v3.25.1
Fair Value Measurements
 3 Months Ended
Mar. 31, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
The Company measures its cash equivalents at fair value based on an expected exit price as defined by the authoritative guidance on fair value measurements, which represents the amount that would be received on the sale of an asset or paid to transfer a liability, as the case may be, in an orderly transaction between market participants. As such, fair value may be based on assumptions that market participants would use in pricing an asset or liability. The authoritative guidance on fair value measurements establishes a consistent framework for measuring fair value on either a recurring or nonrecurring basis whereby inputs, used in valuation techniques, are assigned a hierarchical level. The following are the hierarchical levels of inputs to measure fair value:
•Level 1: Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.
•Level 2: Inputs reflect: quoted prices for identical assets or liabilities in markets that are not active; quoted prices for similar assets or liabilities in active markets; inputs other than quoted prices that are observable for the assets or liabilities; or inputs that are derived principally from or corroborated by observable market data by correlation or other means.
•Level 3: Unobservable inputs reflecting the Company’s assumptions incorporated in valuation techniques used to determine fair value. These assumptions are required to be consistent with market participant assumptions that are reasonably available.
Financial Assets and Liabilities

The carrying amount of cash, accounts receivable, and accounts payable approximate their fair value due to their short-term nature. The Company’s assets and liabilities that are measured at fair value on a recurring basis, by level, within the fair value hierarchy as of March 31, 2025 and December 31, 2024, are summarized as follows:

March 31, 2025
Level 1Level 2Level 3
Total
(In thousands)
Assets
Cash equivalents - money market funds$99,324 $— $— $99,324 
Total assets$99,324 $— $— $99,324 
Liabilities:
Warrants liability
$— $— $8,674 $8,674 
Total liabilities
$— $— $8,674 $8,674 

December 31, 2024
Level 1Level 2Level 3
Total
(In thousands)
Assets:
Cash equivalents - money market funds$105,772 $— $— $105,772 
Total assets$105,772 $— $— $105,772 
Liabilities:
Warrants liability
$— $— $17,498 $17,498 
Total liabilities
$— $— $17,498 $17,498 

In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as considers counterparty credit risk in its assessment of fair value. Observable or market inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s assumptions based on the best information available.

The Company’s money market funds are measured at fair value on a recurring basis based on quoted market prices in active markets and are classified as Level 1 within the fair value hierarchy. The Company’s Warrants liability was measured at fair value on a recurring basis and was classified as Level 3 within the fair value hierarchy. Significant changes in unobservable inputs could result in significantly lower or higher fair value measurements.

On a nonrecurring basis, the Company uses fair value measures when analyzing asset impairment. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If it is determined such indicators are present and the review indicates that the assets will not be fully recoverable, based on undiscounted estimated cash flows over the remaining amortization periods, their carrying values are reduced to estimated fair value. Estimated fair values are Level 3 measures in the fair value hierarchy. 
The estimated fair value of outstanding balances of the Notes as of the dates presented are as follows:

Level of
Hierarchy
Fair ValuePrincipal
Balance
Unamortized Debt Discount
Unamortized Debt Issuance Costs
Net Carrying
Value
(In thousands)
March 31, 2025
2026 Notes2$141,050 $361,204 $— $(2,398)$358,806 
2029 Notes3$181,060 $207,125 $(29,981)$(7,092)$170,052 
December 31, 2024
2026 Notes
2$164,348 $361,204 $— $(2,757)$358,447 
2029 Notes
3$180,360 $207,125 $(31,137)$(7,365)$168,623 

Management determined the fair value of 2026 Notes by using Level 2 inputs based on observable market prices for similar instruments. Management determined the fair value of the 2029 Notes and Delayed Draw Notes as of March 31, 2025 by using Level 3 inputs, including the yield of 17.00%, risk-free rate of 3.93%, and credit spread of 13.24%. A change in those inputs to a different amount might result in a significantly higher or lower fair value measurement.

Warrants
The Company recorded the fair value of the Warrants upon issuance using the Black-Scholes valuation model and is required to revalue these Warrants at each reporting date with any changes in fair value recorded on the Company’s condensed consolidated statements of operations. The valuation of the Warrants was classified as Level 3 within the fair value hierarchy and is influenced by the fair value of the underlying, or notional amount of, common stock of the Company. A summary of the Black-Scholes pricing model assumptions used to record the fair value of the Warrants as of March 31, 2025 is as follows:

Stock price
$0.80
Risk free rate
4.19%
Expected life (in years)
9.18
Expected volatility78.00%

Any significant changes in the inputs may result in significantly higher or lower fair value measurements. Refer to Note 8 – Convertible Senior Notes, Capped Call Transactions and Warrants for additional information.

The changes in fair value of the Level 3 Warrants of the dates presented are as follows:

March 31,
2025		December 31,
2024
Balance, beginning of year$17,498 $— 
Issuance of Warrants— 5,266 
Change in the fair value of Warrants(8,824)12,232 
Balance, end of period$8,674 $17,498