OVTZ 10-Q
Oculus Inc. (OVTZ)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
For the quarterly period ended
For the transition period from _____ to _____
Commission File Number:
| OCULUS INC. |
| (Exact name of registrant as specified in its charter) |
| | |
| (State or Other Jurisdiction of | (I.R.S. Employer |
| Incorporation or Organization) | Identification No.) |
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| (Address of principal executive offices) (Zip code) |
| ( |
| (Registrant’s telephone number, including area code) |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by check mark whether the registrant is a large, accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large, accelerated filer,” ‘‘accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
| Large, accelerated filer | ☐ | Accelerated filer | ☐ |
| | ☑ | Smaller reporting company | |
| Emerging growth company | |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes
As at August 6, 2026, there were
Securities registered pursuant to Section 12(b) of the Act:
| Title of Each Class | Trading Symbol(s) | Name of each exchange on which registered |
| Common | ||
| Common stock - no par value | OVTZ | Over The Counter Bulletin Board |
| Preferred stock - no par value | N/A | N/A |
| Common stock - no par value | OVT | TSX Venture Exchange |
| Common stock - no par value | USF1 | Frankfurt Stock Exchange |
| 4 | |||
| Item 1. |
6 | ||
| 6 | |||
| (A) |
Condensed Interim Consolidated Statements of Operations and Comprehensive Loss |
7 | |
| (B) |
Condensed Interim Consolidated Statements of Stockholders’ Deficiency |
8 | |
| (C) |
10 | ||
| (D) |
Notes to Condensed Interim Consolidated Financial Statements |
11 | |
| Item 2. |
(E) |
Management’s Discussion and Analysis of Financial Condition and Results of Operations |
19 |
| Item 3. | Quantitative and Qualitative Disclosures About Market Risk | 22 | |
| Item 4. | Controls and Procedures | 22 | |
| Item 1. |
24 | ||
| Item 1A. |
24 | ||
| Item 2. |
24 | ||
| Item 3. |
24 | ||
| Item 4. |
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| Item 5. |
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| Item 6. |
24 |
This Quarterly Report on Form 10-Q contains forward-looking statements. All statements other than statements of historical fact are “forward-looking statements” for the purposes of this Quarterly Report on Form 10-Q. In some cases, you can identify these statements by forward-looking words such as “plan”, “may”, “will”, “expect”, “intend”, “anticipate”, “believe”, “estimate” and “continue” or similar words. Forward-looking statements are statements that are not historical facts, and include, but are not limited to:
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statements regarding our products and services, including: |
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our digital watermarking technology and Cloud-based document protection system; |
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our data privacy and data protection services and solutions; |
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the integration, development, and deployment of artificial intelligence (“AI”) technologies within our products and services |
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our technology, our cash needs, including our ability to fund our future capital expenditures and working capital requirements; |
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our expectations regarding competition and growth in our sector; the future sources and availability of additional funding; and |
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the effect of funding arrangements on projects and products. |
You should read statements that contain these words carefully because they discuss future expectations and plans, which contain projections of future results of operations or financial condition or state other forward-looking information. We believe that it is important to communicate future expectations to investors. However, there may be events in the future that we are not able to accurately predict or control. Accordingly, we do not undertake any obligation to update any forward-looking statements for any reason, even if new information becomes available or other events occur in the future, except as required by law.
Forward-looking statements are based on current expectations about future events affecting the Company and are subject to uncertainties and factors that affect all business operating in a global market as well as matters specific to the Company. These uncertainties and factors are difficult to predict, and many of them are beyond the Company’s control. Factors to consider when evaluating these forward-looking statements include, but are not limited to:
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the impact of pandemics; |
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the Company’s limited operating history makes it difficult to evaluate its business and prospects; |
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the Company has incurred substantial losses and expects to incur losses in the future and may never achieve profitability; |
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if the Company is unable to obtain substantial additional financing, it may not be able to remain in business; |
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the Company’s operating results in future periods are expected to be subject to significant fluctuations, which would likely affect the trading price of the Company’s common shares; |
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the data privacy and data protection markets are highly competitive, and the Company’s failure to successfully compete will limit its ability to attain, retain and increase its market share; |
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the document protection market is highly competitive, and the Company’s failure to compete successfully would limit its ability to retain and increase its market share; |
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the video digital watermarking business is highly competitive, and the Company’s failure to compete successfully would limit its ability to retain and increase its market share; |
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the Company is subject to rapid technological change, including advancements in artificial intelligence, which could render its products and services obsolete or require significant investment to remain competitive; |
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risks associated with the development, adoption, and deployment of artificial intelligence technologies, including regulatory uncertainty, ethical concerns, potential misuse, data privacy risks, and the possibility that such technologies may not achieve expected benefits or may introduce operational or reputational risks; |
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the Company is dependent upon vendors and other third-party service providers and will be competing with some of these companies; |
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the Company’s services are technically complex, and it may not be able to prevent defects that could decrease their market acceptance, result in product liability, or harm its reputation; |
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any loss of the Company’s personnel or inability to acquire new personnel could harm its business; |
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a failure to maintain effective internal controls in accordance with Section 404 of the Sarbanes-Oxley Act could have a material adverse effect on the Company’s business and operating results and shareholders could lose confidence in the Company’s financial reporting; |
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the Company does not currently have any paying customers; |
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| ● | the Company’s business may suffer if it cannot protect its intellectual property; |
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the Company’s products may infringe the intellectual property rights of others, causing the Company to incur significant costs or prevent us from licensing its products; |
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the Company’s success depends on the continued growth in demand for e-business applications; |
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government regulation and legal uncertainties, including those relating to artificial intelligence, data privacy, cybersecurity, and cross-border data transfers, could add additional costs and risks to doing business on the Internet; |
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geopolitical tensions, conflicts, and instability in various regions of the world may disrupt global markets, supply chains, customer demand, and access to capital, and may adversely affect the Company’s operations, partners, and customers; |
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the imposition of tariffs, trade restrictions, export controls, or other protectionist measures may increase the cost of technology components, limit market access, or otherwise adversely impact the Company’s products, pricing, and competitiveness; |
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the Company’s share price has been and could be highly volatile, which could result in substantial losses to investors; |
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the Company has not paid cash dividends in the past and does not expect to pay cash dividends in the foreseeable future. |
Any return on investment may be limited to the value of the Company’s common shares;
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securities analysts may not initiate coverage or continue to cover the Company’s common shares, and this may have a negative impact on its market price; |
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anti-takeover provisions in our charter documents could prevent or delay a change in control of the Company; |
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the Company intends to issue additional equity securities, which may dilute the interests of current shareholders or carry rights or preferences senior to the common shares; |
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the exercise of options and warrants and other issuances of common shares or securities convertible into or exercisable for common shares will dilute the ownership interest of the Company’s current shareholders and may adversely affect the future market price of the Company’s common shares; |
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limited liability of executive officers and directors may discourage shareholders from bringing a lawsuit against them; |
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requirements of the SEC with regard to low-priced “penny stocks” may adversely affect the ability of shareholders to sell their shares in the secondary market; |
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the Company does not anticipate paying dividends to shareholders in the foreseeable future; |
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the Company may be exposed to adverse currency exchange rate fluctuations, which could harm the Company’s financial results and cash flows; |
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service outages and disruption of the Company’s infrastructure may harm the Company and adversely impact business operations and injure reputation; |
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security vulnerabilities in the Company’s products and services or any breach of the Company’s security measures may injure its reputation and disrupt the Company’s business; |
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the financial reporting obligations of being a public company in the United States are expensive, time consuming, and may place significant demands on the Company’s management; and |
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the Company’s failure to manage or adequately address any one or more of these risks could result in the business suffering a material adverse effect. |
The Company believes the items outlined above are important factors that could cause estimates included in its financial statements to differ materially from the actual results and those expressed in a forward-looking statement made in this report or elsewhere by the Company or on its behalf. The Company has discussed these factors in more detail under “Risk Factors” in its Annual Report on Form 10-K for the fiscal year ended December 31, 2025 and other periodic reports filed with the United States Securities and Exchange Commission (“SEC”). Accordingly, to the extent that this quarterly report contains forward-looking statements regarding the financial condition, operating results, business prospects or any other aspect of the Company, please be advised that the Company’s actual financial condition, operating results and business performance may differ materially from that projected or estimated by the Company in forward-looking statements. We do not intend to update our description of important factors each time a potential important factor arises, except as required by applicable securities laws and regulations. We advise our shareholders that they should (i) be aware that factors not referred to above could affect the accuracy of the Company’s forward-looking statements and (ii) use caution when considering the Company’s forward-looking statements.
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements.
OCULUS INC. AND SUBSIDIARY
CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS
(Stated in US Dollars)
(Unaudited)
| June 30, 2026 | December 31, 2025 | |||||||
| ASSETS | ||||||||
| Current Assets: | ||||||||
| Cash | $ | $ | ||||||
| Prepaid expenses and other current assets (Note 4) | ||||||||
| Total Assets | $ | $ | ||||||
| LIABILITIES AND STOCKHOLDERS' DEFICIENCY | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable and accrued expenses (Note 5) | $ | $ | ||||||
| Accounts payable and accrued expenses - related parties | ||||||||
| Total current liabilities | ||||||||
| Stockholders' Deficiency: | ||||||||
| Preferred stock - par value; authorized shares, issued | ||||||||
| Common stock and additional paid-in capital - par value; authorized shares, issued and outstanding and | ||||||||
| Additional paid-in capital | ||||||||
| Accumulated other comprehensive loss | ( | ) | ( | ) | ||||
| Accumulated deficit | ( | ) | ( | ) | ||||
| Total Stockholders’ Deficiency | ( | ) | ( | ) | ||||
| Total Liabilities and Stockholders' Deficiency | $ | $ | ||||||
Going concern (Note 2)
SEE ACCOMPANYING NOTES
| CONDENSED INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS |
| (Stated in US Dollars) (Unaudited) |
| For the three months ended | For the six months ended | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Expenses: | ||||||||||||||||
| Consulting (Note 11) | $ | $ | $ | $ | ||||||||||||
| Research and development (Note 10) | ||||||||||||||||
| Selling, general and administrative (Notes 9 and 13) | ||||||||||||||||
| Loss from operations | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Interest income | ||||||||||||||||
| Net loss | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Other comprehensive income (loss) | ||||||||||||||||
| Currency translation differences | ( | ) | ( | ) | ||||||||||||
| Total comprehensive income (loss) | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
| Net loss per share - basic and diluted | $ | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||||
| Weighted average number of common shares outstanding – basic and diluted | ||||||||||||||||
SEE ACCOMPANYING NOTES
| CONDENSED INTERIM CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIENCY |
| (Stated in US Dollars) (Unaudited) |
| Six Month Period Ended June 30, 2026 | ||||||||||||||||||||||||
| Common Shares | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit | Stockholders’ Deficiency | |||||||||||||||||||
| Balance at December 31, 2025 | $ | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||||||||||||
| Currency translation differences | - | |||||||||||||||||||||||
| Net loss | - | ( | ) | ( | ) | |||||||||||||||||||
| Balance at June 30, 2026 | $ | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||||||||||||
| Six Month Period Ended June 30, 2025 |
||||||||||||||||||||||||
| Common Shares |
Common Stock |
Additional Paid-in Capital |
Accumulated Other Comprehensive Loss |
Accumulated Deficit |
Stockholders’ Deficiency |
|||||||||||||||||||
| Balance at December 31, 2024 |
$ | $ | $ | ( |
) | $ | ( |
) | $ | ( |
) | |||||||||||||
| Currency translation differences |
- | ( |
) | ( |
) | |||||||||||||||||||
| Net loss |
- | ( |
) | ( |
) | |||||||||||||||||||
| Balance at June 30, 2025 |
$ | $ | $ | ( |
) | $ | ( |
) | $ | ( |
) | |||||||||||||
| Three Month Period Ended June 30, 2026 |
||||||||||||||||||||||||
| Common Shares |
Common Stock |
Additional Paid-in Capital |
Accumulated Other Comprehensive Loss |
Accumulated Deficit |
Stockholders’ Deficiency |
|||||||||||||||||||
| Balance at March 31, 2026 |
$ | $ | $ | ( |
) | $ | ( |
) | $ | ( |
) | |||||||||||||
| Currency translation differences |
- | |||||||||||||||||||||||
| Net loss |
- | ( |
) | ( |
) | |||||||||||||||||||
| Balance at June 30, 2026 |
$ | $ | $ | ( |
) | $ | ( |
) | $ | ( |
) | |||||||||||||
| Three Month Period Ended June 30, 2025 | ||||||||||||||||||||||||
| Common Shares | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit | Stockholders’ Deficiency | |||||||||||||||||||
| Balance at March 31, 2025 | $ | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||||||||||||
| Currency translation differences | - | ( | ) | ( | ) | |||||||||||||||||||
| Net loss | - | ( | ) | ( | ) | |||||||||||||||||||
| Balance at June 30, 2025 | $ | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||||||||||||
SEE ACCOMPANYING NOTES
| CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS |
| (Stated in US Dollars) (Unaudited) |
| Six months ended June 30, | 2026 | 2025 | ||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | ( | ) | $ | ( | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Changes in operating assets and liabilities: | ||||||||
| Decrease in prepaid expenses and other current assets | ||||||||
| Increase (decrease) in accounts payable and accrued liabilities | ( | ) | ||||||
| Increase in accounts payable and accrued liabilities – related parties | ||||||||
| Net cash provided (used) in operating activities | ( | ) | ||||||
| Effect of foreign currency translation | ( | ) | ||||||
| Net decrease in cash | ( | ) | ( | ) | ||||
| Cash at beginning of period | ||||||||
| Cash at end of period | $ | $ | ||||||
| Supplemental disclosures of cash flow information: | ||||||||
| Cash paid during the period for interest | $ | $ | ||||||
| Cash paid during the period for income taxes | $ | $ | ||||||
There were no non-cash financing or investing activities for the periods presented.
SEE ACCOMPANYING NOTES
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE AND SIX MONTH PERIODS ENDED JUNE 30, 2026 AND 2025
(Stated in US Dollars)
(Unaudited)
| 1. | BASIS OF PRESENTATION AND BUSINESS |
The accompanying condensed interim consolidated financial statements include the accounts of Oculus Inc. (“Oculus”) and its wholly-owned subsidiary, Artivex Inc. (formerly ComplyTrust Inc.) (“CTI”), (together “the Company”). All intercompany balances and transactions have been eliminated upon consolidation. In the opinion of the management, all adjustments (consisting of normal recurring accruals) considered necessary for fair presentation have been included.
The Company is a designer of digital watermarking services and solutions. At June 30, 2026 and for the year ended December 31, 2025, substantially all of the Company's assets and substantially all its operations are located and conducted in the United States and Canada.
These unaudited condensed consolidated interim financial statements have been prepared in conformity with generally accepted accounting principles of the United States of America (“US GAAP”) and the rules and regulations of the Securities and Exchange Commission (“SEC”) for financial information with the instructions to Form 10-Q and Regulation S-K. Results are not necessarily indicative of results which may be achieved in the future. The unaudited condensed consolidated interim financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K, which contains the audited financial statements and notes thereto, together with management’s Discussion and Analysis, for the year ended December 31, 2025. Certain information and footnote disclosures normally included in the financial statements prepared in accordance with US GAAP have been condensed or omitted pursuant to such SEC rules and regulations. These condensed interim consolidated financial statements follow the same accounting policies in the annual financial statements. The operating results for the six months ended June 30, 2026 are not necessarily indicative of the results that may be expected for the year ended December 31, 2026.
| 2. | GOING CONCERN |
These condensed interim consolidated financial statements are prepared on a going concern basis which assumes that the Company will be able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future. The Company has incurred losses from inception and does not currently have the financial resources to sustain operations in the long-term. As shown in the financial statements, the Company has incurred a loss of $
| 3. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
Basis of consolidation
These condensed interim consolidated financial statements are presented in United States dollars and have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). On August 6, 2026, the Board approved the condensed interim consolidated financial statements dated June 30, 2026.
These condensed interim consolidated financial statements include the financial statements of the Company and the entities controlled by the Company. The financial statements of subsidiaries are included in the condensed interim consolidated financial statements from the date that control commences until the date that control ceases.
OCULUS INC. AND SUBSIDIARY
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE AND SIX MONTH PERIODS ENDED JUNE 30, 2026 AND 2025
(Stated in US Dollars)
(Unaudited)
Control is defined as the exposure, or rights, to variable returns from involvement with an investee and the ability to affect those returns through power over the investee. Power over an investee exists when an investor has existing rights that give it the ability to direct the activities that significantly affect the investee’s returns. This control is generally evidenced through owning more than 50% of the voting rights or currently exercisable potential voting rights of a Company’s capital stock. All significant intercompany transactions and balances have been eliminated.
The controlled entities are listed in the following table:
| Name of Subsidiary | Country of Incorporation | Ownership Interest at June 30, 2026 | Ownership Interest at December 31, 2025 | Principal Activity | ||||||
| Artivex Inc. (formerly ComplyTrust Inc.) | US/Delaware | % | % | Software Development | ||||||
Significant judgments, estimates and assumptions
The preparation of financial statements in accordance with U.S. GAAP requires management to make judgments, estimates and 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 revenues and expenses during the period. These judgments, estimates and assumptions are regularly evaluated and are based on management’s experience and knowledge of the relevant facts and circumstances. While management believes the estimates to be reasonable, actual results could differ from those estimates and could impact future results of operations and cash flows.
The areas which require significant judgment and estimates that management has made at the financial reporting date, that could result in a material change to the carrying amounts of assets and liabilities, in the event actual results differ from the assumptions made, relate to, but are not limited to the following:
Significant judgments
| ● | the determination of functional currencies; and | |
| ● | continuation as a going concern is dependent on its ability to raise capital and attain profitable operations. In the foreseeable future, the Company will have to rely on the issuance of shares or the exercise of options and warrants or the issuance of debt securities to fund ongoing operations. The ability of the Company to raise capital will depend on market conditions; it may not be possible for the Company to raise capital on acceptable terms or at all. |
Cash
Cash includes cash on hand, and deposits held at call with financial institutions.
Impairment of long-lived assets and long-lived assets to be disposed of
Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount and the fair value less costs to sell.
OCULUS INC. AND SUBSIDIARY
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE AND SIX MONTH PERIODS ENDED JUNE 30, 2026 AND 2025
(Stated in US Dollars)
(Unaudited)
Research and development
Expenditure on research activities is recognized on the consolidated statements of operations and comprehensive loss as incurred. Development expenditures are capitalized as part of the cost of the resulting intangible asset only if the expenditures can be measured reliably, the product or process is technically and commercially feasible, future economic benefits are probable, and the Company intends to and has sufficient resources to complete development and to use or sell the asset. Management determined that as at June 30, 2026 it was not yet able to demonstrate with sufficient certainty that it is probable that any economic benefits will flow to the Company. Accordingly, all research and development costs incurred to date have been expensed.
Intangible asset
Identifiable intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business combination is valued at fair value as at the date of acquisition. Following initial recognition, intangible assets are carried at cost less any accumulated amortization and any accumulated impairment losses.
The useful lives of intangible assets are assessed as either finite or indefinite.
Intangible assets with finite lives are amortized over the useful economic life and assessed for impairment annually whenever there is an indication that the intangible asset may be impaired. The amortization period and method for an intangible asset with a finite useful life are reviewed at least at each financial year-end. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are accounted for by changing the amortization period or method, as appropriate, and are treated as changes in accounting estimates. The amortization expense on intangible assets with finite lives is recognized in profit or loss.
Intangible assets with indefinite lives are measured at cost less any accumulated impairment losses. These intangible assets are tested for impairment on an annual basis and more frequently if there are indicators that intangible assets may be impaired.
Income taxes
The Company accounts for income taxes under the asset and liability method. Current income taxes are the expected taxes payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to taxes payable in respect of previous years. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Under the asset and liability method, the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is recognized if it is more likely than not that some portion or the entire deferred tax asset will not be recognized.
Net loss per share
Basic loss per share is calculated using the weighted average number of common shares outstanding during the period. Diluted loss per share reflects the potential dilution that could occur if securities or contracts that may require the issuance of common shares in the future were converted, unless the impact is anti-dilutive. For the three months ended June 30, 2026 and 2025, this calculation proved to be anti-dilutive, and therefore the Company’s ( June 30, 2025 – ) stock options and ( June 30, 2025 –
OCULUS INC. AND SUBSIDIARY
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE AND SIX MONTH PERIODS ENDED JUNE 30, 2026 AND 2025
(Stated in US Dollars)
(Unaudited)
Stock-based compensation
The Company follows the provisions of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Section 718 “Compensation - Stock Compensation”, which establishes accounting for equity-based compensation awards to be accounted for using the fair value method. Equity-settled share-based payment arrangements are initially measured at fair value at the date of grant and recorded within shareholders’ equity. Arrangements considered to be cash-settled are initially recorded at fair value and classified as accrued expenses, and subsequently re-measured at fair value at each reporting date. The Company’s stock option plan is an equity-settled arrangement.
The fair value at grant date of all share-based payments is recognized as compensation expense over the period for which benefits of services are expected to be derived, with a corresponding credit to shareholders’ equity or accrued expenses depending on whether they are equity-settled or cash-settled. The Company estimates the fair value of stock options granted using the Black-Scholes option pricing model and estimates the expected forfeiture rate at the date of grant.
Functional currency
The Company’s consolidated financial statements are presented in U.S. dollars, which is the Company’s reporting currency. The functional currency of Oculus is the Canadian (“CAD” or “C”) dollar and the functional currency of CTI is the U.S. dollar.
In accordance with ASC 830, Foreign Currency Matters, for companies that have a functional currency other than the US dollar, the Company translates the assets and liabilities into U.S. dollars using the rate of exchange prevailing at the balance sheet date and the statements of operations and comprehensive loss and cash flows are translated at an average rate during the reporting period. Adjustments resulting from the translation from CAD into U.S. dollars are recorded in shareholders' equity as part of accumulated other comprehensive (income) loss.
Foreign currency transactions are translated into the functional currency of the respective currency of the entity or division, using the exchange rates prevailing at the dates of the transactions (spot exchange rate). Foreign exchange gains and losses resulting from the settlement of such transactions and from the re-measurement of monetary items denominated in foreign currency at period-end exchange rates are recognized in profit or loss. Non-monetary items that are not re-translated at period end are measured at historical cost (translated using the exchange rates at the transaction date), except for non-monetary items measured at fair value, which are translated using the exchange rates as at the date when fair value was determined. Gains and losses are recorded in the statement of operations and comprehensive loss.
Recently adopted accounting pronouncements
In November 2024, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2024-03, “Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses.” This standard requires disclosure of additional information about specific expense categories in the notes to financial statements on an annual and interim basis. This ASU becomes effective for annual periods beginning after December 15, 2026 and interim reporting periods within annual reporting periods beginning after December 15, 2027. We are currently assessing the impact of this ASU.
| 4. | PREPAID EXPENSES AND OTHER CURRENT ASSETS |
Prepaid expenses and other current assets consist of the following:
| June 30, | December 31, | |||||||
| 2026 | 2025 | |||||||
| Prepaid expenses | $ | $ | ||||||
| Tax Receivable – Canadian GST | ||||||||
| $ | $ | |||||||
OCULUS INC. AND SUBSIDIARY
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE AND SIX MONTH PERIODS ENDED JUNE 30, 2026 AND 2025
(Stated in US Dollars)
(Unaudited)
| 5. | ACCOUNTS PAYABLE AND ACCRUED LIABILITIES |
Accounts payable and accrued liabilities consist of the following:
| June 30, 2026 | December 31, 2025 | |||||||
| Accounts payable | $ | $ | ||||||
| Accrued fees and liabilities | ||||||||
| $ | $ | |||||||
| 6. | COMMON STOCK |
The Company has
The Company has authorized the issuance of
As at June 30, 2026, there were common shares held in escrow.
| 7. | OMNIBUS EQUITY INCENTIVE COMPENSATION PLAN |
As of June 30, 2026, the Company’s Omnibus Equity Incentive Plan approved by the Board on August 12, 2025 (the “Omnibus Plan”), which was most recently approved by Stockholders at the Company’s annual stockholder meeting held on October 15, 2025.
Under the Omnibus Plan, the maximum number of Shares issuable at any time pursuant to outstanding awards will be equal to: (a)
The maximum number of common shares for which awards may be issued to any one participant in any
Further, unless disinterested shareholder approval as required by the policies of the Exchange is obtained: (i) the maximum number of Common Shares for which Awards may be issued to insiders of the Company (as a group) at any point in time shall not exceed
OCULUS INC. AND SUBSIDIARY
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE AND SIX MONTH PERIODS ENDED JUNE 30, 2026 AND 2025
(Stated in US Dollars)
(Unaudited)
During the six months ended June 30, 2026, the Company did grant any stock options and recorded (2025 - ) of share-based compensation for vested portion that were previously granted.
The changes in options are as follows:
| Number of options | Weighted average exercise price | Aggregate Intrinsic Value | ||||||||||
| Options outstanding, December 31, 2024 | $ | $ | ||||||||||
| Expired | ( | ) | - | |||||||||
| Options outstanding, December 31, 2025 and June 30, 2026 | $ | $ | ||||||||||
| 8. | WARRANTS |
The changes in warrants are as follows:
| Number of warrants | Weighted average exercise price | |||||||
| Warrants outstanding, December 31, 2024 | $ | |||||||
| Expired | ( | ) | ||||||
| Warrants outstanding, December 31, 2025 and June 30, 2026 | $ | |||||||
| 9. | SELLING, GENERAL AND ADMINISTRATIVE |
The breakdown of selling, general and administrative expense for the three and six month periods ended June 30, 2026 and 2025 are as follows:
| Three months ended June 30, | Six months ended June 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Filing and regulatory fees | $ | $ | $ | $ | ||||||||||||
| Professional fees | $ | $ | $ | $ | ||||||||||||
| Rent | $ | $ | $ | $ | ||||||||||||
| Office and administration | $ | $ | $ | $ | ||||||||||||
| $ | $ | $ | $ | |||||||||||||
| 10. | RESEARCH AND DEVELOPMENT |
The breakdown of research and development expense for the three and six month periods ended June 30, 2026 and 2025 are as follows:
| Three months ended June 30, | Six months ended June 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Software development | $ | $ | $ | $ | ||||||||||||
| $ | $ | $ | $ | |||||||||||||
OCULUS INC. AND SUBSIDIARY
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE AND SIX MONTH PERIODS ENDED JUNE 30, 2026 AND 2025
(Stated in US Dollars)
(Unaudited)
| 11. | RELATED PARTIES |
Related parties include Directors, officers, close family members and enterprises that are controlled by these individuals as well as certain persons performing similar functions.
The Company defines its key management as Directors, Chief Executive Officer, President, and Chief Financial Officer. Remuneration of directors and key management personnel of the Company for the six months ended June 30, 2026 and 2025 were as follows:
| 2026 | 2025 | |||||||
| Consulting | $ | $ | ||||||
| Selling, general and administrative | ||||||||
| $ | $ | |||||||
The Company for the six months ended June 30, 2026 and 2025 reimbursed a related party $
| 12. | FINANCIAL INSTRUMENTS AND RISKS |
Financial instruments measured at fair value are classified into one of three levels in the fair value hierarchy according to the relative reliability of the inputs used to estimate the fair values. The three levels of the fair value hierarchy are described below.
Level 1 – quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2 – inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and
Level 3 – inputs for the asset or liability that are not based on observable market data (unobservable inputs).
Fair value of financial instruments
The Company has various financial instruments including cash, accounts payable and accrued liabilities, and accounts payable and accrued liabilities – related parties. The carrying values of accounts payable and accrued liabilities and accounts payable and accrued liabilities – related parties approximate their fair values due to the short-term nature of these financial instruments.
The Company’s risk exposures and the impact on the Company’s financial instruments are summarized below:
Credit risk
The Company is exposed to credit risk only with respect to uncertainties as to timing and amount of collectability of receivables. The Company believes its credit risk is low because receivables is comprised of goods and services tax (GST) which is recoverable from the governing body in Canada. Management does not believe the receivables are impaired. The Company doesn’t believe there is significant credit risk associated with cash as these amounts are held with major Canadian banks.
OCULUS INC. AND SUBSIDIARY
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE AND SIX MONTH PERIODS ENDED JUNE 30, 2026 AND 2025
(Stated in US Dollars)
(Unaudited)
Liquidity risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company’s approach to managing liquidity risk is to ensure that it will have sufficient liquidity to meet liabilities when due. As at June 30, 2026, the Company had a cash balance of $
Interest rate risk
Interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The risk that the Company will realize such a loss is limited as it does not have any significant interest-bearing financial instruments.
Foreign currency risk
As at June 30, 2026 and December 31, 2025, the Company is exposed to foreign currency risk as certain monetary financial instruments are denominated in Canadian currency. The Company’s sensitivity analysis suggests that reasonably expected changes in the rates of exchange in the United States would change foreign exchange gain or loss by an insignificant amount.
| 13. | OPERATING LEASES |
The Company has one operating lease with unrelated third parties for office space at Vancouver, Canada.
The lease at the Vancouver, Canada location is on a month-to-month basis with monthly rental payments of $
| 14. | SEGMENTED INFORMATION |
The Company currently operates in a single reportable operating segment. All of the Company’s assets and expenditures are located in Canada and the United States.
| Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
FORWARD-LOOKING STATEMENTS AND SUPPLEMENTARY DATA
The following discussion should be read in conjunction with our condensed interim financial statements and other financial information appearing elsewhere in this quarterly report. In addition to historical information, the following discussion and other parts of this quarterly report contain forward-looking statements under applicable securities laws. You can identify these statements by forward-looking words such as “plan”, “may”, “will”, “expect”, “intend”, “anticipate”, believe”, “estimate” and “continue” or similar words. Forward-looking statements are statements that are not historical facts, and include, but are not limited to, statements regarding our products and services, including our digital watermarking technology and Cloud-based document protection system, our data privacy and data protection services and solutions, our technology, our cash needs, including our ability to fund our future capital expenditures and working capital requirements, and our expectations regarding competition and growth in our sector, are forward looking statements, the future sources and availability of additional funding, and the effect of funding arrangements on projects and products. You should read statements that contain these words carefully because they discuss future expectations and plans, which contain projections of future results of operations or financial condition or state other forward-looking information. We believe that it is important to communicate future expectations to investors. However, there may be events in the future that we are not able to accurately predict or control. Accordingly, we do not undertake any obligation to update any forward-looking statements for any reason, even if new information becomes available or other events occur in the future, except as required by law.
The forward-looking statements included herein are based on current expectations that involve a number of risks and uncertainties set forth under “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 and other periodic reports filed with the United States Securities and Exchange Commission (“SEC”). Accordingly, to the extent that this quarterly report contains forward-looking statements regarding the financial condition, operating results, business prospects or any other aspect of the Company, please be advised that the Company’s actual financial condition, operating results and business performance may differ materially from that projected or estimated by the Company in forward-looking statements.
OVERVIEW OF THE COMPANY
Oculus Inc. (OVTZ) is a Canadian-based development-stage technology company focused on cybersecurity, data privacy, and data protection solutions for enterprise customers. Headquartered in Vancouver, British Columbia, Canada, the Company was originally founded by image processing experts and is operated by experienced leadership. OVTZ is currently expanding and investing in a suite of data protection and data privacy software products designed to address regulatory compliance requirements, including those associated with CCPA, GDPR, LGPD, and other data privacy frameworks. The Company is also evaluating and may incorporate artificial intelligence (“AI”) technologies to complement and enhance certain aspects of its solutions, subject to technical, regulatory, and operational considerations.
The Company’s objective is to develop software tools intended to support automated solutions for cloud-based customer environments and use cases related to data privacy and data protection for individuals, organizations, and their customers worldwide. These efforts are guided by a focus on data compliance, system interoperability, and evolving customer requirements.
Our Forget-Me-Yes® data privacy product is a Software-as-a-Service (SaaS) platform developed to address ‘Right-to-be-Forgotten’ (RtbF) and Right-of-Erase (RoE) regulatory requirements under frameworks such as Brazil’s LGPD, Europe’s GDPR, the California Consumer Privacy Act (CCPA), the Colorado Privacy Act (CPA), and the Virginia Consumer Data Protection Act (CDPA). An additional data protection software tool, ComplyScan®, is being developed to address public cloud data governance and compliance requirements. Our legacy Cloud Document Protection System (Cloud-DPS) technology leverages digital watermarking capabilities to support document authentication and protection within a SaaS-based platform. Historically, the Company has applied its digital watermarking technology in streaming video content distribution, video-on-demand (VOD) systems, and digital media delivery solutions enabling transmission of live or recorded content across internet, intranet, satellite, and wireless networks. The Company may evaluate the use of AI to complement certain functionalities within these offerings; however, such use is subject to evolving regulatory frameworks, performance considerations, and associated risks.
We were incorporated on April 18, 1986, as “First Commercial Financial Group Inc.” in the Province of Alberta, Canada. In 1989, our name was changed to “Micron Metals Canada Corp.”, which purchased 100% of the outstanding shares of USA Video Inc., a Texas corporation, to focus on the digital media business. In 1995, we changed our name to “USA Video Interactive Corp.” and continued from the Province of Alberta into the State of Wyoming. At a shareholders meeting held on December 30, 2011, a resolution was passed to change our name to “Oculus VisionTech Inc.” and to effect a reverse stock split (share consolidation) on the basis of fifteen old common shares for one new common share. On January 25, 2012, we changed our name to “Oculus VisionTech Inc.”, which subsequently was changed to “Oculus Inc.” on January 16, 2025. In June 2020, OVTZ acquired OCL Technologies Inc. (OCL), a Delaware-based data privacy software development company located in San Diego, California. As a wholly-owned subsidiary of OVTZ, OCL changed its corporate name to ComplyTrust® Inc. (CTI) on January 21, 2021. On May 28, 2026, CRI changed its name to Atrivex Inc. Artivex Inc. will continue to carry on business as ComplyTrust® and use the ComplyTrust® brand. ComplyTrust®, Forget-Me-Yes®, and ComplyScan® are registered trademark of Artivex Inc. References to OCL and Artivex Inc. in this document refer to CTI.
Our executive and corporate headquarter offices are located at Suite 507, 837 West Hastings Street, Vancouver, British Columbia, Canada, V6C 3N6. Our telephone number is 1-800-684-0183 and our facsimile number is 604-685-5777. Our email address is [email protected] and our website is www.ovtz.com. Our common shares are listed for trading on the TSX Venture Exchange (TSX.V – OVT, OTCQB – OVTZ, FSE – USF1).
BUSINESS OBJECTIVES:
In this age of digital transformation, data monetization, IoT, artificial intelligence (“AI”), and increasing volumes of data migration to hyperscale, geographically distributed cloud infrastructure and workloads, data protection and data privacy have become increasingly important. GDPR, LGPD, CCPA, and other international and emerging U.S. data privacy regulations provide individuals and organizations with rights related to access, correction, and deletion of personal information. In addition, evolving regulatory frameworks governing AI, data usage, and cross-border data transfers may affect how organizations collect, process, and secure data.
In an increasingly Everything-as-a-Service environment, OVTZ seeks to develop cloud-native data privacy and data protection solutions designed to operate across multi-cloud platforms and to integrate with both legacy and modern application architectures. The Company also operates in an environment characterized by an evolving cybersecurity threat landscape, including increasing use of AI-enabled tools by both enterprises and threat actors, and a growing frequency and sophistication of cyberattacks and data breaches. OVTZ is developing modular, microservices-based software solutions for hybrid on-premise and multi-cloud data management that are intended to incorporate capabilities such as malware, privacy, and ransomware scanning, reporting, visualization, and cyber threat management, which may include AI-assisted analytics.
Geopolitical tensions, regional conflicts, and macroeconomic uncertainty may affect global cloud infrastructure availability, supply chains, customer demand, and regulatory conditions in the markets in which the Company operates. In addition, tariffs, trade restrictions, export controls, and other protectionist measures may increase costs, restrict access to certain markets or technologies, or otherwise adversely affect the Company’s ability to develop, deploy, or commercialize its products and services.
Our Forget-Me-Yes® (FMY) Software-as-a-Service (SaaS) data privacy solution is designed as a Zero-Knowledge platform intended to provide a centralized capability to support ongoing ‘right-to-be-forgotten’ (RtbF) and ‘right-of-erase’ (RoE) privacy compliance through automated, policy-driven re-query services. While FMY is designed to support the persistence of such requests over the life of a subscription, its effectiveness is subject to technical limitations, integration dependencies, and regulatory interpretation. FMY incorporates encryption technologies intended to help protect user interfaces, data-in-transit, and data-at-rest, although no system can be guaranteed to be completely secure. FMY may incorporate AI-enabled capabilities to enhance automation, detection, and compliance monitoring; however, such capabilities are subject to evolving regulatory requirements, potential performance limitations, and operational or reputational risks. With a cloud-native architecture, FMY may be deployed as a SaaS platform or licensed for integration with third-party applications and data privacy platforms.
Our ComplyTrust® Software-as-a-Service Suite (CTSS) is a set of software tools designed to address cloud-native data management and regulatory compliance. CTSS is intended to assist organizations in managing data governance and facilitating cloud migration and deployment. CTSS is designed to automate and visualize cloud compliance reporting across accounts, regions, and services based on user-defined and data-driven metrics, and may incorporate AI-driven analytics to enhance insights. The effectiveness of these capabilities may depend on factors including data quality, system integration, regulatory requirements, and user adoption.
OVTZ has identified cloud-based digital document security and protection products as a potential business opportunity that leverages its proprietary real-time digital video watermarking technology, originally developed for the entertainment industry, for application in the digital document protection market. Cloud-DPS is designed to help secure digital documents (including text documents, images, and technical files) by embedding watermarking technologies intended to support authentication and detection of modification or forgery. The effectiveness of these technologies may be affected by technological developments, competitive offerings, and evolving user requirements, including those incorporating AI-based alternatives.
Our near-term business objectives for the above:
| 1. |
To seek to copyright, patent, and license technology developed through the Company’s research and development program, including technologies that may incorporate artificial intelligence and machine learning, subject to intellectual property, regulatory, and commercial considerations |
| 2. |
To pursue proof-of-concept implementations with selected commercial projects for the Forget-Me-Yes® (FMY) platform, expand integration capabilities with Database-as-a-Service (DBaaS) providers supporting structured and unstructured data, and explore licensing of FMY API microservices for integration with third-party application partners, software providers, and potential OEMs, subject to market conditions, regulatory developments, and potential geopolitical or trade-related constraints; |
| 3. |
To pursue proof-of-concept deployment of the ComplyTrust® SaaS Suite (CTSS), initially as a tool within Amazon Web Services (AWS), to assist customers in managing data protection and compliance in a cloud-native environment, and, as adoption develops, to expand functionality and integrations with third-party providers, subject to risks relating to AI adoption, regulatory developments, and global market conditions; |
| 4. |
To seek industry recognition for the Company’s FMY data privacy platform, ComplyScan® (CS) compliance validation tool, and legacy C-DPS authentication and tamper-resistance technologies, and to pursue the development of recurring revenue streams, which may be affected by competitive dynamics, technological change, geopolitical developments, and trade policies. |
CRITICAL ACCOUNTING POLICIES (AND ESTIMATES)
In preparing its consolidated financials statement, the Company follows GAAP, which is described in Note 3, Summary of Significant Accounting Policies, to the Company’s December 31, 2025 Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K. The application of these principles requires significant judgements or an estimation process that can affect the results of operations, financial position and cash flows of the Company, as well as the related footnote disclosures. The Company continually reviews its accounting policies and financials information disclosures. Except as noted in Note 3, Summary of Significant Accounting Policies, of the Company’s financials statements, there have been no material changes in the Company’s critical accounting policies or estimates since December 31, 2025.
RESULTS OF OPERATIONS
Sales
Sales for the six-month periods ended June 30, 2026 and 2025 were $Nil and $Nil, respectively.
Cost of Sales
The cost of sales for the six-month periods ended June 30, 2026 and 2025 were $Nil and $Nil, respectively.
Selling, General and Administrative Expenses
Selling, general and administrative expenses, consisting of product marketing liabilities, consulting fees, office, professional fees and other expenses to execute our business plan and for our day-to-day operations, changed in the period ended June 30, 2026. We continue to develop and market C-DPS – Cloud Document Protection System and the “Right-to-be-Forgotten” and “Right-to-Erase” platform. Administrative expenses have increased/decreased moderately as a result of insignificant fluctuations in general costs.
We have arranged for additional staff and consultants to engage in marketing activities in an effort to identify and assess appropriate market segments, develop business arrangements with prospective partners, create awareness of new products and services, and communicate to the industry and potential customers. Other components of selling, general and administrative expenses did not change significantly.
Six-month period ended June 30, 2026
Selling, general and administrative expenses for the six months ended June 30, 2026 decreased to $94,097 from $124,252 for the comparable period. The decrease in costs is due to lower activities during the current period.
Three-month period ended June 30, 2026
Selling, general and administrative expenses for the three months ended June 30, 2026 increased to $47,284, compared to $36,615 for the comparable period.
Net Losses
Six-month period ended June 30, 2026
To date, we have not achieved profitability and expect to incur substantial losses for the foreseeable future. Our net loss for the six months ended June 30, 2026 was $124,633 compared with a net loss of $154,628 for the comparative period.
Three-month period ended June 30, 2026
To date, we have not achieved profitability and expect to incur substantial losses for the foreseeable future. Our net loss for the three months ended June 30, 2026 was $62,556 compared with a net loss of $51,718 for the comparative period.
Liquidity and Capital Resources
At June 30, 2026 our cash position was $4,989, compared to $9,409 at December 31, 2025. We had a working capital deficiency of $849,949 and an accumulated deficit of $49,157,778 at June 30, 2026.
We have historically satisfied our capital needs primarily by shareholders’ loans and issuing equity securities to our officers, directors, employees and a small group of investors, and from short-term bridge loans from members of management.
As of June 30, 2026, we had $4,989 in cash. Management has forecasted the Company will not have sufficient working capital to operate for the ensuing 12 months. We will require an additional $3 million to $5 million to finance operations for fiscal 2026 and we intend to obtain such financing through sales of our equity securities. While the Company has been successful in the past in obtaining financing, there can be no assurance that the Company will be able to obtain adequate financing, or that such financing will be on terms acceptable to the Company, to meet future operational needs which may result in the delay, reduction, or discontinuation of ongoing development programs.
Assuming the aforementioned $3 million to $5 million in financing is obtained, continuing operations for the longer-term will be supported through anticipated growth in revenues and through additional sales of our securities. Although longer-term financing requirements may vary depending upon our sales performance, management expects that we will require additional financing of $3 million to $5 million for fiscal 2026. We have no binding commitments or arrangements for additional financing, and there is no assurance that management will be able to obtain any additional financing on terms acceptable to us, if at all.
OFF-BALANCE SHEET ARRANGEMENTS
As of June 30, 2026, we have no off-balance sheet arrangements.
Item 3. Quantitative and Qualitative Disclosures About Market Risk.
Oculus is a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and is not required to provide information required under this Item.
Item 4. Controls and Procedures.
We maintain “disclosure controls and procedures”, as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act, that are designed to ensure that information required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in SEC rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer, who is our principal executive officer, and Chief Financial Officer, who is our principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. In designing and evaluating our disclosure controls and procedures, management recognized that disclosure controls and procedures, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the disclosure controls and procedures are met. Additionally, in designing disclosure controls and procedures, our management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible disclosure controls and procedures.
As of June 30, 2026, we carried out an evaluation, under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures. Based on this evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of the end of the period covered by this report, our disclosure controls and procedures were effective in ensuring that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms and that such information is accumulated and communicated to our management, including our principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.
Changes in Internal Control over Financial Reporting
There were no changes in our internal control over financial reporting for the quarterly period ended June 30, 2026, identified in connection with the evaluation required by paragraph (d) of Rule 13a-15 or Rule 15d-15, that materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
| Legal Proceedings. |
From time to time, we may become involved in various lawsuits and legal proceedings, which arise in the ordinary course of business. However, litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm our business. We are currently not aware of any such legal proceedings or claims that we believe will have, individually or in the aggregate, a material adverse effect on our business, financial condition or operating results.
| Risk Factors. |
Oculus is a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and is not required to provide information required under this Item. A description of the risks associated with our business, financial condition, and results of operations is set forth in Part I, Item 1A, of our Annual Report on Form 10 -K for the fiscal year ended December 31, 2025 filed with the SEC on March 20, 2026. Those factors continue to be meaningful for your evaluation of Oculus and we urge you to review and consider the risk factors presented in such Form 10-K.
| Unregistered Sales of Equity Securities and Use of Proceeds. |
None.
| Defaults Upon Senior Securities. |
None.
| Mine Safety Disclosures. |
Not applicable.
| Other Information. |
| Exhibits. |
The information required by this Item is set forth on the exhibit index which follows the signature page of this report.
| Exhibit No. |
Description |
|
| EX-31.1 |
||
| EX-31.2 |
||
| EX-32.1 |
||
| EX-32.2 |
| 101.INS |
Inline XBRL Instance Document |
| 101.SCH |
Inline XBRL Taxonomy Extension Schema Document |
| 101.CAL |
Inline XBRL Taxonomy Extension Calculation Linkbase Document |
| 101.DEF |
Inline XBRL Taxonomy Extension Definition Linkbase Document |
| 101.LAB |
Inline XBRL Taxonomy Extension Label Linkbase Document |
| 101.PRE |
Inline XBRL Taxonomy Extension Presentation Linkbase Document |
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL and containing in Exhibit 101) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| OCULUS INC. |
|||
| August 6, 2026 |
By: |
/s/ Rowland Perkins |
|
| Rowland Perkins |
|||
| President and Chief Executive Officer |
|||
| (principal executive officer) |
|||
| August 6, 2026 |
By: |
/s/ Anton J. Drescher |
|
| Anton J. Drescher |
|||
| Chief Financial Officer |
|||
| (principal financial and accounting officer) |
|||