v3.26.1
Segment Information
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment Information Segment Information
The Company has three reportable segments: AI Electric Vehicles (“AIEV”), Robotics and AIXC. Our reportable segments are based upon the industries where the Company commercializes its products and services. In the quarter ended March 31, 2026, the Company expanded its strategy of resource allocation beyond electric vehicles and digital assets to include embodied AI (EAI) robotics which will focus in the early stages on humanoid robots with use cases in hospitality, education and data collection. Furthermore, our reportable segments reflect how we report our financial results to the chief operating decision maker ("CODM"). Mr. Yueting Jia serves as the Company’s CODM, who is responsible for reviewing segment performance and making decisions regarding resource allocation. “Loss from operations” is the segment performance measurement that the CODM reviews for the Company’s reportable segments and the Company identified the same measurement as the key measure of “significant segment expense.” Loss from operations is the measure of segment profit or loss that is most consistent with the measurement principles used in measuring the corresponding amounts in the Company’s unaudited condensed consolidated financial statements.
While loss from operations is the primary measure used by the CODM to evaluate performance and allocate resources, the CODM also reviews gross profit for the Robotics segment as an additional performance measure given the segment’s early stage of commercialization and focus on product-level profitability. Gross profit is defined as revenue less cost of revenues. At this time, general and administrative, research and development, and sales and marketing expenses are not allocated to the Robotics segment. Gross profit is not used as the primary measure of segment profit or loss for AIEV or AIXC.
The following table presents revenues, expenditures and loss from operations data of the Company and its reportable segments for the three and six months ended June 30, 2026, and 2025. In 2025, the Company operated as a single segment (AIEV).
Three Months Ended June 30, 2026Three Months Ended June 30, 2025
(in thousands)AIEV
Robotics (1)
AIXCConsolidatedConsolidated
Revenue$(17)$853 $— $836 $54 
Cost of revenues10,894 644 — 11,538 26,912 
Gross (loss) profit(10,911)209 — (10,702)(26,858)
Operating expenses
Research and development4,137 — 6 4,143 5,004 
Sales and marketing1,974 — 86 2,060 1,873 
General and administrative11,437 — 2,868 14,305 14,097 
Loss on disposal of property, plant, and equipment(12)— — (12)276 
Asset impairment on long-lived assets— — — — — 
Impairment of intangible assets, including goodwill3,629 — — 3,629 — 
Credit loss expense - short-term note receivable— — — — — 
Total operating expenses21,165 — 2,960 24,125 21,250 
(Loss) income from operations$(32,076)$209 $(2,960)$(34,827)$(48,108)
Six Months Ended June 30, 2026Six Months Ended June 30, 2025
(in thousands)AIEV
Robotics (1)
AIXCConsolidatedConsolidated
Revenue$207 $1,141 $— $1,348 $370 
Cost of revenues22,640 788 — 23,428 48,293 
Gross (loss) profit(22,433)353 — (22,080)(47,923)
Operating expenses
Research and development11,123 — 10 11,133 11,423 
Settlement on accrued research and development expenses— — — — — 
Sales and marketing6,952 — 724 7,676 4,502 
General and administrative17,084 — 6,416 23,500 27,771 
Loss on disposal of property, plant, and equipment316 — — 316 320 
Asset impairment on long-lived assets— — 183 183 — 
Impairment of intangible assets, including goodwill5,701 — — 5,701 — 
Credit loss expense - short-term note receivable— — 143 143 — 
Total operating expenses41,176 — 7,476 48,652 44,016 
(Loss) income from operations$(63,609)$353 $(7,476)$(70,732)$(91,939)
(1) The Robotics segment is evaluated by the CODM using gross profit as an additional performance measure. General and Administrative, Research and Development, and Sales and Marketing expenses are not allocated to the Robotics segment, as these costs are managed on a consolidated basis and are primarily reflected within the AIEV segment.
Inter-segment transactions are eliminated in consolidation. During the three and six months ended June 30, 2026, inter-segment activity between AIEV and AIXC totaled approximately $0.1 million and $0.6 million and primarily related to transition services provided under a transition services agreement. These amounts were eliminated in consolidation and did not impact consolidated loss from operations.
Additional segment disclosures are as follows:
Three Months Ended June 30, 2026Three Months Ended June 30, 2025
(in thousands)AIEVRoboticsAIXCConsolidatedConsolidated
Depreciation and amortization$8,025 $— $— $8,025 $19,781 
Interest expense$(2,348)$— $— $(2,348)$(812)
Net loss on digital assets
$— $— $(984)$(984)$— 
Six Months Ended June 30, 2026Six Months Ended June 30, 2025
(in thousands)AIEVRoboticsAIXCConsolidatedConsolidated
Depreciation and amortization$16,106 $— $— $16,106 $37,308 
Interest expense$(4,826)$— $— $(4,826)$(3,114)
Net loss on digital assets$— $— $(2,930)$(2,930)$— 
As of
June 30, 2026		As of
December 31, 2025
(in thousands)AIEVRoboticsAIXCConsolidatedConsolidated
Net assets$(4,130)$353 $5,189 $1,412 $7,759