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 Fair Value Measurements
The following table presents the fair value of the Company’s financial liabilities that are measured at fair value on a recurring basis as of December 31, 2025 (in thousands):
As of December 31, 2025
Level 1 Level 2 Level 3 Total
Derivative liability $ —  $ —  $ 50  $ 50 
There were no transfers between Level 1, 2 or 3 during the year ended December 31, 2025 and 2024.
The following table presents changes in Level 3 liabilities measured at fair value for the year ended December 31, 2025. Both observable and unobservable inputs were used to determine the fair value of positions that the Company has classified within the Level 3 category. Unrealized gains and losses associated with liabilities within the Level 3 category include changes in fair value that were attributable to both observable (e.g., changes in market interest rates) and unobservable (e.g., changes in unobservable long- dated volatilities) inputs (in thousands).
Warrant liability Derivative liability
Balance at January 1, 2025 $ —  $ — 
Issuance of unvested warrants in conjunction with loan agreements 230  — 
Issuance of convertible debt —  2,070 
Issuance of unvested warrants as an additional consideration to the August Future Financing Agreement 120  — 
Convertible notes redemptions —  (1,583)
Change in fair value 225  (437)
Reclassification of liability classified warrants to equity (575) — 
Balance at December 31, 2025 $ —  $ 50 
A summary of the weighted average (in aggregate) significant unobservable inputs (Level 3 inputs) used in the Black-Scholes option pricing model measuring the Company’s warrant liabilities and derivative liability that are categorized within Level 3 of the fair value hierarchy as of September 9, 2025, the date when the Company increased its
total authorized shares which resulted the liability classified warrants reclassed to equity, and as of December 31, 2025, are as follows:
Warrant liability Derivative liability
September 9, 2025 December 31, 2025
Exercise price $ 0.57  $ 0.76 
Expected term (years) $ 1.0 0.6
Expected stock price volatility 99.2  % 125.0  %
Risk-free rate of interest 3.6  % 3.5  %
Expected dividend yield (per share) 0  % 0  %