Exhibit 99.2

Financial Statements of

SILICON VALLEY MANUFACTURING INC.

For the years ended December 31, 2024 and December 31, 2023

Independent Auditor’s Report

To Member or Shareholder of SVM Machining Inc.

Opinion

We have audited the accompanying financial statements of SVM Machining Inc., which comprise the statement of financial position as of December 31, 2024 and 2023, and the related statement of operations and member’s equity and cash flows for the years then ended, and the related notes to the financial statements.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of SVM Machining Inc. as of December 31, 2024 and 2023, and the results of its operations and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinion

We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of SVM Machining Inc. and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Responsibilities of Management for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about SVM Machining Inc to continue as a going concern within one year after the date that the financial statements are available to be issued.

12 Greenway Plaza Suite 1100 | Houston, Texas 77046

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with generally accepted auditing standards, we:

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audits.

HTL CPAs & Business Advisors LLC

Houston, TX

February 1, 2026

SILICON VALLEY MANUFACTURING INC.

Statements of financial position

As of December 31, 2024 and 2023 

SILICON VALLEY MANUFACTURING INC.

Statements of financial position

As of December 31, 2024 and 2023 

SILICON VALLEY MANUFACTURING INC.

Statements of changes in equity

Years ended December 31, 2024 and 2023

SILICON VALLEY MANUFACTURING INC.

Statements of operations

Years ended December 31, 2024 and 2023

SILICON VALLEY MANUFACTURING INC.

Notes to the financial statements

Notes to the financial statements

For the Years ended December 31, 2024 and 2023

NOTE 1: Nature of Operations

Silicon Valley Manufacturing Inc. (the “Company”) is a California S-Corporation, formed on December 18, 2000, and incorporated in the State of California. The Company operates as a precision CNC machining and manufacturing job shop, providing custom machining, prototyping, and short-run and repeat production of components to customers primarily in the aerospace, technology, and pharmaceutical industries.

The Company’s principal place of business is located at 6520 Central Avenue, Newark, California 94560. The Company is registered with local authorities and operates under the business name Silicon Valley Mfg & Machining.

The Company derives substantially all of its revenue from machining services performed in accordance with customer purchase orders. The Company’s operations utilize specialized manufacturing equipment, including CNC machinery and related tooling, as well as inspection and quality control equipment.

NOTE 2: Summary of Significant Accounting Policies

Basis of Presentation

The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”).

Going Concern

Management has evaluated the Company’s ability to continue as a going concern in accordance with ASC 205-40. Management believes the Company will continue as a going concern for a period of at least one year after the date the financial statements are available to be issued.

Use of Estimates

The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, costs and expenses and related disclosures in the accompanying notes. The estimates used for, but not limited to, the collectability of accounts receivable, inventory valuation, and fair value of long-lived assets. We have assessed the impact and are not aware of any specific events or circumstances that required an update to our estimates and assumptions or materially affected the carrying value of our assets or liabilities as of the date of issuance of this Annual Report. These estimates may change as new events occur and additional information is obtained. Actual results could differ materially from these estimates under different assumptions or conditions.

Concentration of Credit Risk

Cash and accounts receivable are the only financial instruments that are potentially subject to credit risk. The Company places its cash in credit-worthy financial institutions. Accounts receivable credit risk relate to timing differences between receiving proceeds and sales transactions. As of report date majority of the receivables have been collected.

SILICON VALLEY MANUFACTURING INC.

Notes to the financial statements

Risks and Uncertainties

The Company is subject to risks from, among other things, competition associated with the industry in general, regulatory environment, risks associated with financing, and rapidly changing customer requirements.

Cash

For purposes of the statements of cash flows, the Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. Cash is carried at cost, which approximates fair value.

Accounts Receivable

Accounts receivable are stated at the amount management expects to collect less allowance of credit losses. Accounts receivable are generally unsecured and arise from sales to customers in the ordinary course of business. The Company does not charge interest on past due accounts.

Allowance for Credit Losses

The Company records an allowance for credit losses in accordance with ASC 326, Financial Instruments Credit Losses. The allowance is based on management’s estimate of expected credit losses, considering historical experience, current conditions, and reasonable and supportable forecasts. Accounts are written off against the allowance when they are determined to be uncollectible. Subsequent recoveries, if any, are credited to the allowance.

Inventory

Inventory consists of raw materials, work-in-process, and finished goods and is stated at the lower of cost or net realizable value. Cost is determined using the average cost method. Work-in-process and finished goods include direct materials, direct labor, and applicable manufacturing overhead. The Company periodically reviews inventory for excess and obsolete items and records a reserve when necessary.

Property and Equipment

Property and equipment are stated at cost, less depreciation. Expenditure for repairs and maintenance are expensed as incurred. Additions and improvements that increase the useful life or productive capacity of an asset are capitalized. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets. Estimated useful lives are generally as follows:

When assets are sold or retired, the related cost and accumulated depreciation are removed from the accounts, and any resulting gain or loss is recognized in operations.

SILICON VALLEY MANUFACTURING INC.

Notes to the financial statements

Revenue Recognition

The Company recognizes revenue in accordance with ASC 606, Revenue from Contracts with Customers. The Company’s revenue is derived primarily from CNC machining and manufacturing services performed in accordance with customer purchase orders. The Company acts as the principal in these arrangements, as it controls the manufacturing process and the finished goods prior to transfer to the customer and is primarily responsible for fulfilling the promise to provide the specified goods or services.

Revenue is recognized at the point in time when control of the finished goods transfers to the customer, which generally occurs upon shipment or delivery in accordance with the applicable shipping terms and customer acceptance provisions.

The Company’s contracts generally include a single performance obligation to manufacture and deliver products and/or provide machining services. The transaction price is typically fixed based on agreed pricing in customer purchase orders. The Company may receive deposits or progress payments for certain orders; such amounts are recorded as contract liabilities until the related performance obligation is satisfied.

Cost of Good Sold

Cost of good sold includes direct materials, direct labor, subcontracted services, and applicable manufacturing overhead, including depreciation of manufacturing equipment and facility-related costs allocated to production.

Shipping and Handling

Shipping and handling costs billed to customers are included in revenue. Shipping and handling costs incurred by the Company are included in cost of revenue.

Income Taxes

The Company has elected to be treated as an S-Corporation for federal and state income tax purposes. Accordingly, the Company generally does not record a provision for federal income taxes, as taxable income or loss is passed through to the shareholders. The Company is subject to certain state-level taxes, including California franchise taxes, which are recognized as incurred.

The Company accounts for uncertainty in income taxes in accordance with ASC 740, Income Taxes, which prescribes a recognition threshold and measurement attribute for the financial statement recognition of uncertain tax positions. Management believes there are no uncertain tax positions that would require recognition or disclosure in the financial statements.

Recently Issued Accounting Standards

The Company assesses the adoption impacts of recently issued, but not yet effective, accounting standards by the Financial Accounting Standards Board on the Company’s financial statements.

There are no recently issued accounting standards which may have effect on the Company’s financial statements.

SILICON VALLEY MANUFACTURING INC.

Notes to the financial statements

NOTE 3: Revenue and Contract Balances

Revenue Stream

The Company generates revenue from a single operating segment and a single revenue stream, consisting of the manufacture and sale of precision machined parts and related machining services performed in accordance with customer purchase orders and approved quotations.

Contracts with Customers

Customer purchase orders generally represent a contract when issued by the customer and accepted by the Company. The Company’s contracts typically require the manufacture and delivery of machined parts that meet customer drawings, specifications, and quality requirements. Activities such as setup, tooling, programming, inspection, certification, and shipping and handling are integral to the delivery of finished products and are not separately priced.

The transaction price is generally fixed based on per-part or per-job pricing specified in customer purchase orders and approved quotations. The Company typically invoices customers upon delivery or customer pickup, at which time payment becomes unconditional.

The Company’s contracts do not generally include variable consideration such as rebates, retrospective price adjustments, or volume-based incentives. Payment terms are typically one year or less, and the Company applies the practical expedient related to significant financing components.

Contract Balances

Contract balances consist of accounts receivable, contract assets, and contract liabilities. Accounts receivable represent amounts billed to customers for which the Company has an unconditional right to consideration.

The Company invoices customers upon delivery or customer pickup and therefore does not generate contract assets. The Company does not receive customer deposits or advance payments in the ordinary course of business and therefore does not generate contract liabilities. Accordingly, the Company had no contract assets or contract liabilities as of December 31, 2024 or December 31, 2023.

Practical Expedients

The Company’s performance obligations are generally satisfied within a short period of time. Accordingly, the Company applies the practical expedient under ASC 606 and does not disclose the value of unsatisfied performance obligations, if any, as the original expected duration of its contracts is one year or less.

SILICON VALLEY MANUFACTURING INC.

Notes to the financial statements

NOTE 4: Accounts Receivable and Allowance for Credit Losses

Accounts Receivable

Accounts receivable represents amounts due from customers for machining services and manufactured components delivered in the ordinary course of business. Accounts receivable are generally unsecured and are recorded at net realizable value.

Accounts receivable consisted of the following at December 31:

Allowance for Credit Losses

The Company records an allowance for credit losses in accordance with ASC 326, Financial Instruments - Credit Losses. The allowance is based on management’s estimate of expected credit losses, considering historical experience, current conditions, and reasonable and supportable forecasts. The Company develops its estimate of expected credit losses using information about historical loss experience, current conditions, and reasonable and supportable forecasts.

Accounts are written off against the allowance when they are determined to be uncollectible. Subsequent recoveries, if any, are credited to the allowance. The allowance for credit losses was $564 and $292 as of December 31, 2024 and 2023, respectively.

NOTE 5: Inventory

Inventory is stated at the lower of cost or net realizable value. Cost is determined using the average cost method.

Inventory consisted of the following at December 31:

Work-in-Process Valuation

Work-in-process inventory is recorded based on the stage of completion of jobs in process as of year end and includes applicable direct and indirect manufacturing costs.

NOTE 6: Property and Equipment

Property and equipment are stated at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets. Expenditures for repairs and maintenance are expensed as incurred. Additions and improvements that increase the useful life or productive capacity of an asset are capitalized. When property and equipment are sold or retired, the related cost and accumulated depreciation are removed from the accounts, and any resulting gain or loss is recognized in operations.

SILICON VALLEY MANUFACTURING INC.

Notes to the financial statements

Property and equipment consisted of the following at December 31, 2024:

Property and equipment consisted of the following at December 31, 2023:

During the years ended December 31, 2024 and 2023, we recorded depreciation expense of $238,775 and $219,807, respectively.

NOTE 7: Loans

The Company maintains various financing arrangements primarily related to the purchase of manufacturing machinery, equipment, and vehicles used in operations. These arrangements consist of term loans with commercial lenders and U.S. Small Business Administration (“SBA”) guaranteed loans. Substantially all such borrowings are secured by the related financed assets and, in certain cases, by substantially all business assets.

Loans outstanding balance consisted of the following as of December 31:

SILICON VALLEY MANUFACTURING INC.

Notes to the financial statements

Machinery, Equipment, and Vehicle Financing

The Company’s term loan consisted of multiple loans obtained to finance CNC machining centers, lathes, related manufacturing equipment, and vehicles used in operations. These loans include SBA 7(a) guaranteed facilities with Chase Bank and equipment financing arrangements with U.S. Bank and Mitsubishi HC.

The loans require monthly principal and interest payments and bare interest at fixed rates based on the prime rate plus an applicable margin. Vehicle loans were included within the above balances and were secured by the related vehicles. Interest expense related to these borrowings is included in finance costs in the accompanying statements of operations.

Interest Expense

Interest expense recognized on loans was approximately as follows:

Subsequent Repayment of Debt and Current Classification

As of December 31, 2024, the Company classified the entire outstanding term debt balance as current based on management’s expectation and intent to repay the borrowings within the subsequent twelve- month period. Subsequent to year end, the Company repaid all outstanding machinery and equipment loan balances in March 2025 and all vehicle loan balances in December 2025.

NOTE 8: Related Party Transactions

The Company’s owners also serve as members of management. Related parties include the Company’s owners, management, and entities controlled by such individuals. The Company may enter into transactions with related parties in the ordinary course of business, and management believes that all such transactions are conducted on terms consistent with those that would be obtained in arm’s-length transactions with unaffiliated third parties.

The Company leases its operating facility from an entity that is controlled by the Company’s owners and under month-to-month lease. Rent expense under this arrangement is based on market rates, as determined by management.

SILICON VALLEY MANUFACTURING INC.

Notes to the financial statements

During the years ended December 31, 2024 and 2023, the Company had the following related party balances:

The loan receivable represents amounts advanced by Mark (the Company’s owner) to the Company in the ordinary course of business. The loan is unsecured, non-interest bearing, and is included in the accompanying balance sheets.

For the years ended December 31, 2024 and 2023, the Company had the following related party transactions:

NOTE 9: Other Income and Expenses

Other income and expenses primarily includes (i) gains and losses on the disposal of machinery and equipment and (ii) amounts recognized from Employee Retention Credit (“ERC”) refunds. During the year ended December 31, 2023, the Company recognized a gain of $56,254 on the sale of machinery and equipment (proceeds less carrying value) and recognized $427,791 of ERC refunds related to payroll tax credits claimed for prior periods. These amounts are included in other income and expenses in the accompanying statements of operations.

SILICON VALLEY MANUFACTURING INC.

Notes to the financial statements

NOTE 10: Equity

The Company is authorized to issue common shares with no par value. As of December 31, 2024 and 2023, there were no changes to the Company’s authorized share structure and no shares issued and outstanding.

Additional Paid-in Capital

Additional paid-in capital represents amounts contributed by the Company’s shareholders in excess of stated capital. Additional paid-in capital totaled $10,000 as of both December 31, 2024 and December 31, 2023.

Retained Earnings

Retained earnings represent the accumulated earnings and losses of the Company since inception, net of distributions to shareholders. As of December 31, 2024, retained earnings were $128,741, compared to $323,017 as of December 31, 2023. The decrease in retained earnings during the year ended December 31, 2024 was primarily attributable to a net loss of $194,276 for the year.

NOTE 11: Subsequent Events

The Company has evaluated subsequent events through February 1, 2026, which is the date the financial statements were available to be issued, as required by ASC 855, Subsequent Events.

Subsequent to year end, the Company initiated a process to pursue a potential sale of the Company (or substantially all of its assets). As of February, 1, 2026, no definitive agreement had been executed and the sale process remained ongoing. Accordingly, no amounts have been recognized in the accompanying financial statements related to this matter.

Additionally, subsequent to year end, the Company repaid all outstanding loan balances by December 2025. Accordingly, no amounts related to this repayment have been recognized in the accompanying financial statements.

Other than the matters described above, the Company did not identify any subsequent events that require recognition in the financial statements or disclosure in the notes.

Financial Statements of

SILICON VALLEY MANUFACTURING INC.

For the three and nine months ended September 30, 2025 and 2024 (Unaudited)

SILICON VALLEY MANUFACTURING INC.

Statements of financial position (unaudited)

SILICON VALLEY MANUFACTURING INC.

Statements of operations (unaudited)

SILICON VALLEY MANUFACTURING INC.

Statements of changes in equity (unaudited)

SILICON VALLEY MANUFACTURING INC.

Statements of cash flow (unaudited)

SILICON VALLEY MANUFACTURING INC.

Notes to the financial statements (unaudited)

Notes to the financial statements (unaudited)

As of September 30, 2025 and December 31, 2024, and for the three and nine months ended
September 30, 2025 and 2024 (Unaudited)

NOTE 1: Nature of Operations

Silicon Valley Manufacturing Inc. (the “Company”) is a California S-Corporation, formed on December 18, 2000, and incorporated in the State of California. The Company operates as a precision CNC machining and manufacturing job shop, providing custom machining, prototyping, and short-run and repeat production of components to customers primarily in the aerospace, technology, and pharmaceutical industries.

The Company’s principal place of business is located at 6520 Central Avenue, Newark, California 94560. The Company is registered with local authorities and operates under the business name Silicon Valley Mfg & Machining.

The Company derives substantially all of its revenue from machining services performed in accordance with customer purchase orders. The Company’s operations utilize specialized manufacturing equipment, including CNC machinery and related tooling, as well as inspection and quality control equipment.

NOTE 2: Summary of Significant Accounting Policies

Basis of Presentation

The accompanying unaudited interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) for interim financial information.

In management’s opinion, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of the Company’s financial position as of September 30, 2025, and its results of operations, and changes in equity for the three and nine months ended September 30, 2025 and 2024 and cash flows for the nine months ended September 30, 2025 and 2024, have been included. The results of operations for interim periods are not necessarily indicative of results to be expected for the full year.

Going Concern

Management has evaluated the Company’s ability to continue as a going concern in accordance with ASC 205-40. Management believes the Company will continue as a going concern for a period of at least one year after the date the financial statements are available to be issued.

Use of Estimates

The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, costs, and expenses and related disclosures. Significant estimates include, but are not limited to, the collectability of accounts receivable, inventory valuation, and the fair value of long-lived assets. Actual results could differ materially from those estimates Management has assessed the impact of current conditions and is not aware of any events or circumstances that would require material changes to its estimates or assumptions as of September 30, 2025. Actual results could differ from those estimates.

SILICON VALLEY MANUFACTURING INC.

Notes to the financial statements (unaudited)

Concentration of Credit Risk

Cash and accounts receivable are the only financial instruments that are potentially subject to credit risk. The Company places its cash in credit-worthy financial institutions. Accounts receivable credit risk relate to timing differences between receiving proceeds and sales transactions.. Subsequent to September 30, 2025, substantially all accounts receivable had been collected.

Risks and Uncertainties

The Company is subject to risks from, among other things, competition associated with the industry in general, regulatory environment, risks associated with financing, and rapidly changing customer requirements.

Cash

For purposes of the statements of cash flows, the Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. Cash is carried at cost, which approximates fair value.

Accounts Receivable

Accounts receivable are stated at the amount management expects to collect less allowance of recredit losses. Accounts receivable are generally unsecured and arise from sales to customers in the ordinary course of business. The Company does not charge interest on past due accounts.

Allowance for Credit Losses

The Company records an allowance for credit losses in accordance with ASC 326, Financial Instruments Credit Losses. The allowance is based on management’s estimate of expected credit losses, considering historical experience, current conditions, and reasonable and supportable forecasts. Accounts are written off against the allowance when they are determined to be uncollectible. Subsequent recoveries, if any, are credited to the allowance.

Inventory

Inventory consists of raw materials, work-in-process, and finished goods and is stated at the lower of cost or net realizable value. Cost is determined using the average cost method. Work-in-process and finished goods include direct materials, direct labor, and applicable manufacturing overhead. The Company periodically reviews inventory for excess and obsolete items and records a reserve when necessary.

Property and Equipment

Property and equipment are stated at cost, less depreciation. Expenditure for repairs and maintenance are expensed as incurred. Additions and improvements that increase the useful life or productive capacity of an asset are capitalized. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets. Estimated useful lives are generally as follows:

SILICON VALLEY MANUFACTURING INC.

Notes to the financial statements (unaudited)

When assets are sold or retired, the related cost and accumulated depreciation are removed from the accounts, and any resulting gain or loss is recognized in operations.

Revenue Recognition

The Company recognizes revenue in accordance with ASC 606, Revenue from Contracts with Customers. The Company’s revenue is derived primarily from CNC machining and manufacturing services performed in accordance with customer purchase orders. The Company acts as the principal in these arrangements, as it controls the manufacturing process and the finished goods prior to transfer to the customer and is primarily responsible for fulfilling the promise to provide the specified goods or services.

Revenue is recognized at the point in time when control of the finished goods transfers to the customer, which generally occurs upon shipment or delivery in accordance with the applicable shipping terms and customer acceptance provisions.

The Company’s contracts generally include a single performance obligation to manufacture and deliver products and/or provide machining services. The transaction price is typically fixed based on agreed pricing in customer purchase orders. The Company may receive deposits or progress payments for certain orders; such amounts are recorded as contract liabilities until the related performance obligation is satisfied.

Cost of Good Sold

Cost of good sold includes direct materials, direct labor, subcontracted services, and applicable manufacturing overhead, including depreciation of manufacturing equipment and facility-related costs allocated to production.

Shipping and Handling

Shipping and handling costs billed to customers are included in revenue. Shipping and handling costs incurred by the Company are included in cost of revenue.

Income Taxes

The Company has elected to be treated as an S-Corporation for federal and state income tax purposes. Accordingly, the Company generally does not record a provision for federal income taxes, as taxable income or loss is passed through to the shareholders. The Company is subject to certain state-level taxes, including California franchise taxes, which are recognized as incurred.

The Company accounts for uncertainty in income taxes in accordance with ASC 740, Income Taxes, which prescribes a recognition threshold and measurement attribute for the financial statement recognition of uncertain tax positions. Management believes there are no uncertain tax positions that would require recognition or disclosure in the financial statements.

SILICON VALLEY MANUFACTURING INC.

Notes to the financial statements (unaudited)

Recently Issued Accounting Standards

The Company assesses the adoption impacts of recently issued, but not yet effective, accounting standards by the Financial Accounting Standards Board on the Company’s financial statements.

There are no recently issued accounting standards which may have effect on the Company’s financial statements.

NOTE 3: Revenue and Contract Balances

The Company generates revenue from a single operating segment and a single revenue stream, consisting of the manufacture and sale of precision machined parts and related machining services performed in accordance with customer purchase orders and approved quotations.

The Company invoices customers upon delivery or pickup and therefore does not generate contract assets. The Company does not receive advance payments in the ordinary course of business and did not have contract assets or contract liabilities as of September 30, 2025 or December 31, 2024.

NOTE 4: Accounts Receivable and Allowance for Credit Losses

Accounts Receivable

Accounts receivable represents amounts due from customers for machining services and manufactured components delivered in the ordinary course of business. Accounts receivable are generally unsecured and are recorded at net realizable value.

Accounts receivable consisted of the following:

Allowance for Credit Losses

The Company records an allowance for credit losses in accordance with ASC 326, Financial Instruments - Credit Losses. The allowance is based on management’s estimate of expected credit losses, considering historical experience, current conditions, and reasonable and supportable forecasts. The Company develops its estimate of expected credit losses using information about historical loss experience, current conditions, and reasonable and supportable forecasts.

Accounts are written off against the allowance when they are determined to be uncollectible. Subsequent recoveries, if any, are credited to the allowance. The allowance for credit losses was $629 and $564 as of September 30, 2025 and December 31, 2024, respectively.

SILICON VALLEY MANUFACTURING INC.

Notes to the financial statements (unaudited)

NOTE 5: Inventory

Inventory is stated at the lower of cost or net realizable value. Cost is determined using the average cost method.

Inventory consisted of the following:

The Company periodically reviews inventory for excess and obsolete items and records a reserve when necessary based on management’s estimate of net realizable value.

Work-in-Process Valuation

Work-in-process inventory is recorded based on the stage of completion of jobs in process as of the reporting date and includes applicable direct and indirect manufacturing costs.

NOTE 6: Property and Equipment

Property and equipment are stated at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets. Expenditures for repairs and maintenance are expensed as incurred. Additions and improvements that increase the useful life or productive capacity of an asset are capitalized. When property and equipment are sold or retired, the related cost and accumulated depreciation are removed from the accounts, and any resulting gain or loss is recognized in operations.

Property and equipment consisted of the following at September 30, 2025:

SILICON VALLEY MANUFACTURING INC.

Notes to the financial statements (unaudited)

Property and equipment consisted of the following at December 31, 2024:

During the nine month period ended September 30, 2025 and September 30, 2024, we incurred depreciation amounts of $178,607 and $179,081, respectively. Of these amounts, depreciation expense recognized in the statements of operations was $20,705 for 2025 and $21,505 for 2024, with the remaining depreciation capitalized to overheads.

During the three month period ended September 30, 2025 and September 30, 2024, we incurred depreciation amounts of $59,694 and $59,536, respectively. Of these amounts, depreciation expense recognized in the statements of operations was $7,906 for 2025 and $7,853 for 2024, with the remaining depreciation capitalized to overheads.

NOTE 7: Loans

The Company maintains various financing arrangements primarily related to the purchase of manufacturing machinery, equipment, and vehicles used in operations. These arrangements consist of term loans with commercial lenders and U.S. Small Business Administration (“SBA”) guaranteed loans. Substantially all such borrowings are secured by the related financed assets and, in certain cases, by substantially all business assets.

Loans outstanding balance was as at:

Machinery, Equipment, and Vehicle Financing

Prior to repayment, the Company’s term debt consisted of multiple loans obtained to finance CNC machining centers, lathes, related manufacturing equipment, and vehicles used in operations. These arrangements included SBA 7(a)–guaranteed facilities with Chase Bank and equipment financing arrangements with U.S. Bank and Mitsubishi HC.

The loans required monthly principal and interest payments and bore interest at fixed or variable rates based on the prime rate plus an applicable margin. Vehicle loans were secured by the related vehicles. Interest expense related to these borrowings was included in interest expense in the accompanying statements of operations.

SILICON VALLEY MANUFACTURING INC.

Notes to the financial statements (unaudited)

Interest Expense

Interest expense recognized on loans was approximately as follows:

Repayment of Debt

During the nine months ended September 30, 2025, the Company repaid all outstanding machinery loan balances in March 2025. Subsequent to September 30, 2025, the Company repaid all outstanding vehicle loan balances in December 2025. As a result, the Company had no outstanding machinery loan balances subsequent to September 30, 2025.

NOTE 8: Related Party Transactions

The Company’s owners also serve as members of management. Related parties include the Company’s owners, management, and entities controlled by such individuals. The Company may enter into transactions with related parties in the ordinary course of business, and management believes that all such transactions are conducted on terms consistent with those that would be obtained in arm’s-length transactions with unaffiliated third parties.

The Company leases its operating facility from an entity that is controlled by the Company’s owners and under month-to-month lease. Rent expense under this arrangement is based on market rates, as determined by management.

Related-party loan balances consisted of the following:

The loan receivable represents amounts advanced by Mark (the Company’s owner) to SVM (the Company) in the ordinary course of business. The loan is unsecured, non-interest bearing, and is included in the accompanying balance sheets.

SILICON VALLEY MANUFACTURING INC.

Notes to the financial statements (unaudited)

For the nine months ended September 30, 2025 and 2024, the Company had the following related party transactions:

NOTE 9: Equity

The Company is authorized to issue common shares with no par value. As at September 30, 2025 and December 31, 2024, there were no changes to the Company’s authorized share structure and no shares issued and outstanding.

Additional Paid-in Capital

Additional paid-in capital represents amounts contributed by the Company’s shareholders in excess of stated capital. Additional paid-in capital totaled $10,000 as at both September 30, 2025 and December 31, 2024.

Retained Earnings

Retained earnings represent the accumulated earnings and losses of the Company since inception, net of distributions to shareholders. As of September 30, 2025, retained earnings were ($427,014), compared to $128,742 as of December 31, 2024. The change in retained earnings during the nine months ended September 30, 2025 was primarily attributable to the Company’s net results of operations for the period.

NOTE 10: Subsequent Events

The Company has evaluated subsequent events through February 1 2026, in accordance with ASC 855, Subsequent Events.

The Company continued to pursue a potential sale of the Company (or substantially all of its assets). As of February, 1, 2026, no definitive agreement had been executed and the sale process remained ongoing. Accordingly, no amounts have been recognized in the accompanying financial statements related to this matter.

The Company repaid its outstanding vehicle loan balances in December 2025. This repayment did not require recognition in the accompanying interim financial statements.

Other than the matters described above, the Company did not identify any subsequent events that require recognition in the financial statements or disclosure in the notes.