Author: Ravi Shankar

Product revenue grew 24% to $5.7 million, driven by strong software licensing performance; gross margin reached 90% for the second consecutive quarter

Measurable results validate ROC’s core growth drivers; ROC ABIS grew 654% YoY to $2.2M and ROC SDK grew 52% YoY to $2.6M

Secured transformational federal beachhead contracts for ROC ABIS and ROC Evidence, including a $64.3 million Department of Justice digital evidence contract award, the largest in Company history

DENVER, Nov. 12, 2026 (GLOBE NEWSWIRE) — Rank One Computing Corporation d/b/a ROC (Nasdaq: ROC) (“ROC” or the “Company”), a U.S. leader in Vision AI, building unified biometric, video analytics, and digital evidence solutions, today announced financial results for the third quarter ended September 30, 2026.

“The third quarter marked a transformational period for ROC, highlighted by record revenue, a profitable quarter, and significant execution against the strategic objectives we established at our IPO,” said B. Scott Swann, ROC’s Chief Executive Officer. “We delivered record third-quarter revenue of $8.0 million, increasing 50% year over year and 57% sequentially, and our software licensing revenue drove a second consecutive quarter of 90% gross margin. Our strong results were driven by meaningful federal traction for ROC ABIS and expanded activity under an existing government R&D program, demonstrating the strategic investments we have made to execute our growth strategy are translating into measurable financial performance.”

“Importantly, we delivered on our commitment by establishing two foundational federal beachhead contracts for ROC ABIS and ROC Evidence, including the largest award in ROC’s history, a $64.3 million contract with the U.S. Department of Justice. These wins secure ROC’s position as a competitor in the Vision AI space. Our differentiation is validated in the accuracy, speed and efficiency of our technologies, supported by a highly specialized team that drives our unique value proposition. With these strategic federal programs in place, ROC is well-positioned with an active federal pipeline to pursue larger, longer-duration opportunities that generate durable, high-margin revenue.”

Mr. Swann continued, “We entered the fourth quarter from a position of strength, focused on disciplined execution, specifically addressing our three core growth products, ROC ABIS, ROC Evidence and ROC Watch. With the integration of ZTC strengthening ROC Evidence and a broad pipeline of opportunities across our commercial and federal markets, we believe we are building a foundation for sustained, long-term growth. We consider the third quarter an inflection point for ROC, as we secured two landmark contracts and reached record revenue. Achieving these significant milestones leaves us confident in a strong close to 2026.”

 Third Quarter 2026 Business Updates

• Secured a U.S. Department of Justice (DOJ) ROC Evidence contract, the largest award in ROC’s history, with a total potential value of $64.3 million over eight years, including approximately $7.4 million under the initial one-year base period.

• Secured ROC’s first strategic federal ROC ABIS contract, with a total potential value of $5.1 million over five years, including approximately $2.5 million in committed contract value, delivering this significant federal ABIS platform license during the quarter.

• Continued strong commercial adoption of ROC SDK, generating $2.6 million in quarterly revenue, representing 52% year-over-year growth.

• Expanded ROC Watch’s market presence with new government and commercial customer wins during the third quarter, reflecting continued adoption of ROC’s video analytics solutions.

 Third Quarter 2026 Corporate Highlights and Subsequent Events

• Completed the acquisition of Zuccaro Technical Consulting (ZTC) on August 31, 2026, expanding ROC Evidence with proprietary digital forensics capabilities, experienced technical personnel, and established federal customer relationships.

• Achieved #1 global accuracy rankings across three National Institute of Standards and Technology (NIST) Face Analysis Technology Evaluation (FATE) Age Estimation and Verification benchmarks, including Visa, Application, and Mugshot datasets.

• Appointed Dr. Anil K. Jain, a globally recognized pioneer in biometrics, pattern recognition, and computer vision, to ROC’s Board of Directors.

• Launched ROC’s first SaaS product, an Age Estimation API that establishes a foundation for new recurring revenue opportunities across the Company’s Vision AI portfolio.

Third Quarter 2026 Financial Results (as compared to Third Quarter 2025)

Revenue reached a record $8.0 million for the three months ended September 30, 2026, an increase of approximately $2.7 million, or 50%, compared to $5.3 million in the prior-year period. Growth was driven by higher product revenue, particularly ROC ABIS and ROC SDK, and increased government R&D contract revenue from expanded activity under a U.S. government research program that commenced in the second quarter of 2026.

Product revenue was $5.7 million for the three months ended September 30, 2026, an increase of approximately $1.1 million, or 24%, compared to $4.6 million in the prior year period. The increase was driven primarily by significant growth in ROC ABIS and continued ROC SDK expansion, partially offset by lower ROC Watch revenue following the completion of a significant government deployment in the fourth quarter of 2025.

During the third quarter of 2026, ROC’s product revenue performance reflected continued commercial adoption and expansion across its Vision AI portfolio:

• ROC SDK revenue was $2.6 million, a YoY increase of 52% from $1.7 million, reflecting new customer contracts and expanded commercial adoption.

• ROC ABIS revenue was $2.2 million, a YoY increase of 654% from $287,000, advancing commercialization with a significant federal ABIS platform license delivered during the quarter.

• ROC Watch revenue was $0.8 million, compared to $2.5 million in the prior year quarter, due to a mission deployment that was completed in Q4 2025. Sequentially, ROC Watch revenue increased 219% from $0.2 million in the second quarter of 2026.

• ROC Evidence revenue was approximately $63,000, following initial commercialization in the second quarter 2026. The DOJ contract base-year award contributed revenue for initial services delivered in the third quarter of 2026 and will contribute more meaningful revenue in the fourth quarter of 2026 and continuing through the third quarter of 2027.

• ROC Enroll revenue was approximately $59,000, a YoY increase of 55% from $38,000.

Government R&D contract revenue was $2.2 million for the three months ended September 30, 2026, an increase of approximately $1.4 million, or 175%, year over year. The increase was driven by expanded activity under a U.S. Government research and development program that commenced in the second quarter of 2026.

During the third quarter of 2026, the Company began reporting Service Contracts revenue, which includes revenue from pure service contracts that do not include a software license, hardware, or R&D deliverable. Service Contracts revenue was approximately $0.2 million for the three months ended September 30, 2026, primarily attributable to revenue recognized from the ZTC acquisition on August 31, 2026.

Gross profit was $7.2 million for the three months ended September 30, 2026, an increase of approximately $3.0 million or 71%, compared to $4.2 million in the prior-year period. Gross margin improved to 90% from 79% in the prior-year period, primarily reflecting a favorable revenue mix driven by higher-margin software licensing revenue, including a significant federal ROC ABIS platform license delivered during the quarter.

Gross margin may fluctuate between reporting periods based on the timing and mix of software license revenue, services, hardware deployments, and government R&D contract activity.

Operating expenses totaled $6.6 million for the three months ended September 30, 2026, compared to $4.3 million in the prior-year period. The increase primarily reflected planned investments in personnel, operations, infrastructure, and the continued development of ROC’s Vision AI capabilities, as well as costs associated with the ZTC acquisition.

Net income was approximately $0.6 million for the three months ended September 30, 2026, compared with a net loss of approximately $0.8 million in the prior-year period. Basic and diluted earnings per share were $0.03, compared with a basic and diluted loss per share of $0.05 in the prior-year period. ROC’s quarterly profitability reflects a favorable revenue mix shift toward software licensing and the structural benefits inherent in ROC’s technology platform.

As of September 30, 2026, ROC had $7.5 million in cash, approximately $14.8 million in working capital, and no borrowings under its revolving line of credit.

Accounts receivable increased to $11.1 million as of September 30, 2026, compared to $5.6 million as of June 30, 2026, primarily reflecting higher revenue and the timing of customer invoicing under contractual billing arrangements.

The Company completed its acquisition of ZTC on August 31, 2026, as previously announced in a Current Report on Form 8-K filed on September 2, 2026 (the “ZTC 8-K”). ZTC’s operating results for the post-acquisition period of September 1, 2026 through September 30, 2026 have been included in ROC’s consolidated financial statements contained in its Quarterly Report on Form 10-Q for the period ended September 30, 2026, which was filed on November 12, 2026. In addition, (A) ZTC’s audited financial statements as of December 31, 2025 and 2024 and for the years then ended, together with the related independent auditor’s report; (B) ZTC’s unaudited interim financial statements as of June 30, 2026 and for the six months ended June 30, 2026; (C) the unaudited pro forma condensed combined balance sheet of ROC as of June 30, 2026, giving effect to the ZTC transaction as if it had occurred on June 30, 2026; and (D) the unaudited pro forma condensed combined statements of operations of ROC for the year ended December 31, 2025 and the six months ended June 30, 2026, in each case giving effect to the ZTC transaction as if it had occurred on January 1, 2025 have been prepared in accordance with Article 11 of Regulation S-X and filed separately under a Form 8-K/A filing dated November 12, 2026, which amends the ZTC 8-K as required under applicable SEC regulations and in accordance with those requirements.

Conference Call Information

ROC will host a conference call today, November 12, 2026, at 4:30 PM ET to discuss the Company’s third quarter 2026 results and conduct a question-and-answer session. The dial-in number for the conference call is (866) 777-2509 (toll-free) or (412) 317-5413 (international). Please dial into the number 10 minutes prior to the scheduled start time.

In addition, a live webcast of the conference call will be available on ROC’s Investor Relations website at https://investors.roc.ai/. A replay of the webcast will be available on ROC’s Investor Relations website for one year following the call.

About ROC
ROC is a leading U.S. developer of Vision AI, delivering sovereign biometrics, video analytics, and digital evidence through a unified platform. This enables agency and integrator partners to unlock faster, more accurate, and cost-efficient capabilities. At its core, ROC transforms raw pixels into real-time operational awareness for defense, public safety, and digital commerce. The Company is headquartered in Denver, Colo., with additional hubs in Grand Rapids, Mich., and Morgantown, W. Va. For more information, please visit the Company’s website: www.roc.ai.

Forward-Looking Statements
This earnings release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended and the Private Securities Litigation Reform Act of 1995. These statements are made under the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements reflect current views about future events and financial performance based on certain assumptions. They include opinions, forecasts, intentions, plans, goals, projections, guidance, expectations, beliefs or other statements that are not statements of historical fact. Forward-looking statements can be identified by terminology such as “will,” “may,” “should,” “could,” “would,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “targets,” “projects,” “forecasts,” “guidance,” “outlook,” “approximates,” “predicts,” “potential,” “continue,” “likely,” “ongoing,” “confident,” ”positioned,” “pipeline,” or the negative or other variations of such expressions, and similar expressions although not all forward-looking statements may contain these words. Any statements that are not historical facts or that refer to projections of our future financial performance, our anticipated growth and trends in our businesses, our goals, strategies, focus and plans, and other characterizations of future events or circumstances, including statements expressing general optimism about future operating results and the development of our products, are forward-looking statements. Forward-looking statements in this earnings release include, without limitation, statements regarding the expected timing and amount of revenue under the Company’s U.S. Department of Justice contract and its ROC ABIS contract, the total potential value of those contracts, the Company’s pipeline of federal and commercial opportunities, its ability to pursue larger and longer-duration opportunities, the anticipated benefits of the ZTC acquisition, the commercialization of its SaaS and API offerings, the Company’s expectations for the fourth quarter and full year 2026, and the matters described under “Business Outlook.” The Company may also make written or oral forward-looking statements in its periodic reports filed with or furnished to the U.S. Securities and Exchange Commission (the “SEC”), in its annual report to shareholders, in press releases and other written materials, and in oral statements made by its officers, directors, or employees to third parties. Forward-looking statements are based on the Company’s current expectations and assumptions regarding its business, the economy, and other future conditions, and involve known and unknown risks, uncertainties, and other factors — many of which are outside the Company’s control — that could cause actual results, performance, or achievements to differ materially from those expressed or implied by such statements. Such factors include, but are not limited to: the U.S. Government’s right to terminate or decline to renew contracts, in whole or in part, for convenience; the fact that option periods under the Company’s government contracts, including its U.S. Department of Justice contract, are exercisable at the Government’s sole discretion and subject to the availability of appropriations, such that the total potential contract value , and the revenue anticipated under the base period, may not be realized; the timing of contract awards, funding, implementation milestones, customer acceptance, and revenue recognition, including the effect of government shutdowns or continuing resolutions; the concentration of the Company’s revenue among a limited number of customers and contracts, and the extent to which significant license revenue recognized in a particular quarter may not recur; fluctuations in quarterly results, revenue mix, and gross margin; the Company’s ability to sustain profitability, and the extent to which increases in operating expenses may outpace revenue growth; the timing of customer invoicing and the collectability of accounts receivable; the Company’s liquidity and its ability to obtain additional financing on acceptable terms, or at all; risks relating to the integration of ZTC and the realization of the anticipated benefits of the acquisition; market acceptance of new products and offerings, including the Company’s SaaS and API offerings; the extent to which the Company’s performance in third-party benchmark evaluations translates into customer adoption; the Company’s ability to execute on its goals and strategies; its future business development, financial condition, results of operations, and cash flows; competitive dynamics and changes in the markets in which the Company operates; macroeconomic and geopolitical conditions, including inflation, interest rates, tariffs, trade policy, and currency fluctuations; the Company’s ability to attract, retain, and develop talent; cybersecurity incidents and information technology disruptions; the Company’s ability to protect its intellectual property; the impact of artificial intelligence and other emerging technologies on the Company’s business; supply chain disruptions; changes in laws, regulations, and government policies, including tax, trade, data privacy, biometric privacy, environmental, and AI-related regulation; legal proceedings and regulatory inquiries; climate-related risks and the Company’s sustainability initiatives; and the other risks and uncertainties described under “Risk Factors” in the Company’s most recent Annual Report on Form 10-K, as updated by the Company’s subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with the SEC, which are accessible on the SEC’s website at www.sec.gov. You should not place undue reliance on any forward-looking statement. All forward-looking statements contained in this earnings release speak only as of the date of this earnings release. Except as required by law, the Company undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise that may arise after the date of this Earnings Release.

RANK ONE COMPUTING CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Unaudited
	Three Months Ended September 30,								Nine Months Ended September 30,
	2026				2025				2026				2025
Sales	$	8,004,768			$	5,349,990			$	15,646,391			$	13,492,434
Cost of sales		814,755				1,143,475				1,884,023				2,777,639
Gross profit		7,190,013				4,206,515				13,762,368				10,714,795
Operating expenses:
Selling, general and administrative		3,914,393				2,363,822				10,174,761				6,162,114
Research and development		2,677,311				1,907,815				6,834,845				4,811,387
Total operating expenses		6,591,704				4,271,637				17,009,606				10,973,501
Operating (loss) income		598,309				(65,122	)			(3,247,238	)			(258,706	)
Other income (expense)
Interest income (expense)		19,994				(26,449	)			11,284				(49,544	)
Other income (expense)		(3,643	)			–				(4,092	)			–
Total other income (expense), net		16,351				(26,449	)			7,192				(49,544	)
(Loss) income before tax		614,660				(91,571	)			(3,240,046	)			(308,250	)
Provision for (benefit from) income taxes		—				661,795				—				600,476
Net (loss) income	$	614,660			$	(753,366	)		$	(3,240,046	)		$	(908,726	)
Earnings (loss) per share — basic	$	0.03			$	(0.05	)		$	(0.18	)		$	(0.06	)
Earnings (loss) per share — diluted	$	0.03			$	(0.05	)		$	(0.18	)		$	(0.06	)
Weighted-average shares — basic		19,153,870				15,021,650				18,295,563				15,002,111
Weighted-average shares — diluted		22,881,629				15,021,650				18,295,563				15,002,111

RANK ONE COMPUTING CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
	September 30, 2026 (Unaudited)				December 31, 2025
Assets
Current assets:
Cash	$	7,473,292			$	270,560
Accounts receivable, net		11,098,334				4,155,230
Prepaid expenses and other current assets		839,125				420,785
Total current assets		19,410,751				4,846,575
Property and equipment, net		1,663,635				268,569
Goodwill		115,124				—
Intangible assets, net		688,554				5,519
Operating lease right-of-use asset		873,106				1,088,181
Capitalized software, net		2,149,660				726,582
Other assets		42,326				30,195
Total non-current assets		5,532,405				2,119,046
Total assets	$	24,943,156			$	6,965,621
Liabilities and stockholders’ equity (deficit)
Current liabilities:
Accounts payable and accrued expenses	$	2,087,167			$	2,802,961
Acquisition consideration payable		385,976				—
Deferred revenue		1,847,714				1,382,995
Line of credit		—				1,839,891
Current portion of operating lease liabilities		312,167				306,113
Total current liabilities		4,633,024				6,331,960
Long-term operating lease liabilities		679,370				912,229
Deferred tax liability		13,703				13,703
Other long-term liabilities		8,879				—
Total long-term liabilities		701,952				925,932
Total liabilities		5,334,976				7,257,892
Commitments and contingencies
Stockholders’ equity:
Common stock, par value $0.01; 100,000,000 shares authorized; 19,560,771 and 15,021,650 shares issued and outstanding as of September 30, 2026, and December 31, 2025, respectively		195,608				150,217
Additional paid-in capital		27,321,562				4,226,455
Accumulated deficit		(7,908,990	)			(4,668,943	)
Total stockholders’ equity (deficit)		19,608,180				(292,271	)
Total liabilities and stockholders’ equity	$	24,943,156			$	6,965,621

RANK ONE COMPUTING CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Unaudited
	Nine Months Ended September 30,
	2026				2025
Cash flows from operating activities:
Net loss	$	(3,240,046	)		$	(908,726	)
Adjustments to reconcile net loss to net cash used in    operating activities:
Stock-based compensation		948,286				359,913
Depreciation and amortization		417,971				103,519
Non-cash lease expense		263,137				203,158
Foreign currency transaction loss		3,643				–
Change in expected credit losses		42,624				160,498
Changes in assets and liabilities:
Accounts receivable, net		(6,707,467	)			(2,581,285	)
Prepaid expenses and other current assets		(641,781	)			119,765
Deferred tax asset		—				787,017
Other assets		(12,131	)			—
Deferred revenue		464,719				(78,356	)
Accounts payable and accrued expenses		(724,196	)			876,367
Lease liability		(274,867	)			(198,844	)
Other long term liabilities		8,879				—
Net cash used in operating activities		(9,451,229	)			(1,156,974	)
Cash flows from investing activities:
Purchases of property and equipment		(1,571,867	)			—
Acquisition of business, net of cash acquired		(90,884	)			—
Capitalized software		(1,654,283	)			(490,761	)
Net cash used in investing activities		(3,317,034	)			(490,761	)
Cash flows from financing activities:
Net proceeds from issuance of common stock		21,709,069				—
Proceeds from the exercise of stock options		101,817				8,106
Proceeds from (repayment of) the line of credit, net		(1,839,891	)			985,344
Net cash provided by financing activities		19,970,995				993,450
Net change in cash		7,202,732				(654,285	)
Cash at beginning of period		270,560				726,436
Cash at end of period	$	7,473,292			$	72,151
Supplemental disclosures:
Cash paid for interest	$	70,848			$	61,321
NONCASH INVESTING AND FINANCING ACTIVITIES:
Common stock issued as consideration for business acquisition	$	608,124			$	—
Business acquisition consideration payable	$	385,976			$	—
Fair value of warrants issued with initial public offering	$	936,042			$	—
Deferred offering costs reclassified to additional paid-in capital	$	226,798			$	—

RANK ONE COMPUTING CORPORATION DISAGGREGATION OF REVENUE Unaudited
	Three Months Ended September 30,						Nine Months Ended September 30,
	2026			2025			2026			2025
ROC SDK	$	2,611,483		$	1,721,238		$	5,488,676		$	4,263,378
ROC Watch		792,386			2,521,647			1,929,986			4,948,879
ROC ABIS		2,159,725			286,556			2,393,191			326,108
ROC Enroll		58,920			38,113			183,514			312,573
ROC Evidence		62,810			—			80,310			—
Total Product Revenue		5,685,324			4,567,554			10,075,677			9,850,938
R&D Contracts		2,153,588			782,436			5,369,439			3,641,496
Service Contracts		165,856			—			201,275			—
Total Revenue	$	8,004,768		$	5,349,990		$	15,646,391		$	13,492,434

Media inquiries:
Matt Aitken, VP of Marketing
media@roc.ai

Investor inquiries:
CORE IR
ir@roc.ai

• Completed acquisition of Prana Therapies and $120 million concurrent private placement financing, establishing PRA-216 and the INSPIRE-built pipeline as Bolt’s primary development focus
• Initiated Phase 2 studies with PRA-216, a half-life-extended IL-4Rα/TSLP bispecific, in asthma, atopic dermatitis and chronic obstructive pulmonary disease with initial data expected in 2Q 2027
• Recently disclosed PRA-216 Phase 1 data provided first clinical validation of PRA-216 and the proprietary INSPIRE multispecific antibody platform with the potential for at-home maintenance dosing every 8 to 12 weeks; a second wholly owned INSPIRE program is expected to enter the clinic and generate initial clinical data in 2H 2027
• Cash runway expected to fund operations into 2028 through multiple clinical and preclinical milestones

REDWOOD CITY, Calif., Nov. 12, 2026 (GLOBE NEWSWIRE) — Bolt Biotherapeutics, Inc. (Nasdaq: BOLT), a clinical-stage biotechnology company advancing next-generation, half-life-extended multispecific antibodies, today reported financial results for the third quarter ended September 30, 2026, and provided a business update.

In October, Bolt completed its acquisition of Prana Therapies in a sign-and-close, stock-for-stock reverse merger and closed a concurrent $120 million private placement financing with leading healthcare institutional investors. Following the transaction, Prana’s pipeline became the primary development focus of the company, led by flagship program PRA-216, an IL-4Rα/TSLP bispecific antibody in Phase 2 development across multiple high-value inflammatory indications. In connection with the transaction, Sheila Gujrathi, M.D., Co-Founder and former Chief Executive Officer of Prana, was appointed Chief Strategy Officer of Bolt and joined the company’s Board of Directors.

“The transaction and financing provide us with the capital and public-company foundation to advance PRA-216 and the broader INSPIRE pipeline through what we believe will be an exciting and highly data-rich period ahead,” said Sheila Gujrathi, M.D., Chief Strategy Officer of Bolt Biotherapeutics. “PRA-216 is our flagship program and the first clinical validation of the INSPIRE platform. It is now in Phase 2 development in asthma, COPD and atopic dermatitis, with an additional study planned in eosinophilic esophagitis, and we expect patient proof-of-concept data across all four studies beginning in the second quarter of 2027. These studies will evaluate the potential of PRA-216 to move beyond the efficacy ceiling of single-mechanism therapies by combining complementary IL-4Rα and TSLP inhibition, while offering the potential convenience of infrequent, at-home dosing. Beyond PRA-216, we look forward to advancing additional wholly owned programs from INSPIRE as we work to build a new generation of differentiated multispecific therapies.”

“Completing the Prana acquisition marks an important transformation for Bolt,” said Willie Quinn, President and Chief Executive Officer of Bolt Biotherapeutics. “With a strong balance sheet, an advanced clinical program and a differentiated platform, we believe we are well positioned to execute against the important milestones ahead.”

Third Quarter 2026 Financial Results

• Cash and Financing– In October 2026, subsequent to the end of the third quarter, Bolt completed a private placement financing resulting in approximately $120 million in gross proceeds. The financing is expected to fund the company’s operations into 2028 and through multiple anticipated clinical and preclinical milestones.
• Collaboration Revenue – Total collaboration revenue was zero for the quarter ended September 30, 2026, compared to $2.2 million for the same quarter in 2025. Revenue in the comparative periods was generated from services performed under the R&D collaborations as we fulfill our performance obligations. 
• Research and Development (R&D) Expenses – R&D expenses were $2.2 million for the quarter ended September 30, 2026, compared to $6.5 million for the same quarter in 2025. The decrease between the comparable periods was mainly due to a R&D tax incentive, a decrease in salary and related expenses primarily as a result of our restructuring, and overall lower research and development activities. 
• General and Administrative (G&A) Expenses – G&A expenses were $2.5 million for the quarter ended September 30, 2026, compared to $3.3 million for the same quarter in 2025. The decrease between the comparable periods was mainly due to a decrease in salary and related expenses primarily as a result of our restructuring as well as lower personnel expenses.
• Loss from Operations – Loss from operations was $4.7 million for the quarter ended September 30, 2026, compared to $7.7 million for the same quarter in 2025.

Subsequent Events

• Merger with Prana Therapies: Bolt acquired Prana on October 23, 2026 through the issuance of 430,746 shares of common stock and 16,360.929 shares of Series D non-voting preferred stock, each share of which is convertible into 1,000 shares of Common Stock. Bolt will call and hold stockholders’ meetings as soon as practicable to approve the conversion of the Series D Preferred Stock into Common Stock, and other matters as specified in the Merger Agreement. Bolt will provide the disclosures required by ASC 805, Business Combinations, once they are ready and no later than January 8, 2027. 
• Private Placement: Concurrent with the acquisition of Prana, Bolt sold and issued 13,995.311 shares of Series D Preferred Stock and accompanying warrants for aggregate gross proceeds of $120.0 million (not including any cash proceeds that may be received upon the exercise of such warrants), before deducting placement agent fees and other offering expenses.
• Shares Outstanding: After the acquisition of Prana and the Private Placement, subject to stockholder approval of the conversion of the Series D non-voting convertible preferred stock, Bolt is expected to have approximately 34.2 million shares of common stock outstanding on an as-converted basis, before giving effect to the exercise of the PIPE warrants
• Lease Termination: Following the October 2026 acquisition of Prana, the Chesapeake Master Lease has been terminated with an effective lease expiration date of January 1, 2027.

About Bolt Biotherapeutics, Inc.
Bolt Biotherapeutics is a clinical-stage biotechnology company pioneering a new generation of half-life-extended multispecific antibodies designed to deliver best-in-disease therapies. Through the proprietary INSPIRE platform it acquired from Prana Therapies, the company combines complementary therapeutic mechanisms in fully IgG-based molecules designed for differentiated efficacy, extended exposure, and convenient dosing.

The company’s lead program, PRA-216, is a novel IL-4Rα/TSLP bispecific antibody currently in Phase 2 development in asthma, chronic obstructive pulmonary disease, and atopic dermatitis, with a fourth Phase 2 study planned in eosinophilic esophagitis. In addition to PRA-216, Bolt Biotherapeutics is advancing a wholly owned pipeline of additional INSPIRE-based multispecific programs across diseases with significant unmet need.

Bolt’s pipeline also includes BDC-4182, a claudin 18.2-targeting Boltbody™ ISAC.

For more information, please visit https://www.boltbio.com/.

Forward-Looking Statements
This press release contains forward-looking statements about us and our industry that involve substantial risks and uncertainties and are based on our beliefs and assumptions and on information currently available to us. All statements other than statements of historical facts contained in this press release, including, without limitation, statements regarding Bolt, Prana, the concurrent private placement financing and the acquisition of Prana by Bolt (the “Transactions”) and other matters, including, without limitation, statements regarding: the Transactions, including any additional gross proceeds that may be received upon exercise, if any, of accompanying warrants, if any, and the expected effects, perceived benefits or opportunities and related timing with respect thereto; expectations regarding or plans for the company’s pipeline, including its ongoing and planned clinical trials, research and development programs and the expected timing for key milestones, including the release of clinical data; the potential benefits of PRA-216 and Prana’s other clinical programs; and expectations regarding the use of proceeds from the concurrent private placement financing and cash runway expectations therefrom, including such proceeds funding the company through key clinical milestones; and any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “on track,” “plan,” “potential,” “predict,” “project,” “should,” “will,” or “would,” or the negative of these words or other similar terms or expressions. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance, or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Forward-looking statements represent our current beliefs, estimates and assumptions only as of the date of this press release and information contained in this press release should not be relied upon as representing our estimates as of any subsequent date. These statements, and related risks, uncertainties, factors and assumptions, include, but are not limited to: the company’s ability to realize the anticipated benefits from the transactions, including as a result of its failure to receive the requisite stockholder approvals; investors in the private placement may not exercise their warrants and the company may not receive any additional proceeds therefrom; the potential product candidates that we develop may not progress through clinical development or receive required regulatory approvals within expected timelines or at all; clinical trials may not confirm any safety, potency or other product characteristics described or assumed in this press release; such product candidates may not be beneficial to patients or become commercialized; and our ability to maintain our current collaborations and establish further collaborations. These risks are not exhaustive. Except as required by law, we assume no obligation to update these forward-looking statements, or to update the reasons actual results could differ materially from those anticipated in the forward-looking statements, even if new information becomes available in the future. Further information on factors that could cause actual results to differ materially from the results anticipated by our forward-looking statements is included in the reports we have filed or will file with the Securities and Exchange Commission, including our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. These filings, when available, are available on the investor relations section of our website at investors.boltbio.com and on the SEC’s website at www.sec.gov.

Contacts:    
Christina Trout
VP, Corporate Development
(650) 665-9295
investors@pranatherapies.com

Matthew DeYoung
Argot Partners
(212) 600-1902
boltbio@argotpartners.com

BOLT BIOTHERAPEUTICS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited, in thousands, except share and per share amounts)
		Three Months Ended September 30,								Nine Months Ended September 30,
		2026				2025				2026				2025
Collaboration revenue		$	—			$	2,169			$	31			$	5,195
Operating expenses:
Research and development			2,209				6,535				12,187				23,545
General and administrative			2,521				3,337				7,741				10,678
Impairment charges			—				—				808				—
Total operating expense			4,730				9,872				20,736				34,223
Loss from operations			(4,730	)			(7,703	)			(20,705	)			(29,028	)
Other income (expense), net:
Interest income, net			145				477				599				2,129
Other income, net			163				82				557				154
Total other income (expense), net			308				559				1,156				2,283
Net loss			(4,422	)			(7,144	)			(19,549	)			(26,745	)
Net unrealized gain (loss) on marketable securities			1				(4	)			(22	)			(107	)
Comprehensive loss		$	(4,421	)		$	(7,148	)		$	(19,571	)		$	(26,852	)
Net loss per share, basic and diluted		$	(2.25	)		$	(3.72	)		$	(10.09	)		$	(13.94	)
Weighted-average shares outstanding, basic and diluted			1,966,084				1,919,441				1,936,954				1,918,014

BOLT BIOTHERAPEUTICS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited, in thousands)
		September 30,				December 31,
		2026				2025
Assets
Current assets:
Cash and cash equivalents		$	13,782			$	11,703
Short-term investments			1,016				15,802
Restricted cash			200				200
Prepaid expenses and other current assets			2,082				2,555
Total current assets			17,080				30,260
Property and equipment, net			341				1,245
Operating lease right-of-use assets			16,367				19,230
Restricted cash, non-current			1,538				1,538
Long-term investments			247				4,337
Other assets			18				138
Total assets		$	35,591			$	56,748
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable		$	633			$	1,443
Accrued expenses and other current liabilities			3,385				3,717
Deferred revenue			1,066				449
Operating lease liabilities			3,231				2,826
Total current liabilities			8,315				8,435
Operating lease liabilities, net of current portion			17,658				20,132
Deferred revenue, non-current			924				1,544
Other long-term liabilities			132				132
Total liabilities			27,029				30,243
Commitments and contingencies
Stockholders’ equity:
Common stock			—				—
Additional paid-in capital			488,933				487,305
Accumulated other comprehensive loss			(43	)			(21	)
Accumulated deficit			(480,328	)			(460,779	)
Total stockholders’ equity			8,562				26,505
Total liabilities and stockholders’ equity		$	35,591			$	56,748

BOLT BIOTHERAPEUTICS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited, in thousands)
		Nine Months Ended September 30,
		2026				2025
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss		$	(19,549	)		$	(26,745	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization			440				1,036
Stock-based compensation expense			1,603				1,741
Accretion of discount on marketable securities			(132	)			(509	)
Gain on sale of property and equipment			(245	)			(288	)
Asset impairment			808				—
Non-cash lease expense			2,055				1,875
Changes in operating assets and liabilities:
Prepaid expenses and other assets			593				(322	)
Accounts payable and accrued expenses			(1,142	)			(5,233	)
Operating lease liabilities			(2,069	)			(1,620	)
Deferred revenue			(3	)			(2,762	)
Other long-term liabilities			—				133
Net cash used in operating activities			(17,641	)			(32,694	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment			(13	)			(72	)
Proceeds from sales of property and equipment			722				963
Purchases of marketable securities			(1,230	)			(17,176	)
Maturities of marketable securities			20,216				59,513
Net cash provided by investing activities			19,695				43,228
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock			25				14
Net cash provided by financing activities			25				14
NET INCREASE IN CASH			2,079				10,548
Cash, cash equivalents and restricted cash at beginning of year			13,441				8,970
Cash, cash equivalents and restricted cash at end of period		$	15,520			$	19,518
Reconciliation of cash, cash equivalents and restricted cash:
Cash and cash equivalents		$	13,782			$	17,753
Restricted cash			1,738				1,765
Total cash, cash equivalents and restricted cash		$	15,520			$	19,518

IRVINE, Calif., Nov. 12, 2026 (GLOBE NEWSWIRE) — Shimmick Corp. (NASDAQ: SHIM), a leading infrastructure solutions provider in water, electrical and other critical infrastructure construction services, today announced financial results for the third quarter ended October 2, 2026.

Highlights

• Reported Q3 2026 revenue of $136 million, all of which was driven by Shimmick Projects
  • Total Q3 2026 Shimmick Projects revenue up 28% quarter-over-quarter
• Reported Q3 2026 gross margin of $17 million, driven by $18 million of gross margin from Shimmick Projects
  • Total Q3 2026 Shimmick Project gross margin up 487 bps quarter-over-quarter
• Recognized a Q3 2026 net income of $1 million, our first quarter with positive net income since Q3 2023
• Reported Q3 2026 Adjusted EBITDA of $9 million, up 106% quarter-over-quarter, our fifth consecutive quarter with positive Adjusted EBITDA and trailing-twelve-month of $20 million
• Reported liquidity of $53 million as of October 2, 2026, an increase of $20 million from Q2 2026
• Backlog is approximately $907 million ending Q3 2026
  • 2026 fiscal year book-to-burn ratio of 1.3x, with Shimmick Projects now representing approximately 98% of total backlog
• $401 million of additional new awards pending in electrical and water target markets

“Third quarter results show our strategy working. We returned to positive net income for the first time since the third quarter of 2023, and Shimmick Projects revenue grew 28% year over year as newer, higher-margin work replaced legacy projects,” said Ural Yal, Chief Executive Officer. “We are winning the projects we want, in the markets we want, at the risk profile we want. With strong demand in water and electrical infrastructure and a backlog that is increasingly diversified across markets, funding sources and customers, we expect to continue growing revenue and earnings from here.”

Financial Results

A summary of our results is included in the table below:

	Three Months Ended								Nine Months Ended
(In millions, except per share data)	October 2, 2026				October 3, 2025				October 2, 2026				October 3, 2025
Revenue	$	136			$	142			$	330			$	392
Gross margin		17				11				40				24
Net income (loss) attributable to Shimmick Corporation		1				(4	)			(9	)			(23	)
Adjusted net income (loss)		4				(0	)			1				(12	)
Adjusted EBITDA		9				4				16				1
Diluted income (loss) per common share attributable to Shimmick Corporation	$	0.02			$	(0.12	)		$	(0.22	)		$	(0.65	)
Adjusted diluted income (loss) per common share attributable to Shimmick Corporation	$	0.08			$	(0.01	)		$	0.02			$	(0.36	)

The following table sets forth selected revenue and gross margin data for the three months ended October 2, 2026 compared to the three months ended October 3, 2025:

	Three Months Ended								Nine Months Ended
(In millions, except percentage data)	October 2, 2026				October 3, 2025				October 2, 2026				October 3, 2025
Shimmick Projects(1)
Revenue	$	136			$	107			$	320			$	313
Gross Margin	$	18			$	10			$	38			$	30
Gross Margin (%)		13	%			9	%			12	%			10	%
Non-Core Projects(2)
Revenue	$	(0	)		$	35			$	11			$	80
Gross Margin	$	(1	)		$	1			$	2			$	(7	)
Gross Margin (%)		183	%			2	%			18	%			(8	)%
Consolidated Total
Revenue	$	136			$	142			$	330			$	392
Gross Margin	$	17			$	11			$	40			$	24
Gross Margin (%)		12	%			8	%			12	%			6	%

(1) Shimmick Projects are those projects started after prior ownership that have focused on water, climate resilience, energy transition, and sustainable transportation. 
(2) Projects that started under prior ownership or focus on foundation drilling are referred to as “Non-Core Projects” (formerly referred to as “Legacy and Foundations Projects”).

Shimmick Projects   

Projects started after the AECOM Sale Transaction (“Shimmick Projects”) have focused on critical infrastructure aligned with our strategy, including water, climate resilience, energy transition and sustainable transportation. Revenue recognized on Shimmick Projects was $136 million and $107 million for the three months ended October 2, 2026 and October 3, 2025, respectively. The $29 million increase in revenue was primarily the result of $69 million of increases in revenue from recently awarded projects ramping up. These increases were partially offset by a $14 million decrease in revenue as the result of the completion of a lower margin operation and maintenance project during the third quarter of fiscal year 2025 and $26 million of decreases in revenue from lower activity on projects winding down and completing.

Gross margin recognized on Shimmick Projects was $18 million and $10 million for the three months ended October 2, 2026 and October 3, 2025, respectively. The $8 million increase in gross margin was primarily the result of recently awarded projects ramping up.

Non-Core Projects   

As part of the AECOM Sale Transaction, we acquired projects and backlog that were started under prior ownership (formerly referred to as “Legacy and Foundations Projects”).

Non-Core Projects revenue was $(423) thousand and $35 million for the three months ended October 2, 2026 and October 3, 2025, respectively. The $36 million decrease was primarily the result of the termination of one Non-Core Project in Tennessee during the second quarter of 2026 and the Company working to wind down these Non-Core Projects.

Gross margin recognized on Non-Core Projects was $(1) million for the three months ended October 2, 2026 as compared to $1 million for the three months ended October 3, 2025. The $2 million decrease was primarily the result of favorable cost savings recognized during the three months ended October 3, 2025 which did not reoccur during the three months ended October 2, 2026.

A subset of Non-Core Projects (“Non-Core Loss Projects”) has experienced significant cost overruns due to the COVID pandemic, design issues, legal costs and other factors. In the Non-Core Loss Projects, we have recognized the estimated costs to complete and the loss expected from these projects. If the estimates of costs to complete fixed-price contracts indicate a further loss, the entire amount of the additional loss expected over the life of the project is immediately recognized as a period cost in the cost of revenue. As these Non-Core Loss Projects continue to wind down to completion, no further gross margin will be recognized absent external factors and in some cases, there may be additional costs associated with these projects that could lower gross margin. Revenue recognized on these Non-Core Loss Projects was $(2) million and $31 million for the three months ended October 2, 2026 and October 3, 2025, respectively. Gross margin recognized on these Non-Core Loss Projects was $(1) million and $1 million for the three months ended October 2, 2026 and October 3, 2025, respectively. The decrease in gross margin was primarily the result of the Company working to wind down these Non-Core Projects.

Selling, general and administrative expenses

Selling, general and administrative expenses remained approximately flat period over period.

Equity in earnings of unconsolidated joint ventures

Equity in earnings of unconsolidated joint ventures increased by $1 million during the three months ended October 2, 2026 primarily as the result of an increase in activity on a dam project in the current year as compared to the three months ended October 3, 2025.

Gain on sale of assets, net

Gain on sale of assets, net remained approximately flat period over period.

Interest expense

Interest expense increased by $1 million during the three months ended October 2, 2026 primarily due to the accelerated recognition of remaining unamortized debt issuance expenses resulting from the early repayment of the Ansley Loan Agreement in connection with a refinancing at a lower interest rate during the three months ended October 2, 2026.

Other expense (income), net

Other expense (income), net remained approximately flat period over period.

Income tax expense

Due to an expected loss for the fiscal year ending 2026 and a realized loss for the fiscal year ended 2025, no income tax expense was recorded for either the three months ended October 2, 2026 or the three months ended October 3, 2025.

Net income (loss)

Net income (loss) increased by $5 million to net income of $1 million for the three months ended October 2, 2026, primarily due to an increase in gross margin of $6 million and an increase in equity in earnings of unconsolidated joint ventures of $1 million, partially offset by an increase in interest expense of $1 million, all as described above.

Diluted income per common share attributable to Shimmick Corporation was $0.02 for the three months ended October 2, 2026, compared to diluted loss per common share of $(0.12) for the three months ended October 3, 2025.

Adjusted net income was $4 million for the three months ended October 2, 2026, compared to adjusted net loss of $(236) thousand for the three months ended October 3, 2025.

Adjusted diluted income (loss) per common share attributable to Shimmick Corporation was $0.08 for the three months ended October 2, 2026, compared to $(0.01) for the three months ended October 3, 2025.

Adjusted EBITDA was $9 million for the three months ended October 2, 2026, compared to $4 million for the three months ended October 3, 2025. The increase was primarily the result of the increase in gross margin of $6 million as described above.

“We continued to build financial momentum this quarter, delivering $9 million of adjusted EBITDA, positive net income and increasing liquidity by $20 million sequentially to $53 million,” said Todd Yoder, Executive Vice President and Chief Financial Officer. “With approximately $16 million of adjusted EBITDA year-to-date, we have exceeded the low end of our original $15 million to $30 million full-year range and are narrowing our adjusted EBITDA guidance to $20 million to $25 million. As Shimmick Projects now represent approximately 98% of backlog and Non-Core activity continues to wind down, we are seeing greater stability in gross margins as the earnings and cash-generation potential of the core business begins to emerge.”

Outlook and Guidance

As of November 12, 2026, for the full 2026 fiscal year:

• We reaffirm our guidance of Consolidated Adjusted EBITDA between $20 million and $25 million, representing year-over-year growth of 350% at the midpoint
• We now expect consolidated revenue⁽¹⁾ in the range of $500 million and $525 million, representing year-over-year growth of 4% at the midpoint

^{(1) Includes revenue as well as Shimmick’s proportionate share of work put-in-place from equity method joint ventures.}

Conference Call and Webcast Information

Shimmick will host a video webcast conference call on Thursday, November 12, 2026 at 4:30 p.m. Eastern Time. Interested parties are invited to listen to or watch the conference call which can be accessed live-streamed via the Company’s Investor Relations website (https://investors.shimmick.com/). A copy of the earnings call presentation will also be posted to the Company’s website. A replay of the video webcast will be available through the same link following the conference call for a limited time beginning immediately following the call.

About Shimmick Corporation

Shimmick Corporation (“Shimmick”, the “Company”) (NASDAQ: SHIM) is an industry leader in delivering turnkey infrastructure solutions that strengthen critical markets across water, energy, climate resiliency, and sustainable transportation. With a track record that spans over a century, Shimmick, headquartered in California, unites deep engineering heritage with entrepreneurial spirit to tackle today’s most complex infrastructure challenges. We integrate technical excellence with collaborative project delivery methods to provide innovative, technology-driven infrastructure solutions that accelerate economic growth and empower communities nationwide. For more information, visit www.shimmick.com.

Forward-Looking Statements

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). These forward-looking statements are often characterized by the use of words such as “may,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “targets,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential” or “continue” or the negative of these terms or other similar words. Forward-looking statements are only predictions based on our current expectations and our projections about future events, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances, including, but not limited to, unanticipated events, after the date on which such statement is made, unless otherwise required by law.  Forward-looking statements contained in this release include, but are not limited to, statements about: expected future financial performance (including the assumptions related thereto), including our revenue, net income (loss), backlog and Adjusted EBITDA; our growth prospects, including with respect to new awards, certain geographies and our electrical business; our expectations regarding profitability; our strategic transformation towards becoming more capital-efficient business;  our market relationships and reputation; our core capabilities and skillset; the risk profile of our project portfolio; and our capital plans and expectations related thereto. These statements involve risks and uncertainties, and actual results may differ materially from any future results expressed or implied by the forward-looking statements. Forward-looking statements are only predictions based on our current expectations and our projections about future events, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances, including, but not limited to, unanticipated events, after the date on which such statement is made, unless otherwise required by law. 

We wish to caution readers that, although we believe any forward-looking statements are based on reasonable assumptions, certain important factors may have affected and could in the future affect our actual financial results and could cause our actual financial results for subsequent periods to differ materially from those expressed in any forward-looking statement made by or on our behalf, including, but not limited to, the following: our ability to accurately estimate risks, requirements or costs when we bid on or negotiate a contract; the impact of our fixed-price contracts; qualifying as an eligible bidder for contracts; the availability of qualified personnel, joint venture partners and subcontractors; inability to attract and retain qualified managers and skilled employees and the impact of loss of key management; higher costs to lease, acquire and maintain equipment necessary for our operations or a decline in the market value of owned equipment; subcontractors failing to satisfy their obligations to us or other parties or any inability to maintain subcontractor relationships; marketplace competition; our inability to obtain bonding; our limited operating history as an independent company following our separation from AECOM, our prior owner our relationship and transactions with our prior owner; our prior owner defaulting on its contractual obligations to us or under agreements in which we are beneficiary; our limited number of customers; any inability to successfully expand our business into new markets or geographies; dependence on subcontractors and suppliers of materials; any inability to secure sufficient aggregates; an inability to complete a merger or acquisition or to integrate an acquired company’s business; adjustments in our contract backlog; accounting for our revenue and costs involves significant estimates, as does our use of the input method of revenue recognition based on costs incurred relative to total expected costs; material impairments; any failure to comply with covenants under any current indebtedness, and future indebtedness we may incur; the adequacy of sources of liquidity; the outcome of any legal or regulatory proceedings to which we are, or may become, a party, including our appeal of the USACE’s notice of termination related to the Chickamauga Lock project; the effectiveness of our disclosure  controls and procedures; cybersecurity attacks against, disruptions, failures or security breaches of, our information technology systems; seasonality of our business; commodity products price fluctuations, inflation (and actions taken by monetary authorities in response to inflation) and/or rising interest rates; climate change; deterioration of the U.S. economy; changes in state and federal laws, regulations or policies under the current presidential administration, including changes in trade policies and regulations, including increases or changes in duties, current and potentially new tariffs or quotas and other similar measures, as well as the impact of retaliatory tariffs and other actions, changes to tax legislation, potential changes to the amounts provided for under the Infrastructure Investment and Jobs Act, changes to immigration laws, as well as other legislation and executive orders or decreases or delays in or uncertainties related to governmental spending, and geopolitical risks, including those related to the war between Russia and Ukraine and the conflict and potential regime change in Iran and the associated disruption to the Strait of Hormuz, as well as other hostilities in the Middle East, and related disruptions to global energy markets; and other risks detailed in our filings with the Securities and Exchange Commission, including the “Risk Factors” section in our Annual Report on Form 10-K for the fiscal year ended January 2, 2026 and those described from time to time in our future reports with the SEC.

Non-GAAP Definitions This press release includes unaudited non-GAAP financial measures, adjusted EBITDA and adjusted net income (loss) and adjusted diluted income (loss) per common share. For definitions of these non-GAAP financial measures and reconciliations to the most comparable GAAP measures, see “Explanatory Notes” and tables that follow in this press release. The presentation of non-GAAP financial measures is not intended to be a substitute for, and should not be considered in isolation from, the financial measures reported in accordance with GAAP.

Please refer to the Reconciliation between Net income (loss) attributable to Shimmick Corporation and Adjusted net income (loss) and Adjusted diluted income (loss) per common share included within Table A and the Reconciliation between Net income (loss) attributable to Shimmick Corporation and Adjusted EBITDA included within Table B below.

We do not provide a reconciliation for forward-looking non-GAAP guidance because we are unable to predict certain items contained in the U.S. GAAP measures without unreasonable efforts. These items may include legal fees and other costs for a Non-Core Loss Project, acquisition-related costs, litigation charges or settlements, and certain other unusual adjustments.

Investor Relations Contact
1-949-704-2350
IR@shimmick.com

Shimmick Corporation Condensed Consolidated Balance Sheets (In thousands, except share data) (unaudited)
		October 2,				January 2,
		2026				2026
ASSETS
CURRENT ASSETS
Cash and cash equivalents		$	34,237			$	19,969
Restricted cash			329				1,890
Accounts receivable, net			19,216				30,179
Contract assets, current			155,426				110,276
Prepaids and other current assets			14,635				13,067
TOTAL CURRENT ASSETS			223,843				175,381
Property, plant and equipment, net			5,298				10,571
Intangible assets, net			2,158				4,091
Lease right-of-use assets			14,955				16,466
Investment in unconsolidated joint ventures			13,553				11,866
Other assets			413				388
TOTAL ASSETS		$	260,220			$	218,763
LIABILITIES AND STOCKHOLDERS’ DEFICIT
CURRENT LIABILITIES
Accounts payable		$	90,330			$	69,542
Contract liabilities, current			58,998				53,760
Accrued expenses			30,499				34,172
Current portion of long-term debt, net			1,916				4,143
Other current liabilities			31,522				34,499
TOTAL CURRENT LIABILITIES			213,265				196,116
Long-term debt, less current portion, net			72,622				60,316
Lease liabilities, non-current			10,389				11,913
Contract liabilities, non-current			410				453
Contingent consideration			5,470				5,203
Other liabilities			2,368				1,402
TOTAL LIABILITIES			304,524				275,403
Commitments and Contingencies
STOCKHOLDERS’ DEFICIT
Common stock, $0.01 par value, 100,000,000 shares authorized as of October 2, 2026 and January 2, 2026; 42,761,763 and 36,035,559 shares issued and outstanding as of October 2, 2026 and January 2, 2026, respectively			428				360
Additional paid-in-capital			67,580				46,795
Retained deficit			(112,312	)			(103,795	)
Non-controlling interests			—				—
TOTAL STOCKHOLDERS’ DEFICIT			(44,304	)			(56,640	)
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT		$	260,220			$	218,763

Shimmick Corporation Condensed Consolidated Statements of Operations (In thousands, except per share data) (unaudited)
		Three Months Ended								Nine Months Ended
		October 2,				October 3,				October 2,				October 3,
		2026				2025				2026				2025
Revenue		$	135,798			$	141,920			$	330,447			$	392,432
Cost of revenue			118,864				131,131				290,161				368,818
Gross margin			16,934				10,789				40,286				23,614
Selling, general and administrative expenses			14,300				14,292				44,745				43,701
Total operating expenses			14,300				14,292				44,745				43,701
Equity in earnings of unconsolidated joint ventures			909				312				3,054				851
Gain on sale of assets, net			62				10				40				80
Income (loss) from operations			3,605				(3,181	)			(1,365	)			(19,156	)
Interest expense			2,680				1,434				6,892				3,747
Other expense (income), net			77				(219	)			134				(371	)
Net income (loss) before income tax			848				(4,396	)			(8,391	)			(22,532	)
Income tax expense			—				—				—				—
Net income (loss)			848				(4,396	)			(8,391	)			(22,532	)
Net income attributable to non-controlling interests			—				—				126				159
Net income (loss) attributable to Shimmick Corporation		$	848			$	(4,396	)		$	(8,517	)		$	(22,691	)
Net income (loss) attributable to Shimmick Corporation per common share
Basic		$	0.02			$	(0.12	)		$	(0.22	)		$	(0.65	)
Diluted		$	0.02			$	(0.12	)		$	(0.22	)		$	(0.65	)

Shimmick Corporation Condensed Consolidated Statements of Cash Flows (In thousands) (unaudited)
		Nine Months Ended
		October 2,				October 3,
		2026				2025
Cash Flows From Operating Activities
Net loss		$	(8,391	)		$	(22,532	)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation			2,961				4,520
Depreciation and amortization			8,426				9,840
Equity in earnings of unconsolidated joint ventures			(3,054	)			(851	)
Return on investment in unconsolidated joint ventures			1,323				3,802
Gain on sale of assets, net			(5,477	)			(80	)
Other			4,316				1,542
Changes in operating assets and liabilities:
Accounts receivable, net			11,964				1,203
Contract assets			(45,150	)			(24,430	)
Accounts payable			20,638				25,856
Contract liabilities			5,237				(55,166	)
Accrued expenses			(3,673	)			(3,022	)
Other assets and liabilities			(3,851	)			(6,414	)
Net cash used in operating activities			(14,731	)			(65,732	)
Cash Flows From Investing Activities
Purchases of property, plant and equipment			(1,505	)			(5,862	)
Proceeds from sale of assets			5,134				4,868
Return of investment in unconsolidated joint ventures			—				2,935
Net cash provided by investing activities			3,629				1,941
Cash Flows From Financing Activities
Borrowings on credit and loan agreements			56,033				90,581
Repayments on credit and loan agreements			(50,003	)			(42,079	)
Net proceeds from underwritten equity and At The Market offerings			18,259				—
Distributions to non-controlling interests			(126	)			—
Other, net			(354	)			(1,581	)
Net cash provided by financing activities			23,809				46,921
Net increase (decrease) in cash, cash equivalents and restricted cash			12,707				(16,870	)
Cash, cash equivalents and restricted cash, beginning of period			21,859				35,795
Cash, cash equivalents and restricted cash, end of period		$	34,566			$	18,925
Reconciliation of cash, cash equivalents and restricted cash to the
Condensed Consolidated Balance Sheets
Cash and cash equivalents		$	34,237			$	17,597
Restricted cash			329				1,328
Total cash, cash equivalents and restricted cash		$	34,566			$	18,925

EXPLANATORY NOTES
Non-GAAP Financial Measures

Adjusted Net Income (Loss) and Adjusted Diluted Income (Loss) Per Common Share

Adjusted net income (loss) represents Net income (loss) attributable to Shimmick Corporation adjusted to eliminate stock-based compensation, legal fees and other costs for Non-Core Projects and transaction-related costs and changes in fair value of contingent consideration remaining after the impact of transactions with our prior owner. We have also made an adjustment for transformation costs we have incurred including advisory costs in connection with settling outstanding claims, exiting the Non-Core Projects and transforming the Company to shift our strategy to meet the nation’s growing need for water and other critical infrastructure and grow our business.

We have included Adjusted net income (loss) in this press release because it is a key measure used by our management and board of directors to understand and evaluate our core operating performance and trends, to prepare and approve our annual budget and to develop short and long-term operational plans. In particular, we believe that the exclusion of the income and expenses eliminated in calculating Adjusted net income (loss) can provide a useful measure for period-to-period comparisons of our core business. Accordingly, we believe that Adjusted net income (loss) provides useful information to investors and others in understanding and evaluating our results of operations. 

Our use of Adjusted net income (loss) as an analytical tool has limitations, and you should not consider it in isolation or as a substitute for analysis of our financial results as reported under GAAP. Some of these limitations are: 

• Adjusted net income (loss) does not reflect changes in, or cash requirements for, our working capital needs, 
• Adjusted net income (loss) does not reflect the potentially dilutive impact of stock-based compensation, and  
• other companies, including companies in our industry, might calculate Adjusted net income (loss) or similarly titled measures differently, which reduces their usefulness as comparative measures. 

Because of these and other limitations, you should consider Adjusted net income (loss) alongside Net income (loss) attributable to Shimmick Corporation, which is the most directly comparable GAAP measure.

Table A

Reconciliation between Net income (loss) attributable to Shimmick Corporation and Adjusted net income (loss) (unaudited)
	Three Months Ended								Nine Months Ended
	October 2,				October 3,				October 2,				October 3,
(In thousands, except per share data)	2026				2025				2026				2025
Net income (loss) attributable to Shimmick Corporation	$	848			$	(4,396	)		$	(8,517	)		$	(22,691	)
Transformation costs(1)		90				142				418				1,582
Stock-based compensation		1,058				1,202				2,961				4,520
Legal fees and other costs for Non-Core Projects(2)		1,482				2,652				5,484				3,746
Other(3)		71				164				268				397
Adjusted net income (loss)	$	3,549			$	(236	)		$	614			$	(12,446	)
Adjusted net income (loss) attributable to Shimmick Corporation per common share
Basic	$	0.08			$	(0.01	)		$	0.02			$	(0.36	)
Diluted	$	0.08			$	(0.01	)		$	0.02			$	(0.36	)

(1) Consists of transformation-related costs we have incurred including advisory costs in connection with settling outstanding claims in connection with exiting certain Non-Core Projects as part of the Company’s growth strategy to address and capitalize on the nation’s growing need for water and other critical infrastructure.
(2) Consists of legal fees and other costs incurred in connection with claims relating to Non-Core Projects.
(3) Consists of transaction-related costs and changes in fair value of contingent consideration remaining after the impact of transactions with our prior owner.

Adjusted EBITDA

Adjusted EBITDA represents our Net income (loss) attributable to Shimmick Corporation before interest expense, income tax expense and depreciation and amortization, adjusted to eliminate stock-based compensation, legal fees and other costs for Non-Core Projects and transaction-related costs and changes in fair value of contingent consideration remaining after the impact of transactions with our prior owner. We have also made an adjustment for transformation costs we have incurred including advisory costs in connection with settling outstanding claims, exiting the Non-Core Projects and transforming the Company to shift our strategy to meet the nation’s growing need for water and other critical infrastructure and grow our business.

We have included Adjusted EBITDA in this press release because it is a key measure used by our management and board of directors to understand and evaluate our core operating performance and trends, to prepare and approve our annual budget and to develop short and long-term operational plans. In particular, we believe that the exclusion of the income and expenses eliminated in calculating Adjusted EBITDA can provide a useful measure for period-to-period comparisons of our core business. Accordingly, we believe that Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our results of operations.   

Our use of Adjusted EBITDA as an analytical tool has limitations, and you should not consider it in isolation or as a substitute for analysis of our financial results as reported under GAAP. Some of these limitations are:

• although depreciation and amortization are non-cash charges, the assets being depreciated and amortized might have to be replaced in the future, and Adjusted EBITDA does not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements,
• Adjusted EBITDA does not reflect changes in, or cash requirements for, our working capital needs,
• Adjusted EBITDA does not reflect the potentially dilutive impact of stock-based compensation,
• Adjusted EBITDA does not reflect interest or tax payments that would reduce the cash available to us, and
• other companies, including companies in our industry, might calculate Adjusted EBITDA or similarly titled measures differently, which reduces their usefulness as comparative measures.

Because of these and other limitations, you should consider Adjusted EBITDA alongside Net income (loss) attributable to Shimmick Corporation, which is the most directly comparable GAAP measure.

Table B

Reconciliation between Net income (loss) attributable to Shimmick Corporation and Adjusted EBITDA (unaudited)
		Three Months Ended								Nine Months Ended
		October 2,				October 3,				October 2,				October 3,
(In thousands)		2026				2025				2026				2025
Net income (loss) attributable to Shimmick Corporation		$	848			$	(4,396	)		$	(8,517	)		$	(22,691	)
Interest expense			2,680				1,434				6,892				3,747
Income tax expense			—				—				—				—
Depreciation and amortization			2,676				3,131				8,426				9,840
Transformation costs(1)			90				142				418				1,582
Stock-based compensation			1,058				1,202				2,961				4,520
Legal fees and other costs for Non-Core Projects(2)			1,482				2,652				5,484				3,746
Other(3)			71				164				268				397
Adjusted EBITDA		$	8,905			$	4,329			$	15,932			$	1,141

(1) Consists of transformation-related costs we have incurred including advisory costs in connection with settling outstanding claims in connection with exiting certain Non-Core Projects as part of the Company’s growth strategy to address and capitalize on the nation’s growing need for water and other critical infrastructure. 
(2) Consists of legal fees and other costs incurred in connection with claims relating to Non-Core Projects.
(3) Consists of transaction-related costs and changes in fair value of contingent consideration remaining after the impact of transactions with our prior owner.

• Completed enrollment and randomization of the 4FRONT-2 Global Phase 3 clinical trial, the second of two pivotal trials of 4D-150 in wet AMD; topline data for 4FRONT-1 and 4FRONT-2 expected in Q2 2027 and H2 2027, respectively
• Presented 2-year data from PRISM and SPECTRA clinical trials of 4D-150 in wet AMD and DME, highlighting durable clinical activity and favorable, predictable safety profile   
• Initiated 4SIGHT Global Phase 3 clinical trial of 4D-150 in DME, advancing 4D-150 into second multi-billion-dollar retinal disease market with significant unmet need
• Strengthened regulatory affairs and quality teams through the hire of Eric Floyd, PhD, MBA, as Chief Regulatory & Quality Officer
• $375 million in cash, cash equivalents and marketable securities expected to fund current operating plan into second half of 2028
  

EMERYVILLE, Calif., Nov. 12, 2026 (GLOBE NEWSWIRE) — 4D Molecular Therapeutics (Nasdaq: FDMT, 4DMT or the Company), a leading late-stage biotechnology company advancing durable and disease-targeted therapeutics with the potential to transform treatment paradigms and provide unprecedented benefits to patients, today reported Q3 2026 financial results, provided operational highlights and outlined expected upcoming milestones.        

“Over the past quarter, 4DMT continued to progress 4D-150 as a potential backbone therapy for continuous control of VEGF-driven retinal diseases through completion of randomization in the second of two pivotal Phase 3 trials in wet AMD,” said David Kirn, MD, Co-founder, President and Chief Executive Officer of 4DMT. “In addition, we initiated the global Phase 3 4SIGHT program in DME, expanding the opportunity for 4D-150 into a second multi-billion-dollar retinal disease market with significant unmet need. We also welcomed Dr. Eric Floyd to our executive team, providing experienced leadership for our regulatory team. We are well positioned heading into 2027, which we anticipate will be a transformative year for the Company following expected topline readouts from both 4FRONT Phase 3 trials in wet AMD.”

Recent Highlights and Expected Milestones

• Corporate Highlights:
  • Strengthened leadership of Regulatory and Quality teams:
    • Hired Dr. Eric Floyd as Chief Regulatory & Quality Officer. Dr. Floyd will oversee regulatory strategy, global engagements with regulatory authorities, quality assurance and quality control. Prior to joining 4DMT, Dr. Floyd served as Chief Regulatory Officer at Silence Therapeutics and Neurogene. He has held senior regulatory affairs and/or quality positions at large pharmaceutical companies including Merck, Sanofi and Novartis
  • Company hosted an Investor Day in New York City on October 21, 2026:
    • Provided insights into the current treatment landscape and unmet needs in wet age-related macular degeneration (wet AMD), the potential target product profile of 4D-150 and the commercial potential for 4D-150 to meaningfully improve patient outcomes
• 4D-150 for Wet Age-related Macular Degeneration (AMD):
  • 4FRONT Global Phase 3 Program:
    • 4FRONT-1, North American Clinical Trial: 
      • Enrollment completed in February 2026 and randomization completed (N=523) in March 2026; topline data expected in Q2 2027 
    • 4FRONT-2, Global Clinical Trial:
      • Enrollment completed in June 2026 and randomization completed (N=531) in August 2026; topline data expected in H2 2027
  • PRISM Phase 1/2 Clinical Trial:
    • Presented positive Phase 2b 2-year data in a broad patient population, including the recently diagnosed subgroup population most comparable to the 4FRONT Phase 3 population, at the American Society of Retina Specialists (ASRS) Annual Meeting on July 18, 2026, demonstrating durable maintenance of best corrected visual acuity (BCVA), control of central subfield thickness (CST) and clinically meaningful reduction in treatment burden, with a favorable and predictable safety profile
• 4D-150 for Diabetic Macular Edema (DME):
  • 4SIGHT Global Phase 3 Clinical Trial: 
    • Initiated 4SIGHT, a global Phase 3 multicenter, randomized, double-masked, aflibercept 2 mg (Q8W) comparator-controlled trial of intravitreal 4D-150 in treatment-naïve patients with DME (N=514)
    • All patients will receive five aflibercept loading doses. The primary endpoint is non-inferiority in the mean change from baseline in BCVA at Week 52. The key secondary endpoints are treatment burden reduction, comparing the number of aflibercept injections received in the 4D-150 arm versus the aflibercept comparator arm through Week 52, and the proportion of participants with a ≥2-step improvement from baseline in Early Treatment Diabetic Retinopathy Study Diabetic Retinopathy Severity Scale (ETDRS-DRSS) at Week 52
  • SPECTRA Part 1 Clinical Trial:
    • Updated 2-year data from SPECTRA Part 1 clinical trial in DME continue to demonstrate a favorable and predictable safety profile, durable vision and anatomic improvements and clinically meaningful treatment burden reduction
• 4D-175 for Geographic Atrophy:  
  • Company maintains an active IND and is evaluating opportunities to advance the program into the clinic
• 4D-710 for Cystic Fibrosis:  
  • AEROW Phase 1/2 clinical trial and program update expected at year-end

Q3 2026 Financial Results

Cash Position: Cash, cash equivalents and marketable securities were $375.0 million as of September 30, 2026, as compared to $514.0 million as of December 31, 2025. Based on our current operating plan, we estimate that our existing cash, cash equivalents and marketable securities, and expected payments under our collaboration agreement with Otsuka Pharmaceutical Co., Ltd. (Otsuka), will be sufficient to fund our operating expenses and capital expenditure requirements at least into the second half of 2028.   

Collaboration and License Revenue: Collaboration and license revenue was $4.1 million for the third quarter of 2026, as compared to $0.1 million for the third quarter of 2025. The increase in revenue was primarily due to clinical trial cost sharing and reimbursement from Otsuka.

R&D Expenses: Research and development expenses were $69.8 million for the third quarter of 2026, as compared to $49.4 million for the third quarter of 2025. This increase was primarily driven by execution of 4D-150 Phase 3 clinical trials in wet AMD.

G&A Expenses: General and administrative expenses were $15.6 million for the third quarter of 2026, as compared to $11.8 million for the third quarter of 2025.

Net Loss: Net loss was $78.1 million for the third quarter of 2026, as compared to net loss of $56.9 million for the third quarter of 2025.

About 4DMT  

4DMT is a leading late-stage biotechnology company advancing durable and disease-targeted therapeutics with the potential to transform treatment paradigms and provide unprecedented benefits to patients. The Company’s lead product candidate, 4D-150, is designed to be a backbone therapy forming the foundation for treatment of blinding VEGF-driven retinal diseases by providing multi-year sustained delivery of anti-VEGF biologics (aflibercept and anti-VEGF-C) with a single intravitreal injection, which substantially reduces the treatment burden associated with current bolus injections. The Company’s lead indication for 4D-150 is wet age-related macular degeneration, and the second indication is diabetic macular edema, which are both in Phase 3 development. The Company’s second product candidate is 4D-710, which is the first known genetic medicine to demonstrate successful delivery and expression of the CFTR transgene in the lungs of people with cystic fibrosis after aerosol delivery. 4D Molecular Therapeutics™, 4DMT™, Therapeutic Vector Evolution™, Backbone 4 Retina™ and the 4DMT logo are trademarks of 4DMT.

All of the Company’s product candidates are in clinical or preclinical development and have not yet been approved for marketing by the U.S. Food and Drug Administration or any other regulatory authority. No representation is made as to the safety or effectiveness of the Company’s product candidates for the therapeutic uses for which they are being studied.

Learn more at www.4DMT.com and follow us on LinkedIn. 

Forward-Looking Statements:

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, including, without limitation, implied and express statements regarding the therapeutic potential and clinical benefits of, as well as the plans, announcements and related timing for, the clinical development of our product candidates and regulatory interactions, and statements regarding our financial performance, results of operations and anticipated cash runway. The words “may,” “might,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “expect,” “estimate,” “seek,” “predict,” “future,” “project,” “potential,” “continue,” “target,” and similar words or expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Any forward-looking statements in this press release are based on management’s current expectations and beliefs and are subject to a number of risks, uncertainties and important factors that may cause actual events or results to differ materially from those expressed or implied by any forward-looking statements contained in this press release, including risks and uncertainties that are described in greater detail in the section entitled “Risk Factors” in 4D Molecular Therapeutics’ most recent Quarterly Report on Form 10-Q to be filed on or about the date hereof, as well as any subsequent filings with the Securities and Exchange Commission. In addition, any forward-looking statements represent 4D Molecular Therapeutics’ views only as of today and should not be relied upon as representing its views as of any subsequent date. 4D Molecular Therapeutics explicitly disclaims any obligation to update any forward-looking statements. No representations or warranties (expressed or implied) are made about the accuracy of any such forward-looking statements.

4D Molecular Therapeutics, Inc.
Statements of Operations (in thousands, except share and per share amounts) (Unaudited)
		Three months ended September 30,								Nine months ended September 30,
		2026				2025				2026				2025
Revenue:
Collaboration and license revenue		$	4,145			$	90			$	10,974			$	119
Operating expenses:
Research and development			69,776				49,438				203,038				138,088
General and administrative			15,587				11,837				39,798				36,293
Total operating expenses			85,363				61,275				242,836				174,381
Loss from operations			(81,218	)			(61,185	)			(231,862	)			(174,262	)
Other income, net			3,162				4,309				12,111				14,756
Net loss		$	(78,056	)		$	(56,876	)		$	(219,751	)		$	(159,506	)
Net loss per share, basic and diluted		$	(1.08	)		$	(1.01	)		$	(3.13	)		$	(2.85	)
Weighted-average shares outstanding used in computing net loss per share, basic and diluted			72,251,127				56,126,330				70,211,785				55,933,890

4D Molecular Therapeutics, Inc. Balance Sheet Data (in thousands) (Unaudited)
		September 30,				December 31,
		2026				2025
Cash, cash equivalents and marketable securities		$	375,033			$	514,034
Total assets			428,749				566,711
Total liabilities			90,806				61,047
Accumulated deficit			(936,056	)			(716,304	)
Total stockholders’ equity			337,943				505,664

Contacts:

Media:

Jenn Gordon 
dna Communications 
Media@4DMT.com

Investors:

Julian Pei
Head of Investor Relations and Strategic Finance
Investor.Relations@4DMT.com

Ended Third Quarter 2026 With $161.6 Million in Cash, Cash Equivalents, and Short Term Investments, and No Debt

BOSTON, Nov. 12, 2026 (GLOBE NEWSWIRE) — Merlin, Inc. (Nasdaq: MRLN), an aerospace and defense technology company building the operating system of record for autonomous flight, today announced operating and financial results for its third quarter ended September 30, 2026.

Business Highlights

• USSOCOM C-130J contract progress. On November 10, 2026, Merlin announced it was awarded a new task order worth $8.9 million for the next phase of its C-130J autonomy program with the U.S. Special Operations Command (USSOCOM).
• AFRICOM. On November 11 2026, Merlin announced it had been selected by U.S. Africa Command (USAFRICOM) for the initial phase of its Autonomous Casualty Evacuation (CASEVAC) Industry Technology Challenge. Included with the selection, Merlin received a $500,000 contract, which will fund a demonstration of Merlin Pilot™ autonomously executing a CASEVAC mission using a Cessna 208B Grand Caravan.
• Texas Project Nexus eIPP Demonstration. In early September 2026, Merlin participated as an invited guest in the kickoff event for the Texas Department of Transportation’s (TxDOT) Electric Vertical Takeoff and Landing (eVTOL) Integration Pilot Program (eIPP).

“We’re advancing our defense programs in the places our customers need autonomy most,” said Matt George, CEO of Merlin. “The new $8.9 million task order with USSOCOM moves our C-130J autonomy program into its integration phase, laying the groundwork for future flight demonstrations and production revenue with SOCOM and ultimately the global C-130J fleet including hundreds of aircraft. Additionally, USAFRICOM selected Merlin to demonstrate Merlin Pilot flying casualty evacuation missions, where time is critical and logistics are complex, on an aircraft we already fly. Every new program builds on the work that came before, and we believe that compounding advantage, paired with disciplined use of our capital, marks meaningful progress toward autonomy for any aircraft.”

Third Quarter 2026 Financial Results

• Third quarter 2026 total revenue of $3.5 million, compared to $2.2 million in the second quarter of 2026
• Third quarter 2026 GAAP net income of $73.8 million, compared to a loss of $(58.4) million in the second quarter of 2026
• Third quarter 2026 Adjusted EBITDA* loss of $(24.1) million, compared to an Adjusted EBITDA loss of $(27.8) million in the second quarter of 2026
• Cash, cash equivalents, and short-term investments of $161.6 million at September 30, 2026, compared to $183.9 million at June 30, 2026

^∗ For all Non-GAAP financial measures, see the reconciliation table at the end of this earnings release for further discussion

Business Outlook

Merlin’s planning process for 2027 is underway. We expect to bring our 2027 operating expenses meaningfully below our 2026 level. We will do that by concentrating our investment on the programs and customers with funded work and a clear path to revenue. Our objective is a lower, more focused cost base that preserves our balance sheet and funds our plan into 2029, without depending on capital raises.

Mr. George commented, “the goal of our planning process is to ensure that we not only meet the opportunities presented by our current contracts, but also the broader market potential we detailed on last quarter’s call. We believe that it is imperative for Merlin to continue to advance the Merlin Pilot, but it is also imperative that we demonstrate discipline in the investments we make along the way.”

Conference Call Details

Merlin will host a live webcast on November 12, 2026 beginning at 4:30 pm ET to discuss its third quarter 2026 financial results. A registration link as well as the live webcast will be accessible on the Company’s investor relations website at investors.merlinlabs.com. A replay will be available for a limited period following the call.

About Merlin

Merlin is an aerospace and defense technology company building the operating system of record for autonomous flight. Through a first-principles approach, Merlin is redefining what’s possible across aviation, aerospace, and defense with the goal of delivering full-stack autonomy for any aircraft, military or civilian, from takeoff to touchdown. The Merlin Pilot system powers a growing range of aircraft and mission profiles, proven through hundreds of autonomous flights from test facilities across the globe. With $100M+ total in IDIQ contract ceiling value under its C-130J autonomy program with USSOCOM, Merlin is advancing American leadership in autonomous aviation by helping to solve national security challenges through safe, reliable autonomy. To learn more, visit www.merlinlabs.com or follow us on X @merlinaero.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements regarding Merlin’s expected financial performance, Merlin’s 2027 annual operating plan and expected reductions in its operating expenses; the sufficiency of Merlin’s cash to fund its operating plan; expected reductions in engineering costs and regulatory timelines for future programs, expected improvements in platform performance and adaptability from operational data, expected compounding advantages across engineering, regulatory, and data dimensions, Merlin’s competitive position relative to other developers of autonomous flight technology, program milestones and execution timelines, including automated flight targets, the commercial launch and scaling of Condor, including anticipated revenue from platform adaptation, integration, and recurring software licensing arrangements, civil certification progression, including for novel AI/ML-based functionality within Merlin Pilot, commercial pipeline conversion, anticipated market demand for autonomous aviation and Merlin’s estimates of the total addressable market for autonomous flight, platform portability and expansion to additional aircraft types, reduced-crew and single pilot operations, the development and performance of commercial and government partnerships, the deployment of capital resources, including recently completed equity financing, the sufficiency of capital resources to fund operations and milestones, anticipated operating investment and R&D spending levels, and the anticipated contributions of recently joined executive personnel. Forward-looking statements can be identified by words such as “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “intend,” “may,” “plan,” “potential,” “project,” “target,” “will,” and similar terms. These statements reflect management’s current expectations based on information available at the date of this release and involve known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially from those expressed or implied. Important factors that could cause actual results to differ materially include, but are not limited to: Merlin’s ability to execute on its defense program obligations, including under the USSOCOM C-130J prime contract and the USAFRICOM contract; the performance, reliability, and scalability of Merlin Pilot across current and future aircraft platforms; Merlin’s dependence on U.S. government contracts and the risk of changes in government budget priorities, procurement decisions, or contract modifications or terminations for convenience; Merlin’s ability to develop, maintain, and scale commercial partnerships; Merlin’s ability to convert its identified pipeline into contracted and awarded revenue; Merlin’s ability to finalize and implement its 2027 operating plan and achieve planned reductions in operating expenses; the risk that Merlin’s cash resources are insufficient to fund its operating plan for the period anticipated; competition from established aerospace and defense companies and other autonomous systems developers; Merlin’s ability to attract and retain key technical, operational, and commercial personnel; the accuracy of Merlin’s estimates of the size of its addressable markets; Merlin’s history of net losses and its ability to achieve and sustain profitability; and the other risks and uncertainties described under “Risk Factors” in our final prospectus, dated May 13, 2026, filed with the SEC on May 13, 2026, and in other documents we subsequently file with the Securities and Exchange Commission. Merlin does not undertake any obligation to update any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by law.

Contacts

Investor Relations: investor.relations@merlinlabs.com 

Media: media@merlinlabs.com 

MERLIN, INC. AND SUBSIDIARIES Condensed Consolidated Balance Sheets (UNAUDITED) (in thousands, except share amounts)
	As of:
	September 30, 2026				December 31, 2025
ASSETS
Current assets:
Cash and cash equivalents	$	161,444			$	59,343
Short-term investments		182				330
Accounts receivable, net		1,197				368
Prepaid expenses and other current assets		4,244				3,328
Capitalized transaction costs		—				7,562
Total current assets		167,067				70,931
Property and equipment, net		14,398				7,108
Operating lease right-of-use assets, net		2,268				979
Restricted cash		2,570				—
Deposits		140				1,564
Total assets	$	186,443			$	80,582
LIABILITIES, MEZZANINE EQUITY, AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Accounts payable	$	5,687			$	3,154
Accrued expenses		7,450				7,937
Contract loss provision		72				4,173
Operating lease liabilities, current		1,235				657
Long-term debt, current portion, net ($19,175 at fair value and $96 at amortized cost, net as of December 31, 2025)		—				19,271
Convertible promissory notes		—				29,107
Total current liabilities		14,444				64,299
Operating lease liabilities, non-current		1,197				331
Warrant liabilities		26,517				76,766
Long-term debt, non-current portion, net ($12,207 at fair value and $577 at amortized cost, net as of December 31, 2025)		—				12,784
Total liabilities		42,158				154,180
Commitments and contingencies
Series A Preferred Stock: $0.0001 par value; 50,000,000 shares authorized and 18,655,078 shares issued and outstanding as of September 30, 2026		170,577				—
Redeemable convertible preferred stock		—				—
Stockholders’ deficit:
Common stock: $0.0001 par value; 800,000,000 and 138,655,675 shares authorized; 101,693,656 and 69,663,395 shares issued and outstanding as of September 30, 2026 and December 31, 2025, respectively		10				7
Additional paid-in capital		599,760				477,448
Accumulated deficit		(626,062	)			(551,053	)
Total stockholders’ deficit		(26,292	)			(73,598	)
Total liabilities, mezzanine equity, and stockholders’ deficit	$	186,443			$	80,582

MERLIN, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (in thousands, except share and per share amounts)
	Three Months Ended September 30,								Nine Months Ended September 30,
	2026				2025				2026				2025
Revenue	$	3,461			$	1,924			$	6,657			$	5,899
Cost of revenue		5,238				3,945				8,967				7,725
Contract loss adjustments		—				—				(2,229	)			—
Gross loss		(1,777	)			(2,021	)			(81	)			(1,826	)
Operating expenses:
Research and development		14,712				8,164				45,189				21,699
General and administrative		12,944				6,141				42,613				14,467
Selling and marketing		2,040				281				4,138				1,029
Total operating expenses		29,696				14,586				91,940				37,195
Loss from operations		(31,473	)			(16,607	)			(92,021	)			(39,021	)
Other (expense) income:
Interest income		1,504				430				3,468				862
Interest expense		—				—				(9	)			(2,956	)
Other income (expense)		13				18				(183	)			(193	)
Change in fair value of warrant liabilities		103,620				(683	)			104,030				(4,562	)
Change in fair value of convertible promissory notes		—				(3,118	)			(87,824	)			(3,118	)
Loss on exchange of warrant liabilities		—				(3,320	)			—				(3,320	)
Loss on issuance of financial instruments		—				(585	)			—				(585	)
Loss on extinguishment of long-term debt		—				(2,157	)			—				(2,157	)
Change in fair value of long-term debt		—				(672	)			(2,470	)			(672	)
Total other income (expense)		105,137				(10,087	)			17,012				(16,701	)
Income (loss) before provision for income taxes		73,664				(26,694	)			(75,009	)			(55,722	)
Provision for (benefit from) income taxes		(173	)			2				—				3
Net income (loss)	$	73,837			$	(26,696	)		$	(75,009	)		$	(55,725	)
Series A Preferred Stock dividends and accretion		(8,072	)			—				(17,713	)			—
Income attributable to participating securities		(28,087	)			—				—				—
Series A Preferred Stock deemed dividend on down round		—				—				(60,864	)			—
Deemed dividend on exchange of redeemable convertible preferred stock		—				(345,717	)			—				(345,717	)
Net income (loss) attributable to common stockholders	$	37,678			$	(372,413	)		$	(153,586	)		$	(401,442	)
Net income (loss) per share:
Basic	$	0.37			$	(5.24	)		$	(1.72	)		$	(5.66	)
Diluted	$	0.37			$	(5.24	)		$	(1.72	)		$	(5.66	)
Weighted-average shares outstanding:
Basic		101,217,672				71,045,916				89,253,660				70,986,625
Diluted		103,174,834				71,045,916				89,253,660				70,986,625

Non-GAAP Financial Measures

In addition to our results determined in accordance with U.S. GAAP, we believe that EBITDA and Adjusted EBITDA, non-GAAP financial measures, provide investors with additional useful information in evaluating our performance. We define EBITDA as net income (loss) before interest expense or income, income tax expense or benefit, and depreciation and amortization. We define Adjusted EBITDA as EBITDA adjusted for stock-based compensation, equity-based compensation to non-employees, changes in fair value of warrant liabilities, changes in fair value of financial instruments accounted for at fair value, transaction and merger-related costs, and other non-cash items. Changes in fair value of warrant liabilities reflect periodic mark-to-market adjustments that will recur each reporting period as long as warrants remain outstanding and are excluded because they are non-cash and not reflective of our core operating performance. Changes in fair value of convertible promissory notes and long-term debt relate to instruments settled in connection with the Merger and are excluded because they are not expected to recur in future periods. Transaction and merger-related costs are excluded because they relate to specific non-recurring corporate events and are not indicative of our ongoing operating performance.

We believe that each of these non-GAAP financial measures provide additional metrics to evaluate our operations and, when considered with both our U.S. GAAP results and the reconciliation to the closest comparable U.S. GAAP measures, provide a more complete understanding of our business than could be obtained absent this disclosure. We use the non-GAAP financial measures, together with U.S. GAAP financial measures, such as net revenue, gross profit margins and cash flow from operations, to assess our historical and prospective operating performance, to provide meaningful comparisons of operating performance across periods, to enhance our understanding of our operating performance, and to compare our performance to that of our peers and competitors.

The non-GAAP financial measures are presented here because we believe they are useful to investors in assessing the operating performance of our business without the effect of non-cash items, and other items as detailed below. The non-GAAP financial measures should not be considered in isolation or as alternatives to net income (loss), income (loss) from operations or any other measure of financial performance calculated and prescribed in accordance with U.S. GAAP. Our non-GAAP financial measures may not be comparable to similarly titled measures in other organizations because other organizations may not calculate non-GAAP financial measures in the same manner as we do.

The following tables provide a reconciliation of EBITDA and Adjusted EBITDA to net income (loss), the most directly comparable financial measure presented in accordance with U.S. GAAP (unaudited).

	Three Months Ended September 30,								Nine Months Ended September 30,
($ in thousands)	2026				2025				2026				2025
Net income (loss)	$	73,837			$	(26,696	)		$	(75,009	)		$	(55,725	)
Depreciation		574				375				1,703				1,145
Amortization of right-of-use assets		320				183				871				549
Interest income		(1,504	)			(430	)			(3,468	)			(862	)
Interest expense		—				—				9				2,956
Provision for (benefit from) income taxes		(173	)			2				—				3
EBITDA		73,054				(26,566	)			(75,894	)			(51,934	)
Stock-based compensation		6,375				526				12,278				1,472
Equity-based payments to non-employees		81				—				833				—
Change in fair value of warrant liabilities		(103,620	)			683				(104,030	)			4,562
Change in fair value of convertible promissory notes		—				3,118				87,824				3,118
Change in fair value of long-term debt		—				672				2,470				672
Loss on exchange of warrant liabilities		—				3,320				—				3,320
Loss on issuance of financial instruments		—				585				—				585
Loss on extinguishment of long-term debt		—				2,157				—				2,157
Transaction costs		—				1,927				1,236				1,927
Adjusted EBITDA	$	(24,110	)		$	(13,578	)		$	(75,283	)		$	(34,121	)

	Three Months Ended June 30,
($ in thousands)	2026				2025
Net loss	$	(58,427	)		$	(16,296	)
Depreciation		712				389
Amortization of right-of-use assets		342				183
Interest income		(1,447	)			(131	)
Interest expense		—				1,342
Provision for income taxes		125				1
EBITDA		(58,695	)			(14,512	)
Stock-based compensation		4,608				433
Equity-based payments to non-employees		109				—
Change in fair value of warrant liabilities		26,144				3,925
Change in fair value of convertible promissory notes		—				—
Change in fair value of long-term debt		—				—
Transaction costs		—				—
Adjusted EBITDA	$	(27,834	)		$	(10,154	)

CHANDLER, Ariz., Nov. 12, 2026 (GLOBE NEWSWIRE) — VirTra, Inc. (Nasdaq: VTSI) (“VirTra” or the “Company”), a global provider of judgmental use-of-force and firearms training simulators, reported results for the third quarter and nine months ended September 30, 2026. The financial statements are available on VirTra’s website and here.

Third Quarter 2026 and Recent Operational Highlights

• Bookings totaled $10.3 million during the third quarter, up 87% from $5.5 million in Q2 2026.
• Total backlog as of September 30, 2026 was $27.6 million and included $14.1 million in capital, $3.9 million in service, and $9.6 million in STEP contracts.
• Awarded a five-year sole-source contract with U.S. Customs and Border Protection (CBP) with up to $14 million of potential value to modernize, maintain, and support the agency’s nationwide simulator training network.
• Awarded a $1.5 million sole-source contract from the U.S. Army to provide a V-300® training system and related equipment supporting firearms training and force readiness initiatives in Tajikistan.
• Advanced military growth initiatives through participation in the U.S. Army Marketplace, where VirTra’s solutions are now available for evaluation across Weapons Skills Development, Joint Fires Training, and Counter-Unmanned Aircraft Systems (C-UAS), supporting future opportunities within the U.S. Army.

Third Quarter and Nine Months 2026 Financial Highlights

	For the Three Months Ended						For the Nine Months Ended
All figures in millions, except per share data	September 30, 2026		September 30, 2025		% Δ		September 30, 2026		September 30, 2025		% Δ
Total Revenue	$7.6		$5.3		42%		$16.9		$19.5		-13%
Gross Profit	$5.3		$3.5		52%		$10.9		$13.5		-20%
Gross Margin	70%		66%		N/A		65%			69%	N/A
Net Income (Loss)	$2.2		($0.4	)	657%		$0.6		$1.1		-45%
Diluted EPS	$0.19		($0.03	)	N/A		$0.05		$0.09		N/A
Adjusted EBITDA	$2.6		$0.9		2696%		$2.2		$2.5		-13%

Management Commentary
VirTra CEO John Givens stated: “Our third quarter results reflect continued improvement across the business, highlighted by strong revenue growth, accelerating bookings, and improved profitability. We are particularly encouraged by the acceleration in customer orders, which, together with our improving revenue performance, provides tangible evidence that demand is translating into business results.

“We are also seeing encouraging developments in the government funding environment. Following nearly two years of limited grant activity, funding programs are reopening and customers are actively pursuing new opportunities. While the timing of grant awards, funding distributions, and customer deployments remains difficult to predict, we believe these developments represent an important step toward a more favorable operating environment.

“At the same time, we continue to expand our opportunities across federal, military, and international markets, supported by recent contract awards, our participation in the U.S. Army Marketplace, and ongoing customer engagement. As we look ahead, our focus remains on expanding our presence across our core markets, deepening customer relationships, and capitalizing on the improving demand environment.”

Third Quarter 2026 Financial Results
Total revenue was $7.6 million, compared to $5.3 million in the prior year period. The increase is primarily due to an increase in government and international sales.

Gross profit was $5.3 million (70% of revenue), compared to $3.5 million (66% of revenue) in the prior year period.

Net operating expense was $3.3 million, compared to $4.0 million in the prior year period.

Income from operations was $2.0 million, compared to $(0.5) million in the prior year period.

Net income (loss) was $2.2 million, or $0.19 per diluted share, compared to $(0.4) million, or $(0.03) per diluted share, in the prior year period.

Adjusted EBITDA, a non-GAAP metric, was $2.6 million, compared to $0.9 million in the prior year period.

Nine Months 2026 Financial Results
Total revenue was $16.9 million, compared to $19.5 million in the prior year period. The decrease was due to several customers booked in Q3 and Q4 2025 being unable to accept delivery in the first nine months of 2026.

Gross profit was $10.9 million (65% of revenue), compared to $13.5 million (69% of revenue) in the prior year period.

Net operating expense was $10.4 million, compared to $11.7 million in the prior year period.

Income from operations was $0.5 million, compared to $1.8 million in the prior year period.

Net income was $0.6 million, or $0.05 per diluted share, compared to $1.1 million, or $0.09 per diluted share, in the prior year period.

Adjusted EBITDA, a non-GAAP metric, was $2.2 million, compared to $2.5 million in the prior year period.

Financial Commentary
VirTra CFO Alanna Boudreau stated: “Third quarter revenue increased 42% year-over-year to $7.6 million, driven by international system deliveries and improved revenue conversion, while gross margin expanded to 70%, reflecting the benefit of higher revenue volume and improved operating leverage. We generated $10.3 million of bookings during the quarter and ended September with $27.6 million of backlog, supporting our visibility into future revenue opportunities.

“Our balance sheet remains healthy, with $18.4 million in cash at quarter-end, providing the flexibility to invest in our technology, operational capabilities, and growth initiatives. Although customer funding and procurement timelines continue to influence the pace at which backlog converts to revenue, we remain focused on converting backlog into revenue, managing costs, and maintaining the operating discipline needed to support profitable growth.”

Conference Call
VirTra’s management will hold a conference call today (November 12, 2026) at 4:30 p.m. Eastern time (1:30 p.m. Pacific time) to discuss these results. VirTra’s CEO John Givens and Chief Financial Officer Alanna Boudreau will host the call, followed by a question-and-answer period.

U.S. dial-in number: 1-877-300-8521
International number: 1-412-317-6026
Conference ID: 10212841

Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Investor Relations at 949-574-3860.

The conference call will be broadcast live and available for replay here and via the investor relations section of the Company’s website.

A replay of the call will be available after 7:30 p.m. Eastern time on the same day through November 26, 2026.

Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 10212841

About VirTra, Inc.
VirTra (Nasdaq: VTSI) is a global provider of judgmental use-of-force and firearms training simulators for law enforcement, military, educational, and commercial markets. Since 1993, VirTra has been dedicated to saving lives by providing highly effective, realistic training designed to prepare officers for the most difficult real-world situations.

About the Presentation of Adjusted EBITDA
Adjusted earnings before interest, income taxes, depreciation, and amortization and before other non-operating costs and income (“Adjusted EBITDA”) is a non-GAAP financial measure. Adjusted EBITDA also includes non-cash stock option expense and other than temporary impairment loss on investments. Other companies may calculate Adjusted EBITDA differently. VirTra calculates its Adjusted EBITDA to eliminate the impact of certain items it does not consider to be indicative of its performance and its ongoing operations. Adjusted EBITDA is presented herein because management believes the presentation of Adjusted EBITDA provides useful information to VirTra’s investors regarding VirTra’s financial condition and results of operations and because Adjusted EBITDA is frequently used by securities analysts, investors, and other interested parties in the evaluation of companies in VirTra’s industry, several of which present a form of Adjusted EBITDA when reporting their results. Adjusted EBITDA has limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of VirTra’s results as reported under accounting principles generally accepted in the United States of America (“GAAP”). Adjusted EBITDA should not be considered as an alternative for net income, cash flows from operating activities and other consolidated income or cash flows statement data prepared in accordance with GAAP or as a measure of profitability or liquidity. A reconciliation of net income to Adjusted EBITDA is provided in the following tables:

		For Three Months Ended																For Nine Months Ended
		September 30,				September 30,				Increase						%		September 30,				September 30,				Increase						%
		2026				2025				(Decrease)				Change				2026				2025				(Decrease)				Change
				​				​				​				​				​				​				​				​
Net Income (Loss)		$	2,162,841			$	(388,567	)		$	2,551,408				657	%		$	572,951			$	1,050,807			$	(477,856	)			-45	%
Adjustments:				​				​				​				​				​				​				​				​
Provision for income taxes			(134,678	)			28,090				(162,768	)			-579	%			7,761				121,091				(113,330	)			-94	%
Depreciation and amortization			547,958				466,876				81,082				17	%			1,538,353				1,297,209				241,144				19	%
Interest (net)			(19,498	)			(55,831	)			36,333				-65	%			(34,844	)			(103,958	)			69,114				-66	%
EBITDA			2,556,623				50,568				2,506,055				4956	%			2,084,221				2,365,149				(280,928	)			-12	%
Right of use amortization			–				40,871				(40,871	)			-100	%			72,774				125,236				(52,462	)			-42	%
				​				​				​				​				​				​				​				​
Adjusted EBITDA		$	2,556,623			$	91,439			$	2,465,184				2696	%		$	2,156,995			$	2,490,385			$	(333,390	)			-13	%

Forward-Looking Statements
The information in this discussion contains forward-looking statements and information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to the “safe harbor” created by those sections. The words “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “plans,” “projects,” “will,” “should,” “could,” “predicts,” “potential,” “continue,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements that we make. The forward-looking statements are applicable only as of the date on which they are made, and we do not assume any obligation to update any forward-looking statements. All forward-looking statements in this document are made based on our current expectations, forecasts, estimates and assumptions, and involve risks, uncertainties and other factors that could cause results or events to differ materially from those expressed in the forward-looking statements. In evaluating these statements, you should specifically consider various factors, uncertainties and risks that could affect our future results or operations. These factors, uncertainties and risks may cause our actual results to differ materially from any forward-looking statement set forth in the reports we file with or furnish to the Securities and Exchange Commission (the “SEC”). You should carefully consider these risk and uncertainties described and other information contained in the reports we file with or furnish to the SEC before making any investment decision with respect to our securities. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by this cautionary statement.

Investor Relations Contact:
Matt Glover and Greg Bradbury
Gateway Group, Inc.
VTSI@gateway-grp.com
949-574-3860

VIRTRA, INC. CONDENSED BALANCE SHEETS (UNAUDITED)
		September 30, 2026				December 31, 2025
ASSETS
Current assets:
Cash and cash equivalents		$	18,404,194			$	18,594,598
Accounts receivable, net			5,588,767				5,502,087
Inventory, net			14,149,538				13,060,024
Unbilled revenue			967,455				868,216
Prepaid expenses and other current assets			1,763,125				2,622,462
Deferred Contract Costs, short term			374,375				374,375
Total current assets			41,247,454				41,021,762
Long-term assets:
Property and equipment, net			20,429,581				16,268,400
Operating lease right-of-use asset, net			–				268,873
Intangible assets, net			2,406,574				2,513,186
Security deposits, long-term			–				15,979
Other assets, long-term			451,489				424,226
Deferred tax asset, net			4,143,463				4,135,463
Deferred Contract Costs, long term			207,914				488,695
Total long-term assets			27,639,021				24,114,822
Total assets		$	68,886,475			$	65,136,584
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	1,027,814			$	784,074
Accrued compensation and related costs			558,705				461,430
Accrued expenses and other current liabilities			1,329,823				1,196,565
Notes payable, current			311,645				227,754
Operating lease liability, short-term			–				196,311
Deferred revenue, short-term			6,944,467				7,361,738
Total current liabilities			10,172,454				10,227,872
Long-term liabilities:
Deferred revenue, long-term			1,322,994				1,913,393
Notes payable, long-term			11,024,880				7,314,085
Operating lease liability, long-term			–				89,053
Total long-term liabilities			12,347,874				9,316,531
Total liabilities			22,520,328				19,544,403
Commitments and contingencies (See Note 10)
Stockholders’ equity:
Preferred stock $0.0001 par value; 2,500,000 shares authorized; no shares issued or outstanding			–				–
Common stock $0.0001 par value; 50,000,000 shares authorized; 11,364,785 shares issued and outstanding as of September 30, 2026 and 11,303,885 as of December 31, 2025			1,136				1,130
Class A common stock $0.0001 par value; 2,500,000 shares authorized; no shares issued or outstanding			–				–
Class B common stock $0.0001 par value; 7,500,000 shares authorized; no shares issued or outstanding			–				–
Additional paid-in capital			33,257,100				33,056,091
Retained Earnings			13,107,911				12,534,960
Total stockholders’ equity			46,366,147				45,592,181
Total liabilities and stockholders’ equity		$	68,886,475			$	65,136,584

VIRTRA, INC. CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED)
		Three Months Ended September 30,								Nine Months Ended September 30,
		2026				2025				2026				2025
Revenues:				​				​				​				​
Net sales		$	7,623,319			$	5,349,993			$	16,860,823			$	19,489,178
Total revenue			7,623,319				5,349,993				16,860,823				19,489,178
				​				​				​				​
Cost of sales			2,289,258				1,831,969				5,977,255				5,961,795
				​				​				​				​
Gross profit			5,334,061				3,518,024				10,883,568				13,527,383
				​				​				​				​
Operating expenses:				​				​				​				​
General and administrative			2,930,888				3,278,663				9,062,233				9,788,609
Research and development			395,687				689,521				1,329,353				1,906,764
				​				​				​				​
Net operating expense			3,326,575				3,968,184				10,391,586				11,695,373
				​				​				​				​
Income (loss) from operations			2,007,486				(450,160	)			491,982				1,832,010
				​				​				​				​
Other income (expense):				​				​				​				​
Other income			140,622				114,454				357,467				264,337
Other (expense)			(119,945	)			(24,771	)			(268,737	)			(924,449	)
				​				​				​				​
Net other income			20,677				89,683				88,730				(660,112	)
				​				​				​				​
Income (Loss) before provision for income taxes			2,028,163				(360,477	)			580,712				1,171,898
				​				​				​				​
Provision (Benefit) for income taxes			(134,678	)			28,090				7,761				121,091
				​				​				​				​
Net Income (loss)		$	2,162,841			$	(388,567	)		$	572,951			$	1,050,807
				​				​				​				​
Net Income (loss) per common share:				​				​				​				​
Basic		$	0.19			$	(0.03	)		$	0.05			$	0.09
Diluted		$	0.19			$	(0.03	)		$	0.05			$	0.09
				​				​				​				​
Weighted average shares outstanding:				​				​				​				​
Basic			11,322,532				11,269,164				11,311,496				11,263,694
Diluted			11,322,532				11,269,164				11,311,496				11,263,694

VIRTRA, INC. CONDENSED STATEMENTS OF CASH FLOWS (Unaudited)
		Nine Months Ended September 30,
		2026					2025
Cash flows from operating activities:				​					​
Net Income		$	572,951				$	1,050,807
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities:				​					​
Depreciation and amortization			1,538,353					952,407
Right of use amortization			72,774					125,236
Employee stock compensation			201,014					88,938
Bad debt expense			(15,878	)				–
Loss on disposal of lease			2,706					–
Loss on disposal of property and equipment			(88,400	)				–
Changes in operating assets and liabilities:				​					​
Accounts receivable, net			(70,800	)				2,996,605
Inventory, net			(1,089,515	)				2,246,059
Other assets-long term			253,517					(673,949	)
Deferred taxes			(8,000	)				113,440
Unbilled revenue			(99,239	)				975,022
Other assets			859,337					(321,297	)
Prepaid expenses and other current assets			–					(1,273,295	)
Accounts payable and other accrued expenses			474,271					(276,810	)
Operating lease right of use			(75,992	)				(127,239	)
Deferred revenue			(1,007,670	)				207,851
Net cash provided by operating activities			1,519,429					6,083,775
				​					​
Cash flows from investing activities:				​					​
Internal intangible assets			(491,511	)				(2,265,489	)
Purchase of property and equipment			(1,013,009	)				(898,953	)
Net cash (used in) investing activities			(1,504,520	)				(3,164,442	)
				​					​
Cash flows from financing activities:				​					​
Principal payments of debt			(205,313	)				(193,056	)
Net cash (used in) financing activities			(205,313	)				(193,056	)
				​					​
Net (decrease) in cash			(190,40	4	)			2,726,277
Cash and restricted cash, beginning of period			18,594,598					18,040,827
Cash and restricted cash, end of period		$	18,404,194				$	20,767,104
				​					​
Supplemental disclosure of cash flow information:				​					​
Income taxes paid (refunded)		$	(1,041,894	)			$	599,237
Interest paid		$	252,483				$	175,008
Noncash investing & financing activities disclosure:				​					​
Assumption of lease asset (Lessor)		$	256,990				$	–
Mortgage to purchase building		$	(4,000,000	)			$	–