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BALANCE SHEET COMPONENTS | 6 Months Ended | 12 Months Ended
--- | --- | ---
Jun. 30, 2025 | Dec. 31, 2024
Balance Sheet Related Disclosures [Abstract] |  |
BALANCE SHEET COMPONENTS | NOTE 3. BALANCE SHEET COMPONENTS The Company leased approximately 27,900 square feet of office space in Centennial, Colorado, with a lease term through June 2025. Consistent with the Company’s previously disclosed business plan for its future business, the Company does not believe that assets or equipment that remain on this leased property are critical to its new business strategy, given that it will not be conducting full-scale manufacturing or laser design or development that would involve the prior patent portfolio, which was transferred to its former secured lenders. The Company is pursuing a lease for a replacement facility that is more appropriate for the Company’s new business strategy, which will involve laser development in different verticals and outsourcing of manufacturing and inventory management. However, entering into a new lease and appropriately equipping a new facility is costly and time-consuming and may cause delays in the Company’s progress with respect to the business plan focused on building a stable foundation for its future business. As of March 31, 2025, the Company was in default under the lease, and the Landlord pursued available remedies in advance of the lease term that expired in June 2025. In April 2025, the Landlord obtained a default judgment against the Company in the amount of $409,278, which accrues interest at a rate of 10% per annum beginning in March 2025 until paid in full. The Landlord exercised its rights under the lease agreement and applicable law with respect to a lessee in default and such lessee’s assets located on the premises, including the removal and disposal of inventories and property and equipment remaining on the property. As such, during the first quarter of 2025, the Company determined that, based on the assumption that the Landlord would fully exercise its rights with respect to all assets remaining on the premises, (i) it no longer had control over the inventory and that recovery was not probable, therefore, inventory was written down to a net realizable value of zero, (ii) the carrying value of its property and equipment, all of which was at the leased location, was no longer recoverable, and the assets were written down to a net book value of $0, and (iii) the right-of-use asset associated with this lease was fully impaired, as the Company could no longer use the leased premises, each of which is recorded within loss on impairment of inventories, property and equipment and operating lease right-of-use asset on the condensed consolidated statement of operations for the six months ended June 30, 2025. Inventories, Net Inventories, net as of December 31, 2024 consisted of the following:
|  | December 31, 2024 |
Raw materials and supplies |  | $ | 1,913,013 |
Work-in-process |  |  | 161,137 |
Finished goods |  |  | 613,786 |
Inventories, gross |  |  | 2,687,936 |
Less: inventory reserve |  |  | (1,161,469 | )
Inventories, net |  | $ | 1,526,467 |
As of June 30, 2025, the Company's inventory value was nil, as it no longer had control over the inventory and recovery was not probable. During each of the three and six months ended June 30, 2025 and the three months ended June 30, 2024, the Company recorded lower of cost or net realizable value ch arges of nil. During the six months ended June 30, 2024, the Company recorded lower of cost or net realizable value ch arges of $28,012. During the first half of 2025, in connection with the lease default described above, inventory was written down to a net realizable value of zero through a $1,526,467 loss recorded within loss on impairment of inventories, property and equipment and operating lease right-of-use asset on the condensed consolidated statement of operations for the six months ended June 30, 2025. Property and Equipment, Net Property and equipment, net as of December 31, 2024 consisted of the following:
|  | December 31, 2024 |
Machinery and equipment |  | $ | 7,203,592 |
Leasehold improvements |  |  | 897,948 |
Furniture and office equipment |  |  | 205,897 |
Computer equipment and software |  |  | 197,386 |
Property and equipment, gross |  |  | 8,504,823 |
Less: accumulated depreciation and amortization |  |  | (3,670,094 | )
Property and equipment, net |  | $ | 4,834,729 |
As of June 30, 2025, the Company's property and equipment, net value was nil, as the carrying value of its property and equipment, all of which was at the leased location, was no longer recoverable. Depreciation and amortization expense related to property and equipment was nil and $132,643 during the three months ended June 30, 2025 and 2024, respectively, a nd $446,449 an d $389,538 during the six months ended June 30, 2025 and 2024, respectively. Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets as of June 30, 2025 and December 31, 2024 consisted of the following:
|  | June 30, 2025 |  |  | December 31, 2024 |
Common stock issued for services |  | $ | 709,167 |  |  | $ | — |
Prepaid insurance |  |  | 88,633 |  |  |  | 123,959 |
Other prepaid assets |  |  | 43,174 |  |  |  | 28,521 |
Other current assets (1) |  |  | 178,589 |  |  |  | 10,269 |
Total prepaid expenses and other current assets |  | $ | 1,019,563 |  |  | $ | 162,749 |
(1) Includes $150,000 receivable from Liqueous in connection with the Liqueous Settlement Agreement, as defined and further described in Note 6. Accrued Expenses Accrued expenses as of June 30, 2025 and December 31, 2024 consisted of the following:
|  | June 30, 2025 |  |  | December 31, 2024 |
Accrued legal, accounting and professional fees |  | $ | 3,174,608 |  |  | $ | 2,448,594 |
Accrued TCEI acquisition costs |  |  | 735,127 |  |  |  | — |
Accrued transaction costs related to the reverse recapitalization |  |  | 503,600 |  |  |  | 503,600 |
Accrued lease-related payables |  |  | 409,278 |  |  |  | 54,288 |
Accrued taxes payable |  |  | 339,569 |  |  |  | 357,953 |
Accrued payroll and benefits |  |  | 336,473 |  |  |  | 232,966 |
Accrued interest |  |  | 62,505 |  |  |  | 560,501 |
Other |  |  | 102,056 |  |  |  | 143,293 |
Total accrued expenses |  | $ | 5,663,216 |  |  | $ | 4,301,195 |
| NOTE 4. BALANCE SHEET COMPONENTS Inventories, Net Inventories, net as of December 31, 2024 and 2023 consisted of the following:
|  | Year ended December 31, |
|  | 2024 |  |  | 2023 |
Raw materials and supplies |  | $ | 1,913,013 |  |  | $ | 1,973,634 |
Work-in-process |  |  | 161,137 |  |  |  | 158,346 |
Finished goods |  |  | 613,786 |  |  |  | 457,752 |
Inventories, gross |  |  | 2,687,936 |  |  |  | 2,589,732 |
Less: inventory reserve |  |  | (1,161,469 | ) |  |  | (1,133,457 | )
Inventories, net |  | $ | 1,526,467 |  |  | $ | 1,456,275 |
During the years ended December 31, 2024 and 2023, the Company recorded net adjustments to inventories for LCNRV, obsolescence, or scrap of approximately $28,012 and $640,000, respectively. The adjustment to inventory during the year ended December 31, 2023 was primarily related to fully reserving inventory related to the Company's AO series as it shifted focus to producing the newer BLTM series, offset by scrap adjustments. Property and Equipment, Net Property and equipment, net as of December 31, 2024 and 2023 consisted of the following:
|  | Year ended December 31, |
|  | 2024 |  |  | 2023 |
Machinery and equipment |  | $ | 7,203,592 |  |  | $ | 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 |  |  | 8,504,823 |  |  |  | 8,480,860 |
Less: accumulated depreciation and amortization |  |  | (3,670,094 | ) |  |  | (2,829,884 | )
Property and equipment, net |  | $ | 4,834,729 |  |  | $ | 5,650,976 |
Depreciation and amortization expense related to property and equipment was $790,529 an d $505,898 for the years ended December 31, 2024 and 2023, respectively. Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets as of December 31, 2024 and 2023 consisted of the following:
|  | Year ended December 31, |
|  | 2024 |  |  | 2023 |
Prepaid insurance |  | $ | 123,959 |  |  | $ | 61,342 |
Other prepaid assets |  |  | 28,521 |  |  |  | 94,653 |
Other current assets |  |  | 10,269 |  |  |  | 260 |
Total prepaid expenses and other current assets |  | $ | 162,749 |  |  | $ | 156,255 |
Accrued Expenses Accrued expenses as of December 31, 2024 and 2023 consisted of the following:
|  | Year ended December 31, |
|  | 2024 |  |  | 2023 |
Accrued payroll and related benefits |  | $ | 357,953 |  |  | $ | 754,904 |
Accrued legal, accounting and professional fees |  |  | 2,448,594 |  |  |  | 838,865 |
Accrued transaction costs related to the reverse recapitalization |  |  | 503,600 |  |  |  | 503,600 |
Accrued taxes payable |  |  | 232,966 |  |  |  | 89,346 |
Accrued interest |  |  | 560,501 |  |  |  | 87,265 |
Other |  |  | 197,581 |  |  |  | 225,677 |
Total accrued expenses |  | $ | 4,301,195 |  |  | $ | 2,499,657 |

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