Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2025

Summary of Assets and Liabilities Fair Value Measurement

The Company’s assets and liabilities measured and reported in the financial statements at fair value on a recurring basis were as follows (in thousands):


	March 31, 2025
	Level 1		Level 2		Level 3		Balance
Assets:
Money market funds	$	9,104	$	—	$	—	$	9,104
Total assets	$	9,104	$	—	$	—	$	9,104
Liabilities:
SBG Public Warrants	$	—	$	—	$	1	$	1
SBG Private Placement Warrants	—		—		1		1
Series A Warrants	—		—		15,263		15,263
Series B Warrants	—		—		3,391		3,391
Total liabilities	$	—	$	—	$	18,656	$	18,656

	December 31, 2024
	Level 1		Level 2		Level 3		Balance
Assets:
Money market funds	$	8,223	$	—	$	—	$	8,223
Total assets	$	8,223	$	—	$	—	$	8,223
Liabilities:
SBG Public Warrants	$	—	$	—	$	5	$	5
SBG Private Placement Warrants	—		—		2		2
Series A Warrants	—		—		20,750		20,750
Series B Warrants	—		—		4,586		4,586
Total liabilities	$	—	$	—	$	25,343	$	25,343

Schedule of Black-Scholes Option Pricing Model Assumptions

The Company measured the fair value of both the SBG Public Warrants and the SBG Private Placement Warrants as of March 31, 2025 and December 31, 2024 using the Black-Scholes option pricing model with the following assumptions:


SBG Common Stock Warrants - Black-Scholes Inputs	March 31, 2025			December 31, 2024
OWLT stock price	$	3.68		$	4.45
Exercise price of warrants	$	161.00		$	161.00
Term in years	1.29			1.54
Risk-free interest rate	3.99		%	4.21		%
Volatility	90.00		%	90.00		%

The Company measured the fair value of the Series A Warrants as of March 31, 2025 and December 31, 2024, using the Black-Scholes option pricing model with the following assumptions:


Series A Warrants - Black-Scholes Inputs	March 31, 2025			December 31, 2024
OWLT stock price	$	3.68		$	4.45
Exercise price of warrants	$	4.66		$	4.66
Term in years	2.88			3.13
Risk-free interest rate	3.89		%	4.28		%
Volatility	90.00		%	90.00		%

The Series B Warrants are presented as Level 3 measurements, relying on unobservable inputs reflecting the Company’s own assumptions. The Company measured the fair value of the Series B Warrants as of March 31, 2025 and December 31, 2024, using the Black-Scholes option pricing model with the following assumptions:


Series B Warrants - Black-Scholes Inputs	March 31, 2025			December 31, 2024
OWLT stock price	$	3.68		$	4.45
Exercise price of warrants	$	7.71		$	7.71
Term in years	3.91			4.16
Risk-free interest rate	3.92		%	4.33		%
Volatility	90.00		%	90.00		%

The Company measured the fair value of the Titan Warrants at issuance on September 11, 2024, using the Black-Scholes option pricing model with the following assumptions:


Titan Warrants - Black-Scholes Inputs	September 11, 2024
OWLT stock price	$	4.35
Exercise price of warrants	$	4.63
Term in years	5.50
Risk-free interest rate	3.47		%
Volatility	85.00		%

The valuation model used the following assumptions:


Redeemable Common Stock - Valuation Inputs	September 11, 2024
Common stock value per share	$	4.35
Put price	$	8.40
Term in years	5.00
Risk-free interest rate	3.42		%
Volatility	85.00		%
Credit spread	9.27		%
Present value discount	63.49		%

Reconciliation of Preferred Stock Warrant Liability Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3)

The following table presents a reconciliation of the Company’s SBG Public Warrants, SBG Private Placement Warrants, Series A Warrants, and Series B Warrants (together, the “Level 3 Warrants”) measured at fair value on a recurring basis as of March 31, 2025 (in thousands):


	Level 3 Warrants
Balance as of December 31, 2024	$	25,343
Change in fair value included within common stock warrant liability adjustment	(6,687)
Balance as of March 31, 2025	$	18,656