Financial Performance - The company reported net losses of approximately $15.8 million and $8.9 million for the years ended December 31, 2024 and 2023, respectively, and $11.4 million and $7.7 million for the nine months ended September 30, 2025 and 2024, respectively [51]. - The company incurred net losses of $11,435,485 and $7,748,590 during the nine-month periods ended September 30, 2025 and 2024, respectively [59]. Expenses - Research and development expenses increased by $1,229,536 or 54%, to $3,521,576 for the three months ended September 30, 2025, compared to $2,292,040 for the same period in 2024 [53]. - General and administrative expenses rose by $216,055, or 49%, to $653,066 for the three months ended September 30, 2025, from $437,011 for the same period in 2024 [54]. - For the nine months ended September 30, 2025, research and development expenses increased by $2,836,178, or 42%, to $9,630,604 from $6,794,426 for the same period in 2024 [55]. - General and administrative expenses for the nine months ended September 30, 2025, increased by $739,093, or 65%, to $1,872,323 from $1,133,230 for the same period in 2024 [56]. Cash Position - As of September 30, 2025, the company's cash totaled $3,806,978, down from $4,091,990 as of December 31, 2024 [58]. - Net cash used in operating activities was $6,738,796 for the nine months ended September 30, 2025, compared to $5,414,337 for the same period in 2024 [60]. Capital Raising - The company completed At The Market ("ATM") offerings resulting in gross proceeds of $6,492,994 from the issuance of 621,674 shares at an average price of $10.44 per share between January 1, 2025, and September 30, 2025 [64]. Clinical Trials - The company plans to expand its Phase III clinical trial, Flamingo-01, into Europe with plans to open up to 150 sites globally [50].

ENLIVEX THERAPEUTICS LTD. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2025 AND DECEMBER 31, 2024 AND FOR THE THREE AND NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2025 AND 2024 ENLIVEX THERAPEUTICS LTD. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Exhibit 99.1 AS OF SEPTEMBER 30, 2025 AND DECEMBER 31, 2024 AND FOR THE THREE AND NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2025 AND 2024 INDEX TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS | | Page | | --- | --- | | Condensed Consolidated Balance Shee ...

Revenue Performance - Revenue increased by 128% year over year to $1.8 million for the fiscal quarter ended September 30, 2025, compared to $0.8 million for the same period last year[8] - Revenues for the three months ended September 30, 2025, were $1,818,000, compared to $798,000 for the same period in 2024, representing a 128% increase[32] - Updated fiscal year 2026 revenue guidance to $8 - $10 million[19] Expenses and Losses - Gross loss decreased to $0.3 million for the quarter ended September 30, 2025, compared to a gross loss of $1.1 million for the same period last year[11] - Research and development expenses decreased to $2.5 million for the quarter ended September 30, 2025, from $4.6 million for the same period last year[12] - Selling, general and administrative expenses decreased to $4.9 million for the quarter ended September 30, 2025, compared to $7.2 million for the same period last year[13] - Net loss attributed to common stockholders was ($7.9) million or a loss of ($1.25) per share for the quarter ended September 30, 2025, compared to a net loss of ($13.4) million or ($5.67) per share for the same period last year[15] - The net loss attributable to Beyond Air, Inc. for the three months ended September 30, 2025, was $7,940,000, compared to $13,358,000 for the same period in 2024, reflecting a 41% decrease[32] Cash and Assets - Proforma cash, cash equivalents, restricted cash, and marketable securities totaled $22.9 million as of September 30, 2025[1] - Cash and cash equivalents increased to $9,699,000 as of September 30, 2025, from $4,665,000 as of March 31, 2025[33] - Total assets as of September 30, 2025, were $30,965,000, compared to $30,062,000 as of March 31, 2025, showing a growth of 3%[33] Operating Expenses - Total operating expenses for the three months ended September 30, 2025, were $7,363,000, down from $11,748,000 in the same period of 2024, indicating a 37% reduction[32] - Research and development expenses for the six months ended September 30, 2025, were $5,536,000, down from $10,594,000 in the same period of 2024, a reduction of 48%[32] Distribution and Designation - The company expanded its global LungFit PH distribution network to 35 countries, covering a combined population of 2.8 billion people[8] - The U.S. FDA granted Orphan Drug Designation to investigational therapies BA-101 and BA-102 for the treatment of Glioblastoma and Phelan-McDermid Syndrome, respectively[16] Other Financial Metrics - Net cash burn for the quarter ended September 30, 2025, was $4.7 million[17] - The weighted average number of shares outstanding for the three months ended September 30, 2025, was 6,356,573, compared to 2,355,927 for the same period in 2024, indicating a significant increase in shares[32] - The total liabilities as of September 30, 2025, were $17,870,000, an increase from $15,721,000 as of March 31, 2025[33] - The company reported a foreign currency translation loss of $18,000 for the three months ended September 30, 2025[32]

Financial Performance - Net loss for Q3 2025 was $(45.0) million, a decrease of $46.9 million compared to a net income of $1.9 million in Q3 2024[3] - Return on average assets for Q3 2025 was (4.61)%, compared to 0.21% in Q3 2024, and for the nine months ended September 30, 2025, it was (2.00)% versus 0.42% in 2024[9] - Return on average common equity for Q3 2025 was (78.41)%, down from 2.40% in Q3 2024, and for the nine months ended September 30, 2025, it was (35.83)% compared to 5.87% in 2024[9] - Net (loss) income available to common shareholders for Q3 2025 was $(45,585) thousand, compared to $1,345 thousand in Q3 2024[13] - Net Loss Income available to Common Shareholders was $(45,584,000) for Q3 2025, compared to a profit of $428,000 in Q3 2024[15] Loan and Asset Management - Total loans decreased by $414.0 million, or 15.4%, to $2.3 billion as of September 30, 2025, compared to December 31, 2024[3] - Net loans decreased to $2,194,028 thousand as of September 30, 2025, from $2,658,969 thousand as of December 31, 2024[11] - Loans net of unearned income were $2,279,741,000 as of September 30, 2025, down from $2,410,505,000 in 2024, representing a decline of 5.4%[24] - The loan portfolio's real estate segment accounted for 80.7% of total loans as of September 30, 2025, compared to 79.2% in December 2024[24] Credit Losses and Provisions - The provision for credit losses for Q3 2025 was $47.9 million, significantly higher than $4.9 million in Q3 2024[3] - The allowance for credit losses increased to 3.76% of total loans at September 30, 2025, compared to 1.29% at December 31, 2024[3] - Provision for credit losses increased significantly to $47,933,000 in Q3 2025 from $6,021,000 in Q3 2024, indicating a substantial rise in expected credit losses[15] Noninterest Income and Expenses - Noninterest expense for Q3 2025 totaled $30.2 million, including a $12.9 million goodwill impairment charge[4] - Total noninterest expense increased to $30,175 thousand in Q3 2025, up from $19,706 thousand in Q3 2024[13] - Total Noninterest Income decreased to $1,860,000 in Q3 2025 from $2,500,000 in Q3 2024, reflecting a decline of 25.6%[15] Capital and Equity - As of September 30, 2025, total shareholders' equity was $221,075,000, a decrease from $255,049,000 as of December 31, 2024[33] - Tangible common equity stood at $185,478,000, down from $206,029,000 in the previous year[33] - The tangible common equity to tangible assets ratio was 4.89%, down from 5.21% in the previous year[33] - The Bank's Tier 1 leverage ratio was 6.92% as of September 30, 2025, compared to 7.82% at the end of 2024[39] - The company satisfied the minimum regulatory capital requirements and was classified as well capitalized[38] Asset Quality - Nonaccrual loans increased to $114.3 million at September 30, 2025, up from $108.5 million at December 31, 2024[4] - Non-performing assets to total loans ratio increased to 5.54%, up from 5.27% in the previous quarter[26] - Total other noninterest expense for the three months ended September 30, 2025, was $7,205,000, slightly higher than $7,070,000 in the same period last year[29] - The company reported a total of $126,315,000 in non-performing assets, a slight decrease from $127,120,000 in the previous quarter[26] Interest Income and Margin - Net interest income for Q3 2025 was $22.2 million, slightly down from $22.7 million in Q3 2024[3] - Total interest income for Q3 2025 was $53,500 thousand, a decrease from $57,427 thousand in Q3 2024[13] - The net interest margin for Q3 2025 was 2.34%, down from 2.51% in Q3 2024, reflecting a decrease in profitability from interest-earning assets[17] - The net interest margin decreased to 2.35% for the nine months ended September 30, 2025, compared to 2.52% for the same period in 2024[23]

Financial Performance - Net loss for Q3 2025 was $(45.0) million, a decrease of $46.9 million compared to a net income of $1.9 million in Q3 2024[3] - Net (loss) income available to common shareholders for Q3 2025 was $(45,585) thousand, compared to $1,345 thousand in Q3 2024[13] - Return on average assets for Q3 2025 was (4.61)%, compared to 0.21% in Q3 2024, and for the nine months ended September 30, 2025, it was (2.00)% versus 0.42% in 2024[9] - Return on average common equity for Q3 2025 was (78.41)%, down from 2.40% in Q3 2024, and for the nine months ended September 30, 2025, it was (35.83)% compared to 5.87% in 2024[9] Loan and Asset Management - Total loans decreased by $414.0 million, or 15.4%, to $2.3 billion as of September 30, 2025, compared to December 31, 2024[3] - Net loans decreased to $2,194,028 thousand as of September 30, 2025, from $2,658,969 thousand as of December 31, 2024[11] - The loan portfolio totaled $2,286,173,000 as of September 30, 2025, a decrease from $2,417,351,000 in 2024, representing a decline of 5.4%[24] - Nonaccrual loans increased to $114.3 million at September 30, 2025, up from $108.5 million at December 31, 2024[4] - Total nonaccrual loans amounted to $114,265,000, a decrease from $119,179,000 in the previous quarter, and an increase from $108,529,000 year-over-year[26] Credit Losses and Provisions - The provision for credit losses for Q3 2025 was $47.9 million, significantly up from $4.9 million in Q3 2024[3] - The allowance for credit losses increased to 3.76% of total loans at September 30, 2025, compared to 1.29% at December 31, 2024[3] - Provision for credit losses increased significantly to $47,933,000 in Q3 2025 from $6,021,000 in Q3 2024, indicating a substantial rise in expected credit losses[15] Income and Expenses - Total interest income for Q3 2025 was $53,500 thousand, a decrease from $57,427 thousand in Q3 2024[13] - Net interest income for Q3 2025 was $22.2 million, slightly down from $22.7 million in Q3 2024[3] - Total noninterest expense increased to $30,175 thousand in Q3 2025, up from $19,706 thousand in Q3 2024[13] - Noninterest Expense rose to $30,175,000 in Q3 2025, up from $17,888,000 in Q3 2024, primarily due to a goodwill impairment of $12,900,000[15] - Total Noninterest Income decreased to $1,860,000 in Q3 2025 from $2,500,000 in Q3 2024, reflecting a decline of 25.6%[15] Capital and Equity - The risk-weighted capital ratio improved to 12.34% at September 30, 2025, compared to 11.66% at September 30, 2024[3] - Shareholders' equity increased to $257,744,000, up from $253,575,000, indicating a growth of 1.7%[21] - As of September 30, 2025, total shareholders' equity was $221,075,000, a decrease from $255,049,000 as of December 31, 2024[33] - Tangible common equity stood at $185,478,000, down from $206,029,000 in the previous year[33] Asset and Liability Management - Total assets decreased by $175.4 million to $3.8 billion as of September 30, 2025, compared to December 31, 2024[3] - Total assets were reported at $3,797,336,000, compared to $3,972,728,000 at the end of 2024[33] - Total liabilities increased to $3,656,014,000, up from $3,356,890,000, reflecting a growth of 8.9%[21] Shareholder Returns - Cash dividends declared were $0.01 per common share in Q3 2025, down from $0.08 in Q3 2024, as part of a new business strategy to preserve capital[9] - Book value per common share decreased to $12.25 as of September 30, 2025, from $17.75 as of December 31, 2024, primarily due to a decrease in retained earnings and new share issuance[9] Regulatory Capital Ratios - The Bank's capital conservation buffer was 4.34%, exceeding the minimum requirement of 2.50%[35] - As of September 30, 2025, the Bank maintained a Tier 1 risk-based capital ratio of 11.09%, above the minimum requirement of 8.00%[39] - The total risk-based capital ratio for the Bank was 12.34%, exceeding the minimum requirement of 10.00%[39] - The Common Equity Tier One Capital Ratio for the Bank was 11.09%, well above the minimum of 6.50%[39]

Revenue Growth - Total revenue for Q3 2025 increased 112% to $6.9 million compared to $3.2 million in Q3 2024, driven by the Asset Management Agreement with New APR Energy[5] - Total revenue for the first nine months of 2025 increased 202% to $17.6 million from $5.8 million in the same period last year[12] - The company expects total revenue for 2025 to range between $28 million and $30 million, representing an increase of 285% to 312% from 2024[19] - Total revenues for the three months ended September 30, 2025, were $6,877,283, a significant increase from $3,238,910 in the same period of 2024, representing a growth of 113%[28] - The company reported $5,152,805 in revenues from services and consulting related parties for the three months ended September 30, 2025, with no comparable revenue in the same period of 2024[28] Profitability and Loss - Gross margin for Q3 2025 improved 174% to $2.5 million from $0.9 million in Q3 2024, primarily due to the performance under the AMA[7] - Net loss for Q3 2025 decreased by 26% to $1.04 million compared to a net loss of $1.4 million in Q3 2024, attributed to increased revenues from the AMA[10] - The gross margin for the nine months ended September 30, 2025, was $5,349,017, compared to $799,167 for the same period in 2024, indicating a substantial improvement in profitability[28] - The net loss for the three months ended September 30, 2025, was $1,040,254, a decrease from a net loss of $1,401,663 in the same period of 2024, reflecting a 26% improvement[28] - For the nine months ended September 30, 2025, the net loss was $6,637,948, an improvement from a net loss of $7,358,143 in the same period of 2024, representing a decrease of approximately 9.8%[34] - The basic and diluted net loss per share for the three months ended September 30, 2025, was $(0.06), an improvement from $(0.18) in the same period of 2024[28] Cash and Liquidity - Cash and cash equivalents at September 30, 2025, totaled $33.20 million, up from $6.27 million at December 31, 2024[11] - Cash and cash equivalents increased to $33,201,498 as of September 30, 2025, up from $6,266,296 at December 31, 2024, showing a significant liquidity improvement[30] - The company ended the period with cash of $33,201,498, compared to $646,113 at the end of the same period in 2024, marking an increase of approximately 5,128%[34] Operating Expenses - Operating expenses for Q3 2025 increased 28% to $3.6 million compared to $2.8 million in Q3 2024, largely due to non-cash stock-based compensation[8] - Operating expenses for the nine months ended September 30, 2025, totaled $11,695,308, compared to $8,696,909 for the same period in 2024, reflecting a 34% increase[28] - Depreciation and amortization expenses rose to $1,962,342 from $1,472,965, reflecting an increase of approximately 33.3%[34] - Stock-based compensation increased significantly to $3,103,309 from $281,405, representing an increase of approximately 1,103%[34] Assets and Liabilities - Total assets reached $69,794,280 as of September 30, 2025, compared to $34,958,677 at December 31, 2024, indicating a growth of 100%[30] - The company had total liabilities of $20,292,465 as of September 30, 2025, down from $32,697,346 at December 31, 2024, indicating a reduction of 38%[30] - The company reported a significant increase in contract liabilities, which rose to $6,462,375 from $0, indicating a new liability category[34] Investments and Financing - The company raised over $50 million to capitalize on growth in the data center market and retired all debt[3] - Cash flows from investing activities totaled $7,873,079, significantly higher than $1,555,544 in the previous year, reflecting an increase of approximately 406%[34] - Cash provided by financing activities was $45,840,224, a substantial increase from $5,959,962 in the same period last year, representing an increase of approximately 668%[34] - The company made substantial investments in property and equipment, totaling $7,813,557, compared to $1,547,439 in the previous year, an increase of approximately 405%[34] Future Outlook - The company anticipates potential increases in recurring revenue and improvements in gross margin as part of its future growth strategy[25] - The company has a contract backlog of approximately $25.8 million, with $12.4 million expected to be recognized in the remainder of 2025[18] - Duos Technologies announced the deployment of its sixth Edge Data Center, with nine additional data centers scheduled for Q4 2025[3]

Financial Performance - Revenues for Q3 2025 were $3.1 million, a 60% decrease from $7.8 million in Q3 2024, primarily due to estimated goods returns for EVOMELA[8] - Revenues for Q3 2025 decreased to $3,075,000 from $7,793,000 in Q3 2024, representing a decline of 60.5%[24] - Net loss for Q3 2025 was $10.9 million, compared to $8.4 million in Q3 2024, attributed to the decrease in revenues[11] - Net loss for Q3 2025 increased to $10,883,000 compared to a net loss of $8,395,000 in Q3 2024, an increase of 29.7%[24] - Net loss per share (basic and diluted) for Q3 2025 was $(0.67), compared to $(0.55) in Q3 2024, indicating a worsening loss per share[24] - Total comprehensive loss for the nine months ended September 2025 was $35,512,000, compared to $25,156,000 in the same period of 2024, an increase of 41.1%[24] Expenses - Cost of revenue for Q3 2025 was $2.4 million, a 35% decrease compared to $3.7 million in the same period last year[9] - General and administrative expenses for Q3 2025 were $4.9 million, a 14% decrease from $5.7 million in Q3 2024[10] - Research and development expenses for Q3 2025 were $1.4 million, stable compared to $1.5 million in the same period last year[9] - Research and development expenses for the nine months ended September 2025 were $5,073,000, slightly down from $5,251,000 in the same period of 2024, a decrease of 3.4%[24] - General and administrative expenses for the nine months ended September 2025 increased to $18,709,000 from $16,456,000 in 2024, an increase of 7.6%[24] - Selling and marketing expenses for the nine months ended September 2025 were $13,793,000, up from $13,069,000 in 2024, an increase of 5.5%[24] - Total operating expenses for Q3 2025 were $11,383,000, a reduction from $12,509,000 in Q3 2024, reflecting a decrease of 9.0%[24] Cash and Financing - As of September 30, 2025, cash and cash equivalents were $4.7 million, down from $13.5 million as of December 31, 2024[11] - The company raised approximately $5.7 million from an at-the-market facility during Q3 2025[7] Research and Development - CID-103 is in a Phase 1 dose-escalation study for immune thrombocytopenia (ITP), with dosing at the highest dose of 900 mg ongoing[6] - The company plans to present results of the ongoing Phase 1 study of CID-103 at the ASH 2025 meeting on December 7, 2025[3] Business Strategy - The company is targeting completion of the divestiture of its China business in Q2 2026[6] Shareholder Information - The weighted average number of ordinary shares outstanding increased to 16,049,321 in Q3 2025 from 15,294,393 in Q3 2024, an increase of 4.9%[24]

Financial Performance - Net sales for the three months ended September 30, 2025, were approximately $6.8 million, an increase of $1.5 million or 30% compared to the same period in 2024[149] - Net sales for the nine months ended September 30, 2025, were approximately $17.4 million, an increase of $4.3 million or 33% compared to the same period in 2024[154] - Gross profit for the three months ended September 30, 2025, was approximately $3.0 million, an increase of $0.7 million or 41% compared to the prior year period[151] - Gross profit for the nine months ended September 30, 2025, was approximately $7.6 million, representing a 73% increase from $4.9 million in 2024, with a gross margin of 44% compared to 38% in 2024[156] Revenue Sources - Patient diagnostic service revenue increased by $1.5 million due to a 19% increase in cases processed, totaling 4,258 cases in Q3 2025 compared to 3,584 cases in Q3 2024[149] - Patient diagnostic service revenue increased by $4.2 million, driven by a 25% increase in processed cases, totaling 10,971 cases in 2025 compared to 8,745 cases in 2024[154] Operating Expenses - Operating expenses increased by $0.2 million for the three months ended September 30, 2025, primarily due to increased personnel costs and recruiting expenses[152] - Operating expenses increased by $0.5 million for the nine months ended September 30, 2025, with general and administrative expenses rising by $0.3 million primarily due to personnel costs[157][158] Loss and Deficit - The company incurred an operating loss of $1.7 million for the nine months ended September 30, 2025, with an accumulated deficit of $103.3 million[146] Other Income and Funding - The company recorded approximately $0.9 million of other income due to non-recurring items, including a $0.8 million Employee Retention Credit refund[145] - The company received approximately $1.1 million from Change Healthcare through a Temporary Funding Assistance Program following a cybersecurity breach[139] - The company recorded net other income of $0.9 million for the nine months ended September 30, 2025, compared to a net other expense of $45,000 in 2024[159] Cash Flow and Working Capital - Working capital improved to $1.2 million as of September 30, 2025, an increase of $2.0 million from a negative working capital of $820,000 at the end of 2024[160] - Cash flows provided by operating activities were $0.3 million for the nine months ended September 30, 2025, compared to cash used in operating activities of $0.1 million in 2024[161] - Cash flows used in investing activities were approximately $0.3 million for the nine months ended September 30, 2025, resulting from purchases of property and equipment[162] - Cash flows provided by financing activities totaled $0.8 million for the nine months ended September 30, 2025, including $1.3 million from the exercise of warrants[163] Commitments and Assessments - The company has 31,944 outstanding warrants as of September 30, 2025, with proceeds of approximately $1.3 million received from the exercise of 100,000 warrants during the three months ended September 30, 2025[147] - The company is assessing the impact of the One Big Beautiful Bill Act of 2025 on its business and financial statements[148] - The company had off-balance sheet purchase commitments of approximately $1.9 million as of September 30, 2025, primarily for laboratory reagents[167]

Revenue and Sales Performance - Total revenues decreased by $71, or 6.0%, from $1,179 for the three months ended September 30, 2024 to $1,108 for the three months ended September 30, 2025[131] - Net sales increased by $77, or 4.9%, from $1,573 for the nine months ended September 30, 2024 to $1,650 for the nine months ended September 30, 2025[138] - Net sales for the nine months ended September 30, 2025 were $1,650, an increase of $77, or 4.9%, compared to $1,573 for the same period in 2024[146] - Total revenues for the Corporate segment decreased by $38, or 18.0%, from $211 to $173 for the three months ended September 30, 2025[153] Profitability and Income - Net income attributable to LGL Group common stockholders increased by $700, or 972.2%, from $72 for the three months ended September 30, 2024 to $772 for the three months ended September 30, 2025[130] - Net income for the nine months ended September 30, 2025 was $762, an increase of $468, or 159.2%, from $294 for the same period in 2024[136] - Income from operations before income taxes increased by $71, or 59.2%, from $120 for the three months ended September 30, 2024 to $191 for the three months ended September 30, 2025[146] Expenses and Costs - Total expenses decreased by $53, or 5.1%, from $1,041 for the three months ended September 30, 2024 to $988 for the three months ended September 30, 2025[132] - Engineering, selling and administrative expenses increased by $165, or 8.7%, from $1,895 for the nine months ended September 30, 2024 to $2,060 for the nine months ended September 30, 2025[139] - Engineering, selling, and administrative expenses for the Merchant Investment segment increased by $136, or 62.7%, from $217 to $353 for the nine months ended September 30, 2025[150] - Manufacturing cost of sales decreased by $26, or 3.3%, from $786 to $760 for the nine months ended September 30, 2025[146] Tax and Investment Income - Income tax expense decreased by $722, or 1,504.2%, from $48 for the three months ended September 30, 2024 to an income tax benefit of $674 for the three months ended September 30, 2025[134] - Net investment income decreased by $89, or 16.8%, from $531 for the three months ended September 30, 2024 to $442 for the three months ended September 30, 2025[131] - Net investment income for the three months ended September 30, 2025 decreased by $44, or 13.8%, from $318 to $274 compared to the same period in 2024[148] Cash Flow and Liquidity - Cash provided by operating activities was $425 for the nine months ended September 30, 2025, a decrease of $466 compared to $891 for the same period in 2024[159] - Cash and cash equivalents at the end of the period were $41,571, a slight decrease from $41,585 at the beginning of the period[157] - Current ratio decreased from 47.2 to 39.6 as of September 30, 2025, indicating a tighter liquidity position[159] Order Backlog - As of September 30, 2025, the order backlog was $776, an increase of $440, or 131.0%, from $336 as of December 31, 2024[143] Corporate Segment Performance - Loss from operations before income taxes for the Corporate segment increased by $120, or 32.3%, from $371 to $491 for the nine months ended September 30, 2025[154]

Financial Performance - Total revenue for Q3 2025 was $4.815 million, a 139.5% increase from $2.014 million in Q3 2024[10] - Fitness product revenue reached $4.553 million in Q3 2025, up 181.5% from $1.617 million in Q3 2024[10] - Gross profit for Q3 2025 was $825 thousand, compared to a gross loss of $288 thousand in Q3 2024[10] - Net loss for Q3 2025 was $5.231 million, an improvement from a net loss of $7.141 million in Q3 2024[10] - The net loss for the nine months ended September 30, 2025, was $14,012,000, compared to a net loss of $29,172,000 for the same period in 2024, representing a 52% improvement[17] - The net loss for the three months ended September 30, 2025, was $5.231 million, compared to a net loss of $7.141 million for the same period in 2024, representing a 26.7% improvement[62] Assets and Liabilities - Total current assets increased to $17.372 million as of September 30, 2025, from $8.218 million as of December 31, 2024[8] - Total liabilities rose to $67.981 million as of September 30, 2025, compared to $27.055 million as of December 31, 2024[8] - The company reported a total stockholders' equity of $14.857 million as of September 30, 2025, up from $7.115 million as of December 31, 2024[8] - Digital assets increased to $36.770 million as of September 30, 2025, with no digital assets reported as of December 31, 2024[8] - The company has total outstanding debt of approximately $46.4 million as of the issuance date, with about $12.4 million scheduled to mature over the next twelve months[38] Cash Flow and Investments - Cash used in operating activities for the nine months ended September 30, 2025, was $8,161,000, slightly better than $8,909,000 used in the same period of 2024[17] - The company reported a significant cash outflow of $53,490,000 in investing activities for the nine months ended September 30, 2025, compared to $1,407,000 in 2024, primarily due to the acquisition of digital assets[17] - Financing activities generated $62,248,000 in cash for the nine months ended September 30, 2025, compared to $12,947,000 in 2024, indicating a strong capital influx[17] Stock and Equity - The weighted average common stock outstanding for Q3 2025 was 1,682,660 shares, compared to 4,653 shares in Q3 2024[10] - The company issued 1.5 million shares of Series A preferred stock upon conversion of debt[14] - The company issued common stock upon the exercise of stock options, resulting in $373,000[14] - The company issued 1,250,000 shares of Series LTI Convertible Preferred Stock valued at $2.5 million to executive officers and board members, which vests 100% upon grant date[87] Acquisitions - The Company completed the acquisition of Wattbike Holdings Limited for a total purchase price of approximately $4.0 million on July 1, 2025[30] - The Company completed the acquisition of CLMBR, Inc. for a total purchase price of approximately $16.1 million on February 2, 2024[32] - The company plans to acquire approximately 99.8% stake in Sportstech with an initial investment of $15,000,000 through the issuance of Series D Non-voting Convertible Preferred Stock[24] Research and Development - Research and development expenses decreased to $404 thousand in Q3 2025 from $2.212 million in Q3 2024[10] - Research and development expenses for the three months ended September 30, 2025, were $337,000, down from $1.006 million in the same period of 2024, a decrease of 66.5%[62] Digital Assets - The company recognized a change in fair value of digital assets amounting to $10.605 million for the three months ended September 30, 2025[62] - The company recognized a loss of $10.6 million and $10.5 million related to changes in the fair value of digital assets for the three and nine months ended September 30, 2025, respectively[197] - The company’s digital assets are categorized as Level 1 investments, with a total value of $36,770,000 as of September 30, 2025[195] Compliance and Regulatory Issues - The Company has received two notices from Nasdaq regarding noncompliance with listing requirements, but has since regained compliance with both[40] - The Company is subject to a Mandatory Panel Monitor for compliance with Nasdaq listing rules for one year following the compliance letters received[40] - The Company has been unable to remain in compliance with certain Nasdaq qualifications in the past, raising doubts about its ability to continue as a going concern[41] Debt and Interest - The company incurred interest expense of $4.017 million for the three months ended September 30, 2025, compared to $1.831 million in the same period of 2024, reflecting a 119% increase[62] - The company has limited available liquidity of approximately $0.6 million of unrestricted cash and cash equivalents to fund operations over the next twelve months[38] - The company recorded a gain on extinguishment of $0.3 million from the troubled debt restructuring of promissory notes[90] Miscellaneous - The company operates primarily in the United States, the United Kingdom, and Taiwan, with most long-lived assets held in the United States as of September 30, 2025[46] - The company expects to hold its digital assets as a long-term investment, classifying them as non-current assets as of September 30, 2025[50]