Annual report [Section 13 and 15(d), not S-K Item 405]

Fair Value Measurements

v3.26.1
Fair Value Measurements
 12 Months Ended
Dec. 31, 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:

 

 

 

Fair Value Measured as of December 31, 2025

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

 

(In thousands)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds (i)

 

 

37,124

 

 

 

—

 

 

 

—

 

 

 

37,124

 

Total financial assets

 

$

37,124

 

 

$

—

 

 

$

—

 

 

$

37,124

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Common stock warrant liabilities (2022 Private Warrant) (ii)

 

 

—

 

 

 

—

 

 

 

2

 

 

 

2

 

Common stock warrant liabilities (Placement Agent Warrants) (ii)

 

 

—

 

 

 

—

 

 

 

29

 

 

 

29

 

Common stock warrant liabilities (BEPO Warrants) (ii)

 

 

—

 

 

 

—

 

 

 

48

 

 

 

48

 

Common stock warrant liabilities (BEPO Agent Warrants) (ii)

 

 

—

 

 

 

—

 

 

 

30

 

 

 

30

 

Contingent earnout liabilities

 

 

—

 

 

 

—

 

 

 

1

 

 

 

1

 

Total financial liabilities

 

$

—

 

 

$

—

 

 

$

110

 

 

$

110

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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)

 

 

—

 

 

 

—

 

 

 

866

 

 

 

866

 

Common stock warrant liabilities (August Inducement Warrants) (ii)

 

 

—

 

 

 

—

 

 

 

796

 

 

 

796

 

Contingent earnout liabilities

 

 

—

 

 

 

—

 

 

 

11

 

 

 

11

 

Total financial liabilities

 

$

—

 

 

$

—

 

 

$

2,178

 

 

$

2,178

 

 

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

For more information regarding the Public Warrants, the Private Placement Warrants, the 2022 Private Warrants, the RDO Warrants, the Placement Agent Warrants, the 2024 Private Warrants, the BEPO warrants, the BEPO Agent Warrants, the July 2024 Private Warrants, the 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 December 31, 2025 and 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

 

 

Debt
derivatives

 

 

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

 

 

$

866

 

 

$

796

 

Issuance of instruments

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Change in fair value

 

 

—

 

 

 

1

 

 

 

(10

)

 

 

—

 

 

 

55

 

 

 

13

 

 

 

(1

)

 

 

218

 

 

 

12

 

 

 

440

 

 

 

402

 

Change due to exchange

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(145

)

 

 

—

 

 

 

(1

)

 

 

(548

)

 

 

—

 

 

 

(1,306

)

 

 

(1,198

)

Fair value as of December 31, 2025

 

$

—

 

 

$

2

 

 

$

1

 

 

$

—

 

 

$

—

 

 

$

29

 

 

$

—

 

 

$

48

 

 

$

30

 

 

$

—

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair value as of January 1, 2024

 

$

127

 

 

$

23

 

 

$

1,456

 

 

$

—

 

 

$

10,891

 

 

$

536

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Issuance of instruments

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

6,321

 

 

 

9,020

 

 

 

446

 

 

 

4,200

 

 

 

2,437

 

Change in fair value

 

 

(127

)

 

 

(22

)

 

 

(1,445

)

 

 

—

 

 

 

(10,801

)

 

 

(520

)

 

 

(6,319

)

 

 

(8,642

)

 

 

(428

)

 

 

(3,334

)

 

 

(1,641

)

Change due to exchange

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Fair value as of December 31, 2024

 

$

—

 

 

$

1

 

 

$

11

 

 

$

—

 

 

$

90

 

 

$

16

 

 

$

2

 

 

$

378

 

 

$

18

 

 

$

866

 

 

$

796

 

 

The fair value of the private placement warrant liability, the 2022 Private Warrant, the contingent earnout liabilities, the debt derivatives, 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 liability, contingent earnout liability, and the 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).