SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
|
6 Months Ended |
Jun. 30, 2026 |
|---|
| Accounting Policies [Abstract] |
|
| SCHEDULE OF SEGMENT REPORTING IN NET INCOME OR LOSS AND TOTAL ASSETS |
Fixed
assets are stated at cost, less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated
useful lives of the respective assets, which range from three to seven years:
SCHEDULE OF SEGMENT REPORTING IN NET INCOME OR LOSS AND TOTAL ASSETS
| Classification | |
| Life | |
| Machinery and equipment | |
| 3-7 years | |
| Automobiles | |
| 5 years | |
| Computer and office equipment | |
| 5 years | |
| Website development costs | |
| 3 years | |
|
| SCHEDULE OF FAIR VALUE ASSETS MEASURED ON RECURRING BASIS |
The
following table presents balances of the fair value instruments as of June 30, 2026 and December 31, 2025, in thousands:
SCHEDULE OF FAIR VALUE ASSETS MEASURED ON RECURRING BASIS
| | |
Fair Value Measurements as of June 30, 2026 | |
| | |
Quoted Prices in Active Markets
for Identical Assets (Level 1) | | |
Significant Other
Observable Inputs (Level 2) | | |
Significant Unobservable
Inputs (Level 3) | | |
Total | |
| Financial assets: | |
| | | |
| | | |
| | | |
| | |
| Investment in M2i | |
$ | — | | |
$ | 643 | | |
$ | — | | |
$ | 643 | |
| Total financial assets | |
$ | — | | |
$ | 643 | | |
$ | — | | |
$ | 643 | |
| | |
Fair Value Measurements as of December 31, 2025 | |
| | |
Quoted Prices
in Active
Markets for
Identical
Assets (Level 1) | | |
Significant
Other
Observable
Inputs (Level 2) | | |
Significant
Unobservable
Inputs (Level 3) | | |
Total | |
| Financial liabilities: | |
| | | |
| | | |
| | | |
| | |
| Third Tranche Note | |
$ | — | | |
$ | — | | |
$ | 3,148 | | |
$ | 3,148 | |
| Fourth Tranche Note | |
| — | | |
| — | | |
| 1,082 | | |
| 1,082 | |
| Total financial liabilities | |
$ | — | | |
$ | — | | |
$ | 4,230 | | |
$ | 4,230 | |
| | |
| | | |
| | | |
| | | |
| | |
| Financial assets: | |
| | | |
| | | |
| | | |
| | |
| Investment in M2i | |
$ | — | | |
$ | 1,197 | | |
$ | — | | |
$ | 1,197 | |
| Investment in flyExclusive | |
| 1,739 | | |
| — | | |
| — | | |
| 1,739 | |
| Aviation asset option | |
| — | | |
| — | | |
| 324 | | |
| 324 | |
| Total financial assets | |
$ | 1,739 | | |
$ | 1,197 | | |
$ | 324 | | |
$ | 3,260 | |
|
| SCHEDULE OF FAIR VALUE LIABILITIES MEASURED UNOBSERVABLE INPUT |
The
following table presents changes of all convertible notes issued under the 2024 Securities Purchase Agreement (see Note 8) with
significant unobservable inputs (Level 3) for the three and six months ended June 30, 2026, in thousands:
SCHEDULE OF FAIR VALUE LIABILITIES MEASURED UNOBSERVABLE INPUT
| | |
2024 Convertible
Notes | |
| Balance at December 31, 2025 | |
$ | 4,230 | |
| Change in fair value | |
| 60 | |
| Conversions | |
| (4,043 | ) |
| Balance at March 31, 2026 | |
$ | 247 | |
| Change in fair value | |
| 3 | |
| Conversions | |
| (250 | ) |
| Balance at June 30, 2026 | |
$ | — | |
|
| SCHEDULE OF FAIR VALUE MEASUREMENT INPUTS AND VALUATION TECHNIQUES |
The
Company measured the Third Tranche Notes using a Monte Carlo simulation valuation model using the following assumptions:
SCHEDULE OF FAIR VALUE MEASUREMENT INPUTS AND VALUATION TECHNIQUES
| | |
Three and six
months ended
June 30, 2026 | |
| | |
Third Tranche Note | |
| Volume Weighted average stock price (“VWAP”) | |
$ | 0.27 | |
| Simulation Period | |
| 0.28 | |
| Expected Volatility | |
| 144.2 | % |
| Credit risk-adjusted rate | |
| 22.1 | % |
| Risk-free Rate | |
| 3.69 | % |
|
| FAIR VALUE, ASSETS MEASURED ON RECURRING BASIS, UNOBSERVABLE INPUT RECONCILIATION |
The
following table represents the change in the Aviation asset option for the three and six months ended, June 30, 2026, in thousands:
FAIR VALUE, ASSETS MEASURED ON RECURRING BASIS, UNOBSERVABLE INPUT RECONCILIATION
| | |
Aviation asset
option | |
| Balance at December 31, 2025 | |
$ | 324 | |
| Additions | |
| — | |
| Change in fair value | |
| (324 | ) |
| Balance at June 30, 2026 | |
$ | — | |
|
| SCHEDULE OF DISAGGREGATION OF REVENUE |
The
Company generated revenue during the three and six months ended June 30, 2026 and 2025, broken down as follows, in thousands:
SCHEDULE OF DISAGGREGATION OF REVENUE
| | |
2026 | | |
2025 | | |
2026 | | |
2025 | |
| | |
Three Months Ended June 30, | | |
Six Months Ended June 30, | |
| | |
2026 | | |
2025 | | |
2026 | | |
2025 | |
| Aircraft sales | |
$ | — | | |
$ | 24,500 | | |
$ | — | | |
$ | 49,600 | |
| Subscription | |
| 965 | | |
| 355 | | |
| 1,967 | | |
| 738 | |
| Total | |
$ | 965 | | |
$ | 24,855 | | |
$ | 1,967 | | |
$ | 50,338 | |
| | |
| | | |
| | | |
| | | |
| | |
|
| SCHEDULE OF CHANGES IN DEFERRED REVENUE |
SCHEDULE OF CHANGES IN DEFERRED REVENUE
| | |
Amount | |
| Balance as of December 31, 2025 | |
$ | 2,722 | |
| Revenue recognized | |
| (1,797 | ) |
| Revenue deferred | |
| 3,627 | |
| Balance as of June 30, 2026 | |
$ | 4,552 | |
|
| SCHEDULE OF RELATED AMORTIZATION EXPENSES |
The
following tables present the asset balances and related amortization expense for the contract assets:
SCHEDULE OF RELATED AMORTIZATION EXPENSES
| | |
Contract assets | | |
Amount Capitalized | | |
Amortization | | |
Contract assets | |
| | |
As of and for the six months ended June 30, 2026 | |
| | |
Beginning Balance | | |
Amount Capitalized, net | | |
Amortization | | |
Ending Balance | |
| Contract assets | |
$ | 636 | | |
$ | 750 | | |
$ | (546 | ) | |
$ | 840 | |
| | |
Contract assets | | |
Amount Capitalized | | |
Amortization | | |
Contract assets | |
| | |
As of and for the twelve months ended December 31, 2025 | |
| | |
Beginning Balance | | |
Amount Capitalized | | |
Amortization | | |
Ending Balance | |
| Contract assets | |
$ | — | | |
$ | 935 | | |
$ | (299 | ) | |
$ | 636 | |
|