BALANCE SHEET COMPONENTS

9 Months Ended

12 Months Ended

Sep. 30, 2024

Dec. 31, 2023

Balance Sheet Related Disclosures [Abstract]

BALANCE SHEET COMPONENTS

NOTE 4. BALANCE SHEET COMPONENTS

Inventories, Net

Inventories, net as of September 30, 2024 and December 31, 2023 consisted of the following:


	September 30, 2024			December 31, 2023
Raw materials and supplies	$	1,913,013		$	1,973,634
Work-in-process		161,137			158,346
Finished goods		613,789			457,752
Inventories, gross		2,687,939			2,589,732
Less: inventory reserve		(1,161,469	)		(1,133,457	)
Inventories, net	$	1,526,470		$	1,456,275

The Company did not record any lower of cost or net realizable value charges during the three months ended September 30, 2024 and 2023, The Company recorded lower of cost or net realizable value charges of $28,012 and nil during the nine months ended September 30, 2024 and 2023, respectively.

Property and Equipment, Net

Property and equipment, net as of September 30, 2024 and December 31, 2023 consisted of the following:


	September 30, 2024			December 31, 2023
Machinery and equipment	$	7,311,625		$	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		8,612,856			8,480,860
Less: accumulated depreciation and amortization		(3,475,821	)		(2,829,884	)
Property and equipment, net	$	5,137,035		$	5,650,976

Depreciation and amortization expense related to property and equipment was $206,718 and $144,955 during the three months ended September 30, 2024 and 2023, respectively, and $596,256 and $369,971 during the nine months ended September 30, 2024 and 2023, respectively.

Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets as of September 30, 2024 and December 31, 2023 consisted of the following:


	September 30, 2024		December 31, 2023
Prepaid insurance	$	488,523	$	61,342
Other prepaid assets		34,074		94,653
Other current assets		4,464		260
Total prepaid expenses and other current assets	$	527,061	$	156,255

Accrued Liabilities

Accrued liabilities as of September 30, 2024 and December 31, 2023 consisted of the following:


	September 30, 2024		December 31, 2023
Accrued payroll and related benefits	$	403,574	$	754,904
Accrued legal, accounting and professional fees		2,500,983		838,865
Accrued transaction costs related to the reverse recapitalization		503,600		503,600
Accrued taxes payable		196,842		89,346
Accrued interest		625,599		337,913
Other		212,581		225,677
Total accrued expenses	$	4,443,179	$	2,750,305

NOTE 4. BALANCE SHEET COMPONENTS

Inventories, Net

Inventories, net as of December 31, 2023 and 2022 consisted of the following:


	December 31, 2023			December 31, 2022
Raw materials and supplies	$	1,973,634		$	1,011,421
Work-in-process		158,346			15,213
Finished goods		457,752			239,051
Inventories, gross		2,589,732			1,265,685
Less: inventory reserve		(1,133,457	)		(292,990	)
Inventories, net	$	1,456,275		$	972,695

During the year ended December 31, 2023, the Company recorded net adjustments to inventories for LCNRV, obsolescence or scrap of approximately $640,000 to the statement of operations, 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. During the year ended December 31, 2022, the Company recorded net credits for LCNRV, obsolescence or scrap of approximately $250,000 to the statement of operations, primarily due to reversals of LCNRV adjustments on items that were sold.

Property and Equipment, Net

Property and equipment, net as of December 31, 2023 and 2022 consisted of the following:


	December 31, 2023			December 31, 2022
Machinery and equipment	$	7,179,629		$	4,827,626
Leasehold improvements		897,948			810,248
Furniture and office equipment		205,897			180,747
Computer equipment and software		197,386			136,282
Property and equipment, gross		8,480,860			5,954,903
Less: accumulated depreciation and amortization		(2,829,884	)		(2,183,054	)
Property and equipment, net	$	5,650,976		$	3,771,849

Depreciation and amortization expense related to property and equipment was $505,898 and $450,505 for the years ended December 31, 2023 and 2022, respectively.

Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets as of December 31, 2023 and 2022 consisted of the following:


	December 31, 2023		December 31, 2022
Prepaid insurance	$	61,342	$	—
Other prepaid assets		94,653		34,889
Other current assets		260		11,848
Total prepaid expenses and other current assets	$	156,255	$	46,737

Accrued Expenses

Accrued expenses as of December 31, 2023 and 2022 consisted of the following:


	December 31, 2023		December 31, 2022
Accrued payroll and related benefits	$	754,904	$	636,009
Accrued legal, accounting and professional fees		838,865		548,569
Accrued transaction costs related to the reverse recapitalization		503,600		651,818
Accrued taxes payable		89,346		108,516
Accrued interest		337,913		175,288
Other		225,677		191,918
Total accrued expenses	$	2,750,305	$	2,312,118