Note 3 - Balance Sheet Accounts

12 Months Ended

Dec. 31, 2025

Supplemental Balance Sheet Disclosures [Text Block]

Note 3 – Balance Sheet Accounts

Accounts Receivable, Net

As of December 31, 2025 and 2024, accounts receivable, net consist of the following:

	*December 31, 2025*			*December 31, 2024*
Accounts receivable	$	3,491,015		$	1,448,935
Less: Allowance for credit losses*		(42,106	)		(16,465	)
Accounts receivable, net	$	3,448,909		$	1,432,470

*	Allowance for credit losses - Accounts receivable, net, represents amounts billed and due from customers. Substantially all accounts receivable on December 31, 2025 are expected to be collected in 2026.

As of December 31, 2025, one customer made up 65.8% of the Company's accounts receivable balance, this balance was received and fully paid as of January 5, 2026.

Customer Concentration

Customers comprising more than 10% of the Company’s total revenue are summarized below:

	*Percent of total revenue for years ended December 31,*
Customers	*2025*			*2024*
Customer A		11.0	%		15.7	%
Customer B		17.0	%		—	%

Inventories, Net

As of December 31, 2025 and 2024, inventories, net consist of the following:

	*December 31,*
	*2025*			*2024*
Raw materials	$	3,788,631		$	3,488,703
Work in process		820,398			912,397
Finished goods		1,522,861			1,527,975
Gross inventories		6,131,890			5,929,075
Less: Provision for obsolescence		(469,506	)		(453,218	)
Inventories, net	$	5,662,384		$	5,475,857

Property and Equipment, Net

Property and Equipment is recorded at cost. Depreciation is computed using the straight-line method over estimated useful lives of three to five years. Expenses for maintenance and repairs are charged to expenses as incurred. Leasehold improvements are amortized on a straight-line basis over the shorter of the remaining lease term, or the estimated useful life of the related asset.

As of December 31, 2025 and 2024, property and equipment, net consist of the following:

	*Estimated Useful Life*		*December 31,*
Type	*(Years)*		*2025*			*2024*
Leasehold improvements		3	$	89,272		$	89,272
Production tools and equipment		5		1,020,815			874,995
Computer and office equipment		3 - 5		377,058			359,113
Furniture		5		60,559			58,880
Drone equipment		3		83,733			130,163
Total property and equipment				1,631,437			1,512,423
Less: Accumulated depreciation				(1,299,619	)		(1,056,831	)
Total property and equipment, net			$	331,818		$	455,592

For the years ended December 31, 2025 and 2024, depreciation expense totaled $243,566 and $345,002, respectively.

For the years ended December 31, 2025 and 2024, depreciation and amortization (see Note 4) expense is classified within the consolidated statements of operations and comprehensive loss as follows:

	*For the Years Ended December 31,*
Type	*2025*		*2024*
General and administrative	$	809,731	$	1,076,081

Accrued Liabilities

As of December 31, 2025 and 2024, accrued liabilities consist of the following:

	*December 31,*
	*2025*		*2024*
Accrued compensation and related liabilities		828,006		569,079
Provision for warranty expense		242,705		258,122
Accrued dividends		948,532		746,666
Accrued professional fees		172,036		652,530
Accrued interest		—		47,123
Other		109,405		87,255
Total accrued liabilities	$	2,300,684	$	2,360,775