| Schedule of Information by Industry Segment |
The Company’s revenue and significant expenses by segment regularly reviewed by the CODM, and other segment items are as follows (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | Three months ended | | Six months ended | | June 30,
2026 | | June 30,
2025 | | June 30,
2026 | | June 30,
2025 | | Electric Motorcycles | | | | | | | | | Electric motorcycles, parts and accessories and apparel revenue, net | $ | 3,646 | | | $ | 842 | | | $ | 5,053 | | | $ | 1,261 | | | Cost of goods sold | 6,187 | | 2,379 | | 9,506 | | 5,779 | | Selling, administrative and engineering expense: | | | | | | | | People costs (1) | 7,079 | | 8,813 | | 14,426 | | 17,696 | Other segment items (2) | 8,420 | | 7,653 | | 15,862 | | 15,142 | | Total selling, administrative and engineering expense | 15,499 | | 16,466 | | 30,288 | | 32,838 | | Operating loss | $ | (18,040) | | | $ | (18,003) | | | $ | (34,741) | | | $ | (37,356) | | | STACYC | | | | | | | | | Electric balance bikes and electric bikes, parts and accessories and apparel revenue, net | 5,469 | | | 5,031 | | | 9,177 | | | 7,355 | | | Cost of goods sold | 2,974 | | 2,945 | | 5,307 | | 4,456 | | Selling, administrative and engineering expense: | | | | | | | | People costs (1) | 833 | | 925 | | 1,622 | | 1,836 | Marketing (3) | 639 | | 493 | | 1,156 | | 965 | Other segment items (4) | 997 | | 929 | | 2,037 | | 1,672 | | Total selling, administrative and engineering expense | 2,469 | | 2,347 | | 4,815 | | 4,473 | | Operating loss | $ | 26 | | | $ | (261) | | | $ | (945) | | | $ | (1,574) | | | Consolidated operating loss | (18,014) | | | (18,264) | | | (35,686) | | | (38,930) | | | | | | | | | | | | | | | | | | | Interest expense, related party | (1,454) | | — | | (2,871) | | — | | Interest income (expense), net | 420 | | 333 | | 1,023 | | 837 | | Change in fair value of warrant liabilities | 911 | | (905) | | 1,294 | | — | | Loss before income taxes | $ | (18,137) | | | $ | (18,836) | | | $ | (36,240) | | | $ | (38,093) | |
(1) People expenses include salary and related fringe costs, including payroll tax and health and welfare costs, as well as short-term incentive compensation and long-term incentive compensation in the form of share-based awards. (2) Other segment items for Electric Motorcycles include depreciation and amortization, marketing, rent and facilities costs, warranty, supplies and materials, costs paid for services performed by H-D under the TSA and MSA agreements, travel costs, other professional services and miscellaneous expenses. These costs are all included in Selling, administrative and engineering expense. (3) Marketing expenses include costs related to digital and print media, social media, website maintenance, consumer experiences, product placement, sponsorships and market research. (4) Other segment items for STACYC include depreciation and amortization, rent and facilities costs, warranty, supplies and materials, travel costs, other professional services and miscellaneous expenses. These costs are all included in Selling, administrative and engineering expense. Additional segment information is set forth below (in thousands): | | | | | | | | | | | | | | | | | | | Electric Motorcycles | | STACYC | | Consolidated | | June 30, 2026: | | | | | | | Assets | $ | 96,380 | | | $ | 21,563 | | | $ | 117,943 | | | Goodwill | $ | 7,960 | | | $ | 659 | | | $ | 8,619 | | | | | | | | | December 31, 2025: | | | | | | | Assets | $ | 124,034 | | | $ | 22,377 | | | $ | 146,411 | | | Goodwill | $ | 7,668 | | | $ | 659 | | | $ | 8,327 | | | | | | | | | Three months ended June 30, 2026 | | | | | | | Depreciation and amortization | $ | 2,389 | | | $ | 77 | | | $ | 2,466 | | | Stock compensation expense | $ | 1,243 | | | $ | 45 | | | $ | 1,288 | | | Three months ended June 30, 2025 | | | | | | | Depreciation and amortization | $ | 2,515 | | | $ | 73 | | | $ | 2,588 | | | Stock compensation expense | $ | 1,709 | | | $ | 120 | | | $ | 1,829 | | | Six months ended June 30, 2026 | | | | | | | Depreciation and amortization | $ | 4,726 | | | $ | 155 | | | $ | 4,881 | | | Stock compensation expense | $ | 2,385 | | | $ | 125 | | | $ | 2,510 | | | Capital expenditures | $ | 1,363 | | | $ | 171 | | | $ | 1,534 | | | Six months ended June 30, 2025 | | | | | | | Depreciation and amortization | $ | 5,525 | | | $ | 148 | | | $ | 5,673 | | | Stock compensation expense | $ | 3,217 | | | $ | 227 | | | $ | 3,444 | | | Capital expenditures | $ | 2,043 | | | $ | — | | | $ | 2,043 | |
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| Schedule of Segment Information by Geographical Locations |
Geographic Information – Included in the consolidated financial statements are the following amounts relating to geographic locations (in thousands): | | | | | | | | | | | | | | | | June 30,
2026 | | December 31,
2025 | | | | | | | Long-lived assets(1): | | | | | | United States | $ | 25,478 | | | $ | 27,556 | | | | International | — | | — | | | $ | 25,478 | | | $ | 27,556 | | | | | | | |
(1)Long-lived assets include all long-term assets except those specifically excluded under ASC Topic 280, Segment Reporting, such as deferred income taxes.
| | | | | | | | | | | | | | | | | | | | | | | | | Three months ended | | Six months ended | | June 30,
2026 | | June 30,
2025 | | June 30,
2026 | | June 30,
2025 | Revenue, net (1): | | | | | | | | | United States | $ | 5,739 | | | $ | 3,774 | | | $ | 9,575 | | | $ | 5,972 | | | Other countries | 3,376 | | | 2,099 | | | 4,655 | | | 2,644 | | | Total | $ | 9,115 | | | $ | 5,873 | | | $ | 14,230 | | | $ | 8,616 | |
(1)Revenue is attributed to geographic regions based on location of customer.
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