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Supplemental Balance Sheet Information

6 Months Ended

Jun. 30, 2025

Supplemental Balance Sheet Information

Note 2 – Supplemental Balance Sheet Information

Receivables

Contract and other receivables consisted of the following (in ‘000’s):

	June 30, 2025 (unaudited)			December 31, 2024
Contract and other receivables	$	14,018		$	16,210
Allowance for credit losses		(21	)		(7	)
Contracts and other receivables, net	$	13,997		$	16,203

Contract and other receivables, net were $3,527,000 as of December 31, 2023.

Inventories

We state inventories at the lower of cost or net realizable value, using the first-in-first-out-method (in ‘000’s) as follows:

	June 30, 2025 (unaudited)			December 31, 2024
Raw Materials	$	78		$	201
Work in Process		155			120
Finished Goods		14,377			17,373
Reserve		(21	)		(21	)
Inventories, net	$	14,589		$	17,673

Goodwill and Intangible Assets

Goodwill and Intangible Assets consisted of the following (in ‘000’s):

	June 30, 2025 (unaudited)					December 31, 2024
	Gross					Gross
	Carrying		Accumulated			Carrying		Accumulated
	Amount		Amortization			Amount		Amortization
Intangible assets not subject to amortization:
Goodwill	$	780		-		$	780		-
Intangible assets subject to amortization:
Customer relationships	$	906	$	(906	)	$	906	$	(906	)
Acquired software	$	234	$	(234	)	$	234	$	(234	)

Goodwill is attributable to the following reportable segments (in ‘000’s):

	June 30, 2025 (unaudited)		December 31, 2024
Facilities Management unit	$	643	$	643
Systems Integration unit		137		137
Total	$	780	$	780

We recognized no amortization expense related to intangible assets in the three-month or six-month periods ended June 30, 2025 or in the comparable periods of 2024 as all long-lived intangible assets subject to amortization were fully amortized.

Property and Equipment

Property and equipment consisted of the following (in ’000’s):

	Estimated Useful Lives		June 30, 2025 (unaudited)			December 31, 2024
	(years)
Trade equipment	5–10		$	5,680			763
Leasehold improvements	2–10			29,909			2,328
Furniture and fixtures	5-7			277			140
Computer equipment and software		3		554			2,363
Construction in Process		N/A		1,469			6,701
				37,889			12,295
Less accumulated depreciation				(2,601	)		(3,704	)
Property and equipment, net			$	35,288		$	8,591

Depreciation of property and equipment and amortization of leasehold improvements and software totaled $844,000 and $117,000 for the three-month periods ended June 30, 2025 and 2024, respectively. Depreciation of property and equipment and amortization of leasehold improvements and software totaled $1,054,000 and $188,000 for the six-month periods ended June 30, 2025 and 2024, respectively.

The following table presents interest capitalized as property and equipment, as the related debt was used to finance a portion of the capital expenditures (in $000’s):

	Three-Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Capitalized interest	$	107	$	-	$	220	$	-

Other Assets

Other assets, non-current is comprised of the following amounts (in $000’s):

	June 30, 2025 (unaudited)		December 31, 2024
Deposits	$	2,109	$	2,109
Other non-current assets, net		2,459		2,678
Balance at end of year	$	4,568	$	4,787

Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses consisted of the following (in ’000’s):

	June 30, 2025 (unaudited)		December 31, 2024
Accounts payable	$	69,281	$	33,491
Accrued expenses		9,674		17,802
Compensation, benefits and related taxes		2,616		1,774
Other accrued expenses		449		273
Total accounts payable and accrued expenses	$	82,020	$	53,340

Long-Term Debt

Long-term debt consisted of the following (in ’000’s):

	June 30, 2025 (unaudited)			December 31, 2024
Borrowed funds (bank loan; see Note 3)	$	20,000		$	8,667
Deferred debt issuance costs		(459	)		(467	)
Long-term debt, non-current	$	19,541		$	8,200

Amortization of deferred debt issuance costs began in the quarter ended June 30, 2025 once construction was substantially complete. We amortized $8,000 of the deferred financing costs to interest expense during the quarter ended June 30, 2024, with no such amortization in the prior year period.