SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
|
12 Months Ended |
Dec. 31, 2025 |
|---|
| Accounting Policies [Abstract] |
|
| SUMMARY OF ESTIMATED USEFUL LIVES OF FIXED ASSETS |
Fixed
assets are stated at cost, less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated
useful lives of the respective assets, which range from three to seven years:
SUMMARY OF ESTIMATED USEFUL LIVES OF FIXED ASSETS
| Classification | |
Life |
| Machinery and equipment | |
3-7 years |
| Automobiles | |
5 years |
| Computer and office equipment | |
5 years |
| Website development costs | |
3 years |
|
| SCHEDULE OF FAIR VALUE ASSETS MEASURED ON RECURRING BASIS |
The
following table presents balances of the fair value instruments as of December 31, 2025 and December 31, 2024, in thousands:
SCHEDULE OF FAIR VALUE ASSETS MEASURED ON RECURRING BASIS
| | |
Fair Value Measurements as of December 31, 2025 | |
| | |
Quoted Prices in
Active Markets for
Identical Assets
(Level 1) | | |
Significant Other
Observable Inputs
(Level 2) | | |
Significant
Unobservable Inputs
(Level 3) | | |
Total | |
| Financial liabilities: | |
| | | |
| | | |
| | | |
| | |
| Third Tranche Note | |
$ | — | | |
$ | — | | |
$ | 3,148 | | |
$ | 3,148 | |
| Fourth Tranche Note | |
| — | | |
| — | | |
| 1,082 | | |
| 1,082 | |
| Total financial liabilities | |
$ | — | | |
$ | — | | |
$ | 4,230 | | |
$ | 4,230 | |
| | |
| | | |
| | | |
| | | |
| | |
| Financial assets: | |
| | | |
| | | |
| | | |
| | |
| Investment in M2i | |
$ | — | | |
$ | 1,197 | | |
$ | — | | |
$ | 1,197 | |
| Investment in flyExclusive | |
| 1,739 | | |
| — | | |
| — | | |
| 1,739 | |
| Aviation asset option | |
| — | | |
| — | | |
| 324 | | |
| 324 | |
| Total financial assets | |
$ | 1,739 | | |
$ | 1,197 | | |
$ | 324 | | |
$ | 3,260 | |
| | |
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 UNOBSERVABLE INPUT |
The
following table presents changes of all convertible notes issued under the Securities Purchase Agreement (see Note 10) with significant
unobservable inputs (Level 3) for the twelve months ended December 31, 2025, in thousands:
SCHEDULE OF FAIR VALUE LIABILITIES MEASURED UNOBSERVABLE INPUT
| | |
2024 Convertible Note | |
| Balance at December 31, 2024 | |
$ | 4,050 | |
| Change in fair value | |
$ | 1,488 | |
| Conversions | |
$ | (7,356 | ) |
| Additions | |
$ | 6,048 | |
| Balance as of December 31, 2025 | |
$ | 4,230 | |
|
| SCHEDULE OF FAIR VALUE MEASUREMENT INPUTS AND VALUATION TECHNIQUES |
The
Company measured the Third and Fourth Tranche Notes using a Monte Carlo simulation valuation model using the following assumptions:
SCHEDULE OF FAIR VALUE MEASUREMENT INPUTS AND VALUATION TECHNIQUES
| | |
Twelve months ended December 31, 2025 | |
| | |
Third Tranche Note | | |
Fourth Tranche Note | |
| Volume Weighted average stock price (“VWAP”) | |
| 0.65 | | |
| 0.65 | |
| Simulation Period | |
| 0.56 | | |
| 0.79 | |
| Expected Volatility | |
| 114.0 | % | |
| 119.7 | % |
| Credit risk-adjusted rate | |
| 20.9 | % | |
| 20.9 | % |
| Risk-free Rate | |
| 3.58 | % | |
| 3.53 | % |
|
| FAIR VALUE, ASSETS MEASURED ON RECURRING BASIS, UNOBSERVABLE INPUT RECONCILIATION |
The
following table represents the change in the Aviation asset option for the twelve months ended, December 31, 2025:
FAIR VALUE, ASSETS MEASURED ON RECURRING BASIS, UNOBSERVABLE INPUT RECONCILIATION
| | |
Aviation asset option | |
| Balance at December 31, 2024 | |
$ | — | |
| Additions | |
| — | |
| Change in fair value | |
| 324 | |
| Balance at December 31, 2025 | |
$ | 324 | |
|
| SCHEDULE OF FAIR VALUE OF THE AVIATION |
The
Company measured fair value of the aviation asset option using a Black-Scholes model with the following assumption:
SCHEDULE
OF FAIR VALUE OF THE AVIATION
| | |
As of
December 31, 2025 | |
| Strike price | |
| 2,000,000 | |
| Expected term | |
| 0.67 | |
| Expected volatility | |
| 88.44 | % |
| Risk fee rate | |
| 3.49 | % |
| Dividend | |
| 0.00 | % |
|
| SCHEDULE OF DISAGGREGATION OF REVENUE |
The
Company generated revenue during the twelve months ended December 31, 2025 and 2024, broken down as follows, in thousands:
SCHEDULE OF DISAGGREGATION OF REVENUE
| | |
2025 | | |
2024 | |
| | |
Twelve Months Ended December 31, | |
| | |
2025 | | |
2024 | |
| Aircraft sales | |
$ | 77,100 | | |
$ | 38,150 | |
| Subscription | |
| 1,459 | | |
| 914 | |
| Total | |
$ | 78,559 | | |
$ | 39,064 | |
|
| SCHEDULE OF CHANGES IN DEFERRED REVENUE |
The
following table provides a rollforward of deferred revenue, recorded in customer deposits and deferred revenue in the consolidated balance
sheets, for the twelve months ended December 31, 2025: SCHEDULE OF CHANGES IN DEFERRED REVENUE
| | |
Amount | |
| Balance as of December 31, 2024 | |
$ | 696 | |
| Revenue recognized | |
| (1,459 | ) |
| Revenue deferred | |
| 3,485 | |
| Balance as of December 31, 2025 | |
$ | 2,722 | |
|
| SCHEDULE OF RELATED AMORTIZATION EXPENSES |
The
following tables present the asset balances and related amortization expense for the contract assets:
SCHEDULE
OF RELATED AMORTIZATION EXPENSES
| | |
Contract assets | | |
Amount Capitalized | | |
Amortization | | |
Contract assets | |
| | |
As of and for the twelve months ended December 31, 2025 | |
| | |
Beginning Balance | | |
Amount Capitalized | | |
Amortization | | |
Ending Balance | |
| Contract assets | |
$ | — | | |
$ | 935 | | |
$ | (299 | ) | |
$ | 636 | |
|