Aptera Motors Corp
For the period ended Jun 30, 2026. Filed Aug 12, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 12, 2026
SEV$2.11+8.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-13.
0001493152-26-022732
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-12.
0001493152-26-037373
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 62 previous paragraphs and 76 current paragraphs.
39 unchanged; 19 reworded; 16 added; 4 removed; 0 previous and 2 current paragraphs rearranged.
Tables are not compared: 4 previous and 6 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (16)
Current report
Subsequent to quarter-end, on July 13, 2026, the Company closed a warrant inducement transaction that generated approximately $6.0 million in gross cash proceeds and resulted in the issuance of 4,320,000 new warrants at an exercise price of $2.25 per share, subject to a six-month lock-up before becoming exercisable. The additional 4,320,000 warrants issued in the July 2026 inducement transaction, if fully exercised for cash, would generate approximately $9.7 million in additional gross proceeds beginning in approximately January 2027. This transaction, together with the Company’s continued access to the ELOC facility and the currently exercisable warrants described in Note 7, are the key sources of near-term and medium-term liquidity that we are relying upon in our evaluation of the Company’s ability to continue as a going concern.
Current report
During the second quarter of 2026, we achieved several key operational and regulatory milestones. In May 2026, we drove the first five validation vehicles off our newly established low-volume validation assembly line at our Carlsbad facility. In June 2026, during real-world validation testing, our solar electric vehicle achieved more than 4 kilowatt-hours of daily solar generation, exceeding our internal solar charging targets. Additionally, on June 18, 2026, we received a Certificate of Conformity from the U.S. Environmental Protection Agency for the 2026 Aptera Launch Edition, one of the two primary federal certifications required before a vehicle can be legally sold in the United States. With the Certificate of Conformity in hand, the remaining federal requirement that must be satisfied before we can begin customer deliveries is compliance with the Federal Motor Vehicle Safety Standards, which we are working to demonstrate using vehicles built on our low-volume validation assembly line.
Current report
The decrease in selling, general and administrative expenses was primarily driven by a $3.6 million net reduction in stock-based compensation, consisting of a $2.4 million decrease in equity-based advisory fees issued to non-employees and a $1.2 million decrease in employee share-based compensation. Sales and marketing expenses declined $0.3 million as marketing activities were reduced following the October 2025 direct listing. Legal expenses declined $0.5 million compared to the 2025 period, which contained higher fees related to the Zaptera intellectual property claim and other non-recurring matters.
Current report
These decreases were partially offset by approximately $0.2 million of higher costs associated with operating as a publicly traded company, including directors’ and officers’ liability insurance premiums, investor relations and transfer agent fees.
Current report
The increase in research and development expenses was primarily driven by a $3.6 million increase in engineering, design, and development expenses, driven by a $1.1 million increase in cash personnel costs from strategic engineering headcount additions and, more significantly, a $1.8 million increase in outside consulting services engaged to support our vehicle build, testing, and validation program, a $0.3 million increase in parts, materials, and supplies for the validation vehicle build, and approximately $0.3 million of other engineering-related operating cost increases. These increases were partially offset by a $2.4 million decrease in stock-based compensation expense, consisting of a $1.9 million reduction in employee share-based compensation and a $0.4 million favorable out-of-period adjustment related to the correction described in Note 2.
Current report
General, Selling and Administrative Expenses
Current report
These decreases were partially offset by approximately $0.6 million of higher costs associated with operating as a publicly traded company, including directors’ and officers’ liability insurance premiums, investor relations and transfer agent fees.
Current report
Research and Development Expenses
Current report
The change in research and development expenses for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 was primarily driven by a $5.0 million increase in engineering, design and development expenses, reflecting a $1.8 million increase in cash personnel costs from strategic engineering headcount additions, a $2.1 million increase in outside consulting services engaged to support our vehicle build, testing, and validation program, a $0.5 million increase in parts, materials, and supplies for the validation vehicle build, and approximately $0.6 million of other engineering-related operating cost increases, including recruiting, engineering software, and freight expenses.
Current report
These increases were partially offset by a $1.2 million decrease in stock-based compensation expense, consisting of a $0.7 million reduction in employee share-based compensation and a $0.4 million favorable out-of-period adjustment related to the correction described in Note 2. Depreciation expense also increased $0.1 million as additional production tooling and equipment were placed in service during the period.
Current report
Other Income
Current report
Other income was $0.4 million for the six months ended June 30, 2026, compared to $2.1 million for the six months ended June 30, 2025. The change of $1.7 million was primarily due to lower California Energy Commission grant reimbursement income and reduced interest income.
Current report
Net Loss
Current report
Subsequent to quarter-end, on July 13, 2026, the Company closed a warrant inducement transaction that generated approximately $6.0 million in gross cash proceeds and resulted in the issuance of 4,320,000 new warrants at an exercise price of $2.25 per share, subject to a six-month lock-up before becoming exercisable. The additional 4.3 million warrants issued in the July 2026 inducement transaction, if fully exercised for cash, would generate approximately $9.7 million in additional gross proceeds beginning in approximately January 2027. This transaction, together with the Company’s continued access to the ELOC facility and the currently exercisable warrants described in Note 7, are the key sources of near-term and medium-term liquidity that we are relying upon in our evaluation of the Company’s ability to continue as a going concern. There can be no assurance that holders of the outstanding warrants will elect to exercise for cash or that the Company will be able to draw down sufficient amounts under the ELOC.
Current report
As of June 30, 2026, approximately 5.2 million of the Company’s outstanding warrants sold to investors carried exercise prices that, if fully exercised for cash, would have generated approximately $17.5 million in additional gross proceeds. Subsequent to quarter-end, on July 13, 2026, the Company entered into the warrant inducement transaction described above. Following that transaction, the Company had approximately 6.6 million warrants outstanding attributable to equity financings, which if exercised, would generate approximately $17.1 million in additional gross proceeds.
Current report
As of June 30, 2026 and the date of this Quarterly Report, the warrants to purchase up to 210,000 shares of Class B Common Stock have been issued and are reflected in the warrant activity table above. However, the 105,000 shares of Class B Common Stock have not yet been issued, pending Zaptera’s designation of a recipient and the establishment of a brokerage account capable of receiving the shares by the Company’s transfer agent. Accordingly, the 105,000 shares are not reflected in the Company’s issued and outstanding share count as of June 30, 2026.
Removed paragraphs (4)
Previous report
These decreases were partially offset by a $0.4 million increase in costs associated with our transition to a publicly traded company, including compliance and directors’ and officers’ liability insurance premiums. Furthermore, legal expenses increased by $0.3 million, primarily associated with the accrued expenses from the April 2026 settlement of the Zaptera intellectual property matter and costs related to the ongoing SEC matter*(see Part II, Item 1. Legal Proceedings)*.
Previous report
The increase in research and development expenses was primarily driven by higher stock-based compensation expense, which increased $1.2 million. We strategically used equity-based compensation—including stock-settled bonus payments and long-term restricted stock unit (RSU) awards—in lieu of cash, designed to preserve our capital liquidity while remaining highly competitive in talent acquisition and retention.
Previous report
Other engineering, design, and development expenses accounted for the remainder of the variance. This was primarily driven by a $0.7 million increase in cash personnel costs resulting from strategic engineering headcount additions to support our vehicle validation and production program. Additionally, materials and supplies expense related to validation testing increased by $0.5 million, alongside a $0.2 million aggregate increase in engineering software licenses, computer equipment, and third-party contractors necessary to equip the expanded team. These increases were partially offset by a $0.04 million decrease in prototype tooling expenses, reflecting the maturation of our design phase.
Previous report
As an additional source of potential near-term liquidity, of our total outstanding warrants as of March 31, 2026, approximately 5.2 million are exercisable for cash. If these specific warrants are fully exercised, they would generate up to $17.5 million in additional gross proceeds. This includes 4.75 million warrants issued in connection with our March 2026 inducement transaction which have exercise prices of $3.50. While these warrants represent a meaningful potential cash catalyst, any future proceeds are entirely dependent upon the holders’ discretionary election to exercise, which is inherently tied to the market performance of our Class B common stock.
Reworded paragraphs (19)
Previous wording
This Quarterly Report includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Exchange Act that are not historical facts and involve risks and uncertainties that could cause actual results to differ materially from those expected and projected. All statements, other than statements of historical fact included in this Form 10-Q including, without limitation, statements in this “Management’s Discussion and Analysis of Financial Condition and Results of Operations” regarding the Company’s financial position, business strategy and the plans and objectives of management for future operations, are forward-looking statements. Words such as “expect,” “believe,” “anticipate,” “intend,” “estimate,” “seek” and variations and similar words and expressions are intended to identify such forward-looking statements. Such forward-looking statements relate to future events or future performance, but reflect management’s current beliefs, based on information currently available. A number of factors could cause actual events, performance or results to differ materially from the events, performance and results discussed in the forward-looking statements. For information identifying important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements, please refer to the Risk Factors section of the Company’s annual report on Form 10-K for the year ended December 31, 2025 filed with the U.S. Securities and Exchange Commission (the “SEC”). The Company’s securities filings can be accessed on the EDGAR section of the SEC’s website at www.sec.gov. Except as expressly required by applicable securities law, the Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.
Current wording
This Quarterly Report includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Exchange Act that are not historical facts and involve risks and uncertainties that could cause actual results to differ materially from those expected and projected. All statements, other than statements of historical fact included in this Form 10-Q including, without limitation, statements in this “Management’s Discussion and Analysis of Financial Condition and Results of Operations” regarding the Company’s financial position, business strategy and our plans and objectives for future operations, are forward-looking statements. Words such as “expect,” “believe,” “anticipate,” “intend,” “estimate,” “seek” and variations and similar words and expressions are intended to identify such forward-looking statements. Such forward-looking statements relate to future events or future performance, but reflect our current beliefs, based on information currently available. A number of factors could cause actual events, performance or results to differ materially from the events, performance and results discussed in the forward-looking statements. For information identifying important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements, please refer to the Risk Factors section of the Company’s annual report on Form 10-K for the year ended December 31, 2025 filed with the U.S. Securities and Exchange Commission (the “SEC”). The Company’s securities filings can be accessed on the EDGAR section of the SEC’s website at www.sec.gov. Except as expressly required by applicable securities law, the Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.
Previous wording
The Company has not commenced production or generated any revenue from the sale of its products. The accompanying consolidated financial statements have been prepared assuming the Company will continue as a going concern, which is dependent upon the Company obtaining additional financing and ultimately achieving profitable operations. To that end, in November 2025, we established an equity line of credit (“ELOC”) as a mechanism to incrementally access capital. We successfully utilized this ELOC between mid-November 2025 and January 2026 to raise approximately $3.0 million. Furthermore, during the first quarter of 2026, we successfully raised an aggregate of approximately $17.1 million in gross proceeds, consisting of $9.0 million from a follow-on public offering in January 2026 and an additional $8.1 million from subsequent warrant exercises, including a warrant inducement transaction completed in March 2026. This management’s discussion and analysis discusses the Company’s progress to date, its challenges, and its plans for the future, but should be read in conjunction with the consolidated financial statements and accompanying notes.
Current wording
The Company has not commenced production or generated any revenue from the sale of its products. The accompanying consolidated financial statements have been prepared assuming the Company will continue as a going concern, which is dependent upon the Company obtaining additional financing and ultimately achieving profitable operations. To that end, in October 2025, we established an equity line of credit (“ELOC”) as a mechanism to incrementally access capital. We successfully utilized this ELOC between mid-November 2025 and June 2026 to raise approximately $4.3 million. Furthermore, during the first quarter of 2026, we successfully raised an aggregate of approximately $17.1 million in gross proceeds, consisting of $9.0 million from a follow-on public offering in January 2026 and an additional $8.1 million from subsequent warrant exercises, including a warrant inducement transaction completed in March 2026. This management’s discussion and analysis discusses the Company’s progress to date, its challenges, and its plans for the future, but should be read in conjunction with the consolidated financial statements and accompanying notes.
Previous wording
Aptera was formed as a Delaware corporation on March 4, 2019, and transitioned to a Delaware public benefit corporation in October 2025, for the purpose of engaging in the production of energy-efficient, solar-powered vehicles. We first began accepting $100 reservations for our vehicle in December 2020 and as of March 31, 2026, we had approximately 49,000 reservation holders. We conducted two promotional programs that allowed investors to reserve priority reservations for initial customer vehicles. Under the first program, which ran from January 2023 through January 2024, the initial 2,000 delivery positions were offered through an auction process, resulting in an average investment exceeding $20,000 per position. Under the second program, which was conducted from April to August 2025, an additional 1,000 delivery positions were made available to investors making minimum investments of $5,000. We have not delivered any products to customers and have not recognized any revenue from the sale of vehicles.
Current wording
Aptera was formed as a Delaware corporation on March 4, 2019, and transitioned to a Delaware public benefit corporation in October 2025, for the purpose of engaging in the production of energy-efficient, solar-powered vehicles. We first began accepting $100 reservations for our vehicle in December 2020 and as of June 30, 2026, we had approximately 49,300 reservation holders. We conducted two promotional programs that allowed investors to reserve priority reservations for initial customer vehicles. Under the first program, which ran from January 2023 through January 2024, the initial 2,000 delivery positions were offered through an auction process, resulting in an average investment exceeding $20,000 per position. Under the second program, which was conducted from April to August 2025, an additional 1,000 delivery positions were made available to investors making minimum investments of $5,000. We have not delivered any products to customers and have not recognized any revenue from the sale of vehicles.
Previous wording
Our production timeline has evolved and remains heavily dependent on our ability to secure sufficient capital in substantial tranches. This shift to larger funding rounds is necessary to allow us to place large-scale purchase orders and fulfill supplier commitments for our finalized production tooling. Our production plan for our Carlsbad facility is phased. The initial “low-volume” production phase requires an estimated $45 million to $50 million in capital to fund the remaining necessary tooling and validation programs. Following the initiation of low-volume production, a second phase to ramp to high-volume production (a target rate of approximately 20,000 vehicles per year, which we believe is our current facility’s maximum capacity based on consultations with Munro & Associates) would require an estimated additional $140 million to $160 million. Until the necessary funding for a given production phase is secured, we are unable to predict if and when that phase of production will commence, and our previously anticipated timelines are no longer indicative of our current expectations.
Current wording
Our production timeline has evolved and remains heavily dependent on our ability to secure sufficient capital in substantial tranches. This shift to larger funding rounds is necessary to allow us to place large-scale purchase orders and fulfill supplier commitments for our finalized production tooling. Our production plan for our Carlsbad facility is phased. The initial “low-volume” production phase requires an estimated $40 million to $45 million in capital to fund the remaining necessary tooling and validation programs. Following the initiation of low-volume production, a second phase to ramp to high-volume production (a target rate of approximately 20,000 vehicles per year, which we believe is our current facility’s maximum capacity based on consultations with Munro & Associates) would require an estimated additional $140 million to $160 million. Until the necessary funding for a given production phase is secured, we are unable to predict if and when that phase of production will commence, and our previously anticipated timelines are no longer indicative of our current expectations.
Previous wording
Other income was $0.1 million for the three months ended March 31, 2026, compared to $0.3 million for the three months ended March 31, 2025. The decrease of $0.2 million was primarily due to lower grant reimbursement income from our California Energy Commission grant.
Current wording
Other income was $0.3 million for the three months ended June 30, 2026, compared to $1.8 million for the three months ended June 30, 2025. The change of $1.5 million was primarily due to a decrease in California Energy Commission grant reimbursement income and reduced interest income.
Previous wording
As a result of the foregoing, the Company’s net loss for the three months ended March 31, 2026 was $10.2 million compared to $10.9 million for the three months ended March 31, 2025.
Current wording
As a result of the foregoing, the Company’s net loss for the three months ended June 30, 2026 was $10.9 million compared to $12.1 million for the three months ended June 30, 2025.
Previous wording
The decrease in selling, general and administrative expenses was primarily driven by a $3.9 million net reduction in stock-based compensation. This consisted of a $4.8 million decrease in equity-based advisory fees issued to non-employees, partially offset by a $1.1 million increase in employee share-based compensation. Additionally, advertising and marketing expenditures decreased by $0.3 million, reflecting a targeted reallocation of capital toward vehicle validation and production readiness.
Current wording
The change in selling, general and administrative expenses for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 was primarily driven by a $7.5 million net reduction in stock-based compensation, consisting of a $7.3 million decrease in equity-based advisory fees issued to non-employees and a $0.3 million decrease in employee share-based compensation. Sales and marketing expenses also decreased $0.5 million as marketing activities were reduced following the direct listing in October 2025.
Previous wording
As of March 31, 2026, the Company had $39.0 million in total assets. Our primary source of liquidity at that date was $17.7 million in cash and cash equivalents. We did not have a recognized grant funds receivable balance as of March 31, 2026, as management maintains a full allowance against the remaining $0.7 million balance due to uncertainties regarding the timing of the capital raises required to trigger those reimbursements.
Current wording
As of June 30, 2026, the Company had $32.4 million in total assets. Our primary source of liquidity at that date was $10.1 million in cash and cash equivalents. We did not have a recognized grant funds receivable balance as of June 30, 2026, as we maintain a full allowance against the remaining $0.7 million balance due to uncertainties regarding the timing of the capital raises required to trigger those reimbursements.
Previous wording
Our current baseline operational cash burn rate, covering essential personnel, ongoing regulatory compliance, and fixed costs, is approximately $1.7 to $2.0 million per month. This baseline burn rate remained elevated during the first quarter of 2026 due to significant expenses associated with operating as a publicly traded company, costs related to our Class B common stock offerings, and legal and other professional fees related to the SEC Investigation and the Zaptera settlement. Such costs are difficult to predict with certainty but are expected to continue to be material in the near term.
Current wording
Our current baseline operational cash burn rate, covering essential personnel, ongoing regulatory compliance, and fixed costs, is approximately $2.0 to $2.2 million per month. This baseline burn rate remained elevated during the first half of 2026 due to significant expenses associated with operating as a publicly traded company, costs related to our Class B Common Stock offerings, and legal and other professional fees related to the SEC Investigation and the Zaptera settlement. Such costs are difficult to predict with certainty but are expected to continue to be material in the near term.
Previous wording
Our existing cash and cash equivalents are not sufficient to fund our baseline operations for the next twelve months, nor are they sufficient to advance our vehicle production business plan. These factors continue to raise substantial doubt about our ability to continue as a going concern.
Current wording
Our existing cash and cash equivalents are not sufficient to fund our baseline operations for the next twelve months, nor are they sufficient to advance our vehicle production business plan. These factors continue to raise substantial doubt about our ability to continue as a going concern. After considering the plans described above, we have concluded that substantial doubt about our ability to continue as a going concern has not been alleviated because our plans are dependent on events and conditions that are not within our control, including our ability to raise additional capital on acceptable terms and in amounts sufficient to fund our operating and capital needs.
Previous wording
Management’s plan to address the Company’s liquidity needs and fund operations over the next twelve months relies primarily on accessing capital through the ELOC and potentially through other public market financings.
Current wording
Our plan to address our liquidity needs and fund operations over the next twelve months relies primarily on accessing capital through the ELOC and potentially through other public market financings.
Previous wording
During the three months ended March 31, 2026, net cash used in operating activities was $7.9 million, compared to $3.6 million for the same period in 2025. This increase in operating cash usage was driven not only by the elevated professional fees noted above, but primarily by strategic cash investments in parts, materials, and supplies necessary to advance our vehicle validation and production readiness, as well as a reduction in accounts payable.
Current wording
During the six months ended June 30, 2026, net cash used in operating activities was $15.9 million, compared to $7.1 million for the same period in 2025. This increase in operating cash usage was driven not only by the elevated professional fees noted above, but primarily by strategic cash investments in parts, materials, and supplies necessary to advance our vehicle validation and production readiness, as well as a reduction in accounts payable.
Previous wording
To fund these operations and investments, net cash provided by financing activities was $16.0 million during the first quarter of 2026. This was the result of two key financing transactions. On January 26, 2026, we closed a registered public offering, issuing 4,500,000 units (each consisting of one share of Class B common stock and one accompanying warrant) for gross proceeds of $9.0 million. Furthermore, we received an additional $8.1 million in aggregate gross proceeds from warrant exercises during the quarter, which included a $6.3 million warrant inducement transaction completed in March 2026.
Current wording
To fund these operations and investments, net cash provided by financing activities was $16.7 million during the six months ended June 30, 2026. This was the result of two key financing transactions. On January 26, 2026, we closed a registered public offering, issuing 4,500,000 units (each consisting of one share of Class B Common Stock and one accompanying warrant) for gross proceeds of $9.0 million. Furthermore, we received an additional $8.1 million in aggregate gross proceeds from warrant exercises during the quarter, which included a $6.3 million warrant inducement transaction completed in March 2026. In addition, during the second quarter of 2026, we sold 605,000 shares of Class B Common Stock under our ELOC facility for aggregate net proceeds of approximately $1.3 million. Subsequent to quarter-end, on July 13, 2026, we completed a warrant inducement transaction that generated approximately $6.0 million in gross cash proceeds.
Previous wording
We estimate that we will require an additional $45 million to $50 million to complete vehicle validation and prepare for low-volume production—including increased spending on engineering, validation, testing, production tooling, and the hiring of additional sales, marketing, and administrative personnel. We expect that the associated work would take approximately 12 months to complete from the time such capital is fully secured. While the commencement of the 12 month final production timeline requires securing this capital in substantial tranches, we are proactively deploying current liquidity to procure critical long-lead components and advance validation milestones to compress this timeline where possible. The ELOC provides a potential mechanism to access capital incrementally, subject to the conditions and limitations previously described. Our ability to effectively utilize the ELOC is highly dependent on the trading volume and market price of our Class B common stock.
Current wording
We estimate that we will require an additional $40 million to $45 million to complete vehicle validation and prepare for low-volume production—including increased spending on engineering, validation, testing, production tooling, and the hiring of additional sales, marketing, and administrative personnel. We expect that the associated work would take less than 12 months to complete from the time such capital is fully secured. While the commencement of the final production timeline requires securing this capital in substantial tranches, we are proactively deploying current liquidity to procure critical long-lead components and advance validation milestones to compress this timeline where possible. The ELOC provides a potential mechanism to access capital incrementally, subject to the conditions and limitations previously described. Our ability to effectively utilize the ELOC is highly dependent on the trading volume and market price of our Class B Common Stock.
Previous wording
Our awarded $21.9 million grant from the CEC remains a component of our potential future liquidity. Through March 31, 2026, we have received approximately $3.2 million in cash disbursements. We anticipate receiving further portions of the grant only if we are able to secure sufficient financing to make the eligible expenditures and meet the project milestones.
Current wording
Our awarded $21.9 million grant from the CEC remains a component of our potential future liquidity. Through June 30, 2026, we have received approximately $17.6 million in cash disbursements. We anticipate receiving further portions of the grant only if we are able to secure sufficient financing to make the eligible expenditures and meet the project milestones.
Previous wording
As of March 31, 2026, the Company’s total liabilities were $9.3 million. Major existing liabilities include $2.3 million in accrued liabilities, $4.1 million in unearned reservation fees, and $2.3 million in operating lease liabilities.
Current wording
As of June 30, 2026, the Company’s total liabilities were $8.0 million. Major existing liabilities include $1.1 million in accrued liabilities, $4.1 million in unearned reservation fees, and $1.9 million in operating lease liabilities.
Previous wording
As of March 31, 2026, we leased approximately 77,000 square feet of office, manufacturing and assembly space at our principal facility in Carlsbad, California under an operating lease agreement that expires March 31, 2028. For the three months ended March 31, 2026, we recorded $0.3 million of lease expense.
Current wording
As of June 30, 2026, we leased approximately 77,000 square feet of office, manufacturing and assembly space at our principal facility in Carlsbad, California under an operating lease agreement that expires March 31, 2028. For the six months ended June 30, 2026, we recorded $0.5 million of lease expense.
Previous wording
We regularly enter into purchase obligations with vendors and service providers, which represent expected payments and commitments during the normal course of our business. These purchase obligations are generally cancellable with or without notice and without penalty, although certain vendor agreements provide for cancellation fees or penalties. As of March 31, 2026, we had approximately $2.2 million in open purchase orders.
Current wording
We regularly enter into purchase obligations with vendors and service providers, which represent expected payments and commitments during the normal course of our business. These purchase obligations are generally cancellable with or without notice and without penalty, although certain vendor agreements provide for cancellation fees or penalties. As of June 30, 2026, we had approximately $5.5 million in open purchase orders.
Previous wording
In April 2026, the Company entered into a settlement agreement with Zaptera. Pursuant to the terms of the settlement, the Company agreed to issue 105,000 shares of Class B Common Stock and warrants to purchase up to 210,000 shares of Class B Common Stock, resulting in a recognized litigation settlement charge of approximately $0.6 million. On April 9, 2026, all claims related to the action were dismissed with prejudice.
Current wording
In April 2026, the Company entered into a settlement agreement with Zaptera. Pursuant to the terms of the settlement, the Company agreed to issue 105,000 shares of Class B Common Stock and warrants to purchase up to 210,000 shares of Class B Common Stock, resulting in a recognized litigation settlement charge of approximately $0.6 million during the three months ended March 31, 2026. On April 9, 2026, all claims related to the action were dismissed with prejudice. In April 2026, the Company agreed to issue the shares and warrants in satisfaction of the settlement.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
Comparison of the results of operations for the six months ended June 30, 2026 and June 30, 2025
Current report — wording carried from elsewhere
As a result of the foregoing, the Company’s net loss for the six months ended June 30, 2026 was $21.1 million compared to $22.9 million for the six months ended June 30, 2025.