Halliburton Co: Form 10-Q for the period ended Mar 31, 2026

Management's Discussion and Analysis of Financial Condition and Results of Operations should be read in

conjunction with the condensed consolidated financial statements included in Item 1. Financial Statements contained herein.

EXECUTIVE OVERVIEW

Organization

We are one of the world’s largest providers of products and services to the energy industry. We help our customers

maximize asset value throughout the lifecycle of the reservoir from locating hydrocarbons and managing geological data, to

drilling and formation evaluation, well construction and completion, and optimizing production throughout the life of the asset.

Activity levels within our operations are significantly impacted by spending on upstream exploration, development, and

production programs by major, national, and independent oil and natural gas companies. We report our results under two

segments, the Completion and Production segment and the Drilling and Evaluation segment.

• Completion and Production delivers cementing, stimulation, specialty chemicals, intervention, pressure control,

artificial lift, and completion products and services. The segment consists of Artificial Lift, Cementing, Completion

Tools, Multi-Chem, Pipeline and Process Services, Production Enhancement, and Production Solutions. During the

third quarter of 2024, we made a strategic decision to market for sale a portion of our chemical business. We expect

the sale to be completed in the second quarter of 2026.

• Drilling and Evaluation provides field and reservoir modeling, drilling, fluids, evaluation, and precise wellbore

placement solutions that enable customers to model, measure, drill, and optimize their well construction activities.

The segment consists of Baroid, Drill Bits and Services, Halliburton Project Management, Landmark Software and

Services, Sperry Drilling, Testing and Subsea, and Wireline and Perforating.

The business operations of our segments are organized around four primary geographic regions: North America, Latin

America, Europe/Africa/CIS, and Middle East/Asia. We have manufacturing operations in various locations, the most

significant of which are in the United States, Malaysia, Singapore, and the United Kingdom. With over 46,000 employees, we

operate in more than 70 countries around the world, and our corporate headquarters is in Houston, Texas.

Our value proposition is to collaborate and engineer solutions to maximize asset value for our customers. We strive to

achieve strong cash flows and returns for our shareholders by delivering technology and services that improve efficiency,

increase recovery, and maximize production for our customers. Our strategic priorities are to:

• International: Consistently increase international growth in our directional drilling, unconventionals, well

intervention, and artificial lift businesses. Develop our strategic collaboration with VoltaGrid around behind-the-

meter power generation.

• North America: Maximize value by, among other things, utilizing our Zeus IQ electric fracturing platform, our

iCruise rotary steerable systems and LOGIX automation.

• Digital: Continue to drive differentiation and efficiencies through the deployment of digital and automation

technologies, both internally and for our customers.

• Capital efficiency: Maintain our capital expenditures at about $1.1 billion, while leveraging technology and targeted

process improvements to enhance utilization of existing capital.

• Shareholder returns: Return over 50% of annual free cash flow to shareholders through dividends and share

repurchases.

• Advance a Sustainable Energy Future: Continue to develop technologies and solutions to help lower our customers’

and our emissions intensity, grow our low carbon energy business, and support Halliburton Labs early-stage

company participants.

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The following charts depict the revenue split between our two operating segments and our four primary geographic

regions for the three months ended March 31, 2026.

Market conditions

During the first quarter of 2026, the ongoing geopolitical conflict has impacted activity in the Middle East resulting in

an impact of $0.02 to $0.03 of diluted net income per share across both of our segments. Oilfield activity reflected continued

customer focus on capital discipline and returns, with spending concentrated on projects and programs that improve near-term

production and operating efficiency. Customer activity levels and spending plans remained sensitive to oil and natural gas price

volatility and changes in global supply-and-demand fundamentals and were impacted by geopolitical developments, including

regional conflicts, sanctions, and trade or regulatory actions.

Trade tensions and tariffs continue to influence the global demand outlook, with varying impacts across end markets.

Following a U.S. Supreme Court ruling that invalidated tariffs imposed in 2025 by the Trump Administration on goods from all

countries, President Trump implemented a 150-day “global tariff” of 10% effective February 24, 2026, using presidential

powers under Section 122 of the Trade Act of 1974, and indicated a desire to increase such “global tariff” to 15%. Although the

Section 122 tariffs are due to expire in July, the Trump Administration has initiated processes that could result in new tariffs

being imposed under other statutes. We continue to monitor and evaluate the effects on goods imported into the United States.

Oil prices increased in the first quarter of 2026 compared to the fourth quarter of 2025. The West Texas Intermediate

(WTI) crude oil price averaged approximately $72 per barrel during the first quarter of 2026, compared to approximately $60

per barrel during the fourth quarter of 2025, or a 20% increase. The Brent crude oil price averaged approximately $80 per barrel

during the first quarter of 2026, compared to approximately $64 per barrel during the fourth quarter, or a 25% increase.

Globally, we continue to be impacted by inflationary cost increases, primarily related to logistics, chemicals, and

cement, we manage these pressures through global procurement strategies, technology modifications, and sourcing efficiencies.

As a standard practice, we generally seek to pass a portion of these cost increases on to our customers and believe we have

effective solutions in place to minimize their operational impact.

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Financial results

The following graph illustrates our revenue and operating margins for each operating segment for the first quarter of

2025 and 2026.

During the first quarter of 2026, we generated total company revenue of $5.4 billion, relatively flat as compared to the

first quarter of 2025. We reported operating income of $679 million, in the first quarter of 2026, as compared to operating

income of $431 million in the first quarter of 2025, including impairments and other charges of $356 million.

Our Completion and Production segment revenue decreased 3% in the first quarter of 2026, as compared to the first

quarter of 2025. These results were primarily driven by lower stimulation activity in North America, and lower completion tool

sales and decreased pressure pumping services in the Middle East. Partially offsetting these decreases were higher completion

tool sales in the Western Hemisphere, and improved pressure pumping services in Africa.

Our Drilling and Evaluation segment revenue increased 4% in the first quarter of 2026 as compared to the first quarter

of 2025. These results were primarily driven by higher project management activity in Latin America and increased drilling-

related services in Europe and the Western Hemisphere. Partially offsetting these increases were lower activity across multiple

product service lines in the Middle East, lower wireline activity in the Eastern Hemisphere, and decreased fluid services in the

Gulf of America.

Both divisional results were negatively impacted by the geopolitical conflict in the Middle East.

Our North America revenue decreased 4% in the first quarter of 2026 as compared to the first quarter of 2025. This

decline was primarily driven by lower stimulation activity and decreased artificial lift activity in US Land, and lower

stimulation activity and decreased fluid services in the Gulf of America. Partially offsetting these decreases were increased

drilling-related services in US Land and higher completion tool sales in the region.

Internationally, revenue increased 3% in the first quarter of 2026 as compared to the first quarter of 2025, largely

driven by improved activity across multiple product service lines in Ecuador, the Caribbean, and Brazil, higher stimulation

activity in Mexico and Argentina, increased drilling-related services and higher completion tool sales in Norway, and improved

pressure pumping services in Angola. Offsetting these increases were lower activity across multiple product service lines in the

Middle East and decreased drilling-related services in Namibia.

Our operating performance and liquidity are described in more detail in “Liquidity and Capital Resources” and

“Business Environment and Results of Operations.”

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LIQUIDITY AND CAPITAL RESOURCES

As of March 31, 2026, we had $2.0 billion of cash and equivalents, compared to $2.2 billion of cash and equivalents at

December 31, 2025.

Significant sources and uses of cash during the first three months of 2026

Sources of cash:

• Cash flows from operating activities were $273 million. Working capital, which consists of receivables,

inventories, and accounts payable, collectively had a negative impact of $252 million.

Uses of cash:

• Capital expenditures were $192 million.
• We repurchased 2.8 million shares of our common stock for $100 million.
• We paid $142 million of dividends to our shareholders.

Future sources and uses of cash

We manufacture most of our own equipment, which provides us with some flexibility to increase or decrease our

capital expenditures based on market conditions. We currently expect capital spending for 2026 to be approximately $1.1

billion. We believe this level of spending will enable continued investment in our core strategic technologies and businesses,

including the international expansion of our artificial lift, well intervention, unconventionals, and drilling technologies. We will

continue to maintain capital discipline and monitor the rapidly changing market dynamics, and we may adjust our capital

spending accordingly.

While we maintain focus on liquidity and debt reduction, we are also focused on providing cash returns to our

shareholders. Our quarterly dividend rate is $0.17 per common share, or approximately $142 million. In 2023, our Board

approved a capital return framework with a goal of returning at least 50% of our annual free cash flow to shareholders through

dividends and share repurchases and we expect our returns to shareholders will be in line with our capital return framework for

We may utilize share repurchases as part of our capital return framework. Our Board of Directors has authorized a

program to repurchase our common stock from time to time. We repurchased 2.8 million shares of common stock during the

first quarter of 2026 under this program. Approximately $1.9 billion remained authorized for repurchases as of March 31, 2026

and may be used for open market and other share purchases.

During 2023, we began our migration to SAP S4 which we expect to complete in the fourth quarter of 2026. During

the three months ended March 31, 2026, we incurred $42 million in expense on our SAP S4 migration and expect the estimated

cost to be approximately $45 million per quarter going forward. We believe the new system will provide important efficiency

benefits, cost savings, enhanced visibility to our operations, and advanced analytics that will benefit us and our customers.

We may, from time to time, redeem, repurchase, or otherwise acquire our outstanding debt through privately

negotiated transactions, open market purchases, redemptions, tender offers or otherwise, but we are under no obligation to do

so.

Other factors affecting liquidity

Financial condition in current market. As of March 31, 2026, we had $2.0 billion of cash and equivalents and $3.5

billion of available committed bank credit under our revolving credit facility, with an expiration date of August 16, 2030. We

believe we have a manageable debt maturity profile, with approximately $90 million due February 2027. Furthermore, we have

no financial covenants or material adverse change provisions in our bank agreements, and our debt maturities extend over a

long period of time. We believe our cash on hand, cash flows generated from operations, and our available credit facility will

provide sufficient liquidity to address expected global cash needs, including capital expenditures, working capital investments,

shareholder returns, if any, debt repurchases, if any, and scheduled interest and principal payments, in the short term and long

term.

Guarantee agreements. In the normal course of business, we have agreements with financial institutions under which

approximately $3.2 billion of letters of credit, bank guarantees, or surety bonds were outstanding as of March 31, 2026. Some

of the outstanding letters of credit have triggering events that would entitle a bank to require cash collateralization; however,

none of these triggering events have occurred. As of March 31, 2026, we had no material off-balance sheet liabilities and were

not required to make any material cash distributions to our unconsolidated subsidiaries.

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We have entered into credit default swaps (CDSs) with third-party financial institutions that have an aggregate

notional amount outstanding as of March 31, 2026 of $374 million, compared to an aggregate notional amount outstanding as

of December 31, 2025 of $592 million, related to borrowings provided by the financial institutions to one of our primary

customers in Mexico, of which portions of the proceeds were utilized by this customer to pay certain of our outstanding

receivables. Approximately $331 million of the outstanding amount of the CDSs reduces monthly over its remaining 6-month

term and $43 million reduces monthly over its remaining 3-month term.

Credit ratings. Our credit ratings with Standard & Poor’s remain BBB+ for our long-term debt and A-2 for our short-

term debt, with a stable outlook. Our credit ratings with Moody's Investors Service remain A3 for our long-term debt and P-2

for our short-term debt, with a stable outlook.

Customer receivables. In line with industry practice, we bill our customers for our services in arrears and are,

therefore, subject to our customers delaying or failing to pay our invoices. In weak economic environments, we may experience

increased delays and failures to pay our invoices due to, among other reasons, a reduction in our customers’ cash flow from

operations and their access to the credit markets, as well as unsettled political conditions.

Receivables from our primary customer in Mexico accounted for approximately 7% of our total receivables as of both

March 31, 2026 and December 31, 2025. While we have experienced payment delays from our primary customer in Mexico,

the amounts are not in dispute and we have not historically had, and we do not expect, any material write-offs due to

collectability of receivables from this customer.

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Table of Contents Part I. Item 2 | Business Environment and Results of Operations

BUSINESS ENVIRONMENT AND RESULTS OF OPERATIONS

We operate in more than 70 countries throughout the world to provide a comprehensive range of services and products

to the energy industry. Our revenue is generated from the sale of services and products to major, national, and independent oil

and natural gas companies worldwide. The industry we serve is highly competitive with many substantial competitors in each

segment of our business. Based on the location of the services provided and products sold, 37% and 39% of our consolidated

revenue was from the United States for the three months ended March 31, 2026 and 2025, respectively. No other country

accounted for more than 10% of our revenue for those periods.

Activity within our business segments is significantly impacted by spending on upstream exploration, development,

and production programs by our customers. Also impacting our activity is the status of the global economy, which impacts oil

and natural gas consumption.

Some of the more significant determinants of current and future spending levels of our customers are oil and natural

gas prices, our customers’ expectations about future prices, global oil supply and demand, the impact on natural gas supply and

demand in North America of electrification and data centers power requirements, completions intensity, the world economy, the

availability of capital, government regulation, and global stability, which together drive worldwide drilling and completions

activity. Lower oil and natural gas prices usually translate into lower exploration and production budgets and lower rig count,

while the opposite is usually true for higher oil and natural gas prices. Our financial performance is therefore significantly

affected by oil and natural gas prices and worldwide rig activity, which are summarized in the tables below.

The table below shows the average prices for West Texas Intermediate (WTI) crude oil, United Kingdom Brent crude

oil, and Henry Hub natural gas.

(1) Oil prices measured in dollars per barrel.

(2) Natural gas price measured in dollars per million British thermal units (Btu), or MMBtu.

The historical average rig counts based on the weekly Baker Hughes rig count data were as follows:

(1) For the three months ended March 31, 2025, historical average rig counts shown are based on data provided by Baker Hughes, which included retroactive adjustments to international rig counts previously reported as a result of a methodology change.

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Table of Contents Part I. Item 2 | Business Environment and Results of Operations

Business outlook

We expect oilfield services activity to be supported by continued customer focus on capital discipline, production

optimization, and efficiency‑driven investment across both international and North America markets. While we continue to

experience operational disruptions in the Middle East, including work cancellations, force‑majeure declarations, reduced

offshore activity, and higher logistics costs, the majority of our operations remain active.

Outside the Middle East, our outlook remains positive. International activity is expected to grow in the mid‑to‑high

single digits for the full year 2026, led by strong customer engagement and investment in Latin America and continued

momentum in offshore markets.

In North America, we see early signs of a services‑market recovery as customers accelerate development within

existing budgets and reduce calendar white‑space. Depleted drilled‑but‑uncompleted well inventories are expected to support

additional drilling activity, and demand for differentiated technologies, including electric fracturing and automated

well‑construction solutions, continues to increase.

We expect broader market fundamentals to remain supportive, although customer spending and activity levels may be

influenced by volatility in oil and natural gas prices, changes in global supply‑and‑demand dynamics, inflationary cost

pressures, and geopolitical developments. These factors, including regional conflicts, sanctions, and regulatory or trade

changes, may affect project timing, supply chains, and access to certain markets.

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Table of Contents Part I. Item 2 | Results of Operations in 2026 Compared to 2025 (QTD)

RESULTS OF OPERATIONS IN 2026 COMPARED TO 2025

Three Months Ended March 31, 2026 Compared with Three Months Ended March 31, 2025

Operating Segments

Completion and Production

Completion and Production revenue in the first quarter of 2026 was $3.0 billion, a decrease of $104 million, or 3%,

when compared to the first quarter of 2025. Operating income in the first quarter of 2026 was $439 million, a decrease of $92

million, or 17%, when compared to the first quarter of 2025. These results were primarily driven by lower stimulation activity

in North America, and lower completion tool sales and decreased pressure pumping services in the Middle East. Partially

offsetting these decreases were higher completion tool sales in the Western Hemisphere, and improved pressure pumping

services in Africa.

Drilling and Evaluation

Drilling and Evaluation revenue in the first quarter of 2026 was $2.4 billion, an increase of $89 million, or 4%, when

compared to the first quarter of 2025. Operating income in the first quarter of 2026 was $351 million, flat when compared to the

first quarter of 2025. These results were primarily driven by higher project management activity in Latin America and increased

drilling-related services in Europe and the Western Hemisphere. Partially offsetting these increases were lower activity across

multiple product service lines in the Middle East, lower wireline activity in the Eastern Hemisphere, and decreased fluid

services in the Gulf of America.

In the first quarter of 2026, the geopolitical conflict in the Middle East affected both of our operating segments, with

an impact of $0.02 to $0.03 of diluted net income per share.

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Table of Contents Part I. Item 2 | Results of Operations in 2026 Compared to 2025 (QTD)

Geographic Regions

North America

North America revenue in the first quarter of 2026 was $2.1 billion, a 4% decrease, as compared to the first quarter of

2025. This decline was primarily driven by lower stimulation activity and decreased artificial lift activity in US Land, and lower

stimulation activity and decreased fluid services in the Gulf of America. Partially offsetting these decreases were increased

drilling-related services in US Land and higher completion tool sales in the region.

Latin America

Latin America revenue in the first quarter of 2026 was $1.1 billion, a 22% increase compared to the first quarter of

2025. This increase was primarily driven by higher activity across multiple product service lines in Ecuador, the Caribbean, and

Brazil, and improved stimulation activity in Mexico and Argentina. Partially offsetting these increases were lower project

management activity and decreased drilling-related services in Mexico.

Europe/Africa/CIS

Europe/Africa/CIS revenue in the first quarter of 2026 was $858 million, an 11% increase compared to the first quarter

of 2025. This increase was primarily driven by increased drilling-related services and higher completion tool sales in Norway,

and improved pressure pumping services in Angola. Partially offsetting these increases were lower completion tool sales in the

Caspian Area and decreased drilling-related services in Namibia.

Middle East/Asia

Middle East/Asia revenue in the first quarter of 2026 was $1.3 billion, a 13% decrease compared to the first quarter of

2025. This decrease was primarily driven by conflict-related disruptions that resulted in lower activity across multiple product

service lines in Saudi Arabia and decreased drilling-related services in Qatar. Partially offsetting these decreases were higher

completion tool sales and improved fluid services in Asia.

Other Operating Items

SAP S4 Upgrade Expense. As previously mentioned, during 2023, we began our migration to SAP S4, which we

expect to complete in the fourth quarter of 2026. During the first quarter of 2026, we recognized $42 million of expense on our

SAP S4 migration. During the first quarter of 2025, we recognized $30 million of expense on our SAP S4 migration.

Impairments and Other Charges. During the three months ended March 31, 2026, there were no amounts recorded in

impairments and other charges. During the three months ended March 31, 2025, we took a pre-tax charge of $356 million

primarily related to severance costs, an impairment of assets held for sale, an impairment of facility closures and lease

terminations, and other items. See Notes to Condensed Consolidated Financial Statements, Note 2 for further discussion of

these charges.

Nonoperating Items

Pension Settlement Charges from Plan Terminations. During the three months ended March 31, 2026, the Company

entered into agreements to transfer certain defined benefit pension obligations to third-party insurers in connection with plan

terminations. As a result, the Company recognized approximately $23 million of non-cash pension settlement charges,

primarily related to the acceleration of actuarial losses previously recorded in accumulated other comprehensive income. This is

included in “Other, net” on the Condensed Consolidated Statements of Operations.

Income Tax Provision. During the three months ended March 31, 2026, we recorded a total income tax provision of

$105 million on a pre-tax income of $569 million, resulting in an effective tax rate of 18.5% for the quarter. The effective tax

rate for this period was primarily impacted by the release of a valuation allowance in the amount of $32 million related to

changes in deferred tax asset realizability. During the three months ended March 31, 2025, we recorded a total income tax

provision of $103 million on a pre-tax income of $306 million, resulting in an effective tax rate of 33.7% for the quarter. The

effective tax rate for this period was primarily impacted by the additional valuation allowance recognized on our deferred tax

assets, which resulted from the pre-tax $356 million of impairments and other charges.

Pillar Two. The Organization for Economic Co-operation and Development enacted model rules for a new global

minimum tax framework, also known as Pillar Two, and certain governments globally have enacted, or are in the process of

enacting, legislation considering these model rules. These rules did not have a material impact on our taxes for the three months

ended March 31, 2026 and 2025.

HAL Q1 2026 FORM 10-Q | 23

Table of Contents Part I. Item 2 | Results of Operations in 2026 Compared to 2025 (QTD)

Internal Revenue Service Notice of Proposed Adjustment. We are subject to taxes in the United States and in numerous

jurisdictions where we operate or where our subsidiaries are organized. Our tax returns are routinely subject to examination by

the taxing authorities in the jurisdictions where we file tax returns. In most cases we are no longer subject to examination by tax

authorities for years before 2014. The only significant operating jurisdiction that has tax filings under review or subject to

examination by the tax authorities is the United States. Our United States federal income tax filings for tax years 2016 through

2024, including carry back of 2016 net operating losses to 2014, are currently under review or remain open for review by the

IRS.

On September 28, 2023, we received a NOPA from the IRS covering our 2016 U.S. tax return. The NOPA proposed

an adjustment to reclassify approximately 95% of the $3.5 billion termination fee paid to Baker Hughes in 2016 from an

ordinary expense deduction to a capital loss. The termination fee was paid to Baker Hughes under the merger agreement after

antitrust regulators in multiple jurisdictions failed to approve our proposed merger. It is common commercial practice to include

a termination fee in a merger agreement to compensate the target for damages incurred when the acquisition does not go

forward. The IRS’s long-understood position at the time of payment had been to treat such payments as an ordinary and

necessary business expense. We strongly disagree with the proposed adjustment on both a factual and legal basis, and we plan

to vigorously contest it.

We expect that resolving this dispute will take substantial time. In 2023, we initiated the IRS administrative appeals

process, which is ongoing. Failing a resolution through that process, the matter would ultimately be resolved by the United

States federal courts.

We regularly assess the likelihood of adverse outcomes resulting from tax examinations to determine the adequacy of

our tax reserves, and we believe our income tax reserves are appropriately provided for all open tax years. We cannot assure

you that the matter will be determined in our favor or against us, and if the matter is ultimately determined unfavorably to us, it

could have a material adverse impact on our results of operations and cash flows. Based on tax attributes currently available, we

estimate that, should the IRS's position prevail through the appellate process and subsequent litigation, the proposed adjustment

could result in cash taxes due of approximately $640 million (plus interest thereon in the case of amounts due for previous tax

years). Our estimates are calculated under current tax law and on the basis of our assumptions regarding taxable income and

loss and other tax attributes over the relevant period, which law could change and which assumptions could and likely will

differ materially from actual results. In any event, no payment of any additional tax is currently required, nor do we anticipate

that the proposed adjustment would materially and adversely impact our ability to meet our expected uses of cash, including

future capital expenditures, working capital investments, and scheduled debt repayments, or our ability to return cash to

shareholders, even if a final determination of the matter is reached that is adverse to us.

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FORWARD-LOOKING INFORMATION

The Private Securities Litigation Reform Act of 1995 provides safe harbor provisions for forward-looking information.

Forward-looking information is based on projections and estimates, not historical information. Some statements in this Form

10-Q, including those in Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations –

Business Environment and Results of Operations – Business Outlook, are forward-looking and use words like “may,” “may

not,” “believe,” “do not believe,” “plan,” “estimate,” “intend,” “expect,” “do not expect,” “anticipate,” “do not anticipate,”

“should,” “likely,” and other expressions. We may also provide oral or written forward-looking information in our statements

and other materials we release to the public. Forward-looking information involves risks and uncertainties and reflects our best

judgment based on current information. Our results of operations can be affected by inaccurate assumptions we make or by

known or unknown risks and uncertainties. In addition, other factors may affect the accuracy of our forward-looking

information. As a result, no forward-looking information can be guaranteed. Actual events and the results of our operations may

vary materially.

We do not assume any responsibility to publicly update any of our forward-looking statements regardless of whether

factors change as a result of new information, future events, or for any other reason, except as required by law. You should

review any additional disclosures we make in our press releases and Forms 10-K, 10-Q, and 8-K filed with or furnished to the

Securities and Exchange Commission. We also suggest that you listen to our quarterly earnings release conference calls with

financial analysts.

NEW ACCOUNTING STANDARDS NOT YET ADOPTED

See Notes to Condensed Consolidated Financial Statements, Note 12 for further discussion of accounting standards

adopted during the quarter and to be adopted in future periods.

For quantitative and qualitative disclosures about market risk, see Part II, Item 7(a), “Quantitative and Qualitative

Disclosures About Market Risk,” in our 2025 Annual Report on Form 10-K. Our exposure to market risk has not changed

materially since December 31, 2025.

In accordance with the Securities Exchange Act of 1934 Rules 13a-15 and 15d-15, we carried out an evaluation, under

the supervision and with the participation of management, including our Chief Executive Officer and Chief Financial Officer, of

the effectiveness of our disclosure controls and procedures as of the end of the period covered by this report. Based on that

evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were

effective as of March 31, 2026 to provide reasonable assurance that information required to be disclosed in our reports filed or

submitted under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the

Securities and Exchange Commission’s rules and forms. Our disclosure controls and procedures include controls and

procedures designed to ensure that information required to be disclosed in reports filed or submitted under the Exchange Act is

accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as

appropriate, to allow timely decisions regarding required disclosure.

There has been no change in our internal control over financial reporting that occurred during the quarter ended

March 31, 2026 that has materially affected, or is reasonably likely to materially affect, our internal control over financial

reporting.

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