Balance Sheet Components

Property and equipment, net (in thousands):


	June 30, 2026		December 31, 2025
Machinery and equipment	$	2,333	$	1,825
Tooling	3		3
Construction in progress	1,142		—
Furniture and fixtures	265		114
Leasehold improvements	309		280
	4,052		2,222
Less: Accumulated depreciation	(1,600)		(1,616)
Property and equipment, net	2,452		606

Depreciation expense for property and equipment for the three months ended June 30, 2026 and 2025 were approximately of $80,000 and $26,000, respectively. Depreciation expense for the six months ended June 30, 2026 and 2025 were approximately $154,000 and $38,000, respectively.

Intangible assets, net consisted of the following at June 30, 2026.


	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Patents	$	99,202	$	(14,129)	$	85,073
Trade names and trademarks	3,457		(473)		2,984
Customer relationships	9,240		(936)		8,304
Internal use technology	4,862		(988)		3,874
	$	116,761	$	(16,526)	$	100,235

As of June 30, 2026, the future amortization of the intangibles acquired is as follows:


2026 remainder	$	6,501
2027	13,001
2028	13,001
2029	12,023
2030	11,615
2031	10,813
Thereafter	33,281
	$	100,235

The Company recognized amortization expense related to intangibles of $3.2 million and $2.5 million for the three months ended June 30, 2026 and 2025, respectively. The Company recognized amortization expense related to intangibles of $6.3 million and $4.8 million for the six months ended June 30, 2026 and 2025, respectively.

In March 2026 and June 2026, the Company entered into promissory note agreements with NYIAX, Inc. (“NYIAX”), pursuant to which the Company advanced $0.4 million and $1.5 million, respectively, for aggregate advances of $1.9 million. Each note bears interest at an annual rate of 5% and matured on the earlier of (i) June 9, 2026 (in the case of the March note) or June 30, 2026 (in the case of the June note) or (ii) the closing of a merger among NYIAX, the Company, and DVLT Merger Sub Inc. The notes are unsecured and may be prepaid without penalty. The notes contains customary events of default, including nonpayment, covenant breaches, insolvency events, and certain change-in-control transactions. Upon an event of default, the outstanding balance may become immediately due and payable, and a default penalty of 6% per month may accrue. As of June 30, 2026, neither note had been repaid at maturity and both are therefore in default. The Company does not intend to seek remedy for the default at this time. The aggregate outstanding principal balance of $1.9 million is immediately due and payable, and the default penalty rate of 6% per month has begun to accrue. The default penalties are de minimis and not accrued for as of June 30, 2026. The Company evaluates collectability of the note and records an allowance for credit losses, if necessary. As of June 30, 2026, no allowance for credit losses was recorded.

Accrued liabilities (in thousands):


	June 30, 2026		December 31, 2025
Accrued compensation	$	3,118	$	3,448
Accrued vacation	788		459
Accrued audit fees	80		332
Accrued escrow liability	2,550		2,550
Accrued interest	—		210
Accrued lease liability, current portion	967		640
Accrued legal fees	1,329		—
Accrued royalty payable to related party	814		810
Accrued other	622		670
Customer advances	1,281		1,883
Total accrued liabilities	$	11,549	$	11,002