BALANCE SHEET COMPONENTS

9 Months Ended

Sep. 30, 2024

Balance Sheet Related Disclosures [Abstract]

NOTE 4. BALANCE SHEET COMPONENTS

Inventories, Net

Inventories, net as of September 30, 2024 and December 31, 2023 consisted of the following:


	September 30, 2024			December 31, 2023
Raw materials and supplies	$	1,913,013		$	1,973,634
Work-in-process		161,137			158,346
Finished goods		613,789			457,752
Inventories, gross		2,687,939			2,589,732
Less: inventory reserve		(1,161,469	)		(1,133,457	)
Inventories, net	$	1,526,470		$	1,456,275

The Company did not record any lower of cost or net realizable value charges during the three months ended September 30, 2024 and 2023, The Company recorded lower of cost or net realizable value charges of $28,012 and nil during the nine months ended September 30, 2024 and 2023, respectively.

Property and Equipment, Net

Property and equipment, net as of September 30, 2024 and December 31, 2023 consisted of the following:


	September 30, 2024			December 31, 2023
Machinery and equipment	$	7,311,625		$	7,179,629
Leasehold improvements		897,948			897,948
Furniture and office equipment		205,897			205,897
Computer equipment and software		197,386			197,386
Property and equipment, gross		8,612,856			8,480,860
Less: accumulated depreciation and amortization		(3,475,821	)		(2,829,884	)
Property and equipment, net	$	5,137,035		$	5,650,976

Depreciation and amortization expense related to property and equipment was $206,718 and $144,955 during the three months ended September 30, 2024 and 2023, respectively, and $596,256 and $369,971 during the nine months ended September 30, 2024 and 2023, respectively.

Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets as of September 30, 2024 and December 31, 2023 consisted of the following:


	September 30, 2024		December 31, 2023
Prepaid insurance	$	488,523	$	61,342
Other prepaid assets		34,074		94,653
Other current assets		4,464		260
Total prepaid expenses and other current assets	$	527,061	$	156,255

Accrued Liabilities

Accrued liabilities as of September 30, 2024 and December 31, 2023 consisted of the following:


	September 30, 2024		December 31, 2023
Accrued payroll and related benefits	$	403,574	$	754,904
Accrued legal, accounting and professional fees		2,500,983		838,865
Accrued transaction costs related to the reverse recapitalization		503,600		503,600
Accrued taxes payable		196,842		89,346
Accrued interest		625,599		337,913
Other		212,581		225,677
Total accrued expenses	$	4,443,179	$	2,750,305