Schedule of preliminary allocation of the purchase consideration


	Amounts Recognized as of
	Acquisition Date		Measurement			Purchase Price
	(as previously reported)		Period Adjustments			Allocation
Cash consideration	$	35,860,000	$	—		$	35,860,000
Total consideration	$	35,860,000	$	—		$	35,860,000
							—
Prepaid inventory ^(a)	$	10,036,160	$	(3,012,626)	^(d)	$	7,023,534
Equipment		2,609,000		3,675,000	^(d)		6,284,000
Construction in progress		1,238,000		—			1,238,000
Intangible assets ^(b)		20,900,000		(3,660,000)	^(d)		17,240,000
Goodwill ^(c)		4,608,041		(533,575)	^(d)(e)		4,074,466
Assets acquired		39,391,201		(3,531,201)			35,860,000
Accrued expenses		(3,531,201)		3,531,201	^(e)		—
Liabilities assumed		(3,531,201)		3,531,201			—
Net assets acquired	$	35,860,000	$	—		$	35,860,000

(a)

Prepaid inventory consists of raw materials and finished goods acquired by the Company but not in the Company’s physical possession as of the Acquisition Date. The fair value of raw materials was estimated to equal the replacement cost. The fair

value of finished goods was determined based on the estimated selling price, net of selling costs and a margin on the selling activities, which resulted in a change in the value of the finished goods.

(b)

Intangible assets consist of license agreement related to the license rights to use certain Honeywell intellectual property and customer relationships and are recorded at estimated fair values. The estimated fair value of the license agreement is based on a variation of the income valuation approach and is determined using the relief from royalty method. The estimated fair value of the customer relationships is based on a variation of the income valuation approach known as the multi-period excess earnings method. Refer to Intangible assets within Note 2, “Supplemental Balance Sheet Disclosures” for further details.

(c)

Goodwill represents the excess of the purchase consideration over the estimated fair value of the assets acquired and liabilities assumed. The goodwill recognized is primarily attributable to the expected synergies from the Transaction. Goodwill resulting from the Transaction has been assigned to the Company’s one operating segment and one reporting unit. The goodwill is not expected to be deductible for income tax purposes. Further, the Company determined that the goodwill was not impaired as of June 30, 2024 and as such, no impairment charges have been recorded for the three- and nine-month periods ended June 30, 2024; the Company also determined that the goodwill was not impaired as of September 30, 2023.

(d)

In the third quarter of 2024 and within one year from the Acquisition Date, the Company identified measurement period adjustments related to fair value estimates. The measurement period adjustments were due to the refinement of inputs used to calculate the fair value of the prepaid inventory, equipment, license agreement and customer relationships based on facts and circumstances that existed as of the Acquisition Date. One of the refinements of inputs used was a change in classification of prepaid inventory to equipment of $3.7 million. The adjustments resulted in an overall increase to goodwill of $3.0 million. As a result of the measurement period adjustments to the estimated fair values of equipment and customer relationships, during the third quarter of 2024, the Company recognized $218,623 additional depreciation expense in cost of sales and $67,500 additional amortization expense in selling, general and administrative respectively, related to the effects that would have been recognized in previous quarters if the measurement period adjustments were recognized as of the Acquisition Date. For the remaining measurement period adjustments, the change to the preliminary fair value estimates did not have a material impact to the condensed consolidated statement of operations.

(e)

During the fourth quarter of 2023, the Company identified measurement period adjustments related to the fair value estimates for accrued expenses. While the Asset Purchase and License Agreement indicated an amount of liabilities related to open supplier purchase orders to be assumed by the Company as of the Acquisition Date, it was determined that there were no actual liabilities outstanding related to these open supplier purchase orders as of the Acquisition Date; therefore, the $3.5 million assumed liabilities preliminarily recorded were reversed. The adjustments resulted in an overall decrease to goodwill of $3.5 million; the adjustments have no impact to the condensed consolidated statement of operations.

Schedule of inventories


	June 30,		September 30,
	2024		2023
Raw materials	$	12,277,086	$	5,162,177
Work-in-process		1,242,259		966,888
Finished goods		1,020,827		10,648
	$	14,540,172	$	6,139,713

Summary of intangible assets other than goodwill

The Company’s intangible assets other than goodwill are as follows:


	As of June 30, 2024
	Gross Carrying		Accumulated		Accumulated		Net Carrying
	Value		Impairment		Amortization		Value
License agreement acquired from the Transaction ^(a)	$	5,600,000	$	—	$	—	$	5,600,000
Customer relationships acquired from the Transaction ^(a)		11,640,000		—		(1,164,000)		10,476,000
Licensing and certification rights ^(b)		696,506		(44,400)		(638,285)		13,821
Total	$	17,936,506	$	(44,400)	$	(1,802,285)	$	16,089,821


	As of September 30, 2023
	Gross Carrying		Accumulated		Accumulated		Net Carrying
	Value		Impairment		Amortization		Value
License agreement acquired from the Transaction ^(a)	$	5,700,000	$	—	$	—	$	5,700,000
Customer relationships acquired from the Transaction ^(a)		10,740,000		—		(268,500)		10,471,500
Licensing and certification rights ^(b)		696,506		(44,400)		(638,285)		13,821
Total	$	17,136,506	$	(44,400)	$	(906,785)	$	16,185,321

(a)

As part of the Transaction, the Company acquired intangible assets related to the license agreement for the license rights to use certain Honeywell intellectual property and customer relationships. The license agreement has an indefinite life and is not subject to amortization; the customer relationships have an estimated weighted average life of nine years. The Company determined that the intangible assets were not impaired as of June 30, 2024 and September 30, 2023; no impairment charges have been recorded for the three- and nine-month periods ended June 30, 2024.

(b)

The licensing and certification rights are amortized over a defined number of units. No impairment charges were recorded during the three-and nine-month periods ended June 30, 2024. An impairment charge of $44,400 was recorded during the three-and nine-month periods ended June 30, 2023.

Schedule of property and equipment, net


	June 30,		September 30,
	2024		2023
Computer equipment	$	2,405,850	$	2,343,996
Furniture and office equipment		984,206		970,230
Manufacturing facility		6,198,690		5,926,584
Equipment		13,025,229		9,554,197
Land		1,021,245		1,021,245
		23,635,220		19,816,252
Less accumulated depreciation and amortization		(12,045,013)		(11,923,825)
	$	11,590,207	$	7,892,427

Schedule of accrued expenses


	June 30,		September 30,
	2024		2023
Warranty	$	550,081	$	562,645
Salary, benefits and payroll taxes		1,173,868		1,181,219
Professional fees		419,082		200,668
Operating lease		5,282		12,965
Income tax payable		—		116,697
Other		670,092		844,131
	$	2,818,405	$	2,918,325