Foundation Misses Payroll as CEO’s $4.6 Million Company Loan Raises Governance Concerns
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Foundation Future Industries, the San Francisco-based maker of military humanoid robots, missed its Oct. 30 payroll, and employees had not received their paychecks at the time of reporting, according to people with direct knowledge. The workers’ frustration was heightened by CEO and co-founder Sankaet Pathak borrowing $4.6 million from the company last year to buy a luxury home, the people said. Public records show an LLC naming Pathak as sole principal bought a $4.6 million property in Sausalito, California, in October 2025. Pathak’s spokesman did not respond to requests for comment.
The cash shortage comes as Foundation seeks to raise hundreds of millions of dollars at a $3 billion valuation and Pathak has said the company is close to unveiling a next-generation, weapons-ready humanoid robot. Foundation’s widely reported $24 million in Pentagon contracts reportedly came through its 2024 acquisition of Boardwalk Robotics, which held existing government research contracts, rather than contracts won directly by Foundation. Pathak is the company’s sole board member, a structure that has raised governance concerns among prospective investors.
Foundation’s payroll status and fundraising remain unresolved in the reported account. The company’s next-generation robot unveiling was described by Pathak as expected in the coming months, but no specific date was disclosed. The extent of Eric Trump’s investment was also not disclosed; his spokesperson said he had no involvement in Foundation’s management, operations, strategic decisions, or government contracting.
Original report
Eric Trump-backed robot soldier startup can't pay staff after founder borrowed $4.6 million from company to buy home
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