NOTE 8. SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION

Accounts Receivable, net

Accounts receivable, net is as follows (in thousands):

SCHEDULE OF ACCOUNTS RECEIVABLE

The following table summarizes the changes in the allowance for credit losses for accounts receivable (in thousands):

SUMMARIZES THE CHANGES IN THE ALLOWANCE FOR CREDIT LOSSES FOR ACCOUNTS RECEIVABLE

Property and Equipment, net

The following is a summary of our property and equipment, at costs less accumulated depreciation and amortization:

 SCHEDULE OF PROPERTY PLANT AND EQUIPMENT LESS DEPRECIATION AND AMORTIZATION

Depreciation expense for property and equipment for the years ended December 31, 2025 and 2024 was approximately $0.1 million and $0.8 million, respectively. The Company recorded an impairment attributed to property and equipment for the years ended December 31, 2025 and 2024 in the amount of $0.7 million and $0.2 million, respectively.

Other Current Assets

The following table summarizes the composition of other current assets as of the dates indicated:

 SCHEDULE OF OTHER CURRENT ASSETS

Accrued Expenses and Other Current Liabilities

The following table summarizes the composition of accrued expenses and other current liabilities as of the dates indicated:

 SCHEDULE OF ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

Customer Deposits

For certain customized product offerings, we may receive a deposit from the customer (generally 25% - 50% of the total order cost, but the amount can vary by customer contract), when an order is placed by a customer. We typically complete orders related to customer deposits within one to six months from the date of order, depending on the complexity of the customization and the size of the order, but the order completion timeline can vary by product type and terms of sale with each customer. Changes in our customer deposits liability balance during the year ended December 31, 2025 and 2024, respectively, were as follows:

 SCHEDULE OF CHANGES IN CUSTOMER DEPOSIT LIABILITY

Accumulated Other Comprehensive Income (Loss)

The components of accumulated other comprehensive income (loss) for the periods presented were as follows:

 SCHEDULE OF COMPONENTS OF ACCUMULATED COMPREHENSIVE INCOME LOSS

Supplier Concentration

Our four largest vendors accounted for an aggregate of approximately 100% and 61% of our total purchases for the years ended December 31, 2025 and 2024, respectively We expect to maintain our relationships with these vendors.

Related Party Transactions

On October 24, 2025, the Company appointed its Chief Investment Officer, Ben Isenberg, to manage digital-asset treasury activities. The Chief Investment Officer has relationships within the Berachain ecosystem, and is also the owner of BSQD Corp., a liquidity provider who the Company may transact with to execute BERA acquisitions. Any such transactions would be conducted on an arm’s length basis at prevailing market prices and conditions.

Renah Persofsky, who served as a Greenlane Director until October 23, 2025, is also a Principal Owner of Green Gruff USA Inc, (“Green Gruff”). In January 2025 the Company entered into an amended distribution agreement with Green Gruff. For the year ended December 31, 2025, the Company recognized $60 thousand of revenue from sales of Green Gruff and incurred $28 thousand in cost of goods sold from purchases. As of December 31, 2025, the Company had $22 thousand due from Green Gruff, which is included in accounts receivable on the consolidated balance sheet. As of and for the year ended December 31, 2024, there were no transactions between the Company and Green Gruff.

As of December 31, 2025, there were no other related-party transactions to disclose. The Company believes that transactions with related parties are conducted on terms comparable to those that could be obtained in arm’s-length transactions; however, such transactions may not be indicative of the terms that would have been obtained from unrelated third parties.