During the three and nine months ended September 30, 2026, there were no material changes to our significant accounting policies included in the 2025 Annual Report, except as noted below. For additional information, refer to Note 2 to the audited Consolidated Financial Statements in the 2025 Annual Report.

Cash and cash equivalents consist of cash on hand and highly liquid investments with no maturity or with a maturity of less than three months when purchased.

Restricted cash and cash equivalents primarily consist of funds held by Skyline SPV as an expense holdback, restricted for payment of Skyline SPV's formation, administrative, and other expenses.

The following table provides a reconciliation of cash and cash equivalents and restricted cash and cash equivalents reported in our Condensed Consolidated Balance Sheet to the total shown in our Condensed Consolidated Statement of Cash Flows:

In accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 825, Financial Instruments ("ASC 825"), the Company may elect to measure at fair value eligible financial assets and financial liabilities that are not otherwise required to be measured at fair value. The election is made on an instrument-by-instrument basis, generally at initial recognition, and is irrevocable. For instruments measured under the fair value option, changes in fair value are recognized in Net gains (losses), and interest income is recognized in Net investment income, in the Condensed Consolidated Statements of Operations.

The Company elected the fair value option for the Skyline Note upon acquisition because fair value better reflects the economics of a convertible instrument, including its embedded conversion feature, and avoids separately accounting for that feature as an embedded derivative. The Skyline Note is classified as non-current on the Condensed Consolidated Balance Sheets. Refer to Note 4 - Investments and Note 5 - Fair Value Measurements for further information.

For the three months ended September 30, 2026, one customer accounted for 10% or more of the Company's Net sales, representing $529, or 73.5%. For the three months ended September 30, 2025, four customers each accounted for 10% or more of the Company's Net sales, representing $148, or 22.4%; $120, or 18.2%; $115, or 17.4%; and $67, or 10.1%, respectively.

For the nine months ended September 30, 2026, two customers each accounted for 10% or more of the Company's Net sales, representing $1,344, or 62.5%, and $273, or 12.7%, respectively. For the nine months ended September 30, 2025, four customers each accounted for 10% or more of the Company's Net sales, representing $223, or 13.5%; $220, or 13.3%; $199, or 12.1%; and $199, or 12.1%, respectively.

Customers exceeding 10% of Net sales are identified separately for each period presented. A customer that exceeded the threshold in one period was not necessarily the same customer, or a 10% customer at all, in any other period presented, including as between the three-month and nine-month periods.

A significant portion of the Company's accounts receivable is concentrated with a relatively small number of customers. As of September 30, 2026, one of the Company's customers accounted for approximately $506, or 90.7%, of gross accounts receivable. As of December 31, 2025, four of the Company's customers accounted for approximately $412, or 66.0%, of gross accounts receivable. The Company carefully evaluates the creditworthiness of its customers in deciding to extend credit. As a result, the Company has historically experienced low credit losses and considers the risk to be minimal.

The Company maintains its cash and cash equivalents with high-credit-quality financial institutions, and at times cash balances on deposit may exceed federally insured limits. A significant portion of the Company's cash and cash equivalents is invested in money market mutual funds. Amounts invested in money market mutual funds are not deposits, are not federally insured, and are subject to the credit and market risks of the underlying fund.

The Company records a contract liability when it receives consideration, or has an unconditional right to consideration, from a customer before it satisfies the related performance obligation. The Company’s contract liabilities consist of advance payments received from customers and are expected to be recognized as revenue within twelve months. The Company recognizes the related revenue when (or as) it satisfies the performance obligation, generally upon shipment, when control of the product passes to the customer.

As of September 30, 2026 and December 31, 2025, contract liabilities were $814 and $22, respectively, and are included in Contract liabilities on the Condensed Consolidated Balance Sheets.

In December 2023, the FASB issued Accounting Standards Update ("ASU") 2023-09, "Income Taxes (Topic 740) - Improvements to Income Tax Disclosures" ("ASU 2023-09"). The standard requires disaggregated information about a company's effective tax rate reconciliation as well as information on income taxes paid. The provisions of the standard are effective for public companies for fiscal years beginning after December 15, 2024, with early adoption permitted. This standard applies prospectively; however, retrospective application is permitted. The Company adopted ASU 2023-09 in December 2025. Refer to Note 8 - Income Taxes to the Company's Consolidated Financial Statements included in its 2025 Annual Report for further information.

In November 2024, the FASB issued ASU 2024-03, "Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses" ("ASU 2024-03"). The standard requires additional disclosure of certain costs and expenses within the notes to the financial statements. The provisions of the standard are effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027, with early adoption permitted. This accounting standards update may be applied either prospectively or retrospectively. We are assessing the impact of this standard.