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| Debt | Note 15 – Debt The debt balances presented on the condensed consolidated balance sheets consist of deferred consideration of $6,250,000 and notes payable of $1,676,361 as of June 30, 2026. As of December 31, 2025, deferred consideration was $6,250,000 and notes payable were $2,027,184. Deferred Consideration In connection with the acquisition of Grid AI Corp., the Company recognized deferred consideration payable of $7,000,000 as part of the purchase consideration. During the year ended December 31, 2025, the Company made cash payments of $750,000 toward this obligation. As of June 30, 2026, the outstanding balance was $6,250,000. The deferred consideration is non-interest bearing and is expected to be settled through future cash payments or other negotiated arrangements in accordance with the terms of the acquisition agreement. Notes Payable Notes payable activity during the period ended June 30, 2026:
All outstanding debt was classified as current as of June 30, 2026. Revolving Line of Credit Prior to settlement, the Company had drawn $700,000 under the facility. As of June 30, 2026, no amounts remained outstanding under the revolving loan facility following the May 14, 2026 settlement described below. Promissory Note with Warrants During the period from October 17, 2025 through December 26, 2025, the Company entered into financing arrangements that included promissory notes issued together with warrants to purchase shares of the Company’s common stock. The aggregate principal amount of the notes issued was $2,300,000. The warrants issued in connection with these arrangements were determined to have an aggregate fair value of approximately $1,040,851 at issuance, which was recorded as a debt discount. The notes do not bear stated interest and are accreted to their face value over the term of the instruments using the effective interest method. During the three months ended June 30, 2026, the Company recognized amortization of debt discount of approximately $369,798. For the six months ended June 30, 2026, debt discount amortization was approximately $688,226. Warrants issued in connection with promissory note financing transactions during the six-month period resulted in approximately $336,270 of additional debt discount. After repayments, non-cash settlements and amortization of debt discounts, total notes payable were approximately $1.7 million as of June 30, 2026. The promissory notes are unsecured and mature one year and one day from their respective issuance dates. |
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