ORBS — what changed in the latest 10-Q

Text added vs the prior filing · source: 10-Q · 2026-08-07

• For the three months ended June 30, 2026, revenues were $2,068,430, representing a decrease of $5,510,216, or 72.7%, compared to revenues of $7,578,646 for the three months ended June 30, 2025. The decrease was primarily attributable to a significant reduction in orders from the Company’s largest cu…

• Gross profit decreased to $100,246 for the three months ended June 30, 2026, compared to gross profit of $1,245,296 for the three months ended June 30, 2025, a decline of $1,145,050, or 92.0%. Gross margin declined to 4.8% from 16.4% in the prior-year period. The decrease was driven primarily by the…

• ●Bad debt expense of $1,836,366 recognized during the three and six months ended June 30, 2026 in respect of receivables from the Company’s largest customer, whose financial condition deteriorated during the period.

• ●Higher professional fees and advisory costs incurred in connection with the Company’s capital raising and the ongoing implementation of its Digital Asset Treasury strategy;

• ●Increased compensation and corporate overhead required to support expanded operations, including share-based compensation; and

Text removed vs the prior filing · source: 10-Q · 2026-05-15

• For the three months ended March 31, 2026, revenues were $7,561,965, representing a decrease of $2,352,022, or 23.7%, compared to revenues of $9,913,987 for the three months ended March 31, 2025. The decrease reflects cancellation of certain agreements with customers and reduced order volumes from c…

• Gross profit decreased to $215,261 for the three months ended March 31, 2026, compared to gross profit of $813,259 for the three months ended March 31, 2025, a decline of $597,998, or 73.5%. The decrease was primarily driven by the decrease in revenues.

• ● Higher professional fees and advisory costs incurred in connection with the Company’s capital raising and the implementation of its Digital Asset Treasury strategy;

• ● Increased compensation and corporate overhead required to support expanded operations, including share-based compensation; and

• ● Higher technology, compliance, and custodial-related costs associated with digital asset oversight.

Text added vs the prior filing · source: 10-Q · 2026-08-07

• As discussed in Note 7 — Accounts Receivable to the condensed consolidated financial statements included in this Quarterly Report, during the six months ended June 30, 2026, the Company’s largest customer experienced a significant deterioration in its financial condition, and the Company recognized …

Text added vs the prior filing · source: 10-Q · 2026-08-07

• Other than as set forth below, there have been no material changes to the risk factors previously disclosed in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025 or in Part II, Item 1A of our Quarterly Report on Form 10-Q for the quarter ended March 31, 2026.

• On August 5, 2026, we received a notification letter regarding non-compliance with Nasdaq’s minimum bid price requirement for continued listing. If we do not regain compliance, our common stock may be delisted, which would adversely affect liquidity, market price, and our ability to raise capital.

• Our common stock is listed on The Nasdaq Capital Market under the symbol “ORBS.” An active trading market may not be sustained, and the failure of such a market to continue would likely have a material adverse effect on the value of our common stock. The trading price of our securities could be vola…

• On August 5, 2026, we received a notification letter from the Listing Qualifications Department of The Nasdaq Stock Market LLC (“Nasdaq”) notifying us that, for the 30 consecutive business days from June 23, 2026 to August 4, 2026, the closing bid price of our common stock was below the minimum $1.0…

• If we do not regain compliance by February 1, 2027, we may be eligible for an additional 180-calendar-day compliance period, provided we meet all other initial listing standards for The Nasdaq Capital Market (other than the bid price requirement) and provide written notice of our intention to cure t…

Text removed vs the prior filing · source: 10-Q · 2026-05-15

• An investment in our securities involves certain risks. Before deciding to invest in our common stock, you should consider carefully the following discussion of risks and uncertainties affecting us and our securities, together with other information in this Quarterly Report. Our business, business p…

• Other than as set forth below, there have been no material changes to the “Risk Factors” disclosed in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025. The risk factors below supplement, and to the extent inconsistent supersede, the risk factors set forth in our…

• Our strategic investment portfolio is concentrated in a small number of privately held companies, and a decline in the value of, or total loss with respect to, any single investment could materially adversely affect our financial condition and results of operations.

• During the three months ended March 31, 2026, we deployed approximately $110.6 million of capital into strategic equity investments, including approximately $92.6 million in OpenAI and approximately $18.0 million in Beast Industries, in addition to our prior $1.0 million investment in Mythical Games…

• Our strategic equity investments are highly illiquid, and we may be unable to sell, transfer, or otherwise monetize these investments when desired, or at all.