Quarterly report pursuant to Section 13 or 15(d)

Summary of Significant Accounting Policies (Tables)

v3.23.3
Summary of Significant Accounting Policies (Tables)
 9 Months Ended
Sep. 30, 2023
Accounting Policies [Abstract]  
Schedule of Inventory Inventory consists of the following:
    September 30,
2023		     December 31,
2022		  
Raw Material   $ 2,053,114     $ 2,041,776  
Work in Process     378,416       89,080  
Finished Goods     248,890       142,415  
Less Inventory Reserves     (100,254 )     (100,254 )
Total Inventory, Net   $ 2,580,166     $ 2,173,017  

 
Schedule of Level 3 liabilities that are required to be valued at fair value The following table provides a reconciliation of the beginning and ending balances for the Level 3 government grant liability measured at fair value using significant unobservable inputs:
    Government Grant
Liability		  
Balance as of January 24, 2023   $ 1,783,403  
Net (Gain)/Loss on change in fair value of liability     36,077  
Repayment on liability     (6,576 )
Balance as of March 31, 2023     1,812,904  
Government grant liability assumed from Iron Drone asset purchase     307,122  
Net (Gain)/Loss on change in fair value of liability     (108,458 )
Balance as of June 30, 2023     2,011,568  
Government grant proceeds received, adjusted to fair value     128,803  
Fair value adjustment to government grant liability assumed from Iron Drone asset purchase     48,795  
Net (Gain)/Loss on change in fair value of liability     295,094  
Balance as of September 30, 2023   $ 2,484,260  
Schedule of Disaggregated Revenues The following tables present our disaggregated revenues by type of revenue, timing of revenue, and revenue by country:
    Three months ended
September 30,		     Nine months ended
September 30,		  
    2023     2022     2023     2022  
Type of Revenue                        
Product revenue   $ 2,180,472     $ 101,502     $ 8,880,309     $ 673,184  
Service and subscription revenue     234,236       174,375       1,289,642       318,247  
Development revenue     250,482       356,612       560,194       655,474  
Total revenue   $ 2,665,190     $ 632,489     $ 10,730,145     $ 1,646,905  
    Three months ended
September 30,		     Nine months ended
September 30,		  
    2023     2022     2023     2022  
Timing of Revenue                        
Revenue recognized point in time   $ 2,296,035     $ 251,502     $ 9,818,302     $ 823,184  
Revenue recognized over time     369,155       380,987       911,843       823,721  
Total revenue   $ 2,665,190     $ 632,489     $ 10,730,145     $ 1,646,905  
Schedule of Revenue, Based on Location Services
    Three months ended
September 30,		     Nine months ended
September 30,		  
    2023     2022     2023     2022  
Country of Revenue, based on location services were provided or product was shipped to:                        
United States   $ 2,430,954     $ 632,489     $ 5,081,152     $ 1,646,905  
United Arab Emirates     85,268      
-
       5,320,792      
-
  
Israel     148,968      
-
       328,201      
-
  
Total revenue   $ 2,665,190     $ 632,489     $ 10,730,145     $ 1,646,905  
Schedule of Contract Assets The table below details the activity in our contract assets during the nine months ended September 30, 2023. We did not have any contract assets recorded as of December 31, 2022.
    Nine Months Ended
September 30,
2023		  
Balance at beginning of period   $
           -
  
Contract assets recognized     109,888  
Reclassification to Accounts receivable, net    
-
  
Balance at end of period   $ 109,888  
Schedule of Contract Liabilities The table below details the activity in our contract liabilities during the nine months ended September 30, 2023, and the year ended December 31, 2022.
    Nine Months Ended
September 30,
2023		     Year Ended
December 31,
2022		  
Balance at beginning of period   $ 61,508     $ 512,397  
Additions, net     1,962,112       527,268  
Transfer to revenue     (1,944,612 )     (978,157 )
Balance at end of period   $ 341,018     $ 61,508  
Schedule of Lease Costs Lease Costs
    Three months ended
September 30,		     Nine months ended
September 30,		  
    2023     2022     2023     2022  
Components of total lease costs:                        
Operating lease expense   $ 224,126     $ 287,862     $ 787,833     $ 779,873  
Common area maintenance expense     38,242       41,045       129,348       101,022  
Short-term lease costs (1)     248,494       38,967       548,465       117,064  
Total lease costs   $ 510,862     $ 367,874     $ 1,465,646     $ 997,959  
Schedule of ROU Lease Assets and Lease Liabilities ROU lease assets and lease liabilities for our operating leases were recorded in the unaudited condensed consolidated balance sheet as follows:
    September 30,
2023		     December 31,
2022		  
Assets:            
Operating lease assets   $ 2,661,009     $ 2,930,996  
Total lease assets   $ 2,661,009     $ 2,930,996  
                 
Liabilities:                
Operating lease liabilities, current   $ 564,878     $ 580,593  
Operating lease liabilities, net of current     2,252,884       2,456,315  
Total lease liabilities   $ 2,817,762     $ 3,036,908  
Schedule of Future Lease Payments Future lease payments included in the measurement of lease liabilities on the unaudited condensed consolidated balance sheet as of September 30, 2023, for the following five years and thereafter are as follows:
Years ending December 31,      
2023(3 months)   $ 225,221  
2024     641,913  
2025     559,343  
2026     559,616  
2027     545,250  
Thereafter     752,490  
Total future minimum lease payments   $ 3,283,833  
Less imputed interest     (466,071 )
Total   $ 2,817,762  
Schedule of Other Leases Information Other Leases Information
    Nine Months Ended
September 30,		  
    2023     2022  
Operating cash flows for operating leases   $ 799,305     $ 598,304  
Weighted average remaining lease term (in years) – operating lease     5.13       5.87  
Weighted average discount rate – operating lease     5.76 %     6.00 %
Schedule of Diluted Net Loss Per Share The following potentially dilutive securities for the three months ended September 30, 2023 and 2022 have been excluded from the computation of diluted net loss per share because the effect of their inclusion would have been anti-dilutive.
    Nine months ended
September 30,		  
    2023     2022  
Warrants to purchase Common Stock     12,566,092       1,901,802  
Options to purchase Common Stock     4,845,049       2,462,786  
Potential shares issuable under 2022 Convertible Exchange Notes     29,319,723      
-
  
Potential shares issuable under Additional Notes     28,908,377       -  
Restricted stock units     175,064       1,960,622  
Total potentially dilutive securities     75,814,305       6,325,210