v3.26.1
Segment Information
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment Information

 

10. Segment Information

 

The Company reports segment information based on the “management” approach. The management approach designates the internal reporting used by management for making decisions and assessing performance as the source of the Company’s reportable segments. The Company’s chief operating decision maker has been identified as the chief executive officer. The Company periodically reevaluates its reportable and operating segments. The Company manages its business primarily based upon four operating segments: Avionics, Drones, Electric Air Mobility and Training. In accordance with the segment reporting accounting standard, the Company evaluated the economic similarity of its operating segments and determined that each of these operating segments represents a reportable segment.

 

● Avionics: This segment develops, manufactures, and sells avionics and GPS (“Global Positioning System”) sensors for general aviation (“GA”), unmanned aircraft systems (“UAS”) and eVTOL applications. The Company’s avionics products are focused on GA aftermarket, original equipment manufacturer (“OEM”) display, integration and connected panel solutions.
   
● Drones: This segment offers direct operation of drones and drone systems, provision of drone-derived information, and the development of drone-optimized communication services. Additionally, it consists of development and commercialization of market leading mini unmanned aircraft systems (“mUAS”) for professional users, primarily in the defense and security markets. The mUAS includes internally developed software, hardware, and mechanical system components. Operations cover sourcing, manufacturing, assembly, quality assurance testing activities and logistics.
   
● Electric Air Mobility: This segment is designing and developing dual-use electric and hybrid-electric compound rotorcraft aircraft, with a near-term focus on cargo-configured and multi-role autonomous platforms supporting middle-mile logistics, tactical resupply, emergency medical delivery, law enforcement, intelligence, surveillance and reconnaissance (“ISR”), and other commercial and government missions.
   
● Training: This segment provides and operates military aircraft for U.S. military services and Department of War (“DoW”) (formerly referred to as the U.S. Department of Defense) contractors. Segment revenues are earned from (1) flying training missions as part of armed forces training groups, and (2) providing aircraft and support services to DoW contractors.

 

The Company evaluates the performance of its reportable segments based on the net income (loss) for each reporting segment. The following table presents the reconciliations of the reportable segment total revenues to the condensed consolidated revenues and the reportable segment total net income (loss) to the condensed consolidated net loss for the periods indicated:

 

                     
   Three months ended June 30, 2026 
(In thousands)  Avionics   Drones   Electric Air Mobility   Training   Total 
Revenue  $1,431   $41,012   $-   $737   $43,180 
Cost of revenue   1,005    13,890    -    598    15,493 
Gross profit   426    27,122    -    139    27,687 
Research and development   552    4,366    2,549    -    7,467 
Sales and marketing   447    1,405    -    496    2,348 
General and administrative   385    4,327    583    1,188    6,483 
Interest expense   -    7    -    18    25 
Interest income   -    (17)   -    -    (17)
Other expense, net   12    13    -    -    25 
Income tax expense   -    4,062   -    -    4,062
Segment (loss) income  $(970)  $12,959   $(3,132)  $(1,563)   7,294 
Unallocated amounts:                         
Corporate expenses                       9,735 
                        - 
                        - 
Interest income, net                       (216)
Other income, net                       (231)
Net loss                      $(1,994)

 

 

(In thousands)  Avionics   Drones   Electric Air Mobility   Training   Total 
   Three months ended June 30, 2025 
(In thousands)  Avionics   Drones   Electric Air Mobility   Training   Total 
Revenue  $1,527   $21,969   $-   $1,054   $24,550 
Cost of revenue   958    7,900    -    658    9,516 
Gross profit   569    14,069    -    396    15,034 
Research and development   199    2,062    1,840    -    4,101 
Sales and marketing   341    921    -    496    1,758 
General and administrative   2,124    1,748    215    10,660    14,747 
Interest expense   4    50    -    79    133 
Interest income   -    (27)   -    -    (27)
Gain on extinguishment of debt, net   (13,091)   -    -    -    (13,091)
Other expense (income), net   627    (197)   (16,790)   (1,878)   (18,238)
Income tax expense   -    2,057    -    -    2,057 
Segment income (loss)  $10,365   $7,455   $14,735   $(8,961)   23,594 
Unallocated amounts:                         
Corporate expenses                       14,117 
Interest expense, net                       7,904 
Gain on extinguishment of debt, net                       (2,468)
Other income, net                       (1,830)
Net income                      $5,871 

 

(In thousands)  Avionics   Drones   Electric Air Mobility   Training   Total 
   Six months ended June 30, 2026 
(In thousands)  Avionics   Drones   Electric Air Mobility   Training   Total 
Revenue  $3,136   $47,544   $-   $1,401   $52,081 
Cost of revenue   2,276    18,493    -    1,260    22,029 
Gross profit   860    29,051    -    141    30,052 
Research and development   1,260    8,169    4,742    -    14,171 
Sales and marketing   730    2,597    -    993    4,320 
General and administrative   1,108    8,428    954    2,190    12,680 
Interest expense   -    8    -    34    42 
Interest income   -    (81)   -    -    (81)
Other expense (income), net   12    33    (6)   71    110 
Income tax expense   -    2,417    -    -    2,417 
Segment (loss) income  $(2,250)  $7,480   $(5,690)  $(3,147)   (3,607)
Unallocated amounts:                         
Corporate expenses                       14,385 
Interest income, net                       (545)
Other expense, net                       - 
Income tax expense                       - 
Net loss                      $(17,447)

 

(In thousands)  Avionics   Drones   Electric Air Mobility   Training   Total 
   Six months ended June 30, 2025 
(In thousands)  Avionics   Drones   Electric Air Mobility   Training   Total 
Revenue  $3,776   $30,452   $-   $2,117   $36,345 
Cost of revenue   2,149    10,555    -    1,674    14,378 
Gross profit   1,627    19,897    -    443    21,967 
Research and development   444    3,608    3,715    -    7,767 
Sales and marketing   615    1,584    -    992    3,191 
General and administrative   2,531    4,010    492    11,417    18,450 
Interest expense   20    158    -    146    324 
Interest income   -    (115)   -    -    (115)
Gain on extinguishment of debt, net   (13,091)   -    -    -    (13,091)
Other expense (income), net   628    (281)   (18,573)   (2,680)   (20,906)
Income tax expense   -    2,344    -    -    2,344 
Segment income (loss)  $10,480   $8,589   $14,366   $(9,432)   24,003 
Unallocated amounts:                         
Corporate expenses                       15,329 
Interest expense, net                       9,068 
Gain on extinguishment of debt, net                       (2,468)
Other income, net                       (1,824)
Net income                      $3,898 

 

 

The following table presents revenue by geographic area for the periods indicated:

 

(In thousands)  Avionics   Drones  

Electric Air

Mobility

   Training   Total 
   Three months ended June 30, 2026 
(In thousands)  Avionics   Drones  

Electric Air

Mobility

   Training   Total 
United States  $973   $-   $     -   $737   $1,710 
Europe   242    40,943    -    -    41,185 
Other   216    69    -    -    285 
Revenue  $1,431   $41,012   $-   $737   $43,180 

 

(In thousands)  Avionics   Drones  

Electric Air

Mobility

   Training   Total 
   Three months ended June 30, 2025 
(In thousands)  Avionics   Drones  

Electric Air

Mobility

   Training   Total 
United States  $914   $1   $     -   $1,054   $1,969 
Europe   423    21,968    -    -    22,391 
Other   190    -    -    -    190 
Revenue  $1,527   $21,969   $-   $1,054   $24,550 

 

(In thousands)  Avionics   Drones  

Electric Air

Mobility

   Training   Total 
   Six months ended June 30, 2026 
(In thousands)  Avionics   Drones  

Electric Air

Mobility

   Training   Total 
United States  $1,983   $1   $      -   $1,401   $3,385 
Europe   780    47,205    -    -    47,985 
Other   373    338    -    -    711 
Revenue  $3,136   $47,544   $-   $1,401   $52,081 

 

(In thousands)  Avionics   Drones  

Electric Air

Mobility

   Training   Total 
   Six months ended June 30, 2025 
(In thousands)  Avionics   Drones  

Electric Air

Mobility

   Training   Total 
United States  $2,308   $33   $      -   $2,117   $4,458 
Europe   920    30,419    -    -    31,339 
Other   548    -    -    -    548 
Revenue  $3,776   $30,452   $-   $2,117   $36,345 

 

The following table presents revenue by products and services for the periods indicated:

 

(In thousands)  Avionics   Drones  

Electric Air

Mobility

   Training   Total 
   Three months ended June 30, 2026 
(In thousands)  Avionics   Drones  

Electric Air

Mobility

   Training   Total 
Products  $1,421   $40,137   $      -   $-   $41,558 
Services   10    875    -    737    1,622 
Revenue  $1,431   $41,012   $-   $737   $43,180 

 

(In thousands)  Avionics   Drones  

Electric Air

Mobility

   Training   Total 
   Three months ended June 30, 2025 
(In thousands)  Avionics   Drones  

Electric Air

Mobility

   Training   Total 
Products  $1,524   $20,173   $      -   $586   $22,283 
Services   3    1,796    -    468    2,267 
Revenue  $1,527   $21,969   $-   $1,054   $24,550 

 

 

(In thousands)  Avionics   Drones  

Electric Air

Mobility

   Training   Total 
   Six months ended June 30, 2026 
(In thousands)  Avionics   Drones  

Electric Air

Mobility

   Training   Total 
Products  $3,113   $45,618   $      -   $-   $48,731 
Services   23    1,926    -    1,401    3,350 
Revenue  $3,136   $47,544   $-   $1,401   $52,081 

 

(In thousands)  Avionics   Drones  

Electric Air

Mobility

   Training   Total 
   Six months ended June 30, 2025 
(In thousands)  Avionics   Drones  

Electric Air

Mobility

   Training   Total 
Products  $3,766   $26,851   $       -   $586   $31,203 
Services   10    3,601    -    1,531    5,142 
Revenue  $3,776   $30,452   $-   $2,117   $36,345 

 

The following table presents capital expenditures, depreciation and amortization, stock-based compensation and contingent consideration fair value adjustments for the periods indicated:

 

(In thousands)  Avionics   Drones   Electric Air
Mobility		   Training   Total (1) 
   Three months ended June 30, 2026 
(In thousands)  Avionics   Drones   Electric Air
Mobility		   Training   Total (1) 
Depreciation and amortization  $132   $554   $1,701   $756   $3,143 
Stock-based compensation   8    67    31    5    111 
Capital expenditures   73    2,251    -    66    2,390 

 

  (1) The totals above exclude corporate amounts, including $0.06 million of depreciation and amortization, $1.0 million of stock-based compensation, and $0.05 million of capital expenditures.

 

(In thousands)  Avionics   Drones   Electric Air
Mobility		   Training   Total (1) 
   Three months ended June 30, 2025 
(In thousands)  Avionics   Drones   Electric Air
Mobility		   Training   Total (1) 
Depreciation and amortization  $121   $360   $1,700   $807   $2,988 
Stock-based compensation   1,717    -    41    10,087    11,845 
Contingent consideration fair value adjustments   -    (230)   (15,423)   (1,881)   (17,534)
Capital expenditures   -    463    -    259    722 

 

  (1) The total above excludes corporate amount of $6.8 million in stock-based compensation.

 

(In thousands)  Avionics   Drones   Electric Air
Mobility		   Training   Total (1) 
   Six months ended June 30, 2026 
(In thousands)  Avionics   Drones   Electric Air
Mobility		   Training   Total (1) 
Depreciation and amortization  $260   $1,077   $3,401   $1,514   $6,252 
Stock-based compensation   10    1,304    42    7    1,363 
Capital expenditures   204    2,848    -    1,070    4,122 

 

  (1) The totals above exclude corporate amounts, including $0.08 million of depreciation and amortization, $1.2 million of stock-based compensation, and $0.4 million of capital expenditures.

 

(In thousands)  Avionics   Drones  

Electric Air

Mobility

   Training   Total 
   Six months ended June 30, 2025 
(In thousands)  Avionics   Drones  

Electric Air

Mobility

   Training   Total (1) 
Depreciation and amortization  $244   $868   $3,400   $1,614   $6,126 
Stock-based compensation   1,717    -    166    10,087    11,970 
Contingent consideration fair value adjustments   -    (365)   (17,223)   (2,684)   (20,272)
Capital expenditures   -    808    -    259    1,067 

 

  (1) The total above excludes corporate amount of $6.8 million in stock-based compensation.

 

 

The following table presents tangible long-lived assets by geographic area as of the dates indicated:

 

(In thousands)  Avionics   Drones  

Electric Air

Mobility

   Training   Corporate   Total 
   June 30, 2026 
(In thousands)  Avionics   Drones  

Electric Air

Mobility

   Training   Corporate   Total 
United States  $683   $-   $25   $5,942   $136   $6,786 
Europe   -    5,023    -    -    -    5,023 
Total  $683   $5,023   $25   $5,942   $136   $11,809 

 

(In thousands)  Avionics   Drones  

Electric Air

Mobility

   Training   Corporate   Total 
   December 31, 2025 
(In thousands)  Avionics   Drones  

Electric Air

Mobility

   Training   Corporate   Total 
United States  $544   $-   $3   $5,484   $-   $6,031 
Europe   -    2,955    -    -    -    2,955 
Total  $544   $2,955   $3   $5,484   $-   $8,986 

 

The following table presents the reconciliation of total segment assets to the condensed consolidated amounts as of the dates indicated:

 

   Total Segment assets 
(In thousands)  Avionics   Drones  

Electric Air

Mobility

   Training   Corporate   Total 
June 30, 2026  $4,005   $191,828   $503,088   $28,336   $29,790   $757,047 
December 31, 2025  $3,795   $178,064   $506,214   $30,387   $55,679   $774,139