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

 

The following fair value hierarchy table presents information about the Company’s financial assets measured at fair value on a recurring basis and indicates the fair value hierarchy of the inputs the Company utilized to determine such fair value:

 

   June 30, 2025 
   Quoted
Prices		             
   in Active
Markets
for
Identical
Items		   Significant
Other
Observable
Inputs		   Significant
Unobservable
Inputs		     
   (Level 1)   (Level 2)   (Level 3)   Total 
Assets:                
Money market funds  $641   $
—
   $
—
   $641 
U.S. treasury securities   
—
    20,053    
 
    20,053 
Total assets  $641   $20,053   $
—
   $20,694 
                     
Liabilities:                    
Warrant liabilities - public warrants  $502   $
—
   $
—
   $502 
Warrant liabilities - private warrants   
—
    
—
    338    338 
Total liabilities  $502   $
—
   $338   $840 

 

   December 31, 2024 
   Quoted
Prices		             
   in Active
Markets
for
Identical
Items		   Significant
Other
Observable
Inputs		   Significant
Unobservable
Inputs		     
   (Level 1)   (Level 2)   (Level 3)   Total 
Assets:                
Money market funds  $709   $
—
   $
—
   $709 
U.S. treasury securities   
—
    39,360    
 
    39,360 
Total assets  $709   $39,360   $
—
   $40,069 
                     
Liabilities:                    
Warrant liabilities - public warrants  $423   $
—
   $
—
   $423 
Warrant liabilities - private warrants   
—
    
—
    364    364 
Total liabilities  $423   $
—
   $364   $787 

 

Money market funds are classified as cash and cash equivalents. U.S. treasury securities are classified as cash equivalents when the date from initial purchase to maturity is less than 90 days. The remaining investments are classified as short-term investments.

 

The carrying values of prepaid expenses, right of use assets, accounts payable, and accrued expenses approximate their fair values due to the short-term nature of the instruments. The fair values of the Company’s short-term investments are Level 2 measurements as the US government securities are not the most recent offerings and are therefore not traded in an active market.

The fair value of the Public Warrants was determined from their trading value on public markets. The fair value of the Private Placement Warrants was calculated using the Black-Scholes option pricing model. The assumptions used in the model were the Company’s stock price, exercise price, expected term, volatility, interest rate, and dividend yield.

 

For the three months ended June 30, 2025, the Company recognized a gain to the statement of operations resulting from a decrease in the fair value of liabilities of $40 presented as a change in fair value of warrant liabilities on the accompanying statement of operations. For the six months ended June 30, 2025, the Company recognized a loss to the statement of operations resulting from an increase in the fair value of liabilities of $53 presented as a change in fair value of warrant liabilities on the accompanying statement of operations.

 

For the three months ended June 30, 2024, the Company recognized a gain to the statement of operations resulting from a decrease in the fair value of liabilities of $1,590 presented as a change in fair value of warrant liabilities on the accompanying statement of operations. For the six months ended June 30, 2024, the Company recognized a loss to the statement of operations resulting from an increase in the fair value of liabilities of $277 presented as a change in fair value of warrant liabilities on the accompanying statement of operations.

 

The Company estimates the volatility of its warrants based on implied volatility from the Company’s Public Warrants and from historical volatility of select peer companies’ common stock that matches the expected remaining life of the warrants. The risk-free interest rate is based on the U.S. Treasury zero-coupon yield curve on the grant date for a maturity similar to the expected remaining life of the warrants. The expected life of the warrants is assumed to be equivalent to their remaining contractual term. The dividend rate is based on the historical rate, which the Company anticipates remaining at zero.

 

The following table provides quantitative information regarding the inputs used in determining the fair value of the Company’s Level 3 liabilities:

 

Private Placement Warrants  As of
June 30,
2025		   As of
December 31,
2024		 
Volatility   190.0%   130.0%
Stock price  $7.50   $13.16 
Expected life of warrants   1.2 years    1.7 years 
Risk-free rate   3.9%   4.2%
Dividend yield   0.00%   0.00%

 

The following table shows the change in number and value of the warrants since December 31, 2024:

 

   Public   Private   Total 
   Shares   Value   Shares   Value   Shares   Value 
December 31, 2024   17,248,601   $423    10,400,000   $364    27,648,601   $787 
Change in value   
—
   $119    
—
   $(26)   
—
   $93 
March 31, 2025   17,248,601   $542    10,400,000   $338    27,648,601   $880 
Change in value   
—
   $(40)   
—
   $
—
    
—
   $(40)
June 30, 2025   17,248,601   $502    10,400,000   $338    27,648,601   $840