Revenue and Contracts with Customers

3 Months Ended

Mar. 31, 2026

Revenue and Contracts with Customers [Abstract]

Revenue and Contracts with Customers

3. Revenue and Contracts with Customers 

Contract Balances

Timing differences between revenue recognized, billings, and customer payments result in contract assets and contract liabilities. Contract assets represent revenue recognized in excess of amounts billed to customers. Contract liabilities represent payments received from customers in advance of satisfying the related performance obligations.

The Company’s contract balances consist primarily of accounts receivable and deferred revenue (contract liabilities). Accounts receivable represents the Company’s unconditional rights to consideration for goods and services transferred to customers. Contract liabilities represent amounts billed or collected in advance of satisfying performance obligations and are recognized as revenue as the related performance obligations are satisfied. As of March 31, 2026 and December 31, 2025, accounts receivable totaled $561,923 and $780,132, respectively. As of March 31, 2026 and December 31, 2025, deferred revenue related to tugger sales totaled $2,249,955 and $1,658,015, respectively.

Revenue Recognized from Prior Period Contract Liabilities

For the three months ended March 31, 2026 and 2025, the Company recognized revenue of $81,059 and $26,823, respectively, that was included in deferred revenue at the beginning of each respective period. The Company did not recognize material revenue during the periods presented from performance obligations satisfied (or partially satisfied) in prior periods other than amounts previously included in deferred revenue.

Remaining Performance Obligations

As of  March 31, 2026, the remaining performance obligations on existing contracts are $2,249,955, approximately 19% of which is expected to be recognized in the remainder of 2026, 36% in 2027, 30% in 2028, and the remainder thereafter. This amount corresponds to the Company’s contract liability balance as of March 31, 2026, as all remaining obligations relate to the passage of time on active contracts.

For the three months ended March 31, 2026 and 2025, revenue was $104,573 and $47,152, respectively.