SILMO Paris attracted over 32,000 visitors from more than 130 countries, with 51% international attendance, making it one of the most important global gatherings for the optical industry. The Company's participation aligns with its strategic focus on international expansion, particularly as smart eyewear adoption accelerates in markets outside the United States, where pedestrian and public transit usage create ideal use cases for open-ear audio and AI assistance. Company Showcased at SILMO's Inaugural Smart ...

Core Insights - Innovative Eyewear, Inc. has launched a significant update to its Lucyd app, introducing a new translation feature that allows for voice-based translations, enhancing the utility of its smart eyewear products [1][3]. Product Features - The Lucyd app now includes a translation feature that supports real-time translation between 17 languages, including Chinese, Japanese, and Arabic, making it particularly useful for travel and cross-language communication [8]. - The app operates without the need for typing, allowing users to speak and hear their preferred language seamlessly, and it can function offline once languages are downloaded [8]. - The Lucyd app has been downloaded over 18,000 times, and a paid Pro version is available for $7.99/month, which offers unlimited ChatGPT queries and secure Walkie channels for business use [5]. Company Strategy - The CEO of Innovative Eyewear emphasized the importance of the Lucyd app in introducing new features and services, positioning it as a critical tool for both existing and potential users of their smart eyewear [5]. - The company aims to enhance user experience by integrating advanced features like voice access to ChatGPT and the new translation capability, which is seen as a "killer app" for wearables [5][3].

Core Viewpoint - Innovative Eyewear Inc. reported significant revenue growth in Q2 2025, driven by new product launches and increasing consumer demand for smart eyewear [1][3][7]. Financial Performance - Net revenue for Q2 2025 was $579,230, an 88% increase from Q2 2024 [3]. - Year-to-date net revenue for the six months ended June 30, 2025, was $1,033,731, a 49% increase compared to the same period in 2024 [3]. - The gross profit margin for Q2 2025 was -2%, down from 18% in the same period last year, primarily due to higher custom duties and tariffs [4]. - For the six months ended June 30, 2025, the gross profit margin was 20%, an increase of 11 percentage points from the prior year [4]. - The company reported a net loss of $(2,106,094) or $(0.66) per share for Q2 2025, compared to a loss of $(1,948,399) or $(1.87) per share in Q2 2024 [9]. Product Development and Market Strategy - The Lucyd Armor smart safety glasses, launched in October 2024, accounted for nearly half of total units sold in Q2 2025 [3]. - The Reebok Powered by Lucyd collection, launched in April 2025, features the best audio quality to date, reflecting a strategic initiative to enhance product sound quality [3]. - The company is diversifying its logistics network and expanding sales outside the U.S. to mitigate tariff impacts [4][7]. Partnerships and Milestones - Innovative Eyewear entered a partnership with Smartech Retail Group to showcase its smart eyewear at the TM:RW flagship store in Times Square [8]. - A partnership with EyeRecommend was established to provide smart eyewear to over 600 independent optometry stores across Canada [8]. Future Outlook - Management is optimistic about mitigating tariff effects on gross margins and aims to build a globally-focused business with significant distribution outside the U.S. [7]. - The company believes it is well-positioned to grow revenue and market share in the second half of 2025, particularly with the new Reebok product line and continued traction of the Lucyd Armor glasses [7].

[Part I. Financial Information](index=5&type=section&id=Part%20I.%20Financial%20Information) This section presents the unaudited condensed financial statements and management's discussion and analysis for Innovative Eyewear, Inc. [Item 1. Condensed Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Condensed%20Financial%20Statements%20(Unaudited)) Presents Innovative Eyewear, Inc.'s unaudited condensed financial statements, including balance sheets, operations, equity, and cash flows. [Condensed Balance Sheets](index=5&type=section&id=Condensed%20Balance%20Sheets%20as%20of%20June%2030%2C%202025%20(Unaudited)%20and%20December%2031%2C%202024) Summarizes the Company's financial position, including assets, liabilities, and equity, as of June 30, 2025, and December 31, 2024. Condensed Balance Sheets as of June 30, 2025 and December 31, 2024 | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :-------------- | :---------------- | | **Assets** | | | | Cash and cash equivalents | $7,627,382 | $2,628,987 | | Investments | $1,285,263 | $4,895,184 | | Total Current Assets | $11,332,989 | $9,238,216 | | TOTAL ASSETS | $11,935,772 | $9,838,309 | | **Liabilities** | | | | Total Current Liabilities | $606,060 | $737,718 | | TOTAL LIABILITIES | $658,518 | $743,168 | | **Stockholders' Equity** | | | | TOTAL STOCKHOLDERS' EQUITY | $11,277,254 | $9,095,141 | [Condensed Statements of Operations](index=6&type=section&id=Condensed%20Statements%20of%20Operations%20for%20the%20three%20and%20six%20months%20ended%20June%2030%2C%202025%20and%202024%20(Unaudited)) Presents the Company's revenues, costs, and net loss for the three and six months ended June 30, 2025 and 2024. Condensed Statements of Operations for the three and six months ended June 30, 2025 and 2024 | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenues, net | $579,230 | $308,682 | $1,033,731 | $692,153 | | Less: Cost of Goods Sold | $(591,895) | $(253,506) | $(825,863) | $(630,026) | | Gross (Deficit) Profit | $(12,665) | $55,176 | $207,868 | $62,127 | | Total Operating Expenses | $(2,158,407) | $(2,029,534) | $(4,282,731) | $(4,051,076) | | Net Loss | $(2,106,094) | $(1,948,399) | $(3,884,797) | $(3,919,710) | | Loss per share, basic and diluted | $(0.66) | $(1.87) | $(1.37) | $(4.37) | [Condensed Statements of Stockholders' Equity](index=7&type=section&id=Condensed%20Statements%20of%20Stockholders'%20Equity%20for%20the%20three%20and%20six%20months%20ended%20June%2030%2C%202025%20and%202024%20(Unaudited)) Details changes in stockholders' equity, including common stock, additional paid-in capital, and accumulated deficit, for the periods presented. Condensed Statements of Stockholders' Equity for the three and six months ended June 30, 2025 and 2024 | Metric | Balances as of January 1, 2025 | Balances as of June 30, 2025 | Balances as of January 1, 2024 | Balances as of June 30, 2024 | | :-------------------------------- | :----------------------------- | :--------------------------- | :----------------------------- | :--------------------------- | | Common Stock (Shares) | 2,452,632 | 4,828,884 | 747,416 | 1,527,034 | | Common Stock (Amount) | $25 | $48 | $7 | $15 | | Additional Paid In Capital | $33,831,046 | $39,897,933 | $22,528,234 | $28,233,205 | | Accumulated Deficit | $(24,735,930) | $(28,620,727) | $(16,969,415) | $(20,889,125) | | Total Stockholders' Equity | $9,095,141 | $11,277,254 | $5,558,826 | $7,344,095 | - Total Stockholders' Equity increased from **$9,095,141** as of January 1, 2025, to **$11,277,254** as of June 30, 2025, primarily due to warrant inducement transactions and other warrant exercises, which contributed significantly to additional paid-in capital[15](index=15&type=chunk) [Condensed Statements of Cash Flows](index=8&type=section&id=Condensed%20Statements%20of%20Cash%20Flows%20for%20the%20six%20months%20ended%20June%2030%2C%202025%20and%202024%20(Unaudited)) Outlines cash flows from operating, investing, and financing activities for the six months ended June 30, 2025 and 2024. Condensed Statements of Cash Flows for the six months ended June 30, 2025 and 2024 | Cash Flow Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Net cash flows from operating activities | $(4,427,553) | $(3,396,689) | | Net cash flows from investing activities | $3,665,912 | $(113,811) | | Net cash flows from financing activities | $5,760,036 | $5,119,942 | | Net Change in Cash and cash equivalents | $4,998,395 | $1,609,442 | | Cash and cash equivalents at End of Period | $7,627,382 | $5,896,889 | - Net cash from investing activities significantly increased in H1 2025 due to proceeds from redemption of U.S. Treasury bills, offsetting increased cash used in operating activities[18](index=18&type=chunk) [Notes to the Financial Statements](index=10&type=section&id=Notes%20to%20the%20Financial%20Statements%20(Unaudited)) Provides detailed explanations and disclosures supporting the unaudited condensed financial statements. [NOTE 1 – General Information](index=10&type=section&id=NOTE%201%20%E2%80%93%20GENERAL%20INFORMATION) Outlines the Company's business, products, and ownership structure. - Innovative Eyewear, Inc. develops and sells smart eyewear, including prescription, sunglasses, safety, and sport glasses, under the Lucyd brand and licensed brands like Nautica, Eddie Bauer, and Reebok. Tekcapital Plc, through Tekcapital Europe, Ltd. and Lucyd Ltd., owned approximately **6%** of the Company's common stock as of June 30, 2025[21](index=21&type=chunk) [NOTE 2 – Summary of Significant Accounting Policies](index=10&type=section&id=NOTE%202%20%E2%80%93%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) Describes the key accounting principles and methods used in preparing the financial statements. - The financial statements are prepared in accordance with GAAP for interim financial information, with certain disclosures condensed or omitted per SEC rules. Management's estimates are used, and actual results may differ due to economic uncertainties[22](index=22&type=chunk)[23](index=23&type=chunk)[24](index=24&type=chunk) - Investments in U.S. Treasury bills are classified as 'held-to-maturity' and recorded at amortized cost. A realized gain of **$104,816** was recognized for the six months ended June 30, 2025, from matured investments[26](index=26&type=chunk)[27](index=27&type=chunk) - Revenue is primarily from sales of smartglasses and accessories through various channels (website, Amazon, resellers, distributors) and recently from Lucyd app 'Pro' subscriptions. Revenue recognition follows a five-step model, with deferrals for uncollectible consideration or annual subscriptions[33](index=33&type=chunk)[34](index=34&type=chunk)[40](index=40&type=chunk) [NOTE 3 – Going Concern](index=13&type=section&id=NOTE%203%20%E2%80%93%20GOING%20CONCERN) Discusses the Company's ability to continue operations, liquidity, and future funding requirements. - The Company has a limited operating history and relies on eyewear sales and equity issuances for working capital. Recent warrant inducement transactions generated approximately **$4.0 million**, and unsolicited warrant exercises added **$2.6 million**. Management expects sufficient liquidity for at least the next 12 months, with potential for additional fundraising[45](index=45&type=chunk)[46](index=46&type=chunk) [NOTE 4 – Income Tax Provision / Benefit](index=13&type=section&id=NOTE%204%20%E2%80%93%20INCOME%20TAX%20PROVISION%20%2F%20BENEFIT) Explains the Company's income tax position, including the absence of a provision or benefit due to valuation allowance. - The Company has not recorded an income tax provision or benefit for the three and six months ended June 30, 2025 and 2024, due to maintaining a full valuation allowance against its net deferred tax assets[47](index=47&type=chunk) [NOTE 5 – Tangible and Intangible Assets](index=13&type=section&id=NOTE%205%20%E2%80%93%20TANGIBLE%20AND%20INTANGIBLE%20ASSETS) Provides details on the Company's property, equipment, and intangible assets, including depreciation and amortization expenses. Tangible and Intangible Assets, Net | Asset Category | June 30, 2025 | December 31, 2024 | | :-------------------------- | :-------------- | :---------------- | | Property and equipment, net | $58,330 | $107,562 | | Intangible assets, net | $435,043 | $451,302 | Depreciation and Amortization Expense | Expense Type | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Depreciation expense | $17,168 | $38,292 | $38,370 | $59,951 | | Amortization expense | $22,707 | $7,843 | $35,379 | $15,297 | [NOTE 6 – Related Party Transactions and Agreements](index=14&type=section&id=NOTE%206%20%E2%80%93%20RELATED%20PARTY%20TRANSACTIONS%20AND%20AGREEMENTS) Details transactions and agreements with related parties, including management services, loan facilities, and convertible notes. - The Company has a management services agreement with Tekcapital Europe, Ltd., incurring a **$35,000** quarterly fee for various support services. Rent for office space is also allocated and billed by Tekcapital[53](index=53&type=chunk)[54](index=54&type=chunk)[55](index=55&type=chunk) - A new loan facility of up to **$500,000** was made available to Tekcapital Europe, Ltd. in April 2025, bearing **10%** simple interest. **$250,000** was borrowed and repaid in full with interest by June 2025. Tekcapital Plc guarantees the loan[59](index=59&type=chunk)[60](index=60&type=chunk) - An agreement with Lucyd Ltd. allows the Company to receive up to **$1,250,000** in services or cash, issuing a convertible note with **10%** interest and a maturity date of September 1, 2026. No amounts have been borrowed under this agreement[61](index=61&type=chunk)[62](index=62&type=chunk)[63](index=63&type=chunk) [NOTE 7 – Commitments and Contingencies](index=15&type=section&id=NOTE%207%20%E2%80%93%20COMMITMENTS%20AND%20CONTINGENCIES) Outlines the Company's contractual obligations, including license agreements and the impact of new U.S. government tariffs. Aggregate Future Minimum Payments for License Agreements | Year | Aggregate Future Minimum Payments | | :---------------- | :------------------------------ | | Remainder of 2025 | $40,000 | | 2026 | $834,000 | | 2027 | $1,290,000 | | 2028 | $1,543,000 | | 2029 | $1,778,000 | | Thereafter (through 2033) | $8,129,000 | | **Total** | **$13,614,000** | - The Company has multi-year license agreements for Nautica, Eddie Bauer, and Reebok brands, requiring royalties and guaranteed minimum payments totaling **$13,614,000** through 2033. License expense for Q2 2025 was **$146,634** (YoY **+139.7%**) and H1 2025 was **$279,970** (YoY **+128.9%**)[64](index=64&type=chunk)[65](index=65&type=chunk)[66](index=66&type=chunk) - New U.S. government tariffs on imported goods, effective April 2025, have negatively impacted results, particularly gross profit margins. The Company is monitoring the situation and implementing mitigation strategies, including diversifying logistics and exploring alternative manufacturing[71](index=71&type=chunk)[72](index=72&type=chunk) [NOTE 8 – Stock-Based Compensation](index=16&type=section&id=NOTE%208%20%E2%80%93%20STOCK-BASED%20COMPENSATION) Details stock option and restricted stock unit activity, including related compensation expenses and unrecognized amounts. Stock Options Activity | Stock Options | As at January 1, 2025 | As at June 30, 2025 | | :-------------------------- | :-------------------- | :------------------ | | Options (Number) | 83,800 | 53,737 | | Weighted Average Exercise Price ($) | $37.21 | $18.26 | | Weighted Average Remaining Contractual Life (Years) | 2.33 | 2.95 | - Stock option expense for Q2 2025 was **$31,811** and for H1 2025 was **$68,457**. Unrecognized stock option expense of approximately **$65,000** remains to be recognized over the next **0.51 years**[73](index=73&type=chunk) - Restricted stock unit expense for Q2 2025 was **$132,903** and for H1 2025 was **$273,832**. Unrecognized RSU expense of approximately **$1,124,000** remains to be recognized over the next **2.07 years**[76](index=76&type=chunk) [NOTE 9 – Stockholders' Equity](index=17&type=section&id=NOTE%209%20%E2%80%93%20STOCKHOLDERS'%20EQUITY) Describes changes in stockholders' equity, including warrant inducement transactions and other equity issuances. - In April 2025, the Company completed a warrant inducement transaction, generating approximately **$1.5 million** in net proceeds by reducing the exercise price of existing warrants to **$2.60** per share and issuing new Series G and H warrants. H.C. Wainwright & Co. received **7.5%** cash fee plus **1.0%** management fee and warrants for **44,639** shares[78](index=78&type=chunk)[79](index=79&type=chunk)[80](index=80&type=chunk)[81](index=81&type=chunk) - In June 2025, another warrant inducement transaction generated approximately **$1.9 million** in net proceeds, involving the exercise of existing warrants at **$2.60** per share and issuance of new Series I warrants. H.C. Wainwright & Co. received similar fees and warrants for **56,009** shares[83](index=83&type=chunk)[84](index=84&type=chunk)[85](index=85&type=chunk)[86](index=86&type=chunk) - Other warrant exercises during Q2 2025 generated approximately **$2.6 million** in gross cash proceeds from **986,532** shares at **$2.60** per share. Placement agent fees of approximately **$0.3 million** and warrants for **80,139** shares were paid to HCW[88](index=88&type=chunk)[89](index=89&type=chunk) [NOTE 10 – Earnings Per Share](index=18&type=section&id=NOTE%2010%20%E2%80%93%20EARNINGS%20PER%20SHARE) Presents the calculation of basic and diluted net loss per common share for the periods presented. Earnings Per Share Calculation | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net loss | $(2,106,094) | $(1,948,399) | $(3,884,797) | $(3,919,710) | | Weighted-average number of common shares | 3,214,790 | 1,044,211 | 2,836,222 | 896,685 | | Basic and diluted net loss per common share | $(0.66) | $(1.87) | $(1.37) | $(4.37) | - Due to net losses, all common stock options, warrants, and related party convertible debt were excluded from EPS calculation due to their anti-dilutive effect. Shares held in abeyance (**254,282**) were included in the computation for Q2 and H1 2025[90](index=90&type=chunk)[91](index=91&type=chunk) [NOTE 11 – Subsequent Events](index=19&type=section&id=NOTE%2011%20%E2%80%93%20SUBSEQUENT%20EVENTS) Reports significant events occurring after the balance sheet date, including new legislation and intellectual property assignment. - The One Big Beautiful Bill Act (OBBBA) was signed into U.S. law on July 4, 2025, with tax provisions effective from 2025 to 2027. The Company is currently assessing its impact on financial statements[93](index=93&type=chunk) - On August 12, 2025, Lucyd Ltd. irrevocably assigned all registered and unregistered intellectual property rights and assets previously licensed to the Company, terminating the exclusive license agreements. The Company now holds full ownership of these IPs[94](index=94&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=20&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial condition and results for Q2 and H1 2025, covering revenue growth, tariff impacts, and mitigation strategies. [Overview](index=20&type=section&id=Overview) Provides a high-level summary of the Company's financial performance, including revenue growth, gross profit, and operating expenses. - Revenues for Q2 2025 increased by **88%** YoY, and for H1 2025 by **49%** YoY, driven by strong consumer demand, particularly for Lucyd Armor smart safety glasses and the new Reebok Powered by Lucyd sport smart sunglasses[97](index=97&type=chunk) - Gross profit margin for Q2 2025 decreased to **-2%** from **18%** in Q2 2024, primarily due to significantly higher custom duties and tariffs on imported goods. The Company is implementing a multi-pronged approach to mitigate these impacts[97](index=97&type=chunk) - Operating expenses increased modestly by **6%** in Q2 2025, mainly due to advertising and selling-related fees tied to higher sales volumes. Management believes revenues can scale faster than overhead due to fixed/semi-fixed general and administrative expenses[97](index=97&type=chunk) [General Product and Corporate Overview](index=21&type=section&id=General%20Product%20and%20Corporate%20Overview) Describes the Company's mission, smart eyewear product portfolio, and Lucyd app features. - Innovative Eyewear's mission is to 'Upgrade Your Eyewear' by developing smart eyewear that integrates headphones with glasses for digital connectivity and clear audio, offering a safer listening solution. Products include prescription, sunglasses, safety, and sport glasses[98](index=98&type=chunk)[99](index=99&type=chunk) - The product portfolio includes **30 models** across traditional (Lucyd Lyte, Nautica, Eddie Bauer), sport (Reebok), and safety (Lucyd Armor) categories, with thousands of variations. New versions of Lucyd Armor and Reebok premium optical collection are planned for Q4 2025[100](index=100&type=chunk)[101](index=101&type=chunk) - The Lucyd app offers ChatGPT AI integration for hands-free smartphone tasks, with a 'Pro' version providing unlimited interactions and priority tech support (a new revenue stream). The app also features 'Walkie' for group communication, with secure channels for premium subscribers[102](index=102&type=chunk)[103](index=103&type=chunk)[104](index=104&type=chunk) [Key Factors Affecting Performance](index=22&type=section&id=Key%20Factors%20Affecting%20Performance) Identifies factors influencing future revenue growth, client retention, and competitive advantage, including retail expansion and R&D. - Future revenue growth is positively correlated with the expansion of retail points of purchase, including optical, sporting goods, and specialty stores. The Company expects to offer over **40 smart eyewear SKUs** by the end of 2025 and has expanded its sales team to support this growth[107](index=107&type=chunk)[108](index=108&type=chunk) - Sustained revenue relies on retail store client retention and re-orders, supported by a co-op marketing program, new modular display systems with virtual try-on and audio testing, and incorporating retail partner feedback into product design[109](index=109&type=chunk) - Continuous investment in R&D for new models, improved sound quality, temple thinness, battery life, and digital features via the Lucyd app is crucial for maintaining a competitive edge. The Company also plans to expand sales, marketing, and brand ambassador teams[110](index=110&type=chunk)[111](index=111&type=chunk) [Key Performance Indicators](index=23&type=section&id=Key%20Performance%20Indicators) Highlights key metrics used to assess business performance, such as retail store count and customer ratings. - The number of retail stores selling products is a key indicator; currently, over **540 retail stores** across **300+ wholesale accounts** in the US and Canada. Significant expansion into new third-party retail locations is anticipated in 2025[112](index=112&type=chunk) - Customer ratings for the latest products, such as Reebok styles (**4.5/5** on Amazon), are higher than previous products, indicating appreciation for design, functionality, and build quality improvements[113](index=113&type=chunk) [International Trade and Tariffs](index=23&type=section&id=International%20Trade%20and%20Tariffs) Discusses the impact of new U.S. tariffs on gross profit margins and the Company's mitigation strategies. - New or increased U.S. tariffs on imported goods, effective April 2025, negatively impacted gross profit margins for Q2 and H1 2025[114](index=114&type=chunk) - Mitigation strategies include: * Opening three new fulfillment centers (Europe, Canada, Shenzhen) to improve international factory direct business, which is not subject to U.S. tariffs * Expanding the lowest cost product line (Lucyd Armor) and developing a new discounted optical line for launch in H1 2026 * Conducting thorough investigations of alternatives to Chinese manufacturing, with contingency plans to shift to Taiwan and/or Vietnam if necessary * Instituting a minor price increase of **$15** to most custom lens orders to help mitigate new tariff expenses[115](index=115&type=chunk)[119](index=119&type=chunk) - These actions are expected to result in improvements in gross profit margins in subsequent quarters, with tariff expense reduced to a run rate of less than **$15,000** per month by the end of Q2 2025[116](index=116&type=chunk)[127](index=127&type=chunk) [Results of Operations - Quarterly](index=24&type=section&id=Results%20of%20Operations%20-%20Quarterly) Analyzes the Company's financial performance for the three months ended June 30, 2025, compared to the prior year. Quarterly Results of Operations | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change ($) | Change (%) | | :-------------------------- | :------------------------------- | :------------------------------- | :--------- | :--------- | | Revenues, net | $579,230 | $308,682 | $270,548 | 88% | | Less: Cost of Goods Sold | $(591,895) | $(253,506) | $(338,389) | 133% | | Gross (Deficit) Profit | $(12,665) | $55,176 | $(67,841) | n/m | | Operating Expenses: | | | | | | General and administrative | $(1,310,865) | $(1,295,299) | $(15,566) | 1% | | Sales and marketing | $(544,318) | $(442,433) | $(101,885) | 23% | | Research and development | $(268,224) | $(256,802) | $(11,422) | 4% | | Related party management fee | $(35,000) | $(35,000) | $- | 0% | | Total Operating Expenses | $(2,158,407) | $(2,029,534) | $(128,873) | 6% | | Other Income (Expense), net | $64,978 | $25,959 | $39,019 | 150% | | Net Loss | $(2,106,094) | $(1,948,399) | $(157,695) | 8% | - Revenue increased by **88%** YoY to **$579,230**, driven by significant volume increases from new product launches (Lucyd Armor, Reebok Powered by Lucyd), partially offset by higher discounts due to planned Q2 promotions[120](index=120&type=chunk)[121](index=121&type=chunk)[122](index=122&type=chunk) - Cost of goods sold increased by **133%** YoY to **$591,895**, primarily due to higher custom duties, tariffs, and importation costs, despite lower product sourcing costs for frames and lenses. Gross profit margin declined to **-2%** from **18%** YoY[126](index=126&type=chunk)[127](index=127&type=chunk)[129](index=129&type=chunk) [Results of Operations – Year to Date](index=28&type=section&id=Results%20of%20Operations%20%E2%80%93%20Year%20to%20Date) Analyzes the Company's financial performance for the six months ended June 30, 2025, compared to the prior year. Year-to-Date Results of Operations | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change ($) | Change (%) | | :-------------------------- | :----------------------------- | :----------------------------- | :--------- | :--------- | | Revenues, net | $1,033,731 | $692,153 | $341,578 | 49% | | Less: Cost of Goods Sold | $(825,863) | $(630,026) | $(195,837) | 31% | | Gross Profit | $207,868 | $62,127 | $145,741 | 235% | | Operating Expenses: | | | | | | General and administrative | $(2,402,213) | $(2,404,245) | $2,032 | 0% | | Sales and marketing | $(1,331,718) | $(1,103,728) | $(227,990) | 21% | | Research and development | $(478,800) | $(473,103) | $(5,697) | 1% | | Related party management fee | $(70,000) | $(70,000) | $- | 0% | | Total Operating Expenses | $(4,282,731) | $(4,051,076) | $(231,655) | 6% | | Other Income (Expense), net | $190,066 | $69,239 | $120,827 | 175% | | Net Loss | $(3,884,797) | $(3,919,710) | $34,913 | -1% | - Revenue increased by **49%** YoY to **$1,033,731**, driven by new product launches (Nautica, Eddie Bauer, Lucyd Armor, Reebok) and improved pricing. Lucyd Armor and Reebok launches are bringing new customer segments and sales categories[143](index=143&type=chunk)[144](index=144&type=chunk)[145](index=145&type=chunk) - Cost of goods sold increased by **31%** YoY to **$825,863**, primarily due to volume increases and higher tariffs, partially offset by lower product sourcing costs and certification costs. Gross profit margin improved to **20%** from **9%** YoY due to cost reduction measures and increased average order value[149](index=149&type=chunk)[150](index=150&type=chunk)[153](index=153&type=chunk) [Liquidity and Capital Resources](index=32&type=section&id=Liquidity%20and%20Capital%20Resources) Assesses the Company's ability to meet short-term and long-term obligations, including cash position and financing activities. Liquidity and Capital Resources Summary | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------- | :-------------- | :---------------- | | Cash and cash equivalents | $7.6 million | $2.6 million | | Total overall liquidity (Cash + Investments) | $8.9 million | $7.5 million | | Working capital | $10.7 million | $8.5 million | - Despite negative impacts from tariffs causing a gross deficit in Q2 2025, the Company believes it has sufficient liquidity for the next twelve months, supported by its at-the-market offering program with H.C. Wainwright & Co. and the ability to borrow from Lucyd Ltd. No debt obligations as of June 30, 2025[167](index=167&type=chunk)[168](index=168&type=chunk) - Net cash used in operating activities for H1 2025 was **$(4.4) million**, reflecting net loss and investments in inventory. Net cash provided by investing activities was **$3.7 million**, mainly from U.S. Treasury bill redemptions. Net cash from financing activities was **$5.8 million**, primarily from warrant exercises and equity transactions[169](index=169&type=chunk)[170](index=170&type=chunk)[171](index=171&type=chunk) [Other Factors](index=36&type=section&id=Other%20Factors) Discusses future capital requirements, potential financing, and the absence of off-balance sheet arrangements. - Operating losses are expected to continue as the Company invests in business expansion. Future capital requirements depend on retail growth, licenses, e-commerce, product expansion, and technology investments. Additional equity or debt financing may be required, with potential for dilution or restrictive covenants[184](index=184&type=chunk)[185](index=185&type=chunk) - The Company had no off-balance sheet arrangements as of June 30, 2025. No material changes in critical accounting policies or significant estimates from the 2024 Form 10-K[186](index=186&type=chunk)[187](index=187&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=36&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a smaller reporting company, Innovative Eyewear, Inc. is not required to provide market risk disclosures. - The Company is a smaller reporting company and is therefore not required to provide quantitative and qualitative disclosures about market risk[188](index=188&type=chunk) [Item 4. Controls and Procedures](index=36&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were ineffective as of June 30, 2025, due to material weaknesses in internal control. - Disclosure controls and procedures were deemed ineffective as of June 30, 2025, due to material weaknesses in internal control over financial reporting[189](index=189&type=chunk) - No material changes in internal control over financial reporting occurred during the second quarter of fiscal year 2025[190](index=190&type=chunk) [Part II. Other Information](index=37&type=section&id=Part%20II.%20Other%20Information) This section provides additional non-financial information, including legal proceedings, risk factors, equity sales, and intellectual property details. [Item 1. Legal Proceedings](index=37&type=section&id=Item%201.%20Legal%20Proceedings) The Company is not currently involved in any material pending legal proceedings. - The Company is not currently subject to any material pending legal proceedings[192](index=192&type=chunk) [Item 1A. Risk Factors](index=37&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the Company's risk factors have occurred since the 2024 Annual Report on Form 10-K. - No material changes to risk factors have occurred since the Annual Report on Form 10-K for the year ended December 31, 2024[193](index=193&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=37&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Details unregistered warrant and equity sales during H1 2025, generating proceeds for working capital under Section 4(a)(2) and Rule 506 exemptions. - The Company issued Series G, H, and I warrants, along with associated placement agent warrants, without registration under the Securities Act, relying on exemptions for sales to accredited investors[194](index=194&type=chunk)[196](index=196&type=chunk)[201](index=201&type=chunk) - The April 2025 warrant inducement transaction generated approximately **$1.5 million** in net proceeds, and the June 2025 transaction generated approximately **$1.9 million** in net proceeds. Both were used for working capital and general corporate purposes[197](index=197&type=chunk)[202](index=202&type=chunk) - H.C. Wainwright & Co. acted as the exclusive placement agent for these offerings, receiving cash fees (**7.5%** of gross proceeds + **1.0%** management fee) and warrants to purchase common stock[198](index=198&type=chunk)[203](index=203&type=chunk) [Item 3. Defaults Upon Senior Securities](index=38&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) There were no defaults upon senior securities during the reporting period. - There were no defaults upon senior securities[205](index=205&type=chunk) [Item 4. Mine Safety Disclosures](index=38&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Mine safety disclosures are not applicable to the Company. - Mine safety disclosures are not applicable to the Company[206](index=206&type=chunk) [Item 5. Other Information](index=38&type=section&id=Item%205.%20Other%20Information) Details intellectual property assignment from Lucyd Ltd., the Company's patent portfolio, and executive officer stock sales under Rule 10b5-1 plans. - On August 12, 2025, Lucyd Ltd. irrevocably assigned all registered and unregistered intellectual property rights and assets previously exclusively licensed to the Company, thereby terminating the original license agreements. The Company now holds full ownership of this IP[207](index=207&type=chunk) - The Company's patent portfolio includes **71 applications/patents**, covering smartglasses, methods for using AI, design patents for various smartglasses styles, safety smartglasses, and charging cradles, with many already issued in the US, Canada, and China[208](index=208&type=chunk)[209](index=209&type=chunk)[210](index=210&type=chunk) - Several executive officers, including the CEO and Co-CFOs, sold shares during Q2 2025 pursuant to Rule 10b5-1 trading plans adopted in December 2024[214](index=214&type=chunk)[215](index=215&type=chunk)[216](index=216&type=chunk) [Item 6. Exhibits](index=45&type=section&id=Item%206.%20Exhibits) Lists exhibits filed with the Form 10-Q, including SOX certifications from executive officers and Inline XBRL documents. - Key exhibits include: * Certifications of Principal Executive Officer and Principal Financial Officer pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002 * Inline XBRL Instance Document, Taxonomy Extension Schema, Calculation Linkbase, Definition Linkbase, Label Linkbase, and Presentation Linkbase Documents * Cover Page Interactive Data File[218](index=218&type=chunk) [Signatures](index=46&type=section&id=Signatures) The report is signed by Harrison Gross, CEO, and Oswald Gayle, Co-CFO, on behalf of Innovative Eyewear, Inc. on August 14, 2025. - The report was signed by Harrison Gross, Chief Executive Officer, and Oswald Gayle, Co-Chief Financial Officer, on August 14, 2025[221](index=221&type=chunk)

Core Viewpoint - Innovative Eyewear, Inc. is actively participating in several key investor and industry events in Q3 2025 to showcase its latest developments and product portfolio, aiming to foster connections with potential partners, customers, and investors [1][3]. Company Overview - Innovative Eyewear, Inc. develops smart eyewear under various brands including Lucyd®, Nautica®, Eddie Bauer®, and Reebok®, focusing on Bluetooth audio glasses that enhance user connectivity while maintaining ergonomic safety [4]. Scheduled Events - Skyline Signature Series Webinar (Virtual; August 12): A live virtual webinar for public companies to present their stories to financial professionals, featuring a Q&A session [6]. - H.C. Wainwright 27th Annual Global Investment Conference (New York, NY; September 8-10): A premier event for corporate leaders and investors to explore emerging trends and investment opportunities [6]. - NIBA Conference (Fort Lauderdale, FL; September 16-17): A leading event for micro-cap and small-cap investment professionals to network and discover new opportunities [6]. - Vision Expo West (Las Vegas, NV; September 17-20): A key event in the optical industry showcasing advancements in eyewear and providing networking opportunities [6]. - SILMO Paris (Paris, France; September 26-29): An international trade show dedicated to optics and eyewear, featuring exhibitions and educational events [6].

Core Insights - Innovative Eyewear, Inc. has launched its Reebok athletic smartglasses, available on the Reebok mobile app and soon on Reebok.com, marking a significant step in the integration of smart technology in eyewear [1][4]. Product Launch - The Reebok smartglasses will be available on the Reebok mobile app starting July 21, 2025, with a subsequent launch on Reebok.com on August 1, 2025 [1]. - The smartglasses are designed to enhance athletic performance and lifestyle, continuing Reebok's tradition of innovative products [4]. Market Potential - Reebok.com attracts approximately 570,000 monthly organic visitors, which is expected to drive awareness and sales of the new smart eyewear among Reebok's global fanbase [3]. - The company emphasizes the future of eyewear and apparel will be rooted in smart technologies that enhance functionality [4]. Company Overview - Innovative Eyewear develops smart eyewear under various brands, including Lucyd®, Nautica®, Eddie Bauer®, and Reebok®, focusing on Bluetooth audio glasses that connect users to their digital lives [5].

Core Viewpoint - Innovative Eyewear, Inc. has entered into definitive agreements for the immediate exercise of certain outstanding warrants, resulting in the issuance of new Series I warrants and expected gross proceeds of approximately $2.2 million from the transaction [1][4][10] Group 1: Warrant Inducement Transaction - The company will exercise warrants to purchase 746,782 shares at an exercise price of $2.60 per share, with the closing expected around June 24, 2025 [1] - In exchange for the immediate exercise of the warrants, the company will issue new unregistered Series I warrants to purchase up to 2,240,346 shares at a purchase price of $0.125 per warrant, generating approximately $0.3 million in gross proceeds [3] - The gross proceeds from the warrant inducement transaction are expected to be approximately $2.2 million before deducting fees and expenses [4] Group 2: Additional Warrant Exercises - Over the last 30 days, the company has received approximately $2.6 million from the exercise of certain warrants by investors, resulting in the purchase of 986,532 shares at the original exercise price of $2.60 per share [5][10] Group 3: Regulatory and Compliance Information - The new Series I warrants and the shares of common stock issuable upon their exercise are being offered in a private placement and have not been registered under the Securities Act of 1933 [6] - The company has agreed to file a registration statement with the SEC within 30 days covering the resale of the shares of common stock issuable upon exercise of the new Series I warrants [6]

Core Insights - Innovative Eyewear, Inc. has announced significant updates to its Lucyd app, enhancing its position in the smart eyewear market [1][3] - The app now features a streamlined interface with integrated shopping capabilities and user account synchronization [2][7] Company Developments - The Lucyd app has been downloaded approximately 15,000 times prior to any major marketing efforts [3] - A paid Pro version of the app is available for $7.99/month, allowing unlimited ChatGPT queries and secure Walkie channels for business use [3] App Features - The app now includes a new in-app shopping experience with prescription customization for all Lucyd eyewear [7] - New Siri commands have been introduced for the Walkie-talkie feature, allowing hands-free management of communication [7] - The AI assistant's voice output has been upgraded for a more natural and enjoyable user experience [7] - Overall user experience improvements have been made to app menus and screens [7] Brand Positioning - Innovative Eyewear aims to make the Lucyd app a powerful companion to its smart eyewear products, enhancing user enjoyment and utility [3][5] - The company offers a range of smart eyewear under various brands, including Lucyd, Nautica, Eddie Bauer, and Reebok [5]

Core Insights - Innovative Eyewear Inc. reported a net revenue of $454,501 for Q1 2025, marking a 19% increase from $383,471 in Q1 2024, driven by growth in unit sales and successful product launches [2][4] - The gross profit margin improved significantly to 49% in Q1 2025 from just 2% in Q1 2024, attributed to lower costs of frames and prescription lenses [3] - The company experienced a net loss of $1,778,703 in Q1 2025, which is an improvement compared to a net loss of $1,971,311 in Q1 2024 [4] Revenue Growth - The increase in revenue was primarily due to the successful launches of the Nautica® Powered by Lucyd and Eddie Bauer® Powered by Lucyd collections, as well as the Lucyd Armor safety smart glasses line [2] - Continued investments in marketing and advertising initiatives contributed to the revenue growth, alongside rising public interest in smart glasses and wearable products [2] Cost Management - The gross profit margin increase was driven by lower frame costs and reduced prescription lens fulfillment costs, achieved through better economies of scale and management actions taken in the previous year [3] - The company engaged a new lower-cost lens supplier, which further contributed to the reduction in lens fulfillment costs [3] Operating Expenses - Total operating expenses for Q1 2025 were $2,124,324, reflecting an 11% increase from $2,021,542 in Q1 2024, although expenses remained relatively consistent between these periods [4] Product Development and Market Position - The company launched the Reebok® Powered by Lucyd sport smart sunglasses collection in April 2025, featuring advanced audio technology tailored for outdoor activities [6] - The success of the Lucyd Armor product line indicates a strong market potential for smart eyewear tailored to specific user niches [6] - The company has expanded its sales team to support the growth of its product lines, indicating a strategic focus on enhancing market presence [6][7]

Part I. Financial Information [Item 1. Condensed Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Condensed%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed financial statements for the quarter ended March 31, 2025, compared to prior periods [Condensed Balance Sheets](index=5&type=section&id=Condensed%20Balance%20Sheets) Total assets decreased to $7.94 million as of March 31, 2025, due to maturing investments that increased cash reserves Condensed Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $5,258.2 | $2,629.0 | | Investments | $0.0 | $4,895.2 | | Total Current Assets | $7,329.2 | $9,238.2 | | **Total Assets** | **$7,941.3** | **$9,838.3** | | **Liabilities & Equity** | | | | Total Current Liabilities | $447.2 | $737.7 | | **Total Liabilities** | **$447.2** | **$743.2** | | **Total Stockholders' Equity** | **$7,494.0** | **$9,095.1** | [Condensed Statements of Operations](index=6&type=section&id=Condensed%20Statements%20of%20Operations) The company reported Q1 2025 revenues of $454,501 and a reduced net loss of $1.78 million, with significant gross profit improvement Q1 2025 vs. Q1 2024 Statement of Operations | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenues, net | $454,501 | $383,471 | | Gross Profit | $220,533 | $6,951 | | Total Operating Expenses | ($2,124,324) | ($2,021,542) | | Net Loss | ($1,778,703) | ($1,971,311) | | Loss per share, basic and diluted | ($0.72) | ($2.59) | [Condensed Statements of Changes in Stockholders' Equity](index=7&type=section&id=Condensed%20Statements%20of%20Changes%20in%20Stockholders%27%20Equity) Stockholders' equity decreased by approximately $1.6 million to $7.49 million in Q1 2025, primarily driven by the quarterly net loss - Total stockholders' equity decreased by approximately **$1.6 million** during Q1 2025, mainly due to the net loss for the period[15](index=15&type=chunk) [Condensed Statements of Cash Flows](index=8&type=section&id=Condensed%20Statements%20of%20Cash%20Flows) Cash and cash equivalents increased by $2.63 million in Q1 2025, driven by cash from investing activities offsetting cash used in operations Q1 2025 vs. Q1 2024 Cash Flow Summary | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash from operating activities | ($2,311,049) | ($1,467,355) | | Net cash from investing activities | $4,940,232 | ($95,538) | | Net cash from financing activities | $0 | ($75,988) | | **Net Change In Cash** | **$2,629,183** | **($1,638,881)** | [Notes to the Financial Statements](index=9&type=section&id=Notes%20to%20the%20Financial%20Statements) Notes detail the smart eyewear business, a subsequent warrant transaction, significant royalty commitments, and a new related-party loan facility - The company develops and sells smart eyewear and has exclusive license rights for the Lucyd brand and rights to sell branded eyewear under the Nautica, Eddie Bauer, and Reebok brands[20](index=20&type=chunk) - In April 2025, the company closed a warrant inducement transaction for gross proceeds of approximately **$1.8 million**[50](index=50&type=chunk)[79](index=79&type=chunk) Future Minimum Royalty Payments Under License Agreements | Year | Minimum Payment | | :--- | :--- | | 2025 | $60,000 | | 2026 | $834,000 | | 2027 | $1,290,000 | | 2028 | $1,543,000 | | 2029 | $1,778,000 | | Thereafter (through 2033) | $8,129,000 | | **Total** | **$13,634,000** | - In April 2025, the company established a new intercompany loan facility, agreeing to lend up to **$500,000** to Tekcapital Europe, Ltd[81](index=81&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=19&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses a 19% YoY revenue increase, significant gross margin expansion, new product lines, and sufficient liquidity for the next year - Revenues for Q1 2025 improved **19% YoY**, while gross margins expanded significantly from **2% to 49%**[90](index=90&type=chunk) - The company has launched several new product lines, including Lucyd Armor safety glasses and Reebok sport smart sunglasses, and plans to offer over **40 total smart eyewear SKUs** by the end of 2025[90](index=90&type=chunk)[98](index=98&type=chunk) - The Lucyd app, featuring ChatGPT integration, is a key part of the company's strategy to enhance user experience and create new revenue streams through a 'Pro' subscription model[92](index=92&type=chunk)[93](index=93&type=chunk) - The company is actively monitoring new U.S. tariffs on goods from China but notes that smart eyewear currently faces a lower effective duty rate (**27.5%**) compared to traditional eyewear (**155%**), which could be a competitive advantage[105](index=105&type=chunk)[120](index=120&type=chunk) [Results of Operations](index=23&type=section&id=Results%20of%20Operations) Q1 2025 revenue grew 19% YoY to $454,501, with gross margin surging to 49% due to lower costs, while operating expenses rose 5% Q1 2025 vs. Q1 2024 Operational Results | Metric | Q1 2025 | Q1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Revenues, net | $454,501 | $383,471 | 19% | | Cost of Goods Sold | ($233,968) | ($376,520) | -38% | | Gross Profit | $220,533 | $6,951 | n/m | | Gross Margin | 49% | 2% | 47 p.p. | | Total Operating Expenses | ($2,124,324) | ($2,021,542) | 5% | - The increase in revenue was primarily due to higher sales volumes from new product lines (Nautica, Eddie Bauer, Lucyd Armor) and improved pricing strategies[108](index=108&type=chunk)[109](index=109&type=chunk)[110](index=110&type=chunk) - The significant decrease in cost of goods sold was driven by **greater economies of scale** in manufacturing and engaging a new, **lower-cost lens supplier**[115](index=115&type=chunk)[116](index=116&type=chunk) [Liquidity and Capital Resources](index=26&type=section&id=Liquidity%20and%20Capital%20Resources) The company holds $5.3 million in cash with no debt, and a recent $1.8 million financing ensures sufficient liquidity for the next twelve months - As of March 31, 2025, cash and cash equivalents were approximately **$5.3 million**, and the company had **no debt obligations**[130](index=130&type=chunk)[131](index=131&type=chunk) - In April 2025, a warrant inducement transaction closed, providing gross proceeds of approximately **$1.8 million** for working capital and general corporate purposes[137](index=137&type=chunk)[138](index=138&type=chunk) - Management believes existing cash and access to a related-party credit facility will be **sufficient to fund operations for at least the next twelve months**[139](index=139&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=28&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company is not required to provide these disclosures as a smaller reporting company - This disclosure is **not required** for smaller reporting companies[143](index=143&type=chunk) [Item 4. Controls and Procedures](index=28&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were not effective as of March 31, 2025, due to material weaknesses - Management concluded that due to material weaknesses in internal control over financial reporting, the company's disclosure controls and procedures were **not effective** as of March 31, 2025[144](index=144&type=chunk) - **No changes** in internal control over financial reporting occurred during the first quarter of 2025 that materially affected, or are reasonably likely to materially affect, internal controls[145](index=145&type=chunk) Part II. Other Information [Item 1. Legal Proceedings](index=29&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently involved in any material pending legal proceedings - The company is **not currently the subject of any material pending legal proceedings**[147](index=147&type=chunk) [Item 1A. Risk Factors](index=29&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to risk factors from those disclosed in the 2024 Annual Report on Form 10-K - There have been **no material changes** in risk factors from those disclosed in the Annual Report on Form 10-K for the year ended December 31, 2024[148](index=148&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=29&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) An April 2025 warrant inducement transaction generated $1.8 million in gross proceeds through the issuance of new unregistered warrants - On April 11, 2025, the company entered into inducement agreements with certain warrant holders, allowing them to exercise warrants for cash at a reduced price of **$2.60 per share**[149](index=149&type=chunk)[150](index=150&type=chunk) - The transaction closed on April 14, 2025, with gross proceeds of approximately **$1.8 million**[153](index=153&type=chunk) - The newly issued Series G and H warrants, along with the underlying shares, were sold without registration under the Securities Act, in reliance on exemptions provided by **Section 4(a)(2) and Rule 506**[155](index=155&type=chunk) [Item 3. Defaults Upon Senior Securities](index=30&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reports no defaults upon its senior securities - None[156](index=156&type=chunk) [Item 4. Mine Safety Disclosures](index=30&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not Applicable[157](index=157&type=chunk) [Item 5. Other Information](index=30&type=section&id=Item%205.%20Other%20Information) The company reports no other information for this period - None[158](index=158&type=chunk) [Item 6. Exhibits](index=30&type=section&id=Item%206.%20Exhibits) This section lists filed exhibits, including Sarbanes-Oxley certifications and Inline XBRL financial data files - The filing includes certifications from the CEO and CFO pursuant to **Sections 302 and 906 of the Sarbanes-Oxley Act**, along with various Inline XBRL documents[159](index=159&type=chunk)