Inventories, net as of June 30, 2026 consisted of the following:


	June 30, 2026
Raw materials and supplies	$	125,837
Work-in-process		54,543
Finished goods		65,114
Inventories, gross		245,494
Less: inventory reserve		—
Inventories, net	$	245,494

During the three and six months ended June 30, 2026 and 2025, the Company recorded no charges related to net lower of cost or net realizable value. As of March 31, 2025, in connection with a lease default described below, inventory was written down to a net realizable value of zero through a $1,526,467 loss recorded within loss on impairment of inventories, property and equipment and operating lease right-of-use asset on the condensed consolidated statement of operations for the six months ended June 30, 2025.

Property and equipment, net as of June 30, 2026 consisted of the following:


	June 30, 2026
Machinery and equipment	$	10,078
Computer equipment and software		7,661
Property and equipment, gross		17,739
Less: accumulated depreciation and amortization		(2,483	)
Property and equipment, net	$	15,256

As of March 31, 2025, in connection with the lease default described below, property and equipment was written down through a $4,388,279 loss recorded within loss on impairment of inventories, property and equipment and operating lease right-of-use asset on the condensed consolidated statement of operations for the six months ended June 30, 2025.

Depreciation and amortization expense related to property and equipment was immaterial and nil for the three months ended June 30, 2026 and 2025, respectively, and immaterial and $446,449 for the six months ended June 30, 2026 and 2025, respectively.

Prepaid expenses and other current assets as of June 30, 2026 and December 31, 2025 consisted of the following:


	June 30, 2026		December 31, 2025
Receivables from related parties (1)	$	1,367,194	$	—
Interest receivable (2)		1,128,447		233,498
Prepaid services		325,030		601,415
Prepaid insurance		426,931		154,776
Value-added tax receivable		390,908		—
Deferred financing costs		212,065		—
Prepaid professional fees		81,628		614,225
Prepaid subscriptions		62,429		—
Prepaid regulatory and listing fees		58,200		—
Security deposits		68,683		—
Contract assets (3)		13,160		—
Other prepaid expenses and other current assets		109,455		17,389
Total prepaid expenses and other current assets	$	4,244,130	$	1,621,303

(1) The amount presented as of June 30, 2026 primarily includes amounts receivable from RegTech Open Project PLC ("RegTech"), a United Kingdom company controlled by the Company's Executive Chairman and Co-Chief Executive Officer, and The AvantGarde Group ("TAG"), which is founded and owned by the Company's Executive Chairman and Co-Chief Executive Officer, each of which is considered a related party, of $1,215,942 and $144,414, respectively.

(2) The amount presented as of June 30, 2026 includes interest receivable from related parties in connection with the SYME Convertible Note Receivable and the SYME Bonds of $599,462 and $198,307, respectively.

(3) The amount presented as of June 30, 2026 includes contract assets with RegTech of $13,160.

Accrued expenses as of June 30, 2026 and December 31, 2025 consisted of the following:


	June 30, 2026		December 31, 2025
Related party payables (1)	$	2,337,065	$	—
Accrued legal, accounting and professional fees		1,659,599		1,486,556
Accrued payroll and benefits		1,321,647		699,085
Accrued taxes payable		1,269,422		426,088
Accrued transaction costs related to the reverse recapitalization		503,600		503,600
Contract liabilities		437,043		—
Accrued interest		89,470		114,313
Accrued purchases		53,681		—
Current portion of lease liabilities		41,334		—
Warranty provision		11,394		—
Other		38,395		47,152
Total accrued expenses	$	7,762,650	$	3,276,794

(1) The amount presented as of June 30, 2026 includes amounts payable to RegTech and TAG of $1,539,485 and $797,580, respectively.

The Company leased approximately 27,900 square feet of office space in Centennial, Colorado, with a lease term through June 2025. As of March 31, 2025, the Company was in default under the lease, and the Landlord pursued available remedies in advance of the lease term that expired in June 2025. In April 2025, the Landlord obtained a default judgment against the Company in the amount of $409,278, which accrued interest at a rate of 10% per annum beginning in March 2025 until paid in full.

The Landlord exercised its rights under the lease agreement and applicable law with respect to a lessee in default and such lessee’s assets located on the premises, including the removal and disposal of inventories and property and equipment remaining on the property. As such, during the first quarter of 2025, the Company determined that, based on the assumption that the Landlord would fully exercise its rights with respect to all assets remaining on the premises, (i) it no longer had control over the inventory and that recovery was not probable, therefore,

inventory of $1,526,467 was written down to a net realizable value of zero, (ii) the carrying value of its property and equipment, all of which was at the leased location, was no longer recoverable, and the assets were written down to a net book value of $0 through an impairment of $4,388,279, and (iii) the right-of-use asset associated with this lease was fully impaired, as the Company could no longer use the leased premises, and an impairment of $150,077 was recognized, each of which is recorded within the aggregate $6,064,823 loss on impairment of inventories, property and equipment and operating lease right-of-use asset on the condensed consolidated statement of operations and comprehensive loss for the six months ended June 30, 2025.

Consistent with the Company’s previously disclosed business plan for its future business, the Company does not believe that assets or equipment that remained on this leased property were critical to its new business strategy, given that it will not be conducting full-scale manufacturing or laser design or development that would involve the prior patent portfolio, which was transferred to its former secured lenders.

In July 2025, the Company entered into a court-approved claims settlement (the “Silverback Claims Settlement”) with Silverback Capital Corporation (“Silverback”) pursuant to Section 3(a)(10) of the Securities Act, under which certain outstanding vendor liabilities were exchanged for shares of Common Stock. The arrangement concluded in October 2025, at which time the parties agreed to settle all remaining obligations through the issuance of shares of Common Stock.