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Balance Sheet Components

12 Months Ended

Dec. 31, 2025

4. Balance Sheet Components

Financial Instruments

Funds in the Company’s investment brokerage account were held in cash equivalents, consisting of a money market account, along with short-term investments consisting of U.S. government treasury bills, which are accounted for as held-to-maturity (“HTM”) securities, and classified as Level 1 in the hierarchy of fair value measurements. HTM securities are carried at amortized cost and, as a result, are not remeasured to fair value on a recurring basis. All of the Company’s short-term investments will mature within one year of December 31, 2025. The Company does not expect a credit loss for its short-term investments.

	December 31, 2025				December 31, 2024
Financial assets	Level		Amount		Level		Amount
Cash equivalents:
Money market account		1	$	929,165		1	$	23,274,834
Short-term investments:
U.S. government treasury bills		1		33,736,091		1		‒
			$	34,665,255			$	23,274,834

Inventory

Inventory is stated at the lower of cost or net realizable value. Cost is determined using the specific identification method, as each autonomous vehicle is individually serialized and tracked, allowing the Company to identify the specific cost associated with each unit. The specific cost of each vehicle is transferred to deferred costs upon deployment.

As of December 31, 2025 and 2024, inventory totaled $2.0 million and $0.2 million, respectively.

Prepaid expenses and other current assets

Prepaid expenses and other current assets are comprised of the following:

	December 31, 2025		December 31, 2024
Prepaid Expenses	$	668,090	$	303,803
Short-term Deposits		75,006		160,149
Other current assets		775,334		128,138
Total prepaid and expenses and other current assets	$	1,518,430	$	592,090

Property and Equipment, Net

Property and equipment were reclassified to better reflect their appropriate categories within the fixed asset register. These reclassifications did not have a significant impact on the overall asset values or depreciation expense. Property and equipment is comprised of the following:

	December 31,			December 31,
	2025			2024
Automobiles (DMV-registered)	$	28,862		$	128,862
Machinery, tools and equipment		692,459			660,155
Computers and equipment		488,552			389,007
Capitalized software		1,592,092			950,832
Furniture and fixtures		73,494			66,182
Leasehold improvements		175,417			221,977
Testing equipment (Work in Progress)		896,147			687,986
Property and equipment, gross		3,947,023			3,105,001
Less: accumulated depreciation and amortization		(678,827	)		(785,599	)
Total property and equipment, net	$	3,268,196		$	2,319,402

Depreciation expense for the years ended December 31, 2025 and 2024 was $234,909 and $214,494, respectively.

Accounts Payable

Accounts payable includes independent director fees payable of $42,500 and $28,333 as of December 31, 2025 and 2024, respectively.

Deferred Revenue

Deferred revenue consists primarily of amounts billed to customers for tugger sales and related services for which revenue has not yet been recognized. Revenue is recognized as the Company satisfies its performance obligations in accordance with its revenue recognition policy.

As of December 31, 2025 and 2024, deferred revenue related to tugger sales totaled $1,658,015 and $769,180, respectively.

Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities are comprised of the following:

	December 31, 2025		December 31, 2024
Credit card payable	$	16,169	$	2,050
Accrued expenses		563,770		788,948
Accrued payroll		2,035,795		1,314,038
Total accrued expenses and other current liabilities	$	2,615,734	$	2,105,036