Summary of Significant Accounting Policies (Tables)
|
3 Months Ended |
Mar. 31, 2026 |
|---|
| Accounting Policies [Abstract] |
|
| Schedule of Disaggregated Revenue by Timing of Revenue Recognition |
The following table provides
information about disaggregated revenue by timing of revenue recognition:
| | |
For the Three Months Ended | |
| | |
March 31,
2026 | | |
March 31,
2025 | |
| Timing of revenue recognition | |
| | |
| |
| Products and services transferred over time | |
$ | 699,911 | | |
$ | 1,227,191 | |
| Products and services transferred at a point in time | |
| 2,460,274 | | |
| 2,094,294 | |
| Total Revenue | |
$ | 3,160,185 | | |
$ | 3,321,485 | |
|
| Schedule of Net Loss Per Common Share |
Diluted income or loss per common share is computed by dividing net income or loss by the weighted
average number of common shares outstanding.
| | |
Three Months Ended
March 31, | |
| | |
2026 | | |
2025 | |
| | |
| | |
| |
| Net loss | |
$ | (2,600,262 | ) | |
$ | (3,959,440 | ) |
| Weighted average shares outstanding – basic and diluted | |
| 47,902,512 | | |
| 16,312,468 | |
| Net loss per share – basic and diluted | |
$ | (0.05 | ) | |
$ | (0.24 | ) |
| Excluded securities:(1) | |
| | | |
| | |
| Public Warrants | |
| 9,877,432 | | |
| 11,500,000 | |
| Private Warrants | |
| 557,000 | | |
| 557,000 | |
| Bridge Warrants | |
| 173,913 | | |
| 173,913 | |
| Extension Warrants | |
| 26,086 | | |
| 26,086 | |
| September 2024 Warrants | |
| 740,741 | | |
| 740,741 | |
| Quantum Convertible Note, related party (2) | |
| 206,928 | | |
| 1,862,466 | |
| Exchange Note (2) | |
| - | | |
| 827,330 | |
| September 2024 Convertible Note (3) | |
| - | | |
| 1,258,733 | |
| Series A Preferred stock common stock equivalents (4) | |
| 210,850 | | |
| 3,079,000 | |
| Series B Preferred stock common stock equivalents (5) | |
| 1,300,000 | | |
| - | |
| Stock options granted | |
| 803,646 | | |
| 803,646 | |
| Common stock issuance obligation | |
| 51,192 | | |
| 51,192 | |
| March 2025 Convertible Note | |
| - | | |
| 7,543 | |
| Common Stock Warrants | |
| 19,672,130 | | |
| - | |
| (1) | The Company’s dilutive shares have not been included in the computation of diluted net loss per share for the three months ended March 31, 2026, and 2025, as the result would be anti-dilutive. |
| (2) | Includes the interest amount thereon and assumes the floor conversion price of $2.00, was partially converted during the year in 2025. |
| (3) | Fully converted during the year 2025. |
| (4) | Assumes the maximum conversion thereon at the floor conversion price of $2.00, partially converted during the year 2025. | | | | | (5) | Assumes the maximum conversion thereon at the floor conversion price
of $0.65. |
|
| Schedule of Allowance for Credit Losses |
The following table presents
the Company’s allowance for credit losses at March 31, 2026, and December 31, 2025:
| | |
March 31, | | |
December 31, | |
| | |
2026 | | |
2025 | |
| Beginning allowance for credit losses | |
$ | 835,007 | | |
$ | 2,393,033 | |
| Add: Credit loss expense | |
| 355,794 | | |
| 1,029,317 | |
| Less: Accounts receivable write-off included in allowance for credit losses above | |
| (64,985 | ) | |
| (2,587,343 | ) |
| Ending allowance for credit losses | |
$ | 1,125,816 | | |
$ | 835,007 | |
|
| Schedule of Identifiable Intangible Assets Subject to Amortization |
Developed technology and customer relationships are amortized using the straight-line
method over the five-year and ten-year estimated useful lives of the assets, respectively. | | | Estimated | | March 31, | | | December 31, | | | | | Useful Life | | 2026 | | | 2025 | | | Customer relationships | | 10 years | | $ | 2,100,000 | | | $ | 2,100,000 | | | Developed technology | | 5 years | | | 10,000,000 | | | | 10,000,000 | | | Accumulated amortization | | | | | (3,867,500 | ) | | | (3,315,000 | ) | | Intangible assets, net | | | | $ | 8,232,500 | | | $ | 8,785,000 | |
|
| Schedule of Expected Amortization Expense |
Expected amortization expense is as follows:
| Year ending December 31, 2026 (remaining 9 months) | |
$ | 1,657,500 | |
| Year ending December 31, 2027 | |
| 2,210,000 | |
| Year ending December 31, 2028 | |
| 2,210,000 | |
| Year ending December 31, 2029 | |
| 1,210,000 | |
| Year ending December 31, 2030 | |
| 210,000 | |
| Thereafter | |
| 735,000 | |
| Total | |
$ | 8,232,500 | |
|