Foundation Future Industries Misses Payroll After CEO’s Luxury Home Purchase

Military humanoid robot manufacturer Foundation Future Industries missed its October 30 payroll, leaving employees unpaid as cash reserves dwindled, detikInet reported.

The San Francisco startup faces internal anger because chief executive and co-founder Sankaet Pathak borrowed $4.6 million from the company last year to purchase a luxury home instead of funding salaries. Public records show a limited liability company listing Pathak as the sole owner bought the property in Sausalito, California.

Pathak previously founded fintech firm Synapse, which collapsed in 2024 and left thousands of Americans unable to access their savings accounts. The cash crisis hits Foundation as Pathak prepares to launch a combat-ready robot designed to compete with Chinese rivals and attempts to raise hundreds of dollars at a $3 billion valuation.

Military claims and investor backing

Foundation gained media attention after Pathak claimed his robots would patrol the US-Mexico border or take over battlefield duties in Ukraine, supported by television interviews asserting the firm won a $24 million Pentagon contract. Pathak told CNBC that upcoming releases will feature the strongest humanoid robots in the world.

“What we are going to launch in the next few months will be the strongest humanoid robot that exists anywhere in the world, including China,” said Sankaet Pathak, Chief Executive Officer, Foundation Future Industries.

Television interviews introduced Eric Trump as an investor and chief strategy advisor for Foundation, though his exact equity stake remains unknown. Eric Trump and his brother Donald Trump Jr. invest in various defense companies.

“We must win the robotics race in the United States,” said Eric Trump.

Eric Trump’s involvement prompted Senator Elizabeth Warren to question whether Foundation won defense contracts through nepotism. Eric Trump did not respond to requests for comment, though a spokesperson stated he has no involvement in Foundation’s management, operations, strategic decisions, or commercial activities.

Foundation did not win the $24 million contract directly, but rather acquired Boardwalk Robotics in late 2024, inheriting the government research contract that formed the basis of Pathak’s claims. Insiders fear the company could go bankrupt if Pathak fails to secure fresh funding.

Corporate governance and future funding

Pathak serves as Foundation’s sole board member and holds majority shares, raising governance concerns for prospective investors. This corporate structure enabled Pathak to borrow the $4.6 million as a short-term loan.

The company also ran out of money for August payroll, though employees waited only about two days after an investor bailout. Pathak told employees he is working to secure funds to pay the overdue wages. Foundation was established in April 2024 by Pathak, Tribe Capital CEO Arjun Sethi, and LeBlanc, a co-founder of Cobalt Robotics.

Pathak told employees this week that he is working to secure funding to pay the overdue wages.