v3.25.2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
6 Months Ended
Jun. 30, 2025
Accounting Policies [Abstract]  
Summary of Estimated Useful Lives of Fixed Assets Depreciation is computed using the straight-line method over the estimated useful lives of the respective assets, which range from three to seven years:
ClassificationLife
Machinery and equipment
3-7 years
Automobiles5 years
Computer and office equipment5 years
Website development costs3 years
Property and equipment, net consist of the following at June 30, 2025 and December 31, 2024, in thousands:
 June 30,
2025
December 31,
2024
Machine and equipment$186 $188 
Automobiles— 72 
Website development costs290 290 
Computer and office equipment
Software development costs525 579 
 1,006 1,134 
Less accumulated depreciation(584)(454)
Property and equipment, net $422 $680 
Schedule of Fair Value Assets Measured on Recurring Basis
The following table presents balances of the fair value instruments as of June 30, 2025 and December 31, 2024, in thousands:

Fair Value Measurements as of June 30, 2025
Quoted Prices in Active Markets for Identical Assets (Level 1)Significant Other
Observable Inputs (Level 2)
Significant Unobservable
Inputs (Level 3)
Total
Second Tranche Note$— $— $1,474 $1,474 
Total$— $— $1,474 $1,474 


Fair Value Measurements as of December 31, 2024
Quoted Prices in Active Markets for Identical Assets (Level 1)Significant Other
Observable Inputs (Level 2)
Significant Unobservable
Inputs (Level 3)
Total
2024 Convertible Note$— $— $4,050 $4,050 
Total$— $— $4,050 $4,050 
Schedule of Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation
The following table presents changes of all convertible notes issued under the Securities Purchase Agreement with significant unobservable inputs (Level 3) for the three and six months ended June 30, 2025, in thousands:

2024 Convertible Note
Balance at December 31, 2024$4,050 
Change in fair value 849 
Balance at March 31, 2025$4,899 
Change in fair value(99)
Conversions(4,676)
Additions1,350 
Balance at June 30, 2025 $1,474 
Schedule of Fair Value Measurement Inputs and Valuation Techniques
The Company measured the Second Tranche Note using a Monte Carlo simulation valuation model using the following assumptions:

Three and Six months ended June 30, 2025
Volume Weighted average stock price ("VWAP")$1.28 
Simulation Period
0.95 years
Expected Volatility122.0 %
Credit risk-adjusted rate21.6 %
Risk-free Rate4.0 %
Schedule of Disaggregation of Revenue
The Company generated revenue during the three and six months ended June 30, 2025 and 2024, broken down as follows, in thousands:
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Aircraft sales$24,500 $— $49,600 $— 
Subscription355 181 738 229 
Total$24,855 $181 $50,338 $229 
Schedule of Changes in Deferred Revenue
The following table provides a rollforward of deferred revenue for the six months ended June 30, 2025:

Amount
Balance as of December 31, 2024$696 
Revenue recognized (738)
Revenue deferred 1,129 
Balance as of June 30, 2025 $1,087 
Capitalized Contract Cost
The following tables present the asset balances and related amortization expense for the contract assets:

As of and for the six months ended June 30, 2025
Beginning BalanceAmount Capitalized Amortization Ending Balance
Contract assets $— $242 $(31)$211