts them to fair value at each reporting period. This liability is re-measured at each balance sheet date until the Private Warrants are exercised or expire, and any change in fair value is recognized in Bannix's statements of operations. The Public Warrants are classified as equity.

**Critical Accounting Estimates - VisionWave Holdings, Inc. (Predecessor)**

The preparation of these financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates. We have determined there are no critical accounting estimates.

**Recent Accounting Pronouncements**

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (ASU 2023-09), which requires disclosure of incremental income tax information within the rate reconciliation and expanded disclosures of income taxes paid, among other disclosure requirements. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company's management does not believe the adoption of ASU 2023-09 will have a material impact on its financial statements and disclosures.

Management does not believe that any other recently issued, but not yet effective, accounting pronouncements, if currently adopted, would have a material effect on the Company's financial statements.

**Off-Balance Sheet Arrangements; Commitments and Contractual Obligations**

**Registration Rights**

Pursuant to a registration rights agreement entered into on September 10, 2021, the holders of the founder shares, the private placement units and private placement units that may be issued upon conversion of working capital loans will be entitled to registration rights pursuant to a registration rights agreement to be signed prior to or on the closing date of this offering requiring us to register such securities for resale. The holders of these securities are entitled to make up to three demands, excluding short form demands, that we register such securities. In addition, the holders have certain "piggy-back" registration rights with respect to registration statements filed subsequent to the completion of our initial business combination. We will bear the expenses incurred in connection with the filing of any such registration statements.

**Underwriters Agreement**

The underwriters are entitled to a deferred underwriting discount of $225,000 in the aggregate which will be payable to the underwriters from the amounts to be brought in by the sponsors solely in the event that we complete a business combination, subject to the terms of the underwriting agreement. Additionally, the underwriters will be entitled to a business combination marketing fee of 3.5% of the gross proceeds of the sale of Units in the initial public offering held in the trust account upon the completion of the initial Business Combination subject to the terms of the underwriting agreement.

**Item 3. Quantitative and Qualitative Disclosures About Market Risk**

As a smaller reporting company, we are not required to make disclosures under this Item.

**Item 4. Controls and Procedures**

**Evaluation of Disclosure Controls and Procedures**

Disclosure controls are procedures that are designed with the objective of ensuring that information required to be disclosed in our reports filed under the Exchange Act, such as this Report, is recorded, processed, summarized, and reported within the time period specified in the SEC's rules and forms. Disclosure controls are also designed with the objective of ensuring that such information is accumulated and communicated to our management, including the chief executive officer and chief financial officer, as appropriate to allow timely decisions regarding required disclosure. Our management evaluated, with the participation of our current chief executive officer and chief financial officer (our "Certifying Officers"), the effectiveness of our disclosure controls and procedures as of June 30, 2025, pursuant to Rule 13a-15(b) under the Exchange Act. Based upon that evaluation, our Certifying Officers concluded that, as of June 30, 2025, our disclosure controls and procedures were not effective due to material weakness in our internal controls over financial reporting of complex financial instruments, fair value measurements, prepaid expense, income and franchise taxes and legal and professional fees.

Except as described in the Explanatory Note, conforming related references in the Management's Discussion and Analysis and the Index to Financial Statements, and updating Note 11—Subsequent Events, this Amendment does not modify, update, or amend any other information set forth in the Original Report and does not reflect events occurring after the filing of the Original Report. There were no changes in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) during the most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Disclosure controls and procedures are designed to ensure that information required to be disclosed by us in our Exchange Act reports is recorded, processed, summarized, and reported within the time periods specified in the SEC's rules and forms, and that such information is accumulated and communicated to our management team, including our principal executive officer and principal financial officer or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

We do not expect that our disclosure controls and procedures will prevent all errors and all instances of fraud. Disclosure controls and procedures, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the disclosure controls and procedures are met. Further, the design of disclosure controls and procedures must reflect the fact that there are resource constraints, and the benefits must be considered relative to their costs. Because of the inherent limitations in all disclosure controls and procedures, no evaluation of disclosure controls and procedures can provide absolute assurance that we have detected all our control deficiencies and instances of fraud, if any. The design of disclosure controls and procedures also is based partly on certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions.

**Material Weakness**

A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented or detected on a timely basis. On April 12, 2021, the staff of the SEC (the "SEC Staff") issued a public statement entitled "Staff Statement on Accounting and Reporting Considerations for Warrants issued by Special Purpose Acquisition Companies ("SPACs")" (the "SEC Staff Statement"). In the SEC Staff Statement, the SEC Staff expressed its view that certain terms and conditions common to SPAC warrants may require the warrants to be classified as liabilities on the SPAC's balance sheet as opposed to equity. In light of the SEC Staff Statement, the Company's management reevaluated the terms of the Public Warrants and Private Placement Warrants (together, the "warrants"), and determined that the Public Warrants should be classified as a component of equity. Our Private Placement Warrants were correctly reported as a liability measured at fair value upon issuance, with subsequent changes in fair value reported in earnings each reporting period.

Additionally, management evaluated the impacts of the transfer of shares to Anchor Investors. The transfer of shares to the Anchor Investors were fair valued as of the grant date and that fair value was allocated to the offering costs of the Company.

Associated with the reclassification of the Public Warrants to equity and the valuation of the Anchor Investor shares, the allocation of offering costs was re-allocated.

Additionally, we had a misstatement in our prepaid expense, income and franchise taxes and legal fees.

As a result of these reevaluations, management identified a material weakness in our internal control over financial reporting related to the accounting for complex financial instruments and fair value measurements and the failure to properly design the financial closing and reporting process to record, review and monitor compliance with generally accepted accounting principles for transactions on a timely basis.

*Changes in Internal Control over Financial Reporting*

There were no changes in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) during the most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. We are in the process of implementing changes to our internal control over financial reporting to remediate our material weakness, as more fully described above. The elements of our remediation plan can only be accomplished over time, and we can offer no assurance that these initiatives will ultimately have the intended effects.

**PART II—OTHER INFORMATION**

**Item 1. Legal Proceedings**

On September 5, 2025, Better Works LLC filed an action in the Supreme Court of the State of New York, New York County, captioned Better Works LLC v. VisionWave Holdings, Inc. and Douglas E. Davis, Index No. 655268/2025. The Summons with Notice asserts claims for breach of contract and seeks (i) a declaratory judgment regarding affiliate status and the applicability or expiration of certain lock-up provisions relating to private-placement units exchanged in connection with the Company's business combination, (ii) injunctive relief permitting the plaintiff to sell such units, and (iii) monetary damages in an amount to be determined. Service of process addressed to VisionWave's Delaware registered agent was recorded as received on September 9, 2025. On September 30, 2025, counsel for the Company and Mr. Davis served a demand for the complaint pursuant to CPLR 3012(b), expressly reserving all defenses, including objections to service and personal jurisdiction. As of the date of this Report, no complaint has been served on the defendants. The Company believes the asserted claims are without merit and intends to defend the matter vigorously.

Except as described above, the Company is not a party to any other pending legal proceedings that management believes, individually or in the aggregate, would have a material adverse effect on the Company's business, financial condition, or results of operations.

**Item 1A. Risk Factors**

***We have identified a material weakness in our internal control over financial reporting as of June 30, 2025. If we are unable to develop and maintain an effective system of internal control over financial reporting, we may not be able to accurately report our financial results in a timely manner, which may adversely affect investor confidence in us and materially and adversely affect our business and operating results.***

As described elsewhere in this Quarterly Report on Form 10-Q, we have identified a material weakness in our internal control over financial reporting related to the Company's accounting and reporting of complex financial instruments. As a result of this material weakness, our management has concluded that our disclosure controls and procedures were not effective as of June 30, 2025. See Part I. Item 4. Controls and Procedures included in this Quarterly Report on Form 10-Q. We have taken measures to remediate the material weaknesses described herein. However, if we are unable to remediate our material weaknesses in a timely manner or we identify additional material weaknesses, we may be unable to provide required financial information in a timely and reliable manner and we may incorrectly report financial information. Likewise, if our financial statements are not filed on a timely basis, we could be subject to sanctions or investigations by the stock exchange on which our common stock are listed, the SEC or other regulatory authorities. The existence of material weaknesses in internal control over financial reporting could adversely affect our reputation or investor perceptions of us, which could have a negative effect on the trading price of our shares. We can give no assurance that the measures we have taken and plan to take in the future will remediate the material weakness identified or that any additional material weaknesses or restatements of financial results will not arise in the future due to a failure to implement and maintain adequate internal control over financial reporting or circumvention of these controls. Even if we are successful in strengthening our controls and procedures, in the future those controls and procedures may not be adequate to prevent or identify irregularities to facilitate the fair presentation of our financial statements.

A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented or detected and corrected on a timely basis.

Effective internal controls are necessary for us to provide reliable financial reports and prevent fraud. We continue to evaluate steps to remediate the material weakness. These remediation measures may be time consuming and costly and there is no assurance that these initiatives will ultimately have the intended effects.

If we identify any new material weaknesses in the future, any such newly identified material weakness could limit our ability to prevent or detect a misstatement of our accounts or disclosures that could result in a material misstatement of our annual or interim financial statements. In such case, we may be unable to maintain compliance with securities law requirements regarding timely filing of periodic reports in addition to applicable stock exchange listing requirements, investors may lose confidence in our financial reporting and our stock price may decline as a result. We cannot assure you that any measures we may take in the future, will be sufficient to avoid potential future material weaknesses.

**Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.**

**Short Term Funding**

On July 15, 2025, the Company entered into a Securities Purchase Agreements (the "July 2025 SPAs") with two unaffiliated accredited investors ("July 2025 Lenders"), pursuant to which the Company issued promissory notes (the "July 2025 Notes") to the July 2025 Lenders in the aggregate principal amount of $354,200, which includes an aggregate original issue discount of $46,200, for a purchase price of $308,000. The July 2025 Notes bear interest at a one-time charge of 12% applied on the issuance date, mature on May 15, 2026, and is repayable in five monthly payments commencing January 15, 2026. The July 2025 Notes are convertible into shares of the Company's common stock, par value $0.01 per share (the "Common Stock"), solely upon an event of default, at a conversion price equal to 75% of the lowest trading price during the ten trading days prior to conversion. The Company also entered into an irrevocable transfer agent instructions letter with its transfer agent in connection with the July 2025 Notes. The proceeds from the issuances of the July 2025 Notes will be used for general working capital purposes. The July 2025 Lenders have piggyback registration rights and have agreed not to engage in short sales of the Company's common stock during the term of the July 2025 Notes. The July 2025 Notes include customary representations, warranties, covenants, and default provisions. The Company may prepay the July 2025 Notes within the first 180 days.

The loan pursuant to the July 2025 Notes closed and funded on July 17, 2025.

**Standby Equity Purchase Agreement**

On July 25, 2025, the Company entered into the Standby Equity Purchase Agreement ("SEPA") with YA II PN, LTD, a Cayman Islands exempt limited partnership ("Investor") pursuant to which the Company has the right to sell to Investor up to $50 million of its shares of common stock, subject to certain limitations and conditions set forth in the SEPA, from time to time during the term of the SEPA, from time to time during the term of the SEPA.

Upon the satisfaction of the conditions to Investor's purchase obligation set forth in the SEPA, including having a registration statement registering the resale of the shares of common stock issuable under the SEPA declared effective by the SEC, the Company will have the right, but not the obligation, from time to time at its discretion until the SEPA is terminated to direct Investor to purchase a specified number of shares of common stock ("Advance") by delivering written notice to Investor ("Advance Notice"). While there is no mandatory minimum amount for any Advance, it may not exceed an amount equal to 100% of the average of the daily traded amount during the five consecutive trading days immediately preceding an Advance Notice.

The shares of common stock purchased pursuant to an Advance delivered by the Company will be purchased at a price equal to 97% of the lowest daily VWAP of the shares of common stock during the three consecutive trading days commencing on the date of the delivery of the Advance Notice, other than the daily VWAP on a day in which the daily VWAP is less than a minimum acceptable price as stated by the Company in the Advance Notice or there is no VWAP on the subject trading day. The Company may establish a minimum acceptable price in each Advance Notice below which the Company will not be obligated to make any sales to Investor. "VWAP" is defined as the daily volume weighted average price of the shares of common stock for such trading day on the Nasdaq Stock Market during regular trading hours as reported by Bloomberg L.P.

In connection with the SEPA, and subject to the condition set forth therein, Investor has agreed to advance to the Company in the form of convertible promissory notes (the "Convertible Notes") an aggregate principal amount of $5.0 million (the "Pre-Paid Advance"). The first Pre-Paid Advance was disbursed on July 25, 2025 with respect to $3.0 million and the balance of $2.0 million will be disbursed upon the registration statement registering the resale of the shares of common stock issuable under the SEPA being declared effective. The purchase price for the Pre-Paid Advance is 94% of the principal amount of the Pre-Paid Advance. Interest shall accrue on the outstanding balance of any Pre-Paid Advance at an annual rate equal to 6.0%, subject to an increase to 18% upon an event of default as described in the Convertible Notes. The maturity date will be 12-months after the closing of each tranche of the Pre-Paid Advance. Investor may convert the Convertible Notes into shares of the Company's common stock at a conversion price equal to the lower of $10.00 or 93% of the lowest daily VWAP during the five consecutive trading days immediately preceding the conversion (the "Conversion Price"), which in no event may the Conversion Price be lower than $1.00 (the "Floor Price"). In addition, upon the occurrence and during the continuation of an event of default, the Convertible Notes shall become immediately due and payable and the Company shall pay to Investor the principal and interest due thereunder. In no event shall Investor be allowed to effect a conversion if such conversion, along with all other shares of common stock beneficially owned by Investor and its affiliates would exceed 4.99% of the outstanding shares of the common stock of the Company. If any time on or after the issuance of the Convertible Notes (i) the daily VWAP is less than the Floor Price for five trading days during a period of seven consecutive trading days ("Floor Price Trigger"), or (ii) the Company has issued in excess of 99% of the shares of common stock available under the Exchange Cap, where applicable ("Exchange Cap Trigger" and collectively with the Floor Price Trigger, the "Trigger")), then the Company shall make monthly payments to Investor beginning on the seventh trading day after the Trigger and continuing monthly in the amount of $750,000 plus an 5.0% premium and accrued and unpaid interest. The Exchange Cap Trigger will not apply in the event the Company has obtained the approval from its stockholders in accordance with the rules of Nasdaq Stock Market for the issuance of shares of common stock pursuant to the transactions contemplated in the Convertible Note and the SEPA in excess of 19.99% of the aggregate number of shares of common stock issued and outstanding as of the effective date of the SEPA (the "Exchange Cap").

Investor, in its sole discretion and providing that there is a balance remaining outstanding under the Convertible Notes, may deliver a notice under the SEPA requiring the issuance and sale of shares of common stock to Investor at the Conversion Price in consideration of an offset of the Convertible Notes ("Investor Advance"). Investor, in its sole discretion, may select the amount of any Investor Advance, provided that the number of shares issued does not cause Investor to exceed the 4.99% ownership limitation, does not exceed the Exchange Cap or the number of shares of common stock that are registered. As a result of a Investor Advance, the amounts payable under the Convertible Notes will be offset by such amount subject to each Investor Advance.

The Company will control the timing and amount of any sales of shares of common stock to Investor, except with respect to Investor Advances. Actual sales of shares of common stock to Investor as an Advance under the SEPA will depend on a variety of factors to be determined by the Company from time to time, which may include, among other things, market conditions, the trading price of the Company's common stock and determinations by the Company as to the appropriate sources of funding for our business and operations.

The SEPA will automatically terminate on the earliest to occur of (i) the 24-month anniversary of the date of the SEPA or (ii) the date on which Investor shall have made payment of Advances pursuant to the SEPA for shares of common stock equal to $50,000,000. We have the right to terminate the SEPA at no cost or penalty upon five (5) trading days' prior written notice to Investor, provided that there are no outstanding Advance Notices for which shares of common stock need to be issued and the Company has paid all amounts owed to Investor pursuant to the Convertible Notes. The Company and Investor may also agree to terminate the SEPA by mutual written consent. Neither the Company nor Investor may assign or transfer our respective rights and obligations under the SEPA, and no provision of the SEPA may be modified or waived by us or Investor other than by an instrument in writing signed by both parties.

As consideration for Investor's commitment to purchase the shares of common stock pursuant the SEPA, the Company paid Investor, (i) a structuring fee in the amount of $35,000 and (ii) 200,000 shares of common stock as an equity fee. Further, the Company is required to pay Investor a commitment fee of $500,000 of which $250,000 shall be due and payable on the earlier of the effective date of the initial registration statement, or 60 days following the date hereof and the remaining $250,000 shall be due and payable on the date that is 90 days following the initial due date to be paid by the issuance of such number of common shares that is equal to the applicable portion of the commitment fee divided by the average of the daily VWAPs of the common shares during the three trading days immediately prior to the applicable due date.

The SEPA contains customary representations, warranties, conditions and indemnification obligations of the parties. The representations, warranties and covenants contained in such agreements were made only for purposes of such agreements and as of specific dates, were solely for the benefit of the parties to such agreements and may be subject to limitations agreed upon by the contracting parties.

The net proceeds under the SEPA to the Company will depend on the frequency and prices at which the Company sells its shares of common stock to Investor. The Company expects that any proceeds received from such sales to Investor will be used for working capital and general corporate purposes.

**Executives' Employment Agreements**

On August 6, 2025, the Company entered into employment agreements (each, an "Employment Agreement") with Douglas Davis, as Executive Chairman, Noam Kenig, as Chief Executive Officer, and Danny Rittman, as Chief Technology Officer (collectively, the "Executives"). Each Employment Agreement has an initial term of three (3) years, commencing on August 6, 2025, and is subject to automatic one-year renewals thereafter unless terminated by either party with at least thirty (30) days' prior written notice. Additionally, pursuant to the Employment Agreements and under the Plan (subject to shareholder approval thereof), the Company granted non-statutory stock options (each, an "Option") to the Executives as follows:

● Mr. Davis and Mr. Kenig were each granted Options to purchase 2,000,000 shares of Common Stock.

● Mr. Rittman was granted an Option to purchase 500,000 shares of Common Stock.

Each Option has an exercise price of $7.20 per share (to be determined as the fair market value on the grant date) and vests in twelve (12) equal quarterly installments over four (4) years, commencing on the date of shareholder approval of the Plan (the "Approval Date"). The Options are exercisable for five (5) years from the grant date and allow for cashless exercise. The grants are contingent upon shareholder approval of the Plan; if not approved, the Options will be null and void.

The above securities were issued in reliance on the exemption from registration provided by Section 4(a)(2) of the Securities Act of 1933, as amended (the "Securities Act"), as the issuances did not involve a public offering, and no underwriters were involved.

**Item 3. Defaults Upon Senior Securities**

None.

**Item 4. Mine Safety Disclosures**

None.

**Item 5. Other Information**

During the quarter ended June 30, 2025, no director or officer of the Company adopted or terminated a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement," as each term is defined in Item 408(a) of Regulation S-K.

**Item 6. Exhibits**

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | **Incorporated by Reference** | **Incorporated by Reference** | **Incorporated by Reference** | **Incorporated by Reference** |
| **Exhibit** | **Description** | **Schedule/<br> Form** | **File Number** | **Exhibits** | **Filing Date** |
| 2.1 | [Merger Agreement and Plan of Reorganization by and among Bannix Acquisition Corp., VisionWave Holdings, Inc., BNIX Merger Sub, Inc. and BNIX VW Merger Sub, Inc. dated September 6, 2024 (included as Annex A to the proxy statement/prospectus)](http://www.sec.gov/Archives/edgar/data/1845942/000173112225000587/e6527_s-4a4.htm#a_036) | Form S-4 | 333-284472 | 2.1 | April 18, 2025 |
| 3.1 | [Amended and Restated Certificate of Incorporation of VisionWave Holdings Inc.](http://www.sec.gov/Archives/edgar/data/2038439/000173112225000977/e6701_ex3-1.htm) | Form 8-K | 001-42741 | 3.1 | July 14, 2025 |
| 3.2 | [Bylaws of VisionWave Holdings Inc.](http://www.sec.gov/Archives/edgar/data/2038439/000173112225000977/e6701_ex3-2.htm) | Form 8-K | 001-42741 | 3.2 | July 14, 2025 |
| 10.1 | [VisionWave Holdings Inc. 2024 Incentive Equity Plan](http://www.sec.gov/Archives/edgar/data/2038439/000173112225000977/e6701_ex10-1.htm) | Form 8-K | 001-42741 | 10.1 | July 14, 2025 |
| 10.2 | [Standby Equity Purchase Agreement, dated July 25, 2025, between VisionWave Holdings, Inc. and YA II PN, Ltd.](http://www.sec.gov/Archives/edgar/data/2038439/000173112225001035/e6737_ex10-1.htm) | Form 8-K | 001-42741 | 10.1 | July 28, 2025 |
| 10.3 | [Form of Convertible Promissory Notes issued to YA II PN, Ltd.](http://www.sec.gov/Archives/edgar/data/2038439/000173112225001035/e6737_ex10-2.htm) | Form 8-K | 001-42741 | 10.2 | July 28, 2025 |
| 10.4 | [Registration Rights Agreement, dated July 25, 2025, between VisionWave Holdings, Inc. and YA II PN, Ltd.](http://www.sec.gov/Archives/edgar/data/2038439/000173112225001035/e6737_ex10-3.htm) | Form 8-K | 001-42741 | 10.3 | July 28, 2025 |
| 10.5 | [Global Guaranty Agreement by VisionWave Technologies, Inc. in favor of YA II PN, LTD. dated July 25, 2025](http://www.sec.gov/Archives/edgar/data/2038439/000173112225001035/e6737_ex10-4.htm) | Form 8-K | 001-42741 | 10.4 | July 28, 2025 |
| 10.6 | [2025 Omnibus Equity Incentive Plan](http://www.sec.gov/Archives/edgar/data/2038439/000173112225001078/e6756_ex10-1.htm) | Form 8-K | 001-42741 | 10.1 | August 6, 2025 |
| 10.7 | [Employment Agreement, dated August 6, 2025, by and between the Company and Douglas Davis](http://www.sec.gov/Archives/edgar/data/2038439/000173112225001078/e6756_ex10-2.htm) | Form 8-K | 001-42741 | 10.2 | August 6, 2025 |
| 10.8 | [Employment Agreement, dated August 6, 2025, by and between the Company and Noam Kenig](http://www.sec.gov/Archives/edgar/data/2038439/000173112225001078/e6756_ex10-3.htm) | Form 8-K | 001-42741 | 10.3 | August 6, 2025 |
| 10.9 | [Employment Agreement, dated August 6, 2025, by and between the Company and Danny Rittman](http://www.sec.gov/Archives/edgar/data/2038439/000173112225001078/e6756_ex10-4.htm) | Form 8-K | 001-42741 | 10.4 | August 6, 2025 |
| 10.10 | [Form of Nonstatutory Stock Option Agreement, dated August 6, 2025](http://www.sec.gov/Archives/edgar/data/2038439/000173112225001078/e6756_ex10-5.htm) | Form 8-K | 001-42741 | 10.5 | August 6, 2025 |
| 10.11 | [Form of Proprietary & Confidential Information, Inventions Assignment, Non-Solicitation and Non-Competition Agreement](http://www.sec.gov/Archives/edgar/data/2038439/000173112225001078/e6756_ex10-6.htm) | Form 8-K | 001-42741 | 10.6 | August 6, 2025 |
| 10.12 | [Form of Mutual Agreement to Arbitrate](http://www.sec.gov/Archives/edgar/data/2038439/000173112225001078/e6756_ex10-7.htm) | Form 8-K | 001-42741 | 10.7 | August 6, 2025 |
| 10.13 | [Form of Securities Purchase Agreement dated July 15, 2025](http://www.sec.gov/Archives/edgar/data/2038439/000173112225001156/e6773_ex10-13.htm) | Form 10-Q | 001-42741 | 10.13 | August 19, 2025 |
| 10.14 | [Form of Promissory Note dated July 15, 2025](http://www.sec.gov/Archives/edgar/data/2038439/000173112225001156/e6773_ex10-14.htm) | Form 10-Q | 001-42741 | 10.14 | August 19, 2025 |
| 10.15++ | [Strategic Joint Venture Agreement, dated August 25, 2025, by and among VisionWave Holdings, Inc., AIPHEX LTD, GBT Tokenize Corp., and GBT Technologies, Inc.](http://www.sec.gov/Archives/edgar/data/2038439/000173112225001174/e6807_ex10-1.htm) | Form 8-K | 001-42741 | 10.1 | August 26, 2025 |
| 10.16 | [Employment Agreement, dated September 2, 2025, by and between the Company and Elad Shoval - CRO](http://www.sec.gov/Archives/edgar/data/2038439/000173112225001193/e6821_ex10-1.htm) | Form 8-K | 001-42741 | 10.1 | September 3, 2025 |
| 10.17 | [Employment Agreement, dated September 2, 2025, by and between the Company and David Allon - COO](http://www.sec.gov/Archives/edgar/data/2038439/000173112225001193/e6821_ex10-2.htm) | Form 8-K | 001-42741 | 10.2 | September 3, 2025 |
| 10.18 | [Employment Agreement, dated September 2, 2025, by and between the Company and Jez Williman - Senior Systems Engineer – UGV](http://www.sec.gov/Archives/edgar/data/2038439/000173112225001193/e6821_ex10-3.htm) | Form 8-K | 001-42741 | 10.3 | September 3, 2025 |
| 10.19 | [Form of Nonstatutory Stock Option Agreement](http://www.sec.gov/Archives/edgar/data/2038439/000173112225001193/e6821_ex10-4.htm) | Form 8-K | 001-42741 | 10.4 | September 3, 2025 |
| 10.20 | [Memorandum of Understanding, dated September 2, 2025, by and between VisionWave Holdings, Inc. and VEDA Aeronautics Private Limited.](http://www.sec.gov/Archives/edgar/data/2038439/000173112225001202/e6820_ex10-1.htm) | Form 8-K | 001-42741 | 10.1 | September 5, 2025 |
| 10.21 | [Letter Agreement, dated September 11, 2025, between VisionWave Holdings, Inc. and YA II PN, Ltd.](http://www.sec.gov/Archives/edgar/data/2038439/000173112225001234/e6843_ex10-1.htm) | Form 8-K | 001-42741 | 10.1 | September 12, 2025 |
| 10.22 | [Convertible Promissory Note, dated September 11, 2025, issued by VisionWave Holdings, Inc. to YA II PN, Ltd.](http://www.sec.gov/Archives/edgar/data/2038439/000173112225001234/e6843_ex10-2.htm) | Form 8-K | 001-42741 | 10.2 | September 12, 2025 |
| 10.23 | [Form of Convertible Promissory Note to be issued by VisionWave Holdings, Inc. to YA II PN, Ltd.](http://www.sec.gov/Archives/edgar/data/2038439/000173112225001234/e6843_ex10-3.htm) | Form 8-K | 001-42741 | 10.3 | September 12, 2025 |
| 10.24 | [Form of Independent Director Engagement Agreement](http://www.sec.gov/Archives/edgar/data/2038439/000173112225001234/e6843_ex10-1.htm) | Form 8-K | 001-42741 | 10.1 | September 12, 2025 |
| 10.25 | [Form of Compensation Agreement between VisionWave Holdings, Inc. and former directors of Bannix Acquisition Corp.](http://www.sec.gov/Archives/edgar/data/2038439/000173112225001234/e6843_ex10-2.htm) | Form 8-K | 001-42741 | 10.2 | September 12, 2025 |
| 10.26 | [Consulting Agreement, dated September 26, 2025, by and between VisionWave Holdings, Inc. and Crypto Treasury Management Group, LLC.](http://www.sec.gov/Archives/edgar/data/2038439/000173112225001325/e6876_ex10-1.htm) | Form 8-K | 001-42741 | 10.1 | September 30, 2025 |
| 14.1 | [Code of Ethics of VisionWave Holdings Inc.](http://www.sec.gov/Archives/edgar/data/2038439/000173112225001006/e6720_ex14-1.htm) | Form 8-K | 001-42741 | 14.1 | July 22, 2025 |
| 31.1\* | [Certification of Principal Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.](e6936_ex31-1.htm) |  |  |  |  |
| 31.2\* | [Certification of Principal Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.](e6936_ex31-2.htm) |  |  |  |  |
| 32.1\*+ | [Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](e6936_ex32-1.htm) |  |  |  |  |
| 32.2\*+ | [Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](e6936_ex32-2.htm) |  |  |  |  |
| 97 | [Compensation Recovery Policy of VisionWave Holdings Inc., effective May 29, 2025](http://www.sec.gov/Archives/edgar/data/2038439/000173112225001006/e6720_ex99-3.htm) | Form 8-K | 001-42741 | 99.3 | July 22, 2025 |
| 99.1 | [Policy on Granting Equity Awards of VisionWave Holdings Inc., adopted July 16, 2025](http://www.sec.gov/Archives/edgar/data/2038439/000173112225001006/e6720_ex99-1.htm) | Form 8-K | 001-42741 | 99.1 | July 22, 2025 |
| 99.2 | [Insider Trading Policy of VisionWave Holdings Inc., adopted July 16, 2025](http://www.sec.gov/Archives/edgar/data/2038439/000173112225001006/e6720_ex99-2.htm) | Form 8-K | 001-42741 | 99.2 | July 22, 2025 |

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| | |
|:---|:---|
| **Exhibit<br> Number** | **Description** |
| 101.INS\* | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document |
| 101.SCH\* | XBRL Taxonomy Extension Schema Document |
| 101.CAL\* | XBRL Taxonomy Extension Calculation Linkbase Document |
| 101.DEF\* | XBRL Taxonomy Extension Definition Linkbase Document |
| 101.LAB\* | XBRL Taxonomy Extension Label Linkbase Document |
| 101.PRE\* | XBRL Taxonomy Extension Presentation Linkbase Document |
| 104\* | Cover Page Interactive Data File - The cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document |

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| | |
|:---|:---|
| \* | Filed herewith. |
| + | These certifications are furnished to the SEC pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and are deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall they be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing. |
| ++ | Portions of this exhibit have been redacted pursuant to Item 601(b)(10)(iv) of Regulation S-K. |

---

**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.

---

| | | |
|:---|:---|:---|
|  | **VISIONWAVE HOLDINGS, INC.** | **VISIONWAVE HOLDINGS, INC.** |
| Date: November 4, 2025 | By: | /s/ Douglas Davis |
|  | Name: | Douglas Davis |
|  | Title: | Executive Chairman |
|  |  | (Principal Executive Officer) |
|  | **VISIONWAVE HOLDINGS, INC.** | **VISIONWAVE HOLDINGS, INC.** |
| Date: November 4, 2025 | By: | /s/ Noam Kenig |
|  | Name: | Noam Kenig |
|  | Title: | Chief Executive Officer<br> (Principal Executive Officer) |

---

---

| | | |
|:---|:---|:---|
|  | **VISIONWAVE HOLDINGS, INC.** | **VISIONWAVE HOLDINGS, INC.** |
| Date: November 4, 2025 | By: | /s/ Erik Klinger |
|  | Name: | Erik Klinger |
|  | Title: | Chief Financial Officer |
|  |  | (Principal Financial and Accounting Officer) |

---

## Exhibit 31.1

**Exhibit 31.1**

**CERTIFICATION OF CHIEF EXECUTIVE OFFICER<br> PURSUANT TO RULE 13A-14(A) UNDER THE SECURITIES EXCHANGE ACT OF 1934,<br> AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, Noam Kenig, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q/A of VisionWave Holdings, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the registrant, is made known to us by others within those entities, particularly during the period in which this report is being prepared; and

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under my supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; and

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report my conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: November 4, 2025

---

| |
|:---|
| /s/ Noam Kenig |
| Noam Kenig |
| Chief Executive Officer |
| (Principal Executive Officer) |

---

## Exhibit 31.2

**Exhibit 31.2**

**CERTIFICATION OF CHIEF FINANCIAL OFFICER<br> PURSUANT TO RULE 13A-14(A) UNDER THE SECURITIES EXCHANGE ACT OF 1934,<br> AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, Erik Klinger, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q/A of VisionWave Holdings, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the registrant, is made known to us by others within those entities, particularly during the period in which this report is being prepared; and

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under my supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; and

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report my conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: November 4, 2025

---

| |
|:---|
| /s/ Erik Klinger |
| Erik Klinger |
| Chief Financial Officer |
| (Principal Financial and Accounting Officer) |

---

## Exhibit 32.1

**Exhibit 32.1**

**CERTIFICATIONS PURSUANT TO**

 **18 U.S.C. SECTION 1350,**

 **AS ADOPTED PURSUANT TO**

 **SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the Quarterly Report of VisionWave Holdings, Inc. (the "Company") on Form 10-Q/A for the quarter ended June 30, 2025 as filed with the Securities and Exchange Commission (the "Report"), the undersigned, in the capacities and on the date indicated below, hereby certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operation of the Company.

Date: November 4, 2025

---

| |
|:---|
| /s/ Noam Kenig |
| Noam Kenig |
| Chief Executive Officer |
| (Principal Executive Officer) |

---

## Exhibit 32.2

**Exhibit 32.2**

**CERTIFICATIONS PURSUANT TO**

**18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO**

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the Quarterly Report of VisionWave Holdings, Inc. (the "Company") on Form 10-Q/A for the quarter ended June 30, 2025 as filed with the Securities and Exchange Commission (the "Report"), the undersigned, in the capacities and on the date indicated below, hereby certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operation of the Company.

Date: November 4, 2025

---

| |
|:---|
| /s/ Erik Klinger |
| Erik Klinger |
| Chief Financial Officer |
| (Principal Accounting and Financial Officer) |

---