Liquidity	9 Months Ended
Sep. 30, 2025
Liquidity
Liquidity	Note 9. Liquidity During the nine months ended September 30, 2025, the Company used $2,173,000 in operations. As of September 30, 2025, the Company had $1,626,000 in working capital, including $1,891,000 in cash. As a result of the Arps acquisition (Note 8), the Company has assumed a $2,198,000 Mortgage that must be refinanced by January 1, 2026. Additionally, the Company has obligations outstanding under finance agreements of $841,000, including $245,000 borrowed in October 2025. The Company has a history of operating losses and negative cash flow, which are expected to improve with growth. As described more fully in Note 4, the dispute and subsequent contract termination with the Manufacturer has resulted in limitations in the Company’s ability to procure certain products necessary to achieve our growth projections and in elevated legal costs. To mitigate the impact of procurement constraints, the Company builds inventory in anticipation of third quarter seasonal requirements, and has invested in materials necessary to carry out trials and initial production runs at new co-manufacturers and acquired Arps in October 2025. The Company has an available receivables-based line of credit of $2,500,000, with $1,759,000 in outstanding borrowing as of September 30, 2025. Management expects that the cash cycle will shorten as additional contracted and owned capacity improves production volume and efficiency in the fourth quarter of 2025 and beyond. Additionally, in May 2024, the Company obtained non-recourse litigation financing to allow vigorous pursuit of the complaint against the Manufacturer without further expense to the Company. Finally, as described in Note 6, the Company raised $3,000,000 through the sale of the Company’s common stock in February 2025. The financial position at September 30, 2025, historical results and obligations incurred in association with the Arps acquisition raise substantial doubt about the Company’s ability to continue as a going concern. As described, the Company has completed steps to mitigate dispute related issues and raise capital. The Company is undertaking steps to refinance the Mortgage on a long-term basis and complete construction of the New Facility. The actions taken have resulted in the alleviation of the substantial doubt about the Company’s ability to continue as a going concern.

Liquidity

9 Months Ended

Sep. 30, 2025

Note 9. Liquidity

During the nine months ended September 30, 2025, the Company used $2,173,000 in operations. As of September 30, 2025, the Company had $1,626,000 in working capital, including $1,891,000 in cash. As a result of the Arps acquisition (Note 8), the Company has assumed a $2,198,000 Mortgage that must be refinanced by January 1, 2026. Additionally, the Company has obligations outstanding under finance agreements of $841,000, including $245,000 borrowed in October 2025.

The Company has a history of operating losses and negative cash flow, which are expected to improve with growth. As described more fully in Note 4, the dispute and subsequent contract termination with the Manufacturer has resulted in limitations in the Company’s ability to procure certain products necessary to achieve our growth projections and in elevated legal costs.

To mitigate the impact of procurement constraints, the Company builds inventory in anticipation of third quarter seasonal requirements, and has invested in materials necessary to carry out trials and initial production runs at new co-manufacturers and acquired Arps in October 2025. The Company has an available receivables-based line of credit of $2,500,000, with $1,759,000 in outstanding borrowing as of September 30, 2025. Management expects that the cash cycle will shorten as additional contracted and owned capacity improves production volume and efficiency in the fourth quarter of 2025 and beyond. Additionally, in May 2024, the Company obtained non-recourse litigation financing to allow vigorous pursuit of the complaint against the Manufacturer without further expense to the Company. Finally, as described in Note 6, the Company raised $3,000,000 through the sale of the Company’s common stock in February 2025.

The financial position at September 30, 2025, historical results and obligations incurred in association with the Arps acquisition raise substantial doubt about the Company’s ability to continue as a going concern. As described, the Company has completed steps to mitigate dispute related issues and raise capital. The Company is undertaking steps to refinance the Mortgage on a long-term basis and complete construction of the New Facility. The actions taken have resulted in the alleviation of the substantial doubt about the Company’s ability to continue as a going concern.