v3.26.1
Segment Reporting
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment Reporting
15.
Segment Reporting

The Company operates as a single reportable segment, which is the provision of autonomous drone swarm software and artificial intelligence solutions, specializing in vendor-agnostic technologies that address critical operational challenges faced by modern military forces. The Company’s chief operating decision maker (“CODM”) is its Chief Executive Officer (Global) (following the management realignment described in Note 16, its President and Chief Executive Officer (U.S.)), who reviews financial information presented on a consolidated basis to assess performance and allocate resources. The CODM uses consolidated net loss, as reported on the Condensed Consolidated Statements of Operations and Comprehensive Loss, as the measure of segment profit or loss.

Other segment items included in consolidated net loss consist primarily of the change in the fair value of the ELOC derivative of $0.3 million for both the three and six months ended June 30, 2026, and other income of $0.2 million and $0.3 million for the three and six months ended June 30, 2026, respectively. Other income consists primarily of foreign exchange gains and losses associated with the Company’s international operations, consulting services provided outside the normal course of operations, grant proceeds from a government entity, and interest earned on cash and cash equivalents held with financial institutions. For the three and six months ended June 30, 2025, other segment items also included a $0.9 million change in the fair value of the SAFE liability. The measure of segment assets reviewed by the CODM is consolidated total assets, as reported on the Condensed Consolidated Balance Sheets.

The following table presents segment revenue, the significant segment expense categories regularly provided to the CODM and other segment items for the periods presented, reconciled to consolidated net loss, which is the measure of segment profit or loss:

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Revenue

 

$

216,413

 

 

$

138,206

 

 

$

236,738

 

 

$

248,910

 

Cost of revenue

 

 

32,816

 

 

 

56,176

 

 

 

72,740

 

 

 

101,718

 

Selling, general and administrative

 

 

5,657,638

 

 

 

277,591

 

 

 

8,662,517

 

 

 

532,872

 

Research and development

 

 

1,805,532

 

 

 

577,256

 

 

 

3,291,614

 

 

 

1,099,454

 

Other segment items

 

 

45,465

 

 

 

854,365

 

 

 

(6,260

)

 

 

836,025

 

Segment net loss

 

$

(7,325,038

)

 

$

(1,627,182

)

 

$

(11,783,873

)

 

$

(2,321,159

)