Annual report [Section 13 and 15(d), not S-K Item 405]

Property and Equipment

v3.26.1
Property and Equipment
 12 Months Ended
Dec. 31, 2025
Property and Equipment [Abstract]  
PROPERTY AND EQUIPMENT

NOTE 5 – PROPERTY AND EQUIPMENT

 

Property and equipment consist of the following:

 

    December 31,  
    2025     2024  
(dollars in thousands)            
Machinery and equipment   $ 9,169     $ 2,489  
Leasehold improvements     5,585       3,612  
Construction in progress     117      
-
  
 Total property and equipment     14,871       6,101  
Less: accumulated depreciation     (4,654 )     (3,514 )
Net property and equipment   $ 10,217     $ 2,587  

Depreciation expense for the years ended December 31, 2025 and 2024 was $946 thousand and $602 thousand, respectively. For the years ended December 31, 2025 and 2024, the Company recognized a loss on disposal of machinery and equipment of $0 thousand and $2 thousand, respectively, which is included in Other income (expense), net in the Company’s Consolidated Statements of Operations. As of December 31, 2025, there was $8.4 million and $32 thousand of net property and equipment located in Israel and Estonia, respectively.

 

In 2024, the Company reclassified $2.29 million of machinery and equipment, net into inventory, as OAS has shifted their focus from service revenue, selling a data subscription service to its customers based on the information collected by their autonomous systems, to product revenue, primarily selling their Optimus System™ and Iron Drone Raider™.