Quarterly Report for Quarter Ending June 30, 2026 (Form 10-Q)

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis of the results of operations and financial condition of Dror Ortho-Design, Inc. (the "Company") as of June 30, 2026 and for the three months ended June 30, 2026 and 2025 should be read in conjunction with our financial statements and the notes to those financial statements that are included elsewhere in this Quarterly Report on Form 10-Q. This discussion and analysis should be read in conjunction with the Company's audited financial statements and related disclosures as of December 31, 2025, which are included in the Form 10-K filed with the Securities and Exchange Commission ("SEC") on February 19, 2025. References in this Management's Discussion and Analysis of Financial Condition and Results of Operations to "us", "we", "our" and similar terms refer to the Company.

Cautionary Note Regarding Forward-Looking Statements

This Quarterly Report on Form 10-Q contains "forward-looking statements," which include information relating to future events, future financial performance, financial projections, strategies, expectations, competitive environment and regulation. Words such as "may," "should," "could," "would," "predicts," "potential," "continue," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," and similar expressions, as well as statements in future tense, identify forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results and may not be accurate indications of when such performance or results will be achieved. Forward-looking statements are based on information we have when those statements are made or management's good faith belief as of that time with respect to future events and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. Important factors that could cause such differences include, but are not limited to:

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our operations and financial performance depend on global and regional economic conditions. Inflation, fluctuations in currency exchange rates, changes in consumer confidence and demand, and weakness in general economic conditions and threats, or actual recessions, could materially affect our business, results of operations, and financial condition.;

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the Company is in the development stage, is not generating revenues and has no operating history in the manufacturing and distribution of orthodontic medical devices or platforms for consumer use;

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our products and technologies may not be accepted by the intended commercial consumers of our products, which could harm our future financial performance;

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we expect continued operating losses and cannot be certain of our future profitability;

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our net revenues will depend primarily on our Platform and any decline in sales or average selling price of our Platform may adversely affect net revenues, gross margin and net income;

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the Company will face competition from large internationally established aligner companies whose products have been widely accepted;

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our growth and future success may depend on our ability to enhance our Platform or to develop, obtain regulatory clearance for, successfully introduce, and achieve market acceptance of new products and services;

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we are subject to operating risks, including excess or constrained capacity and operational inefficiencies, which could adversely affect our results of operations;

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our products and information technology systems are critical to our business. Issues with product development or enhancements, IT system integration, implementation, updates and upgrades could disrupt our operations and have a material impact on our business and operating results;

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complying with regulations enforced by FDA and other regulatory authorities is expensive and time consuming, and failure to comply could result in substantial penalties;

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we may not receive the necessary authorizations to market our Platform or any future new products, and any failure to timely do so may adversely affect our ability to grow our business.

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certain modifications to our products may require new 510(k) clearance or other marketing authorizations;

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ongoing changes in healthcare regulation could negatively affect our revenues, business and financial condition;

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we are subject to certain federal, state, and foreign fraud and abuse laws, health information privacy and security laws, and transparency laws, which, if violated, could subject us to substantial penalties. Additionally, any challenge to or investigation into our practices under these laws could cause adverse publicity and be costly to respond to, and thus could harm our business;

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our success depends in part on our proprietary technology, and if we are unable to successfully enforce our intellectual property rights, our competitive position may be harmed;

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the relative lack of U.S. public company experience of our management team may put us at a competitive disadvantage;

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our Common Stock is not listed on any stock exchange and there is a limited market for shares of our Common Stock. Even if a market for our Common Stock develops, our Common Stock could be subject to wide fluctuations; and

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other risks and uncertainties outlined in section entitled "Risk Factors" and other risks detailed from time to time in our filings with the SEC or otherwise.

The foregoing does not represent an exhaustive list of matters that may be covered by the forward-looking statements contained herein or risk factors that we are faced with that may cause our actual results to differ from those anticipated in our forward-looking statements. For a discussion of these and other risks that relate to our business and financial performance, you should carefully review the risks and uncertainties described under the heading "Item 1A. Risk Factors" and elsewhere in this Quarterly Report on Form 10-Q and in our Annual Report on Form 10-K filed on February 27, 2026, and those described from time to time in our future reports filed with the Securities and Exchange Commission. Moreover, new risks regularly emerge, and it is not possible for us to predict or articulate all risks we face, nor can we assess the impact of all risks on our business or the extent to which any risk, or combination of risks, may cause actual results to differ from those contained in any forward-looking statements. All forward-looking statements included in this Form 10-Q are based on information available to us on the date of this Quarterly Report on Form 10-Q. Except to the extent required by applicable laws or rules, we undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Overview

We were incorporated as Novint Technologies, Inc. in the State of New Mexico in April 1999. On February 26, 2002, we changed our state of incorporation to Delaware by merging with Novint Technologies, Inc., a Delaware corporation. On July 5, 2023, we entered into a share exchange agreement with the shareholders of Dror Ortho-Design, Ltd. ("Private Dror"), pursuant to which the shareholders of Private Dror agreed to exchange all of their outstanding ordinary shares Private Dror for shares of our Common Stock, par value $0.0001 per share (the "Common Stock") and the Series A Convertible Preferred Stock, par value $0.0001 per share (the "Series A Preferred Stock", and such transaction, the "Share Exchange"). On August 14, 2023 the Share Exchange was consummated and we changed our name to "Dror Ortho-Design, Inc."

Following the Share Exchange, we succeeded to the business of Private Dror as our sole line of business. The Share Exchange is being accounted for as a recapitalization, with Private Dror deemed to be the accounting acquirer and the Company the acquired company. Accordingly, Private Dror's historical financial statements for periods prior to the consummation of the Share Exchange have become those of the Company. Operations reported for periods prior to the Share Exchange are those of Private Dror.

Our Company

We have reimagined the way people can correct their smile.

We plan to disrupt the aligner market by offering millions of people a revolutionary alternative. We believe that people do not need to change their lifestyle to correct their smile as they are required to do with existing aligner solutions. Rather, we believe they can get a perfect smile discreetly and hassle-free even while they sleep with our FDA-cleared proprietary solution.

Existing aligner solutions generally share the same treatment principles, which are different from our solution. In most cases, patients seeking to improve their smile need to undergo a 12-to-15 month process of wearing plastic aligners, which need to be worn the entire day and should only be removed while eating or drinking. Patients are prescribed a series of 20 to 30 aligners that are intended to forcefully move teeth progressively closer to their intended final position. This process causes pain every time a new aligner is used and restricts blood circulation, which counterproductively slows down tooth movement. All-day aligner solutions are also intrusive, as patients need to conduct their lives at work or school wearing the plastic aligners. In addition, most existing aligner therapies require multiple visits to an orthodontist to monitor the progress of treatment plans through intraoral scanning, physical examination and patient testimony.

We believe that recent rapid advancements in technology have made traditional aligner solutions no longer the most effective treatment option for smile correction. Our Company has developed a proprietary AI-based platform to correct people's smiles in a discreet and less painful manner (the "Platform"). The Platform uses only one smart aligner to gently move teeth into their optimum position with pulsating air while the patient is sleeping or at home.

We are involved in the research and development of an orthodontic alignment platform. We have several patents for the technology used in the Platform and is currently in the process of preparing the prototype for FDA approval.

Our predecessor first generation Aerodentis System is a Class II medical device, which was cleared by FDA for commercialization in the U.S. pursuant to the 510(k) notification process for movement and alignment of teeth during orthodontic treatment of malocclusion in April 2020. The Company is preparing to apply for 510(k) clearance for the Platform as a Class II medical device, which constitutes an updated version of the currently cleared device. Such updated Platform contains new and/or different components than the original device, which is why a new 510(k) clearance is required prior to marketing the Platform in the U.S. We have not yet filed a 510(k) submission for the Platform, and it has, thus, not been found by the FDA to be substantially equivalent to the first generation Aerodentis System.

The Company currently does not generate revenues to fund operations and anticipates that it will continue to incur significant losses as it continues to develop the Platform. Please refer to "Risk Factors - We are in the development stage, are not generating revenues and have no operating history in the manufacturing and distribution of orthodontic medical devices or platforms for consumer use" included in our Annual Report on Form 10-K for the year ended December 31, 2025, for additional information. The Company intends to spend approximately $1.5 million over the next 18 months on software and hardware development as well as the accompanying regulatory approvals and IP protection associated with such software and hardware projects.

Going Concern

The Company's unaudited condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company is subject to a number of risks similar to those of earlier stage commercial companies, including dependence on key individuals and products, the difficulties inherent in the development of a commercial market, the potential need to obtain additional capital, competition from larger companies and other technologies. During the six months ended June 30, 2026, the Company's cash used in operations was $709,019 leaving a cash balance of $93,563 as of June 30, 2026. These factors raise substantial doubt about the Company's ability to continue as a going concern for a period of twelve months from the issuance of these unaudited condensed consolidated financial statements. In order to have sufficient cash to fund the Company's operations in the future, the Company will need to raise additional equity or debt capital and cannot provide any assurance that the Company will be successful in doing so. If the Company is unable to raise sufficient capital to fund the Company's operations, the Company may need to delay, reduce or eliminate certain research and development programs or other operations, sell some or all of its assets or merge with another entity.

As a result of these factors and because the Company does not have sufficient resources to fund its operations for the next twelve months from the date of this Quarterly Report on Form 10-Q, management has substantial doubt about the Company's ability to continue as a going concern. The Company's unaudited condensed consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

Results of Operations

Comparison of the Three Months Ended June 30, 2026, and the Three Months Ended June 30, 2025

The following table sets forth the results of operations of the Company for the three months ended June 30, 2026 and June 30, 2025:

		Three Months Ended June 30,
		2026				2025				Change $				Change %
Research and development		$	150,769			$	324,068			$	(173,299	)			(53	)%
General and administrative		$	344,997			$	391,494			$	(46,497	)			(12	)%
Share-based compensation		$	-			$	15,977			$	(15,977	)			(100	)%
Financial income (expenses), net		$	(10,967	)		$	(15,107	)		$	4,140				(27	)%
Change in fair value of derivative		$	(43,048	)		$	1,903			$	(44,951	)			(2,362	)%
Debt discount amortization		$	(75,362	)		$	(14,595	)		$	(60,767	)			416	%

Research and development expenses

Research and development expenses were $150,769 for the three months ended June 30, 2026, compared to $324,068 for the three months ended June 30, 2025. The decrease in research and development expenses of $173,299 or 53%, was primarily due to decreased activities relating to software development.

General and administrative expenses

General and administrative expenses were $344,997 for the three months ended June 30, 2026, compared to $391,494 for the three months ended June 30, 2025. The decrease in general and administrative expenses of $46,497 or 12%, was primarily due to increased professional fees during the three months ended June 30, 2025 relating to preparations for an offering and the round of bridge loans.

Share-based Compensation Expenses

Share-based compensation expenses were $0 for the three months ended June 30, 2026, compared to $15,977 for the three months ended June 30, 2025. The decrease in share-based compensation expenses of $15,977 or 100%, was due to the full vesting of the outstanding stock options vesting in 2025.

Financial expense, net

Financial expense, net was $10,967 for the three months ended June 30, 2026, compared to $15,107 for the three months ended June 30, 2025. The decrease in financial expense, net, of $4,140 or 27%, was primarily due to exchange rate differences resulting from the translation of New Israeli Shekel ("NIS") based assets and liabilities to U.S. Dollars.

Change in fair value of derivative

Change in fair value of the derivative was a loss of $43,048 for the three months ended June 30, 2026, compared to a gain of $1,903 for the three months ended June 30, 2025. The increase in the change in fair value of the derivative of $44,951 or 2,362%, was due to the increased number of warrants classified as derivative liabilities issued subsequent to June 30, 2025.

Debt discount amortization

Debt discount amortization was $75,362 for the three months ended June 30, 2026, compared to $14,595 for the three months ended June 30, 2025. The increase in debt discount amortization of $60,767 or 416% was due to the increased amount of debt instruments issued subsequent to June 30, 2025.

Comparison of the Six Months Ended June 30, 2026, and the Six Months Ended June 30, 2025

The following table sets forth the results of operations of the Company for the six months ended June 30, 2026 and June 30, 2025:

		Six Months Ended June 30,
		2026				2025				Change $				Change %
Research and development		$	269,179			$	563,672			$	(294,493	)			(52	)%
General and administrative		$	723,781			$	705,123			$	18,658				3	%
Share-based compensation		$	-			$	39,170			$	(39,170	)			(100	)%
Financial income (expenses), net		$	(8,714	)		$	(14,804	)		$	6,090				(41	)%
Change in fair value of derivative		$	(25,348	)		$	1,903			$	(27,251	)			(1,432	)%
Debt discount amortization		$	(236,787	)		$	(14,595	)		$	(222,192	)			1,522	%

Research and development expenses

Research and development expenses were $269,179 for the six months ended June 30, 2026, compared to $563,672 for the six months ended June 30, 2025. The decrease in research and development expenses of $294,493, or 52%, was primarily due to decreased activities relating to software development.

General and administrative expenses

General and administrative expenses were $705,123 for the six months ended June 30, 2026, compared to $705,123 for the six months ended June 30, 2025. The increase in general and administrative expenses of $18,658, or 3%, was primarily due to salary related expenses.

Share-based Compensation Expenses

Share-based compensation expenses were $0 for the six months ended June 30, 2026, compared to $39,170 for the six months ended June 30, 2025. The decrease in share-based compensation expenses of $39,170, or 100%, was primarily due to the full vesting of the outstanding stock options vesting in 2025.

Financial expense, net

Financial expense, net was $8,714 for the six months ended June 30, 2026, compared to $14,804 for the six months ended June 30, 2025. The decrease in financial expense, net, of 6,090 or 41%, was primarily due to exchange rate differences resulting from the translation of New Israeli Shekel ("NIS") based assets and liabilities to U.S. Dollars.

Change in fair value of derivative

Change in fair value of the derivative was a loss of $25,348 for the six months ended June 30, 2026, compared to a gain of $1,903 for the six months ended June 30, 2025. The increase in the change in fair value of the derivative of $27,251 or 2,362%, was due to the increased number of warrants classified as derivative liabilities issued subsequent to June 30, 2025.

Debt discount amortization

Debt discount amortization was $236,787 for the six months ended June 30, 2026, compared to $14,595 for the six months ended June 30, 2025. The increase in debt discount amortization of $222,192 or 1,522% was due to the increased amount of debt instruments issued subsequent to June 30, 2025.

Liquidity and Capital Resources

Sources of Liquidity

We do not have revenues to fund operations. We anticipate that we will continue to incur significant losses as we continue to develop our product. Historically, our primary source of cash has been proceeds from the sale of equity instruments. We raised $5.225 million through the Private Placement of shares to new investors concurrent with the Share Exchange. We intend to spend approximately $1.5 million over the next 18 months on software and hardware development as well as the accompanying regulatory approvals and IP protection associated with such software and hardware projects.

During the six months ended June 30, 2026 and 2025, the Company received $575,000 and $500,000, respectively, in the form of bridge loans from existing investors as further described below.

We will need to raise additional capital to fund operating losses and grow our operations. There can be no assurance however that we will be able to raise additional capital when needed, or at terms deemed acceptable, if at all. Such factors raise substantial doubt about our ability to sustain operations for at least one year from the issuance of the interim condensed consolidated financial statements included in this Quarterly Report on Form 10-Q. The accompanying financial statements do not include any adjustments related to the recoverability and classification of asset amounts or the classification of liabilities that might be necessary should we be unable to continue as a going concern. For additional information, see the section above titled "MD&A-Going Concern."

Bridge Loan Financings

On each of June 5, 2025, June 16, 2025, and July 17, 2025, the Company entered into a Securities Purchase Agreement (collectively, the "Initial Purchase Agreements") with certain existing investors, pursuant to which, the Company agreed to sell to the purchasers in private placements (the "Private Placements"), debentures (collectively, the "Initial Debentures") in an aggregate principal amount of $300,000 due August 5, 2025, $200,000 due August 15, 2025, and $200,000 due September 17, 2025, respectively. Each of the Initial Debentures were extended to December 13, 2025, then to March 31, 2026, and then to June 30, 2026, and subsequently to October 31, 2026.

On November 12, 2025, the Company entered into a securities purchase agreement (the "November 2025 Purchase Agreement") with each of the purchasers signatory thereto (the "November 2025 Investors"), pursuant to which, the Company agreed to sell to the November 2025 Investors in a private placement, debentures in an aggregate principal amount of $600,000 due January 11, 2026 (the "November 2025 Debentures"). Pursuant to the November 2025 Purchase Agreement, the November 2025 Investors have the right to purchase additional debentures, which are subject to the same terms as the Debentures, in an aggregate principal amount of $200,000. In advance of signing the November 2025 Purchase Agreement, in September 2025, the Company received $400,000 from certain November 2025 Investors.

On December 2, 2025, the Company entered into a securities purchase agreement (the "First December 2025 Purchase Agreement") with each of the purchasers signatory thereto (the "First December 2025 Investors"), pursuant to which, the Company agreed to sell to the First December 2025 Investors in a private placement, debentures in an aggregate principal amount of $200,000, due February 2, 2026 (the "First December 2025 Debentures").

On December 30, 2025, the Company entered into a securities purchase agreement (the "Second December 2025 Purchase Agreement") with each of the purchasers signatory thereto (the "Second December 2025 Investors"), pursuant to which, the Company agreed to sell to the Second December 2025 Investors in a private placement, debentures in an aggregate principal amount of $250,000 due February 28, 2026 (the "Second December 2025 Debentures"). Each of the debentures issued during the year ended December 31, 2025, were extended to March 31, 2026 , then to June 30, 2026, and subsequently to October 31, 2026.

On February 26, 2026, the Company entered into a securities purchase agreement (the "February 2026 Purchase Agreement" with each of the purchasers signatory thereto (the "February 2026 Investors"), pursuant to which, the Company agreed to sell to the February 2026 Investors in a private placement, debentures in an aggregate principal amount of $200,000 due April 27, 2026 (the "February 2026 Debentures").

On April 28, 2026, the Company entered into a securities purchase agreement (the "April 2026 Purchase Agreement" and, together with the Initial Purchase Agreements, the November 2025 Purchase Agreement, the First December 2025 Purchase Agreement, the Second December 2025 Purchase Agreement and February 2026 Purchase Agreement, the "Purchase Agreements") with each of the purchasers signatory thereto (the "April 2026 Investors"), pursuant to which, the Company agreed to sell to the April 2026 Investors in a private placement, debentures in an aggregate principal amount of $275,000 due June 28, 2026 (the "April 2026 Debentures" and, together with the Initial Debentures, the November 2025 Debentures, the First December 2025 Debentures, the Second December 2025 Debentures and the February 2026 Debentures the "Debentures"). In June 2026, the maturity date of each of the Debentures was extended to October 31, 2026.

On June 23, 2026, the Company received $100,000 as an advance to the next round of Debentures.

Pursuant to each Purchase Agreement, the Company agreed to issue (A) subject to the consummation of a public offering by the Company of its securities (the "Public Offering"), warrants to purchase up to a number of shares of Common Stock (the "Purchase Warrants") equal to: (i) in the event the applicable Debentures are outstanding as of the date of the consummation of the Public Offering (the "Public Offering Closing Date"), 150% of the Debenture Shares (as defined herein) issued, if any; or (ii) in the event that each of the applicable Debentures are not outstanding as of the Public Offering Closing Date, 100% of the Debenture Shares that would have been issued, if any, as if such Debentures were outstanding as of the Public Offering Closing Date, and (B) subject to the completion of a Public Offering by the Company of warrants to purchase shares of Common Stock, additional warrants to purchase shares of Common Stock (the "Additional Warrants" and, collectively with the Purchase Warrants, the "Bridge Warrants") equal to: (i) in the event that the applicable Debentures are outstanding as of the Public Offering Closing Date, 150% of the number of shares of Common Stock underlying the warrants issued in the Public Offering that the Purchaser would have been entitled to receive had the Purchaser participated in the Public Offering in the amount equal to the Purchaser's subscription amount under the Purchase Agreement (the "Warrant Subscription Amount"); or (ii) in the event that the applicable Debentures are not outstanding as of the Public Offering Closing Date, 100% of the Warrant Subscription Amount.

Cash Flows

		Six months ended June 30,
		2026				2025
Cash provided by (used in)
Operating activities		$	(709,019	)		$	(984,963	)
Investing activities			-				-
Financing activities			575,000				500,000
Effect of exchange rate changes on cash and cash equivalents			(958	)			-
Net decrease in cash and cash equivalents		$	(134,977	)		$	(484,963	)

Six months ended June 30, 2026 Compared to Six Months Ended June 30, 2025

Operating activities

Net cash used in operating activities was $709,019 for the six months ended June 30, 2026 as compared to $984,963 for the six months ended June 30, 2025. The amount for the six months ended June 30, 2026 primarily consisted of a net loss of $1,263,809 partially offset by non-cash charges of $ 270,217 (including: depreciation of $ 2,629, debt discount amortization of $236,787, change in fair value of derivative of $25,348, and foreign exchange differences of $5,453), and an increase in working capital excluding cash of $284,573. The amount for the six months ended June 30, 2025 primarily consisted of a net loss of $1,335,461 partially offset by non-cash charges of $54,312 (including: depreciation of $2,450, debt discount amortization of $14,595, change in fair value of derivative of $(1,903) and share-based compensation expense of $39,170), and an increase in working capital excluding cash of $ 296,186.

Investing Activities

During the six months ended June 30, 2026 and 2025, net cash provided by investing activities was $0.

Financing Activities

During the six months ended June 30, 2026, net cash provided by financing activities was $575,000. During the six months ended June 30, 2025, net cash provided by financing activities was $500,000.

Effects of Inflation

Management does not believe that inflation has had a material impact on the Company's business, sales, or operating results during the periods presented.

Off-Balance Sheet Arrangements

The Company has not entered into any off-balance sheet financial guarantees or other off-balance sheet commitments to guarantee the payment obligations of any third parties. The Company has not entered into any derivative contracts that are indexed to the Company's shares and classified as stockholder's equity or that are not reflected in the Company's financial statements included in this Quarterly Report on Form 10-Q. Furthermore, the Company does not have any retained or contingent interest in assets transferred to an unconsolidated entity that serves as credit, liquidity or market risk support to such entity. The Company does not have any variable interest in any unconsolidated entity that provides financing, liquidity, market risk or credit support to us or engages in leasing, hedging or product development services with us.

Critical Accounting Policies and Use of Estimates

The SEC defined a company's critical accounting policies as the ones that are most important to the portrayal of our financial condition and results of operations and which require us to make our most difficult and subjective judgments, often as a result of the need to make estimates of matters that are inherently uncertain.

Based on this definition, we have identified the critical accounting policies and judgments addressed below. We also have other key accounting policies that are significant to understanding our results.

Research and Development

We expense all research and development costs as they are incurred. Research and development includes expenditures in connection with in-house research and development salaries and staff costs, consulting fees, as well as proprietary products and technology.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP") requires management to make estimates or assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could vary from those estimates. Management utilizes various other estimates, including but not limited to accrued royalties, estimated lives of long-lived assets, the valuation of stock-based compensation, the valuation allowance for deferred tax assets and other contingencies. The results of any changes in accounting estimates are reflected in the financial statements in the period in which the changes become evident. Estimates and assumptions are reviewed periodically, and the effects of revisions are reflected in the period that they are determined to be necessary.

Recent Accounting Pronouncements

The Company has reviewed the recent accounting pronouncements issued by the Financial Accounting Standards Board ("FASB"), including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the SEC and determined that these pronouncements do not have a material impact on the Company's current or anticipated consolidated financial statement presentation or disclosures.

In November 2024, the FASB issued ASU 2024-03, "Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures" to require more detailed information about specified categories of expenses (purchases of inventory, employee compensation, depreciation, amortization, and depletion) included in certain expense captions presented on the face of the income statement. ASU 2024-03is effective for fiscal years beginning after December 15, 2026 and for interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. The amendments may be applied either (1) prospectively to financial statements issued for reporting periods after the effective date of this ASU or (2) retrospectively to all prior periods presented in the financial statements. The Company is currently evaluating the impact of adopting this guidance on its condensed consolidated financial statements and related disclosures. The adoption of this pronouncement is not expected to have a material impact on the Company's condensed consolidated financial statements

In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures related to improvements to income tax disclosures. The amendments in this update require enhanced jurisdictional and other disaggregated disclosures for the effective tax rate reconciliation and income taxes paid. The amendments in this update are effective for fiscal years beginning after December 15, 2024. The adoption of this pronouncement is not expected to have a material impact on the Company's consolidated financial statements.

In November 2023, the FASB issued ASU 2023-07 "Segment Reporting: Improvements to Reportable Segment Disclosures". This guidance expands public entities' segment disclosures primarily by requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items, and interim disclosures of a reportable segment's profit or loss and assets. The guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The amendments are required to be applied retrospectively to all prior periods presented in an entity's financial statements. The adoption of the ASU did not have a material impact on its consolidated financial statements related disclosures.

In October 2023, the FASB issued ASU 2023-06 "Disclosure Improvements: Codification Amendments in Response to the SEC's Disclosure Update and Simplification Initiative," which incorporates certain SEC disclosure requirements into the FASB Accounting Standards Codification ("Codification"). The amendments in the ASU are expected to clarify or improve disclosure and presentation requirements of a variety of Codification topics, allow investors to more easily compare entities subject to the SEC's existing disclosures with those entities that were not previously subject to the requirements, and align the requirements in the Codification with the SEC's regulations. The effective date for each amendment will be the date on which the SEC's removal of that related disclosure from Regulation S-X or Regulation S-K becomes effective, with early adoption prohibited. The amendments in this ASU should be applied prospectively. The Company does not expect ASU 2023-06 will have a material impact to its consolidated financial statements or related disclosures.