Note 6. Balance Sheet Components

Accounts Receivable, Net

Inventories

The Company recorded $25.2 million and $27.1 in inventory reserves related to the valuation of inventory for the years ended December 31, 2025 and 2024, respectively.

Prepaid Expenses and Other Current Assets

The Company entered into a sales-type lease on July 11, 2024 with a customer for a Sapphire XC system. The contract term is over 21 months with an effective interest rate of 0.78%. An amendment to the original agreement was executed to amend the monthly payments and included a purchase option of $1.2 million at the end of completion of the initial term.

For a full description of the customer deposit — noncash consideration, see Note 16, Momentus Master Service Agreement.

Property and Equipment, Net

Depreciation expense for the years ended December 31, 2025 and 2024 was $3.1 million and $4.0 million, respectively.

Other Assets

For a further description of the net investment in sales type lease, see above Prepaid Expenses and Other Assets, as the Net Investment in sales type lease was classified as current as of December 31, 2025.

Accrued Expenses & Other Current Liabilities

For a full description of the customer liabilities — prepaid reserve, and customer liabilities — noncash consideration, see Note 16, Momentus Master Service Agreement. On August 14, 2025, an amendment to the Momentus Master Service Agreement triggered changes to the accounting treatment, which required an independent valuation appraisal. The customer deposit — prepaid reserve are net cash proceeds after fees from the sale of the customer noncash consideration, and the customer deposit — noncash consideration

was based on an independent valuation appraisal for the initial measurement date and as of December 31, 2025, respectively. The valuation was based on a Black-Scholes model including inputs from the current stock price, volatility, remaining term and risk-free

Other Noncurrent Liabilities