Eric Trump-backed robot soldier startup can't pay staff after founder borrowed $4.6 million from company to buy home

The situation has particularly angered some employees because the borrowed money could have been used to cover payroll. Public records show that an LLC naming Pathak as sole principal purchased a $4.6 million Sausalito property with sweeping, cinematic views of the San Francisco Bay in October 2025.

Military robot ambitions

Foundation's cash crunch comes at a precarious moment for the company, which Pathak has said is close to unveiling a next-generation, weapons-ready robot to help the U.S. compete against Chinese rivals. The company has claimed it has won $24 million in Pentagon contracts, though this appears to stem from its acquisition of Florida-based Boardwalk Robotics in late 2024.

Trump connection

Eric Trump, the son of the U.S. president, was introduced as a Foundation investor and chief strategy advisor in an April interview. His involvement drew criticism from Sen. Elizabeth Warren, who questioned whether Foundation won defense contracts due to nepotism.

Eric Trump's spokesperson said he had no involvement in Foundation's management, operations, strategic decisions or commercial activities, including the solicitation, negotiation, procurement or execution of any government contracts. Eric Trump and his brother have invested in an array of defense firms, including makers of military drones and autonomous weapons.

Governance concerns

Pathak is Foundation's sole board member and owns most of the firm's shares, a structure that has raised concerns among prospective investors about corporate governance. This setup allowed him to borrow the $4.6 million last year, which he called a short-term loan at the time.

Foundation also ran out of cash for payroll in August but secured a bridge loan from an existing investor after about two days. Pathak told employees in a memo this week that he was working on sourcing money to pay back wages.

Founder's troubled past

Before Foundation, Pathak founded Synapse, a fintech firm that collapsed in 2024, leaving more than 100,000 Americans with $265 million locked out of their accounts. As much as $96 million in customer funds went missing during bankruptcy proceedings, though Pathak blamed a banking partner named Evolve.

Federal prosecutors convened a grand jury to investigate possible criminal misconduct at Synapse, though Pathak's involvement wasn't specifically mentioned in reports. The controversy didn't dissuade Eric Trump from investing in Pathak, who he called a friend and praised for his phenomenal job. Foundation is now seeking hundreds of millions in funding at a $3 billion valuation.