Financial Statement Details

6 Months Ended

Jun. 30, 2026

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Note 5. Financial Statement Details

Inventories, net

The ending balances of “inventories, net” are set forth on the table below:


	As of:
(Amounts in thousands)	June 30, 2026		December 31, 2025
Raw materials	$	6,525	$	6,414
Work in progress	2,111		1,536
Finished goods - manufactured	508		548
Total manufactured inventories	$	9,144	$	8,498

	As of and for the fiscal periods ended
	June 30, 2026		December 31, 2025
Beginning balance - finished goods - resale (1)	$	1,632	$	110
Purchase of finished goods - resale (2)	11,066		33,189
Sale of finished goods - resale	(11,815)		(31,667)
Ending balance - finished goods - resale	$	883	$	1,632
Total inventories	$	10,027	$	10,130

(1) Finished goods - resale is comprised of purchased hardware, primarily servers, for resale or integration with manufactured inventories.

(2) Supplier concentration for “Purchase of finished goods - resale” was concentrated between two suppliers located in China in 2025, and one supplier located in China in 2026.

The Company’s manufactured inventories are produced by a third party contract manufacturer.

Details of the Company’s cost of revenue for the three and six months ended June 30, 2026 and 2025 are set forth below:


(Amounts in thousands)	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Purchased goods - resale	$	11,066	$	440	$	11,815	$	440
Other cost of revenue (1)	1		364		414		691
Total cost of revenue	$	11,067	$	804	$	12,229	$	1,131

(1) “Other cost of revenue” is substantially comprised of the cost of goods for the Company’s manufactured inventory.

Prepaid expenses and other current assets

Prepaid expenses were primarily comprised of vendor deposits for raw materials for manufactured inventories as of June 30, 2026 and December 31, 2025.