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

3. Fair Value Measurements 

 

The following tables provide information related to the Company’s assets and liabilities measured at fair value on a recurring basis as of June 30, 2025 and December 31, 2024 (in thousands):

 

   June 30, 2025 
   Level 1   Level 2   Level 3   Total 
Liabilities:                
Forward purchase agreement warrant liability  $
—
   $
—
   $14   $14 
Publicly traded warrant liability   500    
—
    
—
    500 
   $500   $
—
   $14   $514 

 

   December 31, 2024 
   Level 1   Level 2   Level 3   Total 
Liabilities:                
Forward purchase agreement warrant liability  $
—
   $
—
   $472   $472 
Publicly traded warrant liability   662    
—
    
—
    662 
   $662   $
—
   $472   $1,134 

 

The fair value of the forward purchase agreement warrant liability is a Level 3 fair value measurement, and was estimated using Monte Carlo simulation models. The use of significant unobservable inputs could result in those inputs being different at the reporting dates and which could result in a significantly higher or lower fair value measurement at the reporting dates. The following table presents the quantitative information regarding Level 3 fair value measurements of the forward purchase agreement warrant liability as of June 30, 2025 and December 31, 2024:

 

   June 30,
2025		   December 31,
2024		 
Stock price  $1.42   $1.43 
Initial exercise price  $10.46   $10.46 
Annual volatility   67.0%   130.0%
Remaining term (in years)   0.50    1.00 
Risk-free rate   4.20%   4.08%

 

The Company has classified the publicly traded warrant liability within Level 1 of the hierarchy as the warrant is separately listed and traded in an active market. The publicly traded warrant’s listed price in an active market was used as the fair value.

 

The following table summarizes the activity for the Company’s Level 3 instruments measured at fair value on a recurring basis (in thousands):

 

   Forward Purchase Agreement
Warrant Liability		 
Balance as of December 31, 2024  $472 
Change in fair value   (458)
Balance as of June 30, 2025  $14 

 

There were no transfers between Level 1 and Level 2, nor into and out of Level 3, during the periods presented.