5. Balance Sheet Components

Financial Instruments 

Funds in the Company’s investment brokerage account were held in cash equivalents, consisting of a money market account, along with short-term investments consisting of U.S. government treasury bills, which are accounted for as held-to-maturity (“HTM”) securities, and classified as Level 1 in the hierarchy of fair value measurements. HTM securities are carried at amortized cost and, as a result, are not remeasured to fair value on a recurring basis. All of the Company’s short-term investments will mature within one year of  June 30, 2026. The Company does not expect a credit loss for its short-term investments.

Accounts and Other Receivables

As of June 30, 2026 and  December 31, 2025, accounts receivable was $704,985 and $780,132, respectively. The Company’s three largest customers accounted for approximately 64.2%, 20.4% and 14.7% of accounts receivable as of June 30, 2026. 

As of June 30, 2026 and  December 31, 2025, other receivables totaled  $640,471 and $764,081, respectively. Other receivables primarily consist of Employee Retention Credit ("ERC") claims of approximately $0.2 million and $0.6 million related to 2020 and 2021, respectively, reduced by recent collections of $0.2 million during the quarter.

Inventory

Inventory is stated at the lower of cost or net realizable value. Cost is determined using the specific identification method, as each autonomous vehicle is individually serialized and tracked, allowing the Company to identify the specific cost associated with each unit. The specific cost of each vehicle is transferred to deferred costs upon deployment.

As of June 30, 2026 and  December 31, 2025, inventory totaled $1.7 million and $2.0 million, respectively.

Prepaid expenses and other current assets

Prepaid expenses and other current assets are comprised of the following:

Property and Equipment, Net

Property and equipment is comprised of the following: 

Depreciation expense for the three months ended June 30, 2026 and 2025 was $82,563 and $51,856,respectively, and for the six months ended June 30, 2026 and 2025 was $172,423 and $107,678, respectively.

Accounts Payable

Accounts payable includes independent director fees payable of $0 and $42,500 as of  June 30, 2026 and  December 31, 2025, respectively.

Deferred Revenue

Deferred revenue consists primarily of amounts billed to customers for tugger sales and related services for which revenue has not yet been recognized. Revenue is recognized as the Company satisfies its performance obligations in accordance with its revenue recognition policy.

The short-term portion of deferred revenue related to tugger sales totaled $555,368 and $395,348 as of  June 30, 2026 and  December 31, 2025, respectively. The long-term portion of deferred revenue related to tugger sales totaled $1,710,044 and $1,262,667 as of  June 30, 2026 and  December 31, 2025, respectively. 

Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities are comprised of the following: