Balance Sheet Components

9 Months Ended

Sep. 30, 2026

4 - BALANCE SHEET COMPONENTS

Inventory

Inventory consists of the following:

	September 30,			December 31,
	2026			2025
Inventory	$	7,796,083		$	7,809,589
Inventory allowance		(1,033,443	)		(904,653	)
Consigned parts		2,748,976			2,748,976
Total	$	9,511,616		$	9,653,912

Prepaid and other current assets

Prepaid and other current assets consists of the following:

	September 30,		December 31,
	2026		2025
Prepaid expenses	$	237,528	$	300,063
Inventory purchase deposit		5,000,000		5,000,000
Production deposit		336,643		336,643
Other current assets		50,174		1,693
Total	$	5,624,345	$	5,638,399

In January 2024, the Company placed an inventory order and paid a $5.0 million deposit against the order. The inventory was to be delivered on or before June 30, 2024. The inventory was not delivered by such date; and as a result, the Company is entitled to a refund of its deposit. The Company was granted a security interest in the purchased inventory. Upon the return of the Company’s down payment, the order will terminate.

Property and Equipment, net

Property and equipment, net consists of the following:

	September 30,			December 31,
	2026			2025
Furniture and fixtures	$	711,296		$	712,153
Computer equipment		363,156			336,385
Leasehold improvements		390,742			390,742
Total property and equipment gross		1,465,194			1,439,280
Less - Accumulated depreciation		(1,406,482	)		(1,347,471	)
Total property and equipment net	$	58,712		$	91,809

Depreciation expense for the three months ended September 30, 2026 and 2025, totaled approximately $18,730 and $29,036, respectively. Depreciation expense for the nine months ended September 30, 2026 and 2025, totaled approximately $60,869 and $106,425, respectively.