v3.26.1
REVENUE
 6 Months Ended
Jun. 30, 2026
Revenue from Contract with Customer [Abstract]  
REVENUE

NOTE 9. REVENUE

The Company’s primary revenue-generating activity involves the sale of directed-energy systems, high-powered laser solutions, and integrated defense and security technologies, as well as related installation, support, and service offerings. The Company operates a dual-use business model, serving both defense and commercial markets across Europe and the United States. The Company disaggregates revenue by product and service type, client industry/market, and geographic region, as presented in the tables below.

The following table presents revenue from contracts with customers disaggregated by geography:

 

 

Three months ended June 30,

 

 

Six months ended June 30,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Europe

 

$

520,875

 

 

$

—

 

 

$

919,739

 

 

$

—

 

United States

 

 

4,052

 

 

 

—

 

 

 

12,832

 

 

 

—

 

Total

 

$

524,927

 

 

$

—

 

 

$

932,571

 

 

$

—

 

The following table presents revenue from contracts with customers disaggregated by product and service type:

 

 

Three months ended June 30,

 

 

Six months ended June 30,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Orbit:

 

 

 

 

 

 

 

 

 

 

 

 

SaaS and hosted software subscriptions

 

$

85,661

 

 

$

—

 

 

$

134,160

 

 

$

—

 

Application maintenance services

 

 

19,495

 

 

 

—

 

 

 

38,275

 

 

 

—

 

Total

 

 

105,156

 

 

 

—

 

 

 

172,435

 

 

 

—

 

Lyocon:

 

 

 

 

 

 

 

 

 

 

 

 

Product sales

 

 

380,121

 

 

 

—

 

 

 

697,709

 

 

 

—

 

Professional services revenue

 

 

39,650

 

 

 

—

 

 

 

62,427

 

 

 

—

 

Total

 

 

419,771

 

 

 

—

 

 

 

760,136

 

 

 

—

 

Total revenue

 

$

524,927

 

 

$

—

 

 

$

932,571

 

 

$

—

 

The following table presents revenue from contracts with customers disaggregated by the timing of revenue recognition:

 

 

Three months ended June 30,

 

 

Six months ended June 30,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Revenue recognized at a point in time

 

$

419,771

 

 

$

—

 

 

$

760,136

 

 

$

—

 

Revenue recognized over time

 

 

105,156

 

 

 

—

 

 

 

172,435

 

 

 

—

 

Total

 

$

524,927

 

 

$

—

 

 

$

932,571

 

 

$

—

 

Contract assets represent revenue recognized in excess of billings for which the right to payment is conditional on performance rather than solely on the passage of time, and are reclassified to accounts receivable when the right to consideration becomes unconditional. Contract liabilities consist of customer deposits and amounts billed or collected in advance of revenue recognition, which are recognized as revenue when the related performance obligations are satisfied. Accounts receivable, contract assets, and contract liabilities were as follows on the dates presented:

 

 

Accounts Receivable

 

 

Contract Assets

 

 

Contract Liabilities

 

December 31, 2025

 

 

—

 

 

 

—

 

 

 

—

 

June 30, 2026

 

 

395,003

 

 

 

13,160

 

 

 

494,323

 

 

The increases in accounts receivable, contract assets, and contract liabilities from December 31, 2025 to June 30, 2026 are attributable to the Orbit Change of Control and Lyocon Acquisition, further described in Note 4. The opening balances of accounts receivable, contract assets, and contract liabilities acquired in these business combinations are reflected in the Company’s condensed consolidated balance sheet beginning on the acquisition date.

The contract liability as of December 31, 2025 was nil, and accordingly no revenue was recognized during the six months ended June 30, 2026 from contract liabilities that existed at the beginning of the period. During the six months ended June 30, 2026 and 2025, the Company recognized $217,799 and nil, respectively, of revenue from contract liabilities assumed in the Orbit Change of Control and Lyocon Acquisition on January 15, 2026.

Remaining Performance Obligations

Remaining performance obligations represent the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied, or partially unsatisfied, as of the end of the reporting period. As of June 30, 2026, the aggregate transaction price allocated to unsatisfied performance obligations related to Lyocon revenue was $339,303, which the Company expects to recognize as revenue over the

following three months. As of June 30, 2026, the aggregate transaction price allocated to unsatisfied performance obligations related to Orbit revenue was $572,395, which the Company expects to recognize as revenue through the end of 2027.