AIRO GROUP HOLDINGS, INC., 10-Q filed on 5/14/2026
Quarterly Report
v3.26.1
Cover - $ / shares
 3 Months Ended
Mar. 31, 2026
May 12, 2026
Cover [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Quarterly Report true  
Document Transition Report false  
Document Period End Date Mar. 31, 2026  
Document Fiscal Period Focus Q1  
Document Fiscal Year Focus 2026  
Current Fiscal Year End Date --12-31  
Entity File Number 001-38529  
Entity Registrant Name AIRO Group Holdings, Inc.  
Entity Central Index Key 0001927958  
Entity Tax Identification Number 88-0812695  
Entity Incorporation, State or Country Code DE  
Entity Address, Address Line One 8444 Westpark Drive  
Entity Address, City or Town McLean  
Entity Address, State or Province VA  
Entity Address, Postal Zip Code 22102  
City Area Code (505)  
Local Phone Number 338-2434  
Title of 12(b) Security Common Stock, par value $0.000001 per share  
Trading Symbol AIRO  
Security Exchange Name NASDAQ  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Non-accelerated Filer  
Entity Small Business true  
Entity Emerging Growth Company true  
Elected Not To Use the Extended Transition Period false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   31,445,644
Entity Listing, Par Value Per Share $ 0.000001  
v3.26.1
Condensed Consolidated Balance Sheets (Unaudited) - USD ($)
$ in Thousands
Mar. 31, 2026
Dec. 31, 2025
Current assets:    
Cash $ 54,227 $ 74,358
Restricted cash 189 193
Inventory 22,507 11,639
Prepaid expenses and other current assets 9,513 7,508
Total current assets 94,608 106,476
Property and equipment, net 9,917 8,986
Right-of-use operating lease assets 3,032 3,278
Goodwill 569,284 571,653
Intangible assets, net 82,064 83,487
Other assets 210 259
Total assets 759,115 774,139
Current liabilities:    
Accrued expenses 8,475 7,624
Operating lease liabilities, current 887 902
Deferred revenue 3,557 4,497
Related party borrowings 5 1,161
Current maturities of debt 740 1,190
Total current liabilities 32,132 30,865
Long-term debt, net of current maturities 500 500
Deferred tax liability 1,046 1,046
Long-term deferred revenue 16 8
Operating lease liabilities, noncurrent 2,224 2,478
Other long-term liabilities 800 50
Total liabilities 36,718 34,947
Commitments and contingencies (Note 8)  
Stockholders’ equity:    
Common stock, $0.000001 par value; 1,000,000 shares authorized; 32,653 issued and 31,435 outstanding as of March 31, 2026 and 32,594 issued and 31,376 outstanding as of December 31, 2025
Additional paid-in capital 964,524 963,022
Treasury shares, 1,218 shares as of March 31, 2026 and December 31, 2025 (21,220) (21,220)
Accumulated other comprehensive income 5,103 7,947
Accumulated deficit (226,010) (210,557)
Total stockholders’ equity 722,397 739,192
Total liabilities and stockholders’ equity 759,115 774,139
Nonrelated Party [Member]    
Current assets:    
Accounts receivable, net 8,098 12,385
Current liabilities:    
Accounts payable 10,661 6,599
Related Party [Member]    
Current assets:    
Accounts receivable, net 74 393
Current liabilities:    
Accounts payable $ 7,807 $ 8,892
v3.26.1
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares
shares in Thousands
Mar. 31, 2026
Dec. 31, 2025
Statement of Financial Position [Abstract]    
Common stock, par value $ 0.000001 $ 0.000001
Common stock, shares authorized 1,000,000 1,000,000
Common stock, shares issued 32,653 32,594
Common stock, shares outstanding 31,435 31,376
Treasury stock, shares 1,218 1,218
v3.26.1
Condensed Consolidated Statements of Operations (Unaudited) - USD ($)
shares in Thousands, $ in Thousands
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Income Statement [Abstract]    
Revenue $ 8,901 $ 11,795
Cost of revenue 6,536 4,862
Gross profit 2,365 6,933
Operating expenses:    
Research and development 6,704 3,666
Sales and marketing 1,977 1,433
General and administrative 10,842 4,915
Total operating expenses 19,523 10,014
Loss from operations (17,158) (3,081)
Other income (expense):    
Interest income (expense), net 376 (1,267)
Other (expense) income, net (316) 2,662
Total other income 60 1,395
Loss before income tax benefit (expense) (17,098) (1,686)
Income tax benefit (expense) 1,645 (287)
Net loss $ (15,453) $ (1,973)
Net loss per share - basic $ (0.49) $ (0.12)
Net loss per share - diluted $ (0.49) $ (0.12)
Weighted-average number of shares of common stock used in computing net loss per share, basic 31,395 16,387
Weighted-average number of shares of common stock used in computing net loss per share, diluted 31,395 16,387
v3.26.1
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Income Statement [Abstract]    
Net loss $ (15,453) $ (1,973)
Other comprehensive (loss) income:    
Foreign currency translation, net of tax (2,844) 5,640
Total other comprehensive (loss) income (2,844) 5,640
Comprehensive (loss) income $ (18,297) $ 3,667
v3.26.1
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($)
shares in Thousands, $ in Thousands
Common Stock [Member]
Additional Paid-in Capital [Member]
Treasury Stock, Common [Member]
AOCI Attributable to Parent [Member]
Retained Earnings [Member]
Total
Balance at Dec. 31, 2024 $ 764,692   $ (9,509) $ (206,453) $ 548,730
Balance, shares at Dec. 31, 2024 16,387          
Stock-based compensation 125   125
Foreign currency translation adjustment   5,640 5,640
Net loss   (1,973) (1,973)
Balance at Mar. 31, 2025 764,817   (3,869) (208,426) 552,522
Balance, shares at Mar. 31, 2025 16,387          
Balance at Dec. 31, 2025 963,022 $ (21,220) 7,947 (210,557) $ 739,192
Balance, shares at Dec. 31, 2025 31,376          
Treasury stock balance, shares at Dec. 31, 2025     1,218     1,218
RSU vesting
RSU vesting, shares 59          
Stock-based compensation 1,502 1,502
Foreign currency translation adjustment (2,844) (2,844)
Net loss (15,453) (15,453)
Balance at Mar. 31, 2026 $ 964,524 $ (21,220) $ 5,103 $ (226,010) $ 722,397
Balance, shares at Mar. 31, 2026 31,435          
Treasury stock balance, shares at Mar. 31, 2026     1,218     1,218
v3.26.1
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Cash flows from operating activities:    
Net loss $ (15,453) $ (1,973)
Adjustments to reconcile net loss to net cash used in operating activities:    
Stock-based compensation 1,502 125
Provision for credit losses 15 8
Non-cash interest 417
Non-cash investor note interest 186
Depreciation and amortization 3,130 3,138
Amortization of right-of-use lease assets 289 84
Change in fair value of contingent consideration (2,738)
Changes in operating assets and liabilities:    
Accounts receivable 4,064 8,175
Related party receivables 319
Prepaid expenses and other assets (2,073) (5,762)
Inventory (11,110) (3,653)
Accounts payable, accrued expenses and other long-term liabilities 5,141 (1,677)
Related party payables (2,064) 36
Lease liabilities (314) (74)
Deferred revenue (850) (6,288)
Deferred compensation 243
Net cash used in operating activities (17,404) (9,753)
Cash flows from investing activities:    
Purchase of property and equipment and investment in intangible assets (2,073) (345)
Net cash used in investing activities (2,073) (345)
Cash flows from financing activities:    
Change in lines of credit (127)
Proceeds from borrowings 3,500
Repayments on borrowings (464) (1,662)
Proceeds from related party borrowings 200
Repayments on related party borrowings (176)
Debt issuance costs paid (70)
Net cash (used in) provided by financing activities (640) 1,841
Effect of exchange rate changes (18) 1,055
Net decrease in cash and restricted cash (20,135) (7,202)
Cash and restricted cash as of beginning of period 74,551 20,911
Cash and restricted cash as of end of period 54,416 13,709
Supplemental disclosures of non-cash information:    
Initial recognition of warrant liability 2,885
Deferred consideration for licensing arrangement 1,000
Reclass between related party payables and related party borrowings $ 1,007
v3.26.1
The Company and Summary of Significant Accounting Policies
 3 Months Ended
Mar. 31, 2026
Accounting Policies [Abstract]  
The Company and Summary of Significant Accounting Policies

 

1. The Company and Summary of Significant Accounting Policies

 

Nature of Operations

 

AIRO Group Holdings, Inc., a Delaware corporation (“Holdings” or the “Company”), is a technologically differentiated aerospace, autonomy, and air mobility platform targeting 21st century aerospace and defense opportunities. The Company is organized into four operating segments: (i) Drones, (ii) Avionics, (iii) Training, and (iv) Electric Air Mobility. The Drones segment develops, manufactures, and sells drones and expects to provide drone services, such as Drone as a Service (“DaaS”), for military and commercial end users. The Avionics segment develops, manufactures, and sells avionics for military and general aviation aircraft, drones, and electric vertical takeoff and landing (“eVTOL”) aircraft. The Training segment currently provides military pilot training. The Electric Air Mobility segment is developing autonomous eVTOL platforms for defense, government, cargo logistics, and remote operations applications.

 

Consolidation and Basis of Presentation

 

The accompanying condensed consolidated financial statements include the accounts of Holdings and its wholly owned subsidiaries, including Old AGI, Inc. f/k/a AIRO Group, Inc., AIRO Drone, LLC (“AIRO Drone”), Agile Defense, LLC (“Agile Defense”), Coastal Defense, Inc. (“Coastal Defense”), Jaunt Air Mobility, LLC (“Jaunt”), Sky-Watch A/S (“Sky-Watch”) and Aspen Avionics, Inc. (“Aspen Avionics”). All intercompany accounts and transactions have been eliminated in consolidation.

 

The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information. In the opinion of management, the accompanying unaudited interim condensed consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation of such interim results. Certain information and disclosures normally included in unaudited condensed consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. Accordingly, the unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 (“Form 10-K”) as filed with the Securities and Exchange Commission (“SEC”). The condensed consolidated balance sheet as of December 31, 2025 has been derived from the audited consolidated financial statements as of that date.

 

The results for the unaudited interim condensed consolidated statements of operations are not necessarily indicative of results to be expected for the year ending December 31, 2026 or for any future interim period.

 

Liquidity

 

The accompanying condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. As of March 31, 2026, the Company had cash and restricted cash of $54.4 million of which $0.2 million was either restricted or was designated to only being used for Sky-Watch operations and working capital of $62.5 million.

 

Management believes that the existing cash on hand is sufficient to meet its obligations and fund planned operations for at least the next twelve months from the date these condensed consolidated financial statements are issued.

 

Use of Estimates

 

The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make judgments, estimates, and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. These judgments, estimates, and assumptions are used to determine litigation and claims and other asset and liability amounts. The Company bases its estimates and judgments on historical experience along with other pertinent information available at the time the estimate is made. However, future events are subject to change and the estimates and judgments may require adjustments. Actual results could differ from these estimates, and these differences may be material.

 

 

Business Risk and Concentration of Credit Risk

 

Financial instruments that potentially subject the Company to a concentration of credit risk consist primarily of cash and accounts receivable. Cash is maintained with financial institutions and its composition and maturities are regularly monitored by management. Deposits at any time may exceed federally insured limits. The Company performs ongoing credit evaluations of its customers and generally does not require collateral for accounts receivable. A large portion of the Company’s sales result in partial prepayments prior to shipment from customers. Otherwise, customer invoices generally have payment terms of net 30 days and do not contain a significant financing component.

 

The Company’s operational structure includes an existing operating business and early-stage businesses in emerging and developing markets that are concentrated in an industry characterized by rapid technological advances, changes in customer requirements, and evolving regulatory requirements and industry standards. Any significant delays in the development or introduction of products or services, or any failure by the Company to anticipate or to respond adequately to technological developments in its industry, changes in customer requirements, or changes in regulatory requirements or industry standards, could have a material adverse effect on the Company’s business and operating results.

 

The Company’s business, results of operations, and financial condition for the foreseeable future will likely continue to depend on sales to a relatively small number of customers. In the future, these customers may decide not to purchase the Company’s products, may purchase fewer products than in previous years, or may alter their purchasing patterns. Further, the amount of revenue attributable to any single customer or customer concentration generally may fluctuate in any given period. In addition, a decline in the production levels of one or more of the Company’s major customers could reduce revenue. The loss of one or more key customers, a reduction in sales to any key customer, or the Company’s inability to attract new significant customers could negatively impact revenue and adversely affect the Company’s business, results of operations, and financial condition.

 

Significant Accounting Policies

 

No material changes have been made to the Company’s significant accounting policies disclosed in Note 1. The Company and Summary of Significant Accounting Policies, of its audited consolidated financial statements included in the Form 10-K.

 

Recently Adopted Accounting Standards

 

In July 2025, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2025-05, Financial Instruments — Credit Losses (Topic 326), Measurement of Credit Losses for Accounts Receivable and Contract Assets, which provides a practical expedient to simplify the estimation of expected credit losses on current accounts receivable and current contract assets arising from revenue transactions under Accounting Standards Codification (“ASC”) 606. The Company adopted this guidance effective January 1, 2026. The adoption did not have a material impact on the Company’s condensed consolidated financial statements or related disclosures.

 

Recent Accounting Pronouncements Not Yet Adopted

 

In November 2024, the FASB issued ASU 2024-03, Income Statement — Reporting Comprehensive Income — Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which requires disclosure of certain costs and expenses on an interim and annual basis in the notes to the consolidated financial statements. The guidance is effective for annual reporting periods beginning after December 15, 2026 and interim periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. The guidance is to be applied either (1) prospectively to financial statements issued for reporting periods after the effective date or (2) retrospectively to any or all prior periods presented in the financial statements. The Company is currently evaluating the potential impact of adopting this new guidance on its consolidated financial statements and related disclosures.

 

In December 2025, the FASB issued ASU 2025-10, Government Grants (Topic 832): Accounting for Government Grants Received by Business Entities, which establishes authoritative guidance on the recognition, measurement, presentation, and disclosure of government grants received by business entities. The ASU requires entities to recognize a government grant when it is probable that both (1) the entity will comply with the conditions attached to the grant and (2) the grant will be received. For grants related to assets, an entity may apply either a deferred income approach or a cost accumulation approach, and for grants related to income, an entity should recognize income on a systematic basis as related expenses are incurred. The ASU also includes expanded disclosure requirements regarding the nature of government grants received, the accounting policies adopted, and significant terms and conditions of the grants. The guidance is effective for annual reporting periods beginning after December 15, 2029. Early adoption is permitted. The Company is currently evaluating the potential impact of adopting this new guidance on its consolidated financial statements and related disclosures.

 

 

In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements, which amends the guidance in ASC 270, Interim Reporting. The objective of this new guidance is to improve the clarity and navigability of the interim reporting guidance without changing the fundamental nature of interim reporting or expanding or reducing the interim disclosure requirements currently in U.S. GAAP. The amendments clarify the scope and applicability of ASC 270, specify the form and content of interim financial statements and accompanying notes, and consolidate the interim disclosures required under U.S. GAAP into a single comprehensive list. The ASU also introduces a disclosure principle that an entity must disclose events and changes occurring after the end of the last annual reporting period that have a material impact on the entity, consistent with the principle that previously existed under certain SEC interim reporting rules. The amendments are effective for interim reporting periods within annual reporting periods beginning after December 15, 2028. Early adoption is permitted, and the amendments may be applied either prospectively or retrospectively to prior interim periods presented. The Company is currently evaluating the potential impact of adopting this new guidance on its consolidated financial statements and related disclosures.

 

In December 2025, the FASB issued ASU 2025-12, Codification Improvements, which provides technical corrections, clarifications, and improvements to the FASB ASC across multiple Topics. The amendments are generally not expected to change current accounting practices materially but may affect application of certain guidance such as diluted earnings per share in loss periods and other technical areas. The amendments are effective for annual reporting periods beginning after December 15, 2026, including interim periods within those annual periods, with early adoption permitted. An entity may elect the transition method on an issue-by-issue basis. The Company is evaluating the impact of ASU 2025-12 on its consolidated financial statements and related disclosures.

 
v3.26.1
Net Loss Per Share
 3 Months Ended
Mar. 31, 2026
Earnings Per Share [Abstract]  
Net Loss Per Share

 

2. Net Loss Per Share

 

Basic net loss per share is determined using the weighted average number of common shares outstanding during the period. Diluted net loss per share is based on the treasury stock method and computed by dividing net loss available to common stockholders by the diluted weighted-average shares of common stock outstanding during each period. The potentially dilutive shares are considered to be common stock equivalents and are only included in the calculation of diluted net loss per share when the effect is dilutive.

 

The potentially dilutive shares of common stock that have been excluded from the calculation of net loss per share because of the anti-dilutive effect are as follows as of March 31, 2026: 0.4 million warrants, 0.2 million stock options, and 0.5 million unsettled restricted stock units (“RSUs”). The potentially dilutive shares of common stock that have been excluded from the calculation of net loss per share because of the anti-dilutive effect are as follows as of March 31, 2025: 0.1 million warrants, 0.3 million stock options, and 0.3 million contingent restricted stock awards, 2.2 million potential shares issuable under debt conversion agreements, 0.6 million potential shares issuable for contingent interest payments, and 0.1 million shares potentially issuable under unsecured promissory notes in the event that the Company’s initial public offering was not completed by May 31, 2025. The number of potentially dilutive shares is based on the maximum number of shares issuable on exercise or conversion of the related securities as of the period end. Such amounts have not been adjusted for the treasury stock method or weighted-average outstanding calculations as required if the securities were dilutive.
v3.26.1
Stock, Warrants and Equity Incentive Plan
 3 Months Ended
Mar. 31, 2026
Stock Warrants And Equity Incentive Plan  
Stock, Warrants and Equity Incentive Plan

 

3. Stock, Warrants and Equity Incentive Plan

 

The Company’s authorized capital stock consists of 1.0 billion shares of common stock, par value $0.000001 per share, and 10.0 million shares of preferred stock, par value $0.000001 per share. All of the authorized preferred stock is undesignated.

 

Common Stock

 

The Company has reserved the following shares of authorized but unissued common stock as of March 31, 2026: 0.2 million shares for stock options, 0.4 million shares for warrants, 0.5 million shares for RSUs, and 2.0 million shares available for issuance under the Equity Incentive Plan described below.

 

Warrants

 

The Company assumed warrants to purchase 0.1 million shares of the Company’s common stock as part of the merger with Jaunt. These warrants expire ten years from the date of issuance, March 10, 2022, have an exercise price of $16.83 per share and were outstanding as of March 31, 2026 and December 31, 2025. The Company determined that these warrants are equity classified.

 

In September 2024, the Company executed a financing advisor agreement with Cantor Fitzgerald & Co. as compensation for assistance with the initial public offering (“IPO”), pursuant to which the Company agreed to issue warrants to certain of the underwriters upon the closing of the IPO (the “Underwriter Warrants”) exercisable for the number of shares of common stock equal to 5% of the total number of shares of common stock sold in such IPO. In conjunction with the IPO, the Company issued the Underwriter Warrants, which are exercisable into 345,000 shares of common stock. The Company determined the fair value of the Underwriter Warrants at the grant date on June 12, 2025 to be $2.0 million which was recorded as an issuance cost against IPO proceeds during the year ended December 31, 2025. The Underwriter Warrants have an exercise price of $11.00 and can be exercised between December 12, 2025 and June 12, 2030. The Underwriter Warrants remain outstanding as of March 31, 2026 and December 31, 2025.

 

Equity Incentive Plan

 

In March 2025, the Board of Directors adopted, and the stockholders approved, the AIRO Group Holdings, Inc. 2025 Equity Incentive Plan (the “2025 Plan”). The 2025 Plan provides for the grant of incentive stock options (“ISOs”) to employees, including employees of any parent or subsidiary, and for the grant of non-statutory stock options, stock appreciation rights, restricted stock awards, RSUs, performance awards, and other forms of stock awards to employees, directors, and consultants, including employees and consultants of the Company’s affiliates. The initial share reserve of the Company’s common stock authorized for issuance under the 2025 Plan was 1.9 million shares. Effective January 1, 2026, the share reserve automatically increased by 0.9 million shares pursuant to the plan’s “evergreen” provision.

 

 

The share reserve will continue to increase annually through January 1, 2035 by 3% of the outstanding shares of common stock or a lesser amount approved by the Board of Directors. The maximum number of shares issuable upon exercise of ISOs under the 2025 Plan is 5.7 million.

 

During the three months ended March 31, 2026, the Company granted 0.3 million RSUs under the 2025 Plan and recognized $1.5 million of stock-based compensation expense related to these RSUs. The weighted-average grant date fair value per share of RSUs granted during the period was $10.63. As of March 31, 2026, there were 0.3 million unvested RSUs outstanding under the 2025 Plan. Total unrecognized compensation expense related to unvested RSUs was $3.2 million as of March 31, 2026, which is expected to be recognized over a weighted average period of 2.7 years.
v3.26.1
Goodwill
 3 Months Ended
Mar. 31, 2026
Intangible Asset, Goodwill and Other [Abstract]  
Goodwill

 

4. Goodwill

 

The changes in the carrying value of goodwill were as follows:

(In Thousands)  Avionics   Drones   Electric Air Mobility   Training   Total 
Balance as of January 1, 2026  $-   $121,765   $434,347   $15,541   $571,653 
Effect of exchange rate   -    (2,369)   -    -    (2,369)
Balance as of March 31, 2026  $-   $119,396   $434,347   $15,541   $569,284 
                          
Balance as of January 1, 2025  $-   $107,620   $434,347   $15,541   $557,508 
Effect of exchange rate   -    4,514    -    -    4,514 
Balance as of March 31, 2025  $-   $112,134   $434,347   $15,541   $562,022 

 

The Company evaluates goodwill for impairment as of October 1 each year, and more frequently if events or circumstances indicate that there may be impairment. The Company completed its most recent annual goodwill impairment test as of October 1, 2025 and determined that no goodwill impairment existed. No triggering events were identified during the three months ended March 31, 2026 that would require an interim impairment assessment.
v3.26.1
Intangible Assets, Net
 3 Months Ended
Mar. 31, 2026
Intangible Asset, Goodwill and Other [Abstract]  
Intangible Assets, Net

 

5. Intangible Assets, Net

 

Intangible assets, net, consist primarily of intangible assets acquired through business combinations. During the three months ended March 31, 2026, the Company also capitalized $1.3 million related to a manufacturing license agreement that provides rights to intellectual property, technical data, and know-how used to manufacture and commercialize products. The agreement is recorded as a definite-lived intangible asset and is amortized on a straight-line basis over its five-year contractual term.

 

Intangible assets, net consisted of the following as of March 31, 2026 and December 31, 2025:

    

                 
   As of March 31, 2026 
(In Thousands)  Weighted Average Remaining Life (Years)   Gross   Accumulated Amortization   Carrying Value 
                 
Developed technology - definite lived   8.7   $100,045   $35,069   $64,976 
Developed technology - indefinite lived   N/A    66    -    66 
Tradenames - definite lived   3.1    1,926    1,225    701 
Tradenames - indefinite lived   N/A    8,738    -    8,738 
Customer relationships   3.1    20,285    14,159    6,126 
Patents   6.2    586    358    228 
Manufacturing license agreement   4.9    1,250    21    1,229 
Intangible assets net       $132,896   $50,832   $82,064 

 

 

                 
   As of December 31, 2025 
(In Thousands) 

Weighted Average

Remaining Life (Years)

   Gross   Accumulated Amortization   Carrying Value 
                 
Developed technology – definite lived   8.9   $100,179   $33,136   $67,043 
Developed technology – indefinite lived   N/A    66    -    66 
Tradenames - definite lived   3.3    1,933    1,153    780 
Tradenames - indefinite lived   N/A    8,738    -    8,738 
Customer relationships   3.3    20,339    13,717    6,622 
Patents   6.3    585    347    238 
Intangible assets net        $131,840   $48,353   $83,487 

 

Amortization expense is reported on the condensed consolidated statements of operations line items as shown in the table below for the three months ended March 31:

 

(In Thousands)  2026   2025 
Cost of revenue  $87   $107 
Research and development   1,910    1,893 
Sales and marketing   496    701 
General and administrative   110    87 
Amortization expense   $2,603   $2,788 

 

Total estimated future amortization expense as of March 31, 2026 is as follows:

(In Thousands)  Amount 
2026 (remaining)  $7,894 
2027   10,307 
2028   10,126 
2029   8,648 
2030   7,280 
Thereafter   29,005 
Amortization expense  $73,260 

 
v3.26.1
Inventory
 3 Months Ended
Mar. 31, 2026
Inventory Disclosure [Abstract]  
Inventory

 

6. Inventory

 

Inventory consisted of the following as of March 31, 2026 and December 31, 2025:

 

(In Thousands)  March 31, 2026   December 31, 2025 
Raw materials  $11,477   $7,052 
Work in process   2,579    1,503 
Finished goods   8,451    3,084 
Total  $22,507   $11,639 

 

Inventory increased by $10.9 million as of March 31, 2026 compared to December 31, 2025, primarily due to increased inventory levels in the Drones segment to support anticipated shipments during the remainder of 2026.

 
v3.26.1
Balance Sheet Details
 3 Months Ended
Mar. 31, 2026
Payables and Accruals [Abstract]  
Balance Sheet Details

 

7. Balance Sheet Details

 

Prepaid expenses and other current assets consisted of the following as of March 31, 2026 and December 31, 2025:

 

Schedule of Prepaid expenses and other current assets 

(In Thousands)  March 31, 2026   December 31, 2025 
Prepaid insurance  $506   $835 
Prepaid taxes   3,316    464 
Value added tax   436    616 
Vendor prepayments   4,226    4,984 
Other   1,029    609 
Prepaid expenses and other current assets   $9,513   $7,508 

 

Accrued expenses consisted of the following as of March 31, 2026 and December 31, 2025:

  

(In Thousands)  March 31, 2026   December 31, 2025 
Accrued legal and professional fees  $995   $945 
Payroll related expenses   5,180    5,026 
Accrued warranty   217    299 
Accrued taxes   386    385 
Other accrued expenses   1,697    969 
Accrued expenses   $8,475   $7,624 

 
v3.26.1
Commitments and Contingencies
 3 Months Ended
Mar. 31, 2026
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies
8. Commitments and Contingencies

 

Joint Venture Agreement

 

On November 13, 2025, AIRO Drone entered into a Joint Venture and Operating Agreement (the “JV Agreement”) with Nord Drone Group, LLC (“NDG”), a Ukrainian limited liability company, pursuant to which AIRO Drone and NDG will form AIRO Nord-Drone, LLC, a Delaware limited liability company (the “JV”). Pursuant to the terms of the JV Agreement, the JV will develop, manufacture, and commercialize unmanned aerial systems primarily designed for delivering munitions, targeting U.S., North Atlantic Treaty Organization (“NATO”), and Ukrainian defense markets. Each of the parties will contribute operational resources and capabilities to the JV. The Company will contribute business development, sales, manufacturing, engineering, and government certification resources, as well as manufacturing facilities in the United States, while NDG will contribute intellectual property, engineering data, operational resources, and manufacturing facilities in Ukraine. In addition, the Company will reimburse NDG for reasonable out-of-pocket costs incurred by NDG in obtaining NATO certification required by the JV Agreement, up to a maximum amount of $50,000 within 30 days of the closing of the JV.

 

Each party to the JV will receive 50% of the limited liability company interests of the JV. The JV will be governed by a five-member board of managers, with each party appointing two directors and the acting chairman of the Company’s board of directors serving as the fifth director and chairman of the JV.

 

The consummation of the JV is subject to various closing conditions, including executing certain ancillary agreements between the parties and the JV, including intellectual property license, manufacturing, and services agreements, and obtaining any regulatory approval required under applicable law or by any governmental authority. Unless revised, the JV Agreement (as amended) will terminate and the JV will not be consummated if closing does not occur on June 30, 2026.

 

There can be no assurance that closing conditions under the JV Agreement will be satisfied or when or that the JV will be consummated on the terms described herein or at all. The JV involves material risks including operational challenges related to NDG’s location in Ukraine during ongoing military conflict, complex export control and sanctions compliance requirements, and potential regulatory scrutiny regarding foreign defense partnerships.

 

Litigation

 

A civil action was filed against Old AGI, Inc. in the Circuit Court of Cook County, State of Illinois in February 2022 (the “2022 Lawsuit”). The claimant alleged that an agreement for certain services entered into in March 2020 was breached and resulted in damages to claimant. This case was dismissed on July 5, 2022. However, the court allowed the claimant to amend its complaint. On August 5, 2022, the claimant filed its amended complaint, and the Company filed its response on October 12, 2022. The parties have engaged in discovery and mandatory arbitration. The arbitration resulted in an award in favor of the Company, which was contested by the claimant. On December 19, 2024, the Circuit Court denied the Company’s motion for summary judgment. In February 2026, the Company and the claimant filed documents to request that the 2022 Lawsuit be dismissed in its entirety, and the matter was subsequently dismissed without prejudice.

 

 

Aside from the above matter, the Company is not a party to any material legal proceedings and is not aware of any pending or threatened claims. From time to time, the Company may be subject to various legal proceedings and claims that arise in the ordinary course of its business activities. Legal contingencies are subject to significant uncertainties and, therefore, determining the likelihood of a loss or the measurement of a loss can be complex. The Company will accrue losses that are both probable and reasonably estimable.
v3.26.1
Segment Information
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Segment Information

 

9. Segment Information

 

The Company reports segment information based on the “management” approach. The management approach designates the internal reporting used by management for making decisions and assessing performance as the source of the Company’s reportable segments. The Company’s chief operating decision maker has been identified as the chief executive officer. The Company periodically reevaluates its reportable and operating segments. The Company manages its business primarily based upon four operating segments: Avionics, Drones, Electric Air Mobility and Training. In accordance with the segment reporting accounting standard, the Company evaluated the economic similarity of its operating segments and determined that each of these operating segments represents a reportable segment.

 

● Avionics: This segment develops, manufactures, and sells avionics and GPS sensors for general aviation (“GA”), unmanned aircraft systems (“UAS”) and eVTOL applications. The Company’s avionics products are focused on GA aftermarket, original equipment manufacturer (“OEM”) display, integration and connected panel solutions.
   
● Drones: This segment offers direct operation of drones and drone systems, provision of drone-derived information, and the development of drone-optimized communication services. Additionally, it consists of development and commercialization of market leading mini unmanned aircraft systems (“mUAS”) for professional users, primarily in the defense and security markets. The mUAS includes internally developed software, hardware, and mechanical system components. Operations cover sourcing, manufacturing, assembly, quality assurance testing activities and logistics.
   
● Electric Air Mobility: This segment is designing and developing dual-use electric and hybrid-electric compound rotorcraft aircraft, with a near-term focus on cargo-configured and multi-role autonomous platforms supporting middle-mile logistics, tactical resupply, emergency medical delivery, law enforcement, intelligence, surveillance and reconnaissance (“ISR”), and other commercial and government missions.
   
● Training: This segment provides and operates military aircraft for U.S. military services and Department of War (“DoW”) (formerly referred to as the U.S. Department of Defense) contractors. Segment revenues are earned from (1) flying training missions as part of armed forces training groups, and (2) providing aircraft and support services to DoW contractors.

 

The Company evaluates the performance of its reportable segments based on the net income (loss) for each reporting segment. Presented below are reconciliations of the reportable segment total revenues to the condensed consolidated revenues and the reportable segment total net income (loss) to the condensed consolidated net loss for the three months ended March 31, 2026 and 2025:

 

   Avionics   Drones   Electric Air Mobility   Training   Total 
   Three months ended March 31, 2026 
(In Thousands)  Avionics   Drones   Electric Air Mobility   Training   Total 
Revenue  $1,705   $6,532   $-   $664   $8,901 
Cost of revenue   1,271    4,603    -    662    6,536 
Gross profit   434    1,929    -    2    2,365 
Research and development   708    3,803    2,193    -    6,704 
Sales and marketing   284    1,192    -    496    1,972 
General and administrative   723    4,101    370    1,003    6,197 
Interest expense   -    2    -    14    16 
Interest income   -    (64)   -    -    (64)
Other expense (income), net   -    19    (6)   72    85 
Income tax benefit   -    (1,645)   -    -    (1,645)
Segment loss  $(1,281)  $(5,479)  $(2,557)  $(1,583)   (10,900)
Unallocated amounts:                         
Corporate expenses                       4,650 
Interest income, net                       (328)
Other expense, net                       231 
Net loss                      $(15,453)

 

 

   Avionics   Drones   Electric Air Mobility   Training   Total 
   Three months ended March 31, 2025 
(In Thousands)  Avionics   Drones   Electric Air Mobility   Training   Total 
Revenue  $2,249   $8,483   $-   $1,063   $11,795 
Cost of revenue   1,192    2,654    -    1,016    4,862 
Gross profit   1,057    5,829    -    47    6,933 
Research and development   245    1,546    1,875    -    3,666 
Sales and marketing   274    663    -    496    1,433 
General and administrative   407    2,262    277    757    3,703 
Interest expense   16    108    -    67    191 
Interest income   -    (88)   -    -    (88)
Other expense (income), net   1    (84)   (1,783)   (802)   (2,668)
Income tax expense   -    287    -    -    287 
Segment income (loss)  $114   $1,135   $(369)  $(471)   409 
Unallocated amounts:                         
Corporate expenses                       1,212 
Interest expense, net                       1,164 
Other expense, net                       6 
Net loss                      $(1,973)

 

The following table presents revenue by geographic area for the three months ended March 31, 2026 and 2025:

 

   Avionics   Drones   Electric Air Mobility   Training   Total 
   Three months ended March 31, 2026 
(In Thousands)  Avionics   Drones   Electric Air Mobility   Training   Total 
United States  $1,011   $1   $-   $664   $1,676 
Europe   538    6,263    -    -    6,801 
Other   156    268    -    -    424 
Revenue  $1,705   $6,532   $-   $664   $8,901 

 

   Avionics   Drones   Electric Air Mobility   Training   Total 
   Three months ended March 31, 2025 
(In Thousands)  Avionics   Drones   Electric Air Mobility   Training   Total 
United States  $1,394   $32   $-   $1,063   $2,489 
Europe   497    8,451    -    -    8,948 
Other   358    -    -    -    358 
Revenue  $2,249   $8,483   $-   $1,063   $11,795 

 

The following table presents revenue by products and services for the three months ended March 31, 2026 and 2025:

 

   Avionics   Drones   Electric Air Mobility   Training   Total 
   Three months ended March 31, 2026 
(In Thousands)  Avionics   Drones   Electric Air Mobility   Training   Total 
Products  $1,693   $5,576   $-   $-   $7,269 
Services   12    956    -    664    1,632 
Revenue  $1,705   $6,532   $-   $664   $8,901 

 

    Avionics   Drones  

Electric Air

Mobility

   Training   Total 
    Three months ended March 31, 2025 
(In Thousands)   Avionics   Drones  

Electric Air

Mobility

   Training   Total 
Products   $2,242   $6,678   $-   $-   $8,920 
Services    7    1,805    -    1,063    2,875 
Revenue   $2,249   $8,483   $-   $1,063   $11,795 

 

 

The following table presents capital expenditures, depreciation and amortization, stock-based compensation and contingent consideration fair value adjustments for the three months ended March 31, 2026 and 2025:

 

   Avionics   Drones   Electric Air Mobility   Training   Total (1) 
   Three months ended March 31, 2026 
(In Thousands)  Avionics   Drones   Electric Air Mobility   Training   Total (1) 
Depreciation and amortization  $128   $523   $1,700   $758   $3,109 
Stock-based compensation   2    1,237    11    2    1,252 
Capital expenditures   131    597    -    1,004    1,732 

 

(1)The totals above exclude corporate amounts, including $0.02 million of depreciation and amortization, $0.3 million of stock-based compensation, and $0.3 million of capital expenditures.

 

   Avionics   Drones   Electric Air Mobility   Training   Total 
   Three months ended March 31, 2025 
(In Thousands)  Avionics   Drones   Electric Air Mobility   Training   Total 
Depreciation and amortization  $123   $508   $1,700   $807   $3,138 
Stock-based compensation   -    -    125    -    125 
Contingent consideration fair value adjustments   -    (135)   (1,800)   (803)   (2,738)
Capital expenditures   -    345    -    -    345 

 

The following table presents tangible long-lived assets by geographic area as of March 31, 2026 and December 31, 2025:

 

   Avionics   Drones   Electric Air Mobility   Training   Corporate   Total 
   March 31, 2026 
(In Thousands)  Avionics   Drones   Electric Air Mobility   Training   Corporate   Total 
United States  $644   $-   $3   $5,979   $91   $6,717 
Europe   -    3,200    -    -    -    3,200 
Total  $644   $3,200   $3   $5,979   $91   $9,917 

 

   Avionics   Drones   Electric Air
Mobility		   Training   Corporate   Total 
   December 31, 2025 
(In Thousands)  Avionics   Drones   Electric Air
Mobility		   Training   Corporate   Total 
United States  $544   $-   $3   $5,484   $-   $6,031 
Europe   -    2,955    -    -    -    2,955 
Total  $544   $2,955   $3   $5,484   $-   $8,986 

 

Total segment assets reconciled to condensed consolidated amounts are as follows as of March 31, 2026 and December 31, 2025:

 

   Total Segment assets 
(In Thousands)  Avionics   Drones   Electric Air Mobility   Training   Corporate   Total 
March 31, 2026  $4,030   $174,911   $504,844   $29,204   $46,126   $759,115 
December 31, 2025  $3,795   $178,064   $506,214   $30,387   $55,679   $774,139 

 

Government Regulation

 

The Company is subject to various local, state, federal and international laws and regulations relating to the development, manufacturing, sale and distribution of its products, systems and services, and it is the Company’s policy to comply with the applicable laws in each jurisdiction in which it conducts business. Regulations include but are not limited to those related to import and export controls, corruption, bribery, environment, government procurement, wireless communications, competition, product safety, workplace health and safety, employment, labor and data privacy.

 

 

Drones

 

Because it contracts with the DoW and other agencies of the U.S. government—and, for certain of those contracts, requires access to classified information—the Company’s Drones segment is subject to extensive federal statutes and regulations, including the Federal Acquisition Regulation, the Defense Federal Acquisition Regulation Supplement, the Truthful Cost and Pricing statute, the Foreign Corrupt Practices Act, the False Claims Act, and the regulations implementing the National Industrial Security Program Operating Manual (“NISPOM”). The NISPOM regulations establish the security requirements applicable to classified contracts and programs, facility security clearances, and personnel security clearances. The federal government audits and reviews contractors’ performance on contracts, pricing practices, cost accounting systems and practices, and compliance with applicable laws, regulations and standards. Like most government contractors, the Drones segment’s contracts are audited and reviewed regularly by federal agencies, including the Defense Counterintelligence and Security Agency, the Defense Contract Management Agency and the Defense Contract Audit Agency.

 

In addition, the Drones segment is subject to industry-specific regulations due to the nature of the products and services it provides. For example, certain aspects of its business are subject to further regulation by additional U.S. government authorities, including: (i) the Federal Aviation Administration (“FAA”), which regulates airspace for all aircraft in the U.S. National Airspace System; (ii) the National Telecommunications and Information Administration and the Federal Communications Commission, which regulate the wireless communications upon which its UAS depend in the U.S. and also regulate any device that emits radiofrequency emissions as a result of its operations; (iii) the Directorate of Defense Trade Controls of the U.S. Department of State, which administers the International Traffic in Arms Regulations that regulate the export of controlled technical data, defense articles and defense services and (iv) the Bureau of Industry and Security of the U.S. Department of Commerce, which regulates matters relating to U.S. national security and technology.

 

Electric Air Mobility

 

A transport category type certification is the highest level in safety provided by the Civil Aviation Authorities. Jaunt intends to certify under CAR 529, single pilot (instrument flight rules and comply with Category Enhanced of European Union Aviation Safety Agency (“EASA”) SC-VTOL-01 by:

 

  ● using System Safety Assessment processes (Aerospace Recommended Practice (“ARP”) 4761 with ARP 4754A) that are industry standard for commercial transport aircraft (Exposure Draft 79A);
     
  ● designing flight critical systems to meet the requirements of a probability of catastrophic failure of less than 10-9 per flight hour (less than once every billion flight hours);
     
  ● developing robust software design processes to meet Development Assurance Level A for functions that could exhibit catastrophic failures; and
     
  ● meeting requirements for bird strike, fatigue and damage tolerance, lightning strike, fire protection, and designing and incorporating elements for crashworthiness right from conceptual stage.

 

In the near-term, the efforts of the Electric Air Mobility segment will focus on cargo logistics, ISR, remote operations, and other commercial and government applications, including obtaining FAA certification and advancing the development and commercialization of autonomous cargo and multi-role eVTOL platforms. The segment is currently focused on autonomous aircraft platforms, including the JC250 and JX250 variants, designed to support middle-mile logistics, tactical resupply, ISR, emergency medical delivery, law enforcement, and related missions. Passenger applications may represent a longer-term opportunity. Its aircraft will be required to comply with regulations governing aircraft design, production, and airworthiness, and its operations will be required to comply with regulations governing, among other things, operational safety and citizenship. In the United States, this primarily includes regulations put forth by the FAA and the Department of Transportation. Outside the United States, similar requirements are generally administered by the national civil aviation and transportation authorities of each country.

 

Avionics

 

Aspen Avionics designs and manufactures equipment under worldwide aviation regulatory agency approvals. These include but are not limited to FAA, EASA, Transport Canada Civil Aviation, and National Civil Aviation Agency of Brazil regulations. These govern the design, test, certification, installation, and manufacturing of Aspen’s equipment.

 

 

The FAA regulates the manufacture, repair and operation of all aircraft and aircraft parts operated in the United States. Its regulations are designed to ensure that all aircraft and aviation equipment are continuously maintained in proper condition to ensure safe operation of the aircraft. Similar rules apply in other countries. All aircraft must be maintained under a continuous condition monitoring program and must periodically undergo thorough inspection and maintenance. The inspection, maintenance and repair procedures for the various types of aircraft and equipment are prescribed by regulatory authorities and can be performed only by certified repair facilities utilizing certified technicians. Certification and conformance are required prior to installation of a part on an aircraft. Aircraft operators must maintain logs concerning the utilization and condition of aircraft engines, life-limited engine parts and airframes. In addition, the FAA requires that various maintenance routines be performed on aircraft engines, some engine parts, and airframes at regular intervals based on cycles or flight time. Engine maintenance must also be performed upon the occurrence of certain events, such as foreign object damage in an aircraft engine or the replacement of life-limited engine parts. Such maintenance usually requires that an aircraft engine be taken out of service. Aspen Avionics’ operations may in the future be subject to new and more stringent regulatory requirements. In that regard, Aspen Avionics closely monitors the FAA and industry trade groups to understand how potential future regulations might impact it. The Company’s businesses that sell defense products directly to the U.S. government or for use in systems delivered to the U.S. government can be subject to various laws and regulations that govern pricing and other factors.

 
v3.26.1
Revenue
 3 Months Ended
Mar. 31, 2026
Revenue from Contract with Customer [Abstract]  
Revenue
10. Revenue

 

The Company generates revenue from (i) product sales, including avionics, Global Navigation Satellite System (“GNSS”) technologies, and mUAS/commercial drones; (ii) services, including training, support, and drone services; (iii) research and development (“R&D”) contracts; and (iv) sales-based royalties.

 

Product revenue is recognized at a point in time upon shipment or delivery when control transfers to the customer. Service revenue, including support, training, and drone services, is recognized over time as services are performed, generally on a straight-line basis over the service period. Extended warranties are service-type warranties and are recognized over the contractual term, typically two to three years. Revenue from R&D contracts is recognized over time using an input method based on costs incurred relative to total estimated costs. Sales-based royalties are recognized at a point in time as underlying sales occur.

 

The following table summarizes revenue recognized at a point in time and over time for the three months ended March 31, 2026 and 2025:

 

(In Thousands)  2026   2025 
   Three Months ended March 31, 
(In Thousands)  2026   2025 
Point in time  $7,932   $9,993 
Over time   969    1,802 
Revenue  $8,901   $11,795 

 

Contract liabilities as of March 31, 2026 and December 31, 2025 were $3.6 million and $4.5 million, respectively. The majority of contract liabilities are expected to be recognized as revenue during 2026. The Company had no significant contract assets as of March 31, 2026 and December 31, 2025. During the three months ended March 31, 2026, the Company recognized $1.0 million in revenue previously included in contract liabilities as of December 31, 2025.

 

Revenue is also disaggregated by segment and geography. See Note 9. Segment Information.
v3.26.1
Related Party Transactions
 3 Months Ended
Mar. 31, 2026
Related Party Transactions [Abstract]  
Related Party Transactions

 

11. Related Party Transactions

 

Related party transactions include the following:

 

  ● Aspen Avionics has a Commercialization Agreement with Centro Italiano Richerche Aerospaziali S.c.p.A (“CIRA”), a stockholder of Aspen Avionics, whereby CIRA licensed certain technology to Aspen Avionics. As consideration for the license, CIRA will receive a royalty based on each unit sold by Aspen Avionics. In March 2020, Aspen Avionics entered into an agreement with CIRA to settle unpaid royalty amounts due under a development agreement. The Company owed $0.6 million to CIRA as of March 31, 2026 and December 31, 2025.
     
  ● Aspen Avionics owed $0.4 million to Accord Global, a stockholder, as of March 31, 2025, which was fully settled during the year ended December 31, 2025. Sales to Accord Global were zero and $0.4 million during the three months ended March 31, 2026 and 2025, respectively. There were no amounts due from Accord Global as of March 31, 2026 or December 31, 2025.
     
  ● As of December 31, 2025, Coastal Defense had net receivables of $0.4 million due from Failor Services, Inc. (“Failor”), which is owned by a stockholder of the Company, included in “Related party receivables” on the condensed consolidated balance sheets. This balance was fully settled during the three months ended March 31, 2026, with no amounts outstanding as of that date. No purchases were made from Failor during the three months ended March 31, 2026 or 2025. Coastal Defense also pays for certain expenses on Failor’s behalf, which are reimbursable.

 

 

  ● Coastal Defense entered into unsecured due on demand notes with two stockholders (the “Stockholder Notes”). Interest is charged at 7.00% per year. As of March 31, 2026 and December 31, 2025, the total outstanding balance of the Stockholder Notes was $1.0 million and $1.1 million, respectively.
     
   

During 2025, the Company engaged in settlement discussions with one counterparty, Jeffrey F. Parker as executor of the estate of Kenneth Parker, and received a proposed settlement pursuant to which the Company is expected to pay the counterparty $1.0 million in full satisfaction of the obligations. The proposed settlement reflects a comprehensive resolution that includes offsets for amounts owed by Failor and Coastal Restaurant Group (“CRG”) to Coastal Defense. As of December 31, 2025, Coastal Defense’s recorded balances relating to these items were as follows: (i) amount due to Jeffrey F. Parker related to the Stockholder Notes of $1.0 million, (ii) amount due from Failor of $0.4 million, and (iii) an immaterial amount due from CRG, resulting in a net amount due of $0.6 million. The proposed settlement payment of $1.0 million exceeds the net recorded balance by $0.4 million, which was accrued at December 31, 2025 and included in “Related party payables” on the condensed consolidated balance sheets.

     
    In January 2026, the Company made a payment of $0.1 million to one of the stockholders. In March 2026, the Company finalized the settlement with Jeffrey F. Parker. The remaining $1.0 million was paid in April 2026.

 

 

●

 

 Coastal Defense uses West Run LLC (“West Run”) as a subcontractor for its military exercises. West Run is owned by both a Coastal Defense employee and a shareholder of the Company and the wife of Coastal Defense’s former President. The Company owed $0.2 million to West Run as of March 31, 2026 and December 31, 2025, respectively.
     
  ●

Edvard Per Erik Svehag, a member of the Company’s Board of Directors, is a director of Dangroup ApS (“Dangroup”) and indirectly beneficially owns approximately 60% of Dangroup. Dangroup was also a former shareholder of Sky-Watch, which the Company acquired in March 2022.

     
    On June 28, 2024, the Company signed an Incentive Agreement whereby the Company will pay Dangroup 20% of Sky-Watch’s earnings before interest, taxes, depreciation and amortization (“EBITDA”) as an incentive bonus for their continued involvement in Sky-Watch’s governance, management and/or other operations commencing on January 1, 2025 for an initial term of five years.
     
    On June 28, 2024, the Company signed a Consulting Agreement whereby the Company will pay a Mr. Svehag 2.5% of Sky-Watch’s EBITDA as a consulting fee for his assistance with branding and rolling out products and services into new and additional markets commencing on January 1, 2024. In February 2026, the Company hired Mr. Svehag as an employee and terminated the Consulting Agreement. The amounts owed under this agreement are included in “Accrued expenses” on the condensed consolidated balance sheet as of March 31, 2026 but were included in “Related party payables” on the condensed consolidated balance sheet as of December 31, 2025.
     
    During the three months ended March 31, 2026 and 2025, the Company recorded $0.6 million and $0.5 million of expense, respectively, within general and administrative expense related to these agreements.
v3.26.1
Subsequent Events
 3 Months Ended
Mar. 31, 2026
Subsequent Events [Abstract]  
Subsequent Events

 

12. Subsequent Events

 

In April 2026, the Company paid the remaining $1.0 million to Jeffrey F. Parker, which fully settled the Stockholder Notes as described in Note 11.
v3.26.1
The Company and Summary of Significant Accounting Policies (Policies)
 3 Months Ended
Mar. 31, 2026
Accounting Policies [Abstract]  
Nature of Operations

Nature of Operations

 

AIRO Group Holdings, Inc., a Delaware corporation (“Holdings” or the “Company”), is a technologically differentiated aerospace, autonomy, and air mobility platform targeting 21st century aerospace and defense opportunities. The Company is organized into four operating segments: (i) Drones, (ii) Avionics, (iii) Training, and (iv) Electric Air Mobility. The Drones segment develops, manufactures, and sells drones and expects to provide drone services, such as Drone as a Service (“DaaS”), for military and commercial end users. The Avionics segment develops, manufactures, and sells avionics for military and general aviation aircraft, drones, and electric vertical takeoff and landing (“eVTOL”) aircraft. The Training segment currently provides military pilot training. The Electric Air Mobility segment is developing autonomous eVTOL platforms for defense, government, cargo logistics, and remote operations applications.

 
Consolidation and Basis of Presentation

Consolidation and Basis of Presentation

 

The accompanying condensed consolidated financial statements include the accounts of Holdings and its wholly owned subsidiaries, including Old AGI, Inc. f/k/a AIRO Group, Inc., AIRO Drone, LLC (“AIRO Drone”), Agile Defense, LLC (“Agile Defense”), Coastal Defense, Inc. (“Coastal Defense”), Jaunt Air Mobility, LLC (“Jaunt”), Sky-Watch A/S (“Sky-Watch”) and Aspen Avionics, Inc. (“Aspen Avionics”). All intercompany accounts and transactions have been eliminated in consolidation.

 

The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information. In the opinion of management, the accompanying unaudited interim condensed consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation of such interim results. Certain information and disclosures normally included in unaudited condensed consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. Accordingly, the unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 (“Form 10-K”) as filed with the Securities and Exchange Commission (“SEC”). The condensed consolidated balance sheet as of December 31, 2025 has been derived from the audited consolidated financial statements as of that date.

 

The results for the unaudited interim condensed consolidated statements of operations are not necessarily indicative of results to be expected for the year ending December 31, 2026 or for any future interim period.

 
Liquidity

Liquidity

 

The accompanying condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. As of March 31, 2026, the Company had cash and restricted cash of $54.4 million of which $0.2 million was either restricted or was designated to only being used for Sky-Watch operations and working capital of $62.5 million.

 

Management believes that the existing cash on hand is sufficient to meet its obligations and fund planned operations for at least the next twelve months from the date these condensed consolidated financial statements are issued.

 
Use of Estimates

Use of Estimates

 

The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make judgments, estimates, and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. These judgments, estimates, and assumptions are used to determine litigation and claims and other asset and liability amounts. The Company bases its estimates and judgments on historical experience along with other pertinent information available at the time the estimate is made. However, future events are subject to change and the estimates and judgments may require adjustments. Actual results could differ from these estimates, and these differences may be material.

 

 
Business Risk and Concentration of Credit Risk

Business Risk and Concentration of Credit Risk

 

Financial instruments that potentially subject the Company to a concentration of credit risk consist primarily of cash and accounts receivable. Cash is maintained with financial institutions and its composition and maturities are regularly monitored by management. Deposits at any time may exceed federally insured limits. The Company performs ongoing credit evaluations of its customers and generally does not require collateral for accounts receivable. A large portion of the Company’s sales result in partial prepayments prior to shipment from customers. Otherwise, customer invoices generally have payment terms of net 30 days and do not contain a significant financing component.

 

The Company’s operational structure includes an existing operating business and early-stage businesses in emerging and developing markets that are concentrated in an industry characterized by rapid technological advances, changes in customer requirements, and evolving regulatory requirements and industry standards. Any significant delays in the development or introduction of products or services, or any failure by the Company to anticipate or to respond adequately to technological developments in its industry, changes in customer requirements, or changes in regulatory requirements or industry standards, could have a material adverse effect on the Company’s business and operating results.

 

The Company’s business, results of operations, and financial condition for the foreseeable future will likely continue to depend on sales to a relatively small number of customers. In the future, these customers may decide not to purchase the Company’s products, may purchase fewer products than in previous years, or may alter their purchasing patterns. Further, the amount of revenue attributable to any single customer or customer concentration generally may fluctuate in any given period. In addition, a decline in the production levels of one or more of the Company’s major customers could reduce revenue. The loss of one or more key customers, a reduction in sales to any key customer, or the Company’s inability to attract new significant customers could negatively impact revenue and adversely affect the Company’s business, results of operations, and financial condition.

 
Significant Accounting Policies

Significant Accounting Policies

 

No material changes have been made to the Company’s significant accounting policies disclosed in Note 1. The Company and Summary of Significant Accounting Policies, of its audited consolidated financial statements included in the Form 10-K.

 
Recently Adopted Accounting Standards

Recently Adopted Accounting Standards

 

In July 2025, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2025-05, Financial Instruments — Credit Losses (Topic 326), Measurement of Credit Losses for Accounts Receivable and Contract Assets, which provides a practical expedient to simplify the estimation of expected credit losses on current accounts receivable and current contract assets arising from revenue transactions under Accounting Standards Codification (“ASC”) 606. The Company adopted this guidance effective January 1, 2026. The adoption did not have a material impact on the Company’s condensed consolidated financial statements or related disclosures.

 
Recent Accounting Pronouncements Not Yet Adopted

Recent Accounting Pronouncements Not Yet Adopted

 

In November 2024, the FASB issued ASU 2024-03, Income Statement — Reporting Comprehensive Income — Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which requires disclosure of certain costs and expenses on an interim and annual basis in the notes to the consolidated financial statements. The guidance is effective for annual reporting periods beginning after December 15, 2026 and interim periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. The guidance is to be applied either (1) prospectively to financial statements issued for reporting periods after the effective date or (2) retrospectively to any or all prior periods presented in the financial statements. The Company is currently evaluating the potential impact of adopting this new guidance on its consolidated financial statements and related disclosures.

 

In December 2025, the FASB issued ASU 2025-10, Government Grants (Topic 832): Accounting for Government Grants Received by Business Entities, which establishes authoritative guidance on the recognition, measurement, presentation, and disclosure of government grants received by business entities. The ASU requires entities to recognize a government grant when it is probable that both (1) the entity will comply with the conditions attached to the grant and (2) the grant will be received. For grants related to assets, an entity may apply either a deferred income approach or a cost accumulation approach, and for grants related to income, an entity should recognize income on a systematic basis as related expenses are incurred. The ASU also includes expanded disclosure requirements regarding the nature of government grants received, the accounting policies adopted, and significant terms and conditions of the grants. The guidance is effective for annual reporting periods beginning after December 15, 2029. Early adoption is permitted. The Company is currently evaluating the potential impact of adopting this new guidance on its consolidated financial statements and related disclosures.

 

 

In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements, which amends the guidance in ASC 270, Interim Reporting. The objective of this new guidance is to improve the clarity and navigability of the interim reporting guidance without changing the fundamental nature of interim reporting or expanding or reducing the interim disclosure requirements currently in U.S. GAAP. The amendments clarify the scope and applicability of ASC 270, specify the form and content of interim financial statements and accompanying notes, and consolidate the interim disclosures required under U.S. GAAP into a single comprehensive list. The ASU also introduces a disclosure principle that an entity must disclose events and changes occurring after the end of the last annual reporting period that have a material impact on the entity, consistent with the principle that previously existed under certain SEC interim reporting rules. The amendments are effective for interim reporting periods within annual reporting periods beginning after December 15, 2028. Early adoption is permitted, and the amendments may be applied either prospectively or retrospectively to prior interim periods presented. The Company is currently evaluating the potential impact of adopting this new guidance on its consolidated financial statements and related disclosures.

 

In December 2025, the FASB issued ASU 2025-12, Codification Improvements, which provides technical corrections, clarifications, and improvements to the FASB ASC across multiple Topics. The amendments are generally not expected to change current accounting practices materially but may affect application of certain guidance such as diluted earnings per share in loss periods and other technical areas. The amendments are effective for annual reporting periods beginning after December 15, 2026, including interim periods within those annual periods, with early adoption permitted. An entity may elect the transition method on an issue-by-issue basis. The Company is evaluating the impact of ASU 2025-12 on its consolidated financial statements and related disclosures.
v3.26.1
Goodwill (Tables)
 3 Months Ended
Mar. 31, 2026
Intangible Asset, Goodwill and Other [Abstract]  
Schedule of Goodwill

The changes in the carrying value of goodwill were as follows:

(In Thousands)  Avionics   Drones   Electric Air Mobility   Training   Total 
Balance as of January 1, 2026  $-   $121,765   $434,347   $15,541   $571,653 
Effect of exchange rate   -    (2,369)   -    -    (2,369)
Balance as of March 31, 2026  $-   $119,396   $434,347   $15,541   $569,284 
                          
Balance as of January 1, 2025  $-   $107,620   $434,347   $15,541   $557,508 
Effect of exchange rate   -    4,514    -    -    4,514 
Balance as of March 31, 2025  $-   $112,134   $434,347   $15,541   $562,022 
v3.26.1
Intangible Assets, Net (Tables)
 3 Months Ended
Mar. 31, 2026
Intangible Asset, Goodwill and Other [Abstract]  
Schedule of Intangible Assets, Net

Intangible assets, net consisted of the following as of March 31, 2026 and December 31, 2025:

    

                 
   As of March 31, 2026 
(In Thousands)  Weighted Average Remaining Life (Years)   Gross   Accumulated Amortization   Carrying Value 
                 
Developed technology - definite lived   8.7   $100,045   $35,069   $64,976 
Developed technology - indefinite lived   N/A    66    -    66 
Tradenames - definite lived   3.1    1,926    1,225    701 
Tradenames - indefinite lived   N/A    8,738    -    8,738 
Customer relationships   3.1    20,285    14,159    6,126 
Patents   6.2    586    358    228 
Manufacturing license agreement   4.9    1,250    21    1,229 
Intangible assets net       $132,896   $50,832   $82,064 

 

 

                 
   As of December 31, 2025 
(In Thousands) 

Weighted Average

Remaining Life (Years)

   Gross   Accumulated Amortization   Carrying Value 
                 
Developed technology – definite lived   8.9   $100,179   $33,136   $67,043 
Developed technology – indefinite lived   N/A    66    -    66 
Tradenames - definite lived   3.3    1,933    1,153    780 
Tradenames - indefinite lived   N/A    8,738    -    8,738 
Customer relationships   3.3    20,339    13,717    6,622 
Patents   6.3    585    347    238 
Intangible assets net        $131,840   $48,353   $83,487 
Schedule of Amortization Expense

Amortization expense is reported on the condensed consolidated statements of operations line items as shown in the table below for the three months ended March 31:

 

(In Thousands)  2026   2025 
Cost of revenue  $87   $107 
Research and development   1,910    1,893 
Sales and marketing   496    701 
General and administrative   110    87 
Amortization expense   $2,603   $2,788 
Schedule of Estimated Future Amortization Expense

Total estimated future amortization expense as of March 31, 2026 is as follows:

(In Thousands)  Amount 
2026 (remaining)  $7,894 
2027   10,307 
2028   10,126 
2029   8,648 
2030   7,280 
Thereafter   29,005 
Amortization expense  $73,260 
v3.26.1
Inventory (Tables)
 3 Months Ended
Mar. 31, 2026
Inventory Disclosure [Abstract]  
Schedule of Inventory

Inventory consisted of the following as of March 31, 2026 and December 31, 2025:

 

(In Thousands)  March 31, 2026   December 31, 2025 
Raw materials  $11,477   $7,052 
Work in process   2,579    1,503 
Finished goods   8,451    3,084 
Total  $22,507   $11,639 
v3.26.1
Balance Sheet Details (Tables)
 3 Months Ended
Mar. 31, 2026
Payables and Accruals [Abstract]  
Schedule of Prepaid expenses and other current assets

Prepaid expenses and other current assets consisted of the following as of March 31, 2026 and December 31, 2025:

 

Schedule of Prepaid expenses and other current assets 

(In Thousands)  March 31, 2026   December 31, 2025 
Prepaid insurance  $506   $835 
Prepaid taxes   3,316    464 
Value added tax   436    616 
Vendor prepayments   4,226    4,984 
Other   1,029    609 
Prepaid expenses and other current assets   $9,513   $7,508 
Schedule of Accrued expenses

Accrued expenses consisted of the following as of March 31, 2026 and December 31, 2025:

  

(In Thousands)  March 31, 2026   December 31, 2025 
Accrued legal and professional fees  $995   $945 
Payroll related expenses   5,180    5,026 
Accrued warranty   217    299 
Accrued taxes   386    385 
Other accrued expenses   1,697    969 
Accrued expenses   $8,475   $7,624 
v3.26.1
Segment Information (Tables)
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Schedule of Segment Information

 

   Avionics   Drones   Electric Air Mobility   Training   Total 
   Three months ended March 31, 2026 
(In Thousands)  Avionics   Drones   Electric Air Mobility   Training   Total 
Revenue  $1,705   $6,532   $-   $664   $8,901 
Cost of revenue   1,271    4,603    -    662    6,536 
Gross profit   434    1,929    -    2    2,365 
Research and development   708    3,803    2,193    -    6,704 
Sales and marketing   284    1,192    -    496    1,972 
General and administrative   723    4,101    370    1,003    6,197 
Interest expense   -    2    -    14    16 
Interest income   -    (64)   -    -    (64)
Other expense (income), net   -    19    (6)   72    85 
Income tax benefit   -    (1,645)   -    -    (1,645)
Segment loss  $(1,281)  $(5,479)  $(2,557)  $(1,583)   (10,900)
Unallocated amounts:                         
Corporate expenses                       4,650 
Interest income, net                       (328)
Other expense, net                       231 
Net loss                      $(15,453)

 

 

   Avionics   Drones   Electric Air Mobility   Training   Total 
   Three months ended March 31, 2025 
(In Thousands)  Avionics   Drones   Electric Air Mobility   Training   Total 
Revenue  $2,249   $8,483   $-   $1,063   $11,795 
Cost of revenue   1,192    2,654    -    1,016    4,862 
Gross profit   1,057    5,829    -    47    6,933 
Research and development   245    1,546    1,875    -    3,666 
Sales and marketing   274    663    -    496    1,433 
General and administrative   407    2,262    277    757    3,703 
Interest expense   16    108    -    67    191 
Interest income   -    (88)   -    -    (88)
Other expense (income), net   1    (84)   (1,783)   (802)   (2,668)
Income tax expense   -    287    -    -    287 
Segment income (loss)  $114   $1,135   $(369)  $(471)   409 
Unallocated amounts:                         
Corporate expenses                       1,212 
Interest expense, net                       1,164 
Other expense, net                       6 
Net loss                      $(1,973)
Schedule of Revenue by Geographic Area

The following table presents revenue by geographic area for the three months ended March 31, 2026 and 2025:

 

   Avionics   Drones   Electric Air Mobility   Training   Total 
   Three months ended March 31, 2026 
(In Thousands)  Avionics   Drones   Electric Air Mobility   Training   Total 
United States  $1,011   $1   $-   $664   $1,676 
Europe   538    6,263    -    -    6,801 
Other   156    268    -    -    424 
Revenue  $1,705   $6,532   $-   $664   $8,901 

 

   Avionics   Drones   Electric Air Mobility   Training   Total 
   Three months ended March 31, 2025 
(In Thousands)  Avionics   Drones   Electric Air Mobility   Training   Total 
United States  $1,394   $32   $-   $1,063   $2,489 
Europe   497    8,451    -    -    8,948 
Other   358    -    -    -    358 
Revenue  $2,249   $8,483   $-   $1,063   $11,795 
Schedule of Revenue by Products and Services

The following table presents revenue by products and services for the three months ended March 31, 2026 and 2025:

 

   Avionics   Drones   Electric Air Mobility   Training   Total 
   Three months ended March 31, 2026 
(In Thousands)  Avionics   Drones   Electric Air Mobility   Training   Total 
Products  $1,693   $5,576   $-   $-   $7,269 
Services   12    956    -    664    1,632 
Revenue  $1,705   $6,532   $-   $664   $8,901 

 

    Avionics   Drones  

Electric Air

Mobility

   Training   Total 
    Three months ended March 31, 2025 
(In Thousands)   Avionics   Drones  

Electric Air

Mobility

   Training   Total 
Products   $2,242   $6,678   $-   $-   $8,920 
Services    7    1,805    -    1,063    2,875 
Revenue   $2,249   $8,483   $-   $1,063   $11,795 
Schedule of Capital Expenditures, Depreciation and Amortization

The following table presents capital expenditures, depreciation and amortization, stock-based compensation and contingent consideration fair value adjustments for the three months ended March 31, 2026 and 2025:

 

   Avionics   Drones   Electric Air Mobility   Training   Total (1) 
   Three months ended March 31, 2026 
(In Thousands)  Avionics   Drones   Electric Air Mobility   Training   Total (1) 
Depreciation and amortization  $128   $523   $1,700   $758   $3,109 
Stock-based compensation   2    1,237    11    2    1,252 
Capital expenditures   131    597    -    1,004    1,732 

 

(1)The totals above exclude corporate amounts, including $0.02 million of depreciation and amortization, $0.3 million of stock-based compensation, and $0.3 million of capital expenditures.

 

   Avionics   Drones   Electric Air Mobility   Training   Total 
   Three months ended March 31, 2025 
(In Thousands)  Avionics   Drones   Electric Air Mobility   Training   Total 
Depreciation and amortization  $123   $508   $1,700   $807   $3,138 
Stock-based compensation   -    -    125    -    125 
Contingent consideration fair value adjustments   -    (135)   (1,800)   (803)   (2,738)
Capital expenditures   -    345    -    -    345 
Schedule of Tangible Long Lived Assets by Geographic Area

The following table presents tangible long-lived assets by geographic area as of March 31, 2026 and December 31, 2025:

 

   Avionics   Drones   Electric Air Mobility   Training   Corporate   Total 
   March 31, 2026 
(In Thousands)  Avionics   Drones   Electric Air Mobility   Training   Corporate   Total 
United States  $644   $-   $3   $5,979   $91   $6,717 
Europe   -    3,200    -    -    -    3,200 
Total  $644   $3,200   $3   $5,979   $91   $9,917 

 

   Avionics   Drones   Electric Air
Mobility		   Training   Corporate   Total 
   December 31, 2025 
(In Thousands)  Avionics   Drones   Electric Air
Mobility		   Training   Corporate   Total 
United States  $544   $-   $3   $5,484   $-   $6,031 
Europe   -    2,955    -    -    -    2,955 
Total  $544   $2,955   $3   $5,484   $-   $8,986 
Schedule of Segment Assets

Total segment assets reconciled to condensed consolidated amounts are as follows as of March 31, 2026 and December 31, 2025:

 

   Total Segment assets 
(In Thousands)  Avionics   Drones   Electric Air Mobility   Training   Corporate   Total 
March 31, 2026  $4,030   $174,911   $504,844   $29,204   $46,126   $759,115 
December 31, 2025  $3,795   $178,064   $506,214   $30,387   $55,679   $774,139 
v3.26.1
Revenue (Tables)
 3 Months Ended
Mar. 31, 2026
Revenue from Contract with Customer [Abstract]  
Schedule of Revenue Recognition based on Time Periods

The following table summarizes revenue recognized at a point in time and over time for the three months ended March 31, 2026 and 2025:

 

(In Thousands)  2026   2025 
   Three Months ended March 31, 
(In Thousands)  2026   2025 
Point in time  $7,932   $9,993 
Over time   969    1,802 
Revenue  $8,901   $11,795 
v3.26.1
The Company and Summary of Significant Accounting Policies (Details Narrative)
$ in Millions
Mar. 31, 2026
USD ($)
Accounting Policies [Abstract]  
Cash and restricted cash $ 54.4
Restricted cash 0.2
Working capital deficit $ 62.5
v3.26.1
Net Loss Per Share (Details Narrative) - shares
shares in Millions
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Warrant [Member]    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Antidilutive securities excluded from computation of earnings per share 0.4 0.1
Share-Based Payment Arrangement, Option [Member]    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Antidilutive securities excluded from computation of earnings per share 0.2 0.3
Unsettled Restricted Stock Units [Member]    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Antidilutive securities excluded from computation of earnings per share 0.5  
Contingent Restricted Stock Awards [Member]    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Antidilutive securities excluded from computation of earnings per share   0.3
Debt Conversion Agreements [Member]    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Antidilutive securities excluded from computation of earnings per share   2.2
Contingent Interest Payments [Member]    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Antidilutive securities excluded from computation of earnings per share   0.6
Default Shares [Member]    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Antidilutive securities excluded from computation of earnings per share   0.1
v3.26.1
Stock, Warrants and Equity Incentive Plan (Details Narrative) - USD ($)
$ / shares in Units, $ in Thousands
 1 Months Ended 3 Months Ended
Jan. 01, 2026
Sep. 30, 2024
Mar. 31, 2026
Mar. 31, 2025
Dec. 31, 2025
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]          
Common stock, shares authorized     1,000,000,000   1,000,000,000
Common stock, par value     $ 0.000001   $ 0.000001
Preferred stock, shares authorized     10,000,000.0    
Preferred stock, par value     $ 0.000001    
Stock issued during period shares underwriter warrants   345,000      
Stock granted during period value sharebased compensation   $ 2,000      
Share price     $ 11.00    
Stock-based compensation expense     $ 1,502 $ 125  
2025 Equity Incentive Plan [Member]          
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]          
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Authorized       1,900,000  
Share-Based Compensation Arrangement by Share-Based Payment Award, Other Share Increase (Decrease) 900,000        
Stock options exercised     5,700,000    
Restricted Stock Units (RSUs) [Member]          
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]          
Unissued common stock, shares     500,000    
Restricted Stock Units (RSUs) [Member] | 2025 Equity Incentive Plan [Member]          
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]          
Stock awards granted     300,000    
Stock-based compensation expense     $ 1,500    
Weighted-average grant date fair value     $ 10.63    
Equity Incentive Plan [Member]          
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]          
Unissued common stock, shares     2,000,000.0    
Unvested Restricted Stock Units RSU [Member] | 2025 Equity Incentive Plan [Member]          
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]          
Stock awards granted     300,000    
Total unrecognized compensation expense     $ 3,200    
Weighted average period     2 years 8 months 12 days    
Warrant [Member]          
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]          
Unissued common stock, shares     400,000    
Purchase of warrants, shares     100,000    
Warrants expiration period     10 years    
Warrants exercise price, per share     $ 16.83   $ 16.83
Warrant [Member] | IPO [Member]          
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]          
Percentage of warrants exercisable number of shares of common stock   5.00%      
Share-Based Payment Arrangement, Option [Member]          
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]          
Unissued common stock, shares     200,000    
v3.26.1
Schedule of Goodwill (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Intangible Asset, Indefinite-Lived [Line Items]    
Balance $ 571,653 $ 557,508
Effect of exchange rate (2,369) 4,514
Balance 569,284 562,022
Advanced Avionics [Member]    
Intangible Asset, Indefinite-Lived [Line Items]    
Balance
Effect of exchange rate
Balance
Drones [Member]    
Intangible Asset, Indefinite-Lived [Line Items]    
Balance 121,765 107,620
Effect of exchange rate (2,369) 4,514
Balance 119,396 112,134
Electric Air Mobility [Member]    
Intangible Asset, Indefinite-Lived [Line Items]    
Balance 434,347 434,347
Effect of exchange rate
Balance 434,347 434,347
Training [Member]    
Intangible Asset, Indefinite-Lived [Line Items]    
Balance 15,541 15,541
Effect of exchange rate
Balance $ 15,541 $ 15,541
v3.26.1
Schedule of Intangible Assets, Net (Details) - USD ($)
$ in Thousands
Mar. 31, 2026
Dec. 31, 2025
Intangible Asset, Finite-Lived [Line Items]    
Intangible Asset, Finite-Lived, before Accumulated Amortization $ 132,896 $ 131,840
Intangible Asset, Finite-Lived, Accumulated Amortization 50,832 48,353
Intangible Asset, Excluding Goodwill, after Accumulated Amortization 82,064 83,487
Intangible Asset, Including Goodwill, after Accumulated Amortization   83,487
Developed Technology Rights [Member]    
Intangible Asset, Finite-Lived [Line Items]    
Intangible Asset, Finite-Lived, before Accumulated Amortization 66 66
Intangible Asset, Finite-Lived, Accumulated Amortization
Intangible Asset, Excluding Goodwill, after Accumulated Amortization 66  
Intangible Asset, Including Goodwill, after Accumulated Amortization   66
Trade Names [Member]    
Intangible Asset, Finite-Lived [Line Items]    
Intangible Asset, Finite-Lived, before Accumulated Amortization 8,738 8,738
Intangible Asset, Finite-Lived, Accumulated Amortization
Intangible Asset, Excluding Goodwill, after Accumulated Amortization 8,738  
Intangible Asset, Including Goodwill, after Accumulated Amortization   8,738
Developed Technology Rights [Member]    
Intangible Asset, Finite-Lived [Line Items]    
Intangible Asset, Finite-Lived, before Accumulated Amortization 100,045 100,179
Intangible Asset, Finite-Lived, Accumulated Amortization 35,069 $ 33,136
Intangible Asset, Excluding Goodwill, after Accumulated Amortization $ 64,976  
Weighted average remaining life 8 years 8 months 12 days 8 years 10 months 24 days
Intangible Asset, Including Goodwill, after Accumulated Amortization   $ 67,043
Trade Names [Member]    
Intangible Asset, Finite-Lived [Line Items]    
Intangible Asset, Finite-Lived, before Accumulated Amortization $ 1,926 1,933
Intangible Asset, Finite-Lived, Accumulated Amortization 1,225 $ 1,153
Intangible Asset, Excluding Goodwill, after Accumulated Amortization $ 701  
Weighted average remaining life 3 years 1 month 6 days 3 years 3 months 18 days
Intangible Asset, Including Goodwill, after Accumulated Amortization   $ 780
Customer Relationships [Member]    
Intangible Asset, Finite-Lived [Line Items]    
Intangible Asset, Finite-Lived, before Accumulated Amortization $ 20,285 20,339
Intangible Asset, Finite-Lived, Accumulated Amortization 14,159 $ 13,717
Intangible Asset, Excluding Goodwill, after Accumulated Amortization $ 6,126  
Weighted average remaining life 3 years 1 month 6 days 3 years 3 months 18 days
Intangible Asset, Including Goodwill, after Accumulated Amortization   $ 6,622
Patents [Member]    
Intangible Asset, Finite-Lived [Line Items]    
Intangible Asset, Finite-Lived, before Accumulated Amortization $ 586 585
Intangible Asset, Finite-Lived, Accumulated Amortization 358 $ 347
Intangible Asset, Excluding Goodwill, after Accumulated Amortization $ 228  
Weighted average remaining life 6 years 2 months 12 days 6 years 3 months 18 days
Intangible Asset, Including Goodwill, after Accumulated Amortization   $ 238
Manufacturing License Agreement [Member]    
Intangible Asset, Finite-Lived [Line Items]    
Intangible Asset, Finite-Lived, before Accumulated Amortization $ 1,250  
Intangible Asset, Finite-Lived, Accumulated Amortization 21  
Intangible Asset, Excluding Goodwill, after Accumulated Amortization $ 1,229  
Weighted average remaining life   4 years 10 months 24 days
v3.26.1
Schedule of Amortization Expense (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Intangible Asset, Goodwill and Other [Abstract]    
Cost of revenue $ 87 $ 107
Research and development 1,910 1,893
Sales and marketing 496 701
General and administrative 110 87
Amortization expense  $ 2,603 $ 2,788
v3.26.1
Schedule of Estimated Future Amortization Expense (Details)
$ in Thousands
Mar. 31, 2026
USD ($)
Intangible Asset, Goodwill and Other [Abstract]  
2026 (remaining) $ 7,894
2027 10,307
2028 10,126
2029 8,648
2030 7,280
Thereafter 29,005
Amortization expense $ 73,260
v3.26.1
Intangible Assets, Net (Details Narrative)
$ in Millions
 3 Months Ended
Mar. 31, 2026
USD ($)
Intangible Asset, Goodwill and Other [Abstract]  
Capitalized of intangible asset $ 1.3
v3.26.1
Schedule of Inventory (Details) - USD ($)
$ in Thousands
Mar. 31, 2026
Dec. 31, 2025
Inventory Disclosure [Abstract]    
Raw materials $ 11,477 $ 7,052
Work in process 2,579 1,503
Finished goods 8,451 3,084
Total $ 22,507 $ 11,639
v3.26.1
Inventory (Details Narrative)
$ in Millions
Mar. 31, 2026
USD ($)
Inventory Disclosure [Abstract]  
Inventory $ 10.9
v3.26.1
Schedule of Prepaid expenses and other current assets (Details) - USD ($)
$ in Thousands
Mar. 31, 2026
Dec. 31, 2025
Payables and Accruals [Abstract]    
Prepaid insurance $ 506 $ 835
Prepaid taxes 3,316 464
Value added tax 436 616
Vendor prepayments 4,226 4,984
Other 1,029 609
Prepaid expenses and other current assets  $ 9,513 $ 7,508
v3.26.1
Schedule of Accrued expenses (Details) - USD ($)
$ in Thousands
Mar. 31, 2026
Dec. 31, 2025
Schedule Of Accrued Expenses    
Accrued legal and professional fees $ 995 $ 945
Payroll related expenses 5,180 5,026
Accrued warranty 217 299
Accrued taxes 386 385
Other accrued expenses 1,697 969
Accrued expenses  $ 8,475 $ 7,624
v3.26.1
Commitments and Contingencies (Details Narrative)
Nov. 13, 2025
USD ($)
Nord Drone Group Llc [Member] | Joint Venture Agreement [Member]  
Reimburse amount $ 50,000
v3.26.1
Schedule of Segment Information (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Segment Reporting [Line Items]    
Revenue $ 8,901 $ 11,795
Cost of revenue 6,536 4,862
Gross profit 2,365 6,933
Research and development 6,704 3,666
Sales and marketing 1,977 1,433
General and administrative 10,842 4,915
Net income (15,453) (1,973)
Unallocated Amounts [Member]    
Segment Reporting [Line Items]    
Other expense, net 231 6
Corporate expenses 4,650 1,212
Interest income, net (328)  
Net income (15,453) (1,973)
Interest expense, net   1,164
Operating Segments [Member]    
Segment Reporting [Line Items]    
Revenue 8,901 11,795
Cost of revenue 6,536 4,862
Gross profit 2,365 6,933
Research and development 6,704 3,666
Sales and marketing 1,972 1,433
General and administrative 6,197 3,703
Interest expense 16 191
Interest income (64) (88)
Other expense, net 85 (2,668)
Income tax expense (1,645) 287
Segment income (loss) (10,900) 409
Avionics [Member]    
Segment Reporting [Line Items]    
Revenue 1,705 2,249
Cost of revenue 1,271 1,192
Gross profit 434 1,057
Research and development 708 245
Sales and marketing 284 274
General and administrative 723 407
Interest expense 16
Interest income
Other expense, net 1
Income tax expense
Segment income (loss) (1,281) 114
Drones [Member]    
Segment Reporting [Line Items]    
Revenue 6,532 8,483
Cost of revenue 4,603 2,654
Gross profit 1,929 5,829
Research and development 3,803 1,546
Sales and marketing 1,192 663
General and administrative 4,101 2,262
Interest expense 2 108
Interest income (64) (88)
Other expense, net 19 (84)
Income tax expense (1,645) 287
Segment income (loss) (5,479) 1,135
Electric Air Mobility [Member]    
Segment Reporting [Line Items]    
Revenue
Cost of revenue
Gross profit
Research and development 2,193 1,875
Sales and marketing
General and administrative 370 277
Interest expense
Interest income
Other expense, net (6) (1,783)
Income tax expense
Segment income (loss) (2,557) (369)
Training [Member]    
Segment Reporting [Line Items]    
Revenue 664 1,063
Cost of revenue 662 1,016
Gross profit 2 47
Research and development
Sales and marketing 496 496
General and administrative 1,003 757
Interest expense 14 67
Interest income
Other expense, net 72 (802)
Income tax expense
Segment income (loss) $ (1,583) $ (471)
v3.26.1
Schedule of Revenue by Geographic Area (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Segment Reporting [Line Items]    
Revenue $ 8,901 $ 11,795
UNITED STATES    
Segment Reporting [Line Items]    
Revenue 1,676 2,489
Europe [Member]    
Segment Reporting [Line Items]    
Revenue 6,801 8,948
Other [Member]    
Segment Reporting [Line Items]    
Revenue 424 358
Avionics [Member]    
Segment Reporting [Line Items]    
Revenue 1,705 2,249
Avionics [Member] | UNITED STATES    
Segment Reporting [Line Items]    
Revenue 1,011 1,394
Avionics [Member] | Europe [Member]    
Segment Reporting [Line Items]    
Revenue 538 497
Avionics [Member] | Other [Member]    
Segment Reporting [Line Items]    
Revenue 156 358
Drones [Member]    
Segment Reporting [Line Items]    
Revenue 6,532 8,483
Drones [Member] | UNITED STATES    
Segment Reporting [Line Items]    
Revenue 1 32
Drones [Member] | Europe [Member]    
Segment Reporting [Line Items]    
Revenue 6,263 8,451
Drones [Member] | Other [Member]    
Segment Reporting [Line Items]    
Revenue 268
Electric Air Mobility [Member]    
Segment Reporting [Line Items]    
Revenue
Electric Air Mobility [Member] | UNITED STATES    
Segment Reporting [Line Items]    
Revenue
Electric Air Mobility [Member] | Europe [Member]    
Segment Reporting [Line Items]    
Revenue
Electric Air Mobility [Member] | Other [Member]    
Segment Reporting [Line Items]    
Revenue
Training [Member]    
Segment Reporting [Line Items]    
Revenue 664 1,063
Training [Member] | UNITED STATES    
Segment Reporting [Line Items]    
Revenue 664 1,063
Training [Member] | Europe [Member]    
Segment Reporting [Line Items]    
Revenue
Training [Member] | Other [Member]    
Segment Reporting [Line Items]    
Revenue
v3.26.1
Schedule of Revenue by Products and Services (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Segment Reporting [Line Items]    
Revenue $ 8,901 $ 11,795
Product [Member]    
Segment Reporting [Line Items]    
Revenue 7,269 8,920
Service [Member]    
Segment Reporting [Line Items]    
Revenue 1,632 2,875
Product and Service, Other [Member]    
Segment Reporting [Line Items]    
Revenue 8,901 11,795
Avionics [Member]    
Segment Reporting [Line Items]    
Revenue 1,705 2,249
Avionics [Member] | Product [Member]    
Segment Reporting [Line Items]    
Revenue 1,693 2,242
Avionics [Member] | Service [Member]    
Segment Reporting [Line Items]    
Revenue 12 7
Avionics [Member] | Product and Service, Other [Member]    
Segment Reporting [Line Items]    
Revenue 1,705 2,249
Drones [Member]    
Segment Reporting [Line Items]    
Revenue 6,532 8,483
Drones [Member] | Product [Member]    
Segment Reporting [Line Items]    
Revenue 5,576 6,678
Drones [Member] | Service [Member]    
Segment Reporting [Line Items]    
Revenue 956 1,805
Drones [Member] | Product and Service, Other [Member]    
Segment Reporting [Line Items]    
Revenue 6,532 8,483
Electric Air Mobility [Member]    
Segment Reporting [Line Items]    
Revenue
Electric Air Mobility [Member] | Product [Member]    
Segment Reporting [Line Items]    
Revenue
Electric Air Mobility [Member] | Service [Member]    
Segment Reporting [Line Items]    
Revenue
Electric Air Mobility [Member] | Product and Service, Other [Member]    
Segment Reporting [Line Items]    
Revenue
Training [Member]    
Segment Reporting [Line Items]    
Revenue 664 1,063
Training [Member] | Product [Member]    
Segment Reporting [Line Items]    
Revenue
Training [Member] | Service [Member]    
Segment Reporting [Line Items]    
Revenue 664 1,063
Training [Member] | Product and Service, Other [Member]    
Segment Reporting [Line Items]    
Revenue $ 664 $ 1,063
v3.26.1
Schedule of Capital Expenditures, Depreciation and Amortization (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Segment Reporting [Line Items]    
Depreciation and amortization $ 3,109 [1] $ 3,138
Stock-based compensation 1,252 [1] 125
Capital expenditures 1,732 [1] 345
Contingent consideration fair value adjustments   (2,738)
Avionics [Member]    
Segment Reporting [Line Items]    
Depreciation and amortization 128 123
Stock-based compensation 2
Capital expenditures 131
Contingent consideration fair value adjustments  
Drones [Member]    
Segment Reporting [Line Items]    
Depreciation and amortization 523 508
Stock-based compensation 1,237
Capital expenditures 597 345
Contingent consideration fair value adjustments   (135)
Electric Air Mobility [Member]    
Segment Reporting [Line Items]    
Depreciation and amortization 1,700 1,700
Stock-based compensation 11 125
Capital expenditures
Contingent consideration fair value adjustments   (1,800)
Training [Member]    
Segment Reporting [Line Items]    
Depreciation and amortization 758 807
Stock-based compensation 2
Capital expenditures $ 1,004
Contingent consideration fair value adjustments   $ (803)
[1] The totals above exclude corporate amounts, including $0.02 million of depreciation and amortization, $0.3 million of stock-based compensation, and $0.3 million of capital expenditures.
v3.26.1
Schedule of Capital Expenditures, Depreciation and Amortization (Details) (Parenthetical) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Segment Reporting [Line Items]    
Depreciation and amortization $ 3,130 $ 3,138
Stock based compensation 1,502 125
Capital expenditures 1,732 [1] $ 345
Operating Segments [Member]    
Segment Reporting [Line Items]    
Depreciation and amortization 20  
Stock based compensation 300  
Capital expenditures $ 300  
[1] The totals above exclude corporate amounts, including $0.02 million of depreciation and amortization, $0.3 million of stock-based compensation, and $0.3 million of capital expenditures.
v3.26.1
Schedule of Tangible Long Lived Assets by Geographic Area (Details) - USD ($)
$ in Thousands
Mar. 31, 2026
Dec. 31, 2025
Segment Reporting [Line Items]    
Total $ 9,917 $ 8,986
UNITED STATES    
Segment Reporting [Line Items]    
Total 6,717 6,031
Europe [Member]    
Segment Reporting [Line Items]    
Total 3,200 2,955
Avionics [Member]    
Segment Reporting [Line Items]    
Total 644 544
Avionics [Member] | UNITED STATES    
Segment Reporting [Line Items]    
Total 644 544
Avionics [Member] | Europe [Member]    
Segment Reporting [Line Items]    
Total
Drones [Member]    
Segment Reporting [Line Items]    
Total 3,200 2,955
Drones [Member] | UNITED STATES    
Segment Reporting [Line Items]    
Total
Drones [Member] | Europe [Member]    
Segment Reporting [Line Items]    
Total 3,200 2,955
Electric Air Mobility [Member]    
Segment Reporting [Line Items]    
Total 3 3
Electric Air Mobility [Member] | UNITED STATES    
Segment Reporting [Line Items]    
Total 3 3
Electric Air Mobility [Member] | Europe [Member]    
Segment Reporting [Line Items]    
Total
Training [Member]    
Segment Reporting [Line Items]    
Total 5,979 5,484
Training [Member] | UNITED STATES    
Segment Reporting [Line Items]    
Total 5,979 5,484
Training [Member] | Europe [Member]    
Segment Reporting [Line Items]    
Total
Corporate Segment [Member]    
Segment Reporting [Line Items]    
Total 91
Corporate Segment [Member] | UNITED STATES    
Segment Reporting [Line Items]    
Total 91
Corporate Segment [Member] | Europe [Member]    
Segment Reporting [Line Items]    
Total
v3.26.1
Schedule of Segment Assets (Details) - USD ($)
$ in Thousands
Mar. 31, 2026
Dec. 31, 2025
Segment Reporting [Line Items]    
Assets $ 759,115 $ 774,139
Operating Segments [Member]    
Segment Reporting [Line Items]    
Assets 759,115 774,139
Avionics [Member]    
Segment Reporting [Line Items]    
Assets 4,030 3,795
Drones [Member]    
Segment Reporting [Line Items]    
Assets 174,911 178,064
Electric Air Mobility [Member]    
Segment Reporting [Line Items]    
Assets 504,844 506,214
Training [Member]    
Segment Reporting [Line Items]    
Assets 29,204 30,387
Corporate Segment [Member]    
Segment Reporting [Line Items]    
Assets $ 46,126 $ 55,679
v3.26.1
Segment Information (Details Narrative)
 3 Months Ended
Mar. 31, 2026
Segment
Segment Reporting [Abstract]  
Number of segments 4
v3.26.1
Schedule of Revenue Recognition based on Time Periods (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Disaggregation of Revenue [Line Items]    
Revenue $ 8,901 $ 11,795
Transferred at Point in Time [Member]    
Disaggregation of Revenue [Line Items]    
Revenue 7,932 9,993
Transferred over Time [Member]    
Disaggregation of Revenue [Line Items]    
Revenue $ 969 $ 1,802
v3.26.1
Revenue (Details Narrative) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2026
Dec. 31, 2025
Revenue from Contract with Customer [Abstract]    
Contract liabilities $ 3.6 $ 4.5
Revenue $ 1.0  
v3.26.1
Related Party Transactions (Details Narrative) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Jun. 28, 2024
Mar. 31, 2026
Mar. 31, 2025
Dec. 31, 2025
Jan. 31, 2026
Related Party Transaction [Line Items]          
Cost of revenue   $ 6,536 $ 4,862    
Interest rate   7.00%      
Unsecured Debt   $ 1,000   $ 1,100  
Settlement expected to pay       1,000  
Amount due related to stockholder notes       1,000  
Proposed settlement payment         $ 100
Accrued liabilities current   8,475   7,624  
General and adminstrative expenses   10,842 4,915    
Consulting Agreement [Member]          
Related Party Transaction [Line Items]          
Related party transaction, percentage rate 2.50%        
General and adminstrative expenses   $ 600 500    
Incentive Agreement [Member]          
Related Party Transaction [Line Items]          
Owns rate percentage   60.00%      
Incentive bonus percentage 20.00%        
Failor Services [Member]          
Related Party Transaction [Line Items]          
Amount due related to stockholder notes       400  
Coastal Restaurant Group [Member]          
Related Party Transaction [Line Items]          
Amount due related to stockholder notes       600  
Proposed settlement payment       1,000  
Accrued liabilities current       400  
Centro Italiano Richerche Aerospaziali [Member]          
Related Party Transaction [Line Items]          
Other liabilities   $ 600   600  
Accord Global [Member]          
Related Party Transaction [Line Items]          
Other liabilities     400    
Cost of revenue   0 $ 400    
Other liabilities   0   0  
Failor Services Inc [Member]          
Related Party Transaction [Line Items]          
Other receivables   400   400  
Jeffrey.F.Parker [Member]          
Related Party Transaction [Line Items]          
Accrued liabilities current   1,000      
West Run LLC [Member]          
Related Party Transaction [Line Items]          
Other liabilities   $ 200   $ 200