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PROPERTY AND EQUIPMENT, NET

12 Months Ended

Dec. 31, 2025

NOTE 4 – PROPERTY AND EQUIPMENT, NET

Property and equipment, net consisted of the following (in thousands):

SCHEDULE OF PROPERTY AND EQUIPMENT

	December 31, 2025			December 31, 2024
Leasehold improvements	$	843		$	761
Computers, hardware and software		142			95
Research and development equipment		778			740
Other equipment		2,023			933
Construction in progress		15,684			15,507
Gross Total		19,470			18,036
Less accumulated depreciation and amortization		(1,717	)		(1,151	)
Total property and equipment, net	$	17,753		$	16,885

Impairment of Long-Lived Assets

During the fourth quarter of 2025, the Company identified triggering events, including continued operating losses and the need for substantial additional capital to reach commercial production, which required an evaluation of its long-lived assets for impairment.

The Company performed a recoverability test by comparing the carrying value of its primary asset group—which includes production tooling and construction-in-progress—to the estimated probability-weighted undiscounted future cash flows expected to be generated by the use and eventual disposition of those assets. The realization of these projected cash flows is materially dependent upon the Company’s ability to secure additional financing to complete vehicle validation and commence initial production.

Based on management’s current projections, which assume continued access to capital markets, the estimated undiscounted future cash flows exceeded the carrying value of the asset group. Accordingly, no impairment charge was recognized for the year ended December 31, 2025. However, if the Company is unable to obtain sufficient financing on a timely basis or experiences significant delays in its production timeline, it may be required to recognize material impairment charges in future periods. During the year ended December 31, 2024, the Company recorded a $0.8 million non-cash charge to research and development expenses to impair and abandon construction in progress assets related to an electric motor technology that was replaced in the Company’s production plan.