Schedule of Company's financial instruments at fair value based on the fair value hierarchy for each class of instrument

The following tables summarize the Company’s financial instruments at fair value based on the fair value hierarchy for each class of instrument (in thousands):


June 30, 2025 (Successor)	Level 1		Level 2		Level 3
Assets:
Money Market Account	$	7,271	$	—	$	—
Liabilities:
Convertible Securities Notes (including accrued interest)	$	—	$	—	$	16,945
Convert Warrants	$	—	$	—	$	255


December 31, 2024 (Successor)	Level 1		Level 2		Level 3
Assets:
Money Market Account	$	19,014	$	—	$	—
Liabilities:
Convertible Securities Notes (including accrued interest*)	$	—	$	—	$	17,180
Convert Warrants	$	—	$	—	$	152

*Accrued interest as of December 31, 2024 is recorded within “Other Accrued Liabilities.”

Schedule of assumptions used in estimating fair value of convertible promissory notes and common stock warrant liabilities


		Successor			Successor
Convertible Securities Notes		June 30, 2025			December 31, 2024
Stock price	$	1.30		$	1.05
Discount rate		27.2	%		20.6	%
Expected term (years)		2.84			3.33
Risk-free interest rate		3.62	%		4.20	%
Volatility		75	%		60	%

Schedule of presents changes in the Level 3 warrant liabilities measured at fair value

The following table presents changes in the Level 3 Convert Warrants measured at fair value for the six months ended June 30, 2025 (Successor) (in thousands):


Convert Warrants - Six Months Ended June 30, 2025 (Successor)
Balance (beginning of period)	$	152
Additions		—
Fair value measurement adjustments		103
Balance (end of period)	$	255