Quarterly report [Sections 13 or 15(d)]

Fair Value Measurements

v3.25.2
Fair Value Measurements
 6 Months Ended
Jun. 30, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements

Note 4. Fair Value Measurements

 

The Company’s assets and liabilities that were measured at fair value on a recurring basis were as follows:

 

    Level 1     Level 2     Level 3     Total  
    Fair Value Measured as of June 30, 2025  
    Level 1     Level 2     Level 3     Total  
    (In thousands)  
Assets                        
Money market funds (i)   $ 379     $ —     $ —     $ 379  
Total financial assets   $ 379     $ —     $ —     $ 379  
Liabilities                                
Common stock warrant liabilities (Placement Agent Warrants) (ii)  

$

 —    

$

 —    

$

 3    

$

 3  
Common stock warrant liabilities (BEPO Warrants) (ii)     —       —       6       6  
Common stock warrant liabilities (BEPO Agent Warrants) (ii)     —       —       4       4  
Contingent earnout liabilities     —       —       11       11  
Total financial liabilities   $ —     $ —     $ 24     $ 24  

 

    Level 1     Level 2     Level 3     Total  
    Fair Value Measured as of December 31, 2024  
    Level 1     Level 2     Level 3     Total  
    (In thousands)  
Assets                        
Money market funds (i)   $ 215     $ —     $ —     $ 215  
Total financial assets   $ 215     $ —     $ —     $ 215  
Liabilities                                
Common stock warrant liabilities (2022 Private Warrant) (ii)   $ —     $ —     $ 1     $ 1  
Common stock warrant liabilities (RDO Warrants) (ii)     —       —       90       90  
Common stock warrant liabilities (Placement Agent Warrants) (ii)     —       —       16       16  
Common stock warrant liabilities (2024 Private Warrants) (ii)     —       —       378       378  
Common stock warrant liabilities (BEPO Warrants) (ii)     —       —       18       18  
Common stock warrant liabilities (BEPO Agent Warrants) (ii)     —       —       2       2  
Common stock warrant liabilities (July 2024 Private Warrants) (ii)     —       —       865       865  
Common stock warrant liabilities (August Inducement Warrants) (ii)     —       —       796       796  
Contingent earnout liabilities     —       —       11       11  
Total financial liabilities   $ —     $ —     $ 2,177     $ 2,177  

 

  (i) Included in cash and cash equivalents on the unaudited condensed consolidated balance sheets.
  (ii) Included in warrant liabilities on the unaudited condensed consolidated balance sheets.

 

For more information regarding the Public Warrants, the Private Placement Warrants, the 2022 Private Warrant, the RDO Warrants, the Placement Agent Warrants, the 2024 Private Warrants, the BEPO Warrants, and the BEPO Agent Warrants, July 2024 Private Warrants, August Inducement Warrants and the Contingent earnout liabilities, see Note 10, Equity Instruments.

 

The aggregate fair value of the Company’s money market funds approximated amortized cost and, as such, there were no unrealized gains or losses on money market funds as of June 30, 2025 and December 31, 2024. Realized gains and losses, net of tax, were not material for any of the periods presented.

 

 

The following table presents a summary of the changes in the fair value of the Company’s Level 3 financial instruments:

 

    Private
placement
warrant
liabilities		     2022
Private
Warrant		     Contingent
earnout
liabilities		     RDO
Warrants		     Placement
Agent
Warrants		     2024 Private Warrants     BEPO Warrants     BEPO Agent Warrants     July 2024 Private Warrants     August Inducement Warrants  
    (In thousands)  
Fair value as of January 1, 2025   $            —     $ 1     $ 11     $ 90     $ 16     $ 2     $ 378     $ 18     $ 865     $ 796  
Change in fair value     —       (1 )     —       55       (13 )     (1 )     176       (14 )     441       402  
Change due to exchange             —               (145 )     —       (1 )     (548 )             (1,306 )     (1,198 )
Fair value as of March 31, 2025   $ —     $ —     $ 11     $ —     $ 3     $ —     $ 6     $ 4     $ —     $ —  
Issuance of instruments     —       —       —       —       —       —       —       —       —       —  
Change in fair value     —       —       —       —       —       —       —       —       —       —  
Fair value as of June 30, 2025   $ —     $ —     $ 11     $ —     $ 3     $ —     $ 6     $ 4     $ —     $ —  

 

    Private
placement
warrant
liabilities		     2022
Private
Warrant		     Contingent
earnout
liabilities		     RDO
Warrants		     Placement
Agent
Warrants		     2024 Private Warrants     BEPO Warrants     BEPO Agent Warrants     July 2024 Private Warrants     August Inducement Warrants  
    (In thousands)  
Fair value as of January 1, 2024   $ 127     $ 23     $ 1,456     $ 10,891     $ 536     $ —     $ —     $ —     $ —     $ —  
Change in fair value     114       5       437       2,162       108       —       —       —       —       —  
Fair value as of March 31, 2024   $ 241     $ 28     $ 1,893     $ 13,053     $ 644     $ —     $ —     $ —     $ —     $ —  
Issuance of instruments     —       —       —       —       —       6,321       9,020       446       —       —  
Change in fair value     (217 )     (23 )     (1,824 )     (11,016 )     (544 )     (5,948 )     (6,784 )     (336 )     —       —  
Fair value as of June 30, 2024   $ 24     $ 5     $ 69     $ 2,037     $ 100     $ 373     $ 2,236     $ 110     $ —     $ —  

 

The fair value of the private placement warrant liabilities, the 2022 Private Warrant, the contingent earnout liabilities, the RDO Warrants, the Placement Agent Warrants, the 2024 Private Warrants, the BEPO Warrants, the BEPO Agent Warrants, the July 2024 Private Warrants and the August Inducement Warrants are based on significant unobservable inputs, which represent Level 3 measurements within the fair value hierarchy.

 

In determining the fair value of the Private Placement Warrant liabilities, contingent earnout liabilities, and 2024 Private Warrants, the Company used the Monte Carlo simulation model using a distribution of potential outcomes on a weekly basis over the applicable periods that assumes optimal exercise of the Company’s redemption option at the earliest possible date (see Note 10, Equity Instruments).

 

In determining the fair value of the 2022 Private Warrant, RDO Warrants, Placement Agent Warrants, BEPO Warrants, BEPO Agent Warrants, July 2024 Private Warrants and August Inducement Warrants the Company used the Black-Scholes option pricing model to estimate the fair value using unobservable inputs including the expected term, expected volatility, risk-free interest rate and dividend yield (see Note 10, Equity Instruments).