Segment Information

3 Months Ended

Mar. 31, 2026

Segment Reporting [Abstract]

Segment Information

Segment Information

The Company has three reportable segments: AI Electric Vehicles (“AIEV”), Robotics and AIXC. Our reportable segments are based upon the industries where the Company commercializes its products and services. In the quarter ended March 31, 2026, the Company expanded its strategy of resource allocation beyond electric vehicles and digital assets to include embodied AI (EAI) robotics which will focus in the early stages on humanoid robots with use cases in hospitality, education and data collection. Furthermore, our reportable segments reflect how we report our financial results to the chief operating decision maker ("CODM"). Mr. Yueting Jia serves as the Company’s CODM, who is responsible for reviewing segment performance and making decisions regarding resource allocation. “Loss from operations” is the segment performance measurement that the CODM reviews for the Company’s reportable segments and the Company identified the same measurement as the key measure of “significant segment expense.” Loss from operations is the measure of segment profit or loss that is most consistent with the measurement principles used in measuring the corresponding amounts in the Company’s unaudited condensed consolidated financial statements.

While loss from operations is the primary measure used by the CODM to evaluate performance and allocate resources, the CODM also reviews gross profit for the Robotics segment as an additional performance measure given the segment’s early stage of commercialization and focus on product-level profitability. Gross profit is defined as revenue less cost of revenues. At this time, general and administrative, research and development, and sales and marketing expenses are not allocated to the Robotics segment. Gross profit is not used as the primary measure of segment profit or loss for AIEV or AIXC.

The following table presents revenues, expenditures and loss from operations data of the Company and its reportable segments for the three months ended March 31, 2026, and 2025. In 2025, the Company operated as a single segment (AIEV).

	Three Months Ended March 31, 2026								Three Months Ended March 31, 2025
(in thousands)	AIEV		Robotics (1)		AIXC		Consolidated		Consolidated
Revenue	$	224	$	288	$	—	$	512	$	316
Cost of revenues	11,746		144		—		11,890		21,381
Gross (loss) profit	(11,522)		144		—		(11,378)		(21,065)
Operating expenses
Research and development	6,986		—		4		6,990		6,419
Settlement on accrued research and development expenses	—		—		—		—		—
Sales and marketing	4,978		—		638		5,616		2,629
General and administrative	5,647		—		3,548		9,195		13,674
Loss on disposal of property, plant, and equipment	328		—		—		328		44
Asset impairment on long-lived assets	—		—		—		—		—
Impairment of intangible assets, including goodwill	2,072		—		183		2,255		—
Credit loss expense - short-term note receivable	—		—		143		143		—
Total operating expenses	20,011		—		4,516		24,527		22,766
(Loss) income from operations	$	(31,533)	$	144	$	(4,516)	$	(35,905)	$	(43,831)
(1) The Robotics segment is evaluated by the CODM using gross profit as an additional performance measure. General and Administrative, Research and Development, and Sales and Marketing expenses are not allocated to the Robotics segment, as these costs are managed on a consolidated basis and are primarily reflected within the AIEV segment.

Inter-segment transactions are eliminated in consolidation. During the three months ended March 31, 2026, inter-segment activity between AIEV and AIXC totaled approximately $0.5 million and primarily related to transition services provided under a transition services agreement. These amounts were eliminated in consolidation and did not impact consolidated loss from operations.

Additional segment disclosures are as follows:

	Three Months Ended March 31, 2026								Three Months Ended March 31, 2025
(in thousands)	AIEV		Robotics		AIXC		Consolidated		Consolidated
Depreciation and amortization	$	8,081	$	—	$	—	$	8,081	$	17,527
Interest expense	$	(2,478)	$	—	$	—	$	(2,478)	$	(2,302)
Net loss on digital assets	$	—	$	—	$	(1,946)	$	(1,946)	$	—
	As of March 31, 2026								As of December 31, 2025
(in thousands)	AIEV		Robotics		AIXC		Consolidated		Consolidated
Net assets	$	(2,774)	$	144	$	21,871	$	19,241	$	7,759