SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
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6 Months Ended |
Jun. 30, 2025 |
Accounting Policies [Abstract] |
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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: | | | | | | | | | Classification | | Life | Machinery and equipment | | 3-7 years | Automobiles | | 5 years | Computer and office equipment | | 5 years | Website development costs | | 3 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 costs | 290 | | | 290 | | Computer and office equipment | 5 | | | 5 | | Software development costs | 525 | | | 579 | | | 1,006 | | | 1,134 | | Less accumulated depreciation | (584) | | | (454) | | Property and equipment, net | $ | 422 | | | $ | 680 | |
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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 | |
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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) | | Additions | 1,350 | | Balance at June 30, 2025 | $ | 1,474 | |
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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 Volatility | 122.0 | % | Credit risk-adjusted rate | 21.6 | % | Risk-free Rate | 4.0 | % |
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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, | | 2025 | | 2024 | | 2025 | | 2024 | Aircraft sales | $ | 24,500 | | | $ | — | | | $ | 49,600 | | | $ | — | | Subscription | 355 | | | 181 | | | 738 | | | 229 | | Total | $ | 24,855 | | | $ | 181 | | | $ | 50,338 | | | $ | 229 | |
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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 | |
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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 Balance | | Amount Capitalized | | Amortization | | Ending Balance | Contract assets | | $ | — | | | $ | 242 | | | $ | (31) | | | $ | 211 | |
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