v3.25.2
Accounting Policies, by Policy (Policies)
 6 Months Ended
Jun. 30, 2025
Summary of Significant Accounting Policies [Abstract]  
Going Concern

Going Concern

Since inception, the Company has incurred cumulative losses from operations and has an accumulated deficit of $297.9 million at June 30, 2025. From February 2024 to June 2025, the Company received advances of $30.0 million from term loans provided by a related party (see Note 8). In February 2024, the Company received net proceeds of $1.7 million from the sale of 425,606 shares of Common Stock held by the Meteora parties (see Note 1). On various dates in 2024, the Company received net proceeds of $1.8 million from the exercise by the Meteora parties of Shortfall Warrants, as defined below, for 664,883 shares of Common Stock (see Note 9). In May and June 2025, the Company received net proceeds of $0.2 million from the ATM offering (see Note 9). The Company had cash of $5.3 million as of June 30, 2025.

Management believes that its existing cash balances combined with future capital raises through debt and equity and cash receipts from product sales will be sufficient to fund ongoing operations through at least one year from the date the unaudited condensed consolidated financial statements are issued. However, there can be no assurance that the Company will be successful in achieving its strategic plans, that the Company’s cash balances and future capital raises will be sufficient to support its ongoing operations, or that any additional financing will be available in a timely manner or on acceptable terms, if at all. If the Company is unable to raise sufficient financing when needed or events or circumstances occur such that the Company does not meet its strategic plans, the Company may be required to reduce certain of its discretionary spending. The Company may be unable to develop new or enhanced production methods, or be unable to fund capital expenditures, which could have a material adverse effect on the Company’s financial position, results of operations, cash flows, and ability to achieve its intended business objectives. These matters raise substantial doubt about the Company’s ability to continue as a going concern. The unaudited condensed consolidated financial statements have been prepared assuming the Company will continue as a going concern and do not include adjustments to reflect the possible effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the outcome of this uncertainty.
Unaudited Financial Information

Unaudited Financial Information

The Company’s unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial reporting and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Pursuant to these rules and regulations, they do not include all information and notes required by U.S. GAAP for complete financial statements. In the opinion of management, the unaudited condensed consolidated financial statements reflect all adjustments, consisting of a normal recurring nature, considered necessary for a fair statement of the Company’s financial condition and results of operations. Operating results for the periods presented are not necessarily indicative of the results that might be expected for the full year. As such, the information included in this report should be read in conjunction with the Company’s audited consolidated financial statements as of and for the year ended December 31, 2024, which are included in the Company’s Form 10-K, dated and filed with the SEC on March 31, 2025, which is accessible on the SEC’s website at www.sec.gov. The unaudited condensed consolidated balance sheet as of December 31, 2024 has been derived from the audited consolidated financial statements of the Company, but does not include all the disclosures required by U.S. GAAP.

During the six months ended June 30, 2025, there were no changes to the Company’s significant accounting policies as described in the Company’s audited consolidated financial statements as of and for the year ended December 31, 2024.
Use of Estimates

Use of Estimates

The preparation of unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make 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 reporting period. Actual results could differ from those estimates. Significant estimates and assumptions reflected in these unaudited condensed consolidated financial statements include but are not limited to the useful lives of property and equipment, the net realizable value of inventory, product warranty liability, stock-based compensation expense, the present value of the lease liability, the fair value of the forward purchase agreement warrant liability, and the outcome of litigation. Estimates and assumptions are reviewed periodically and the effect of changes, if any, are reflected in the unaudited condensed consolidated statements of operations and comprehensive loss.
Revisions

Revisions

Contingent Sponsor Shares

The Company corrected the presentation of Common Stock outstanding that previously included 1,000,000 contingent sponsor shares that were included in the previously issued unaudited condensed consolidated statement of changes in stockholders’ deficit for the three and six months ended June 30, 2024. These contingent sponsor shares are now excluded from the number of shares of Common Stock outstanding as of June 30, 2024. The Company determined that the correction was not material to any prior annual or interim periods and therefore, amendments of previously filed reports are not required.

The effect of the contingent sponsor shares revision on the Common Stock amounts on each of the impacted financial statement line items within the Company’s unaudited condensed consolidated statement of changes in stockholders’ deficit for the three and six months ended June 30, 2024 was as follows:

   Six Months Ended June 30, 2024 
   As
Previously
Reported		   Adjustments   As
Revised		 
Balance at December 31, 2023   19,599,982    (1,000,000)   18,599,982 
Balance at June 30, 2024   19,599,982    (1,000,000)   18,599,982 
   Three Months Ended June 30, 2024 
   As
Previously
Reported		   Adjustments   As
Revised		 
Balance at March 31, 2024   19,599,982    (1,000,000)   18,599,982 
Balance at June 30, 2024   19,599,982    (1,000,000)   18,599,982 

Classification of Prepaid Insurance

The Company corrected the presentation of the non-current prepaid insurance expense that was not classified as long-term assets in the previously issued audited consolidated financial statements as of and for the year ended December 31, 2024. The Company determined that the correction was not material to any prior annual or interim periods and therefore, amendments of previously filed reports are not required.

Classification of Accrued Interest (Related Party)

The Company corrected the presentation of the accrued interest (related party) that was not classified as a separate financial statement line item in the previously issued audited consolidated financial statements as of and for the year ended December 31, 2024. The Company determined that the correction was not material to any prior annual or interim periods and therefore, amendments of previously filed reports are not required.

The effect of the classification of prepaid insurance expense and accrued interest (related party) revisions on each of the impacted financial statement line items within the Company’s audited consolidated balance sheet as of December 31, 2024 was as follows:

   December 31, 2024 
   As
Previously
Reported		   Adjustments   As
Revised		 
Prepaid expenses and other assets, current  $1,375   $(488)  $887 
Total current assets  9,384   (488)  8,896 
Prepaid expenses and other assets 
—
   488   488 
Accrued expenses  4,416   (703)  3,713 
Accrued interest (related party) 
—
   703   703 

Financing of Prepaid Insurance

The Company corrected the presentation of prepaid insurance expenses and insurance financing liabilities, including the related amortization and interest expense, that were not included in the previously issued unaudited condensed consolidated financial statements for the three and six months ended June 30, 2024. The Company determined that the correction was not material to any prior annual or interim periods and therefore, amendments of previously filed reports are not required.

The effect of the contingent sponsor shares and financing of prepaid insurance revisions on each of the impacted financial statement line items within the Company’s unaudited condensed consolidated statements of operations and comprehensive loss for the three and six months ended June 30, 2024 was as follows:

   Six Months Ended June 30, 2024 
   As
Previously
Reported		   Adjustments   As
Revised		 
General and administrative  $3,714   $(23)  $3,691 
Total costs and operating expenses   9,885    (23)   9,862 
Operating loss   (9,758)   23    (9,735)
                
Other expense, net   
—
    (23)   (23)
Total other income (expense), net   (459)   (23)   (482)
                
Net loss per share attributable to common stockholders, basic and diluted  $(0.66)  $(0.04)  $(0.70)
Weighted-average Class A Common Stock outstanding, basic and diluted   19,599,982    (1,000,000)   18,599,982 
   Three Months Ended June 30, 2024 
   As Previously Reported   Adjustments   As
Revised		 
General and administrative  $1,595   $(8)  $1,587 
Total costs and operating expenses   4,928    (8)   4,920 
Operating loss   (4,860)   8    (4,852)
                
Other expense, net   
—
    (8)   (8)
Total other income (expense), net   913    (8)   905 
                
Net loss per share attributable to common stockholders, basic and diluted  $(0.27)  $(0.02)  $(0.29)
Weighted-average Class A Common Stock outstanding, basic and diluted   19,599,982    (1,000,000)  $18,599,982 

The effect of the financing of prepaid insurance revision on the accumulated deficit amounts on each of the impacted financial statement line items within the Company’s unaudited condensed consolidated statement of changes in stockholders’ deficit for the three and six months ended June 30, 2024 was as follows:

   Six Months Ended June 30, 2024 
   As
Previously
Reported		   Adjustments   As
Revised		 
Balance at December 31, 2023  $(257,242)  $(14)  $(257,256)
Balance at June 30, 2024   (270,189)   (14)   (270,203)
   Three Months Ended June 30, 2024 
   As
Previously
Reported		   Adjustments   As
Revised		 
Balance at March 31, 2024  $(264,877)  $(14)  $(264,891)
Balance at June 30, 2024   (270,189)   (14)   (270,203)

The effect of the financing of prepaid insurance revision on each of the impacted financial statement line items within the Company’s unaudited condensed consolidated statement of cash flows for the six months ended June 30, 2024 was as follows:

   Six Months Ended June 30, 2024 
   As
Previously
Reported		   Adjustments   As
Revised		 
Amortization of prepaid insurance  $
—
   $539   $539 
Prepaid expenses and other assets   33    (20)   13 
Net cash used in operating activities   (10,754)   519    (10,235)
                
Payments on insurance financing loans   
—
    (519)   (519)
Net cash provided by financing activities   9,183    (519)   8,664 
                
Supplemental disclosures of cash flow information:               
Cash paid for interest  $
—
   $23   $23 
                
Non-cash investing and financing activities:               
Financing of prepaid insurance   $
—
   $65   $65