Fair Value Measurements (Tables)
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12 Months Ended |
Dec. 31, 2025 |
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| Fair Value Measurements |
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| 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): | | | | | | | | | | December 31, 2025 (Successor) | | Level 1 | | Level 2 | | Level 3 | Assets: | | | | | | | | | | Money Market Account | | $ | 16,710 | | $ | — | | $ | — | Liabilities: | | | | | | | | | | Convertible Securities Notes (including accrued interest) | | $ | — | | $ | — | | $ | 21,040 | Convert Warrants | | $ | — | | $ | — | | $ | 132 | | | | | | | | | | | | | | | | | | | | | 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.” | | | | | | | | | |
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| Schedule of presents changes in the Level 3 warrant liabilities measured at fair value |
The following table presents changes in the Level 3 convertible promissory notes measured at fair value for the period from January 1, 2024 to July 30, 2024 (Predecessor) (in thousands): | | | | | | | | | | | | | Period from January 1 to July 30, 2024 (Predecessor) | | Balance (beginning of
year) | | Additions | | Fair value measurement adjustments | | Balance
(end of period) | October 2022 Convertible Notes | | $ | 12,561 | | $ | — | | $ | (4,304) | | $ | 8,257 | April 2023 Convertible Notes | | | 14,757 | | | — | | | 3,378 | | | 18,135 | November 2023 Convertible Notes | | | 9,112 | | | 3,000 | | | (2,373) | | | 9,739 | February 2024 Convertible Notes | | | — | | | 7,000 | | | (256) | | | 6,744 | May 2024 Convertible Notes | | | — | | | 3,000 | | | 685 | | | 3,685 | June 2024 Convertible Notes | | | — | | | 2,500 | | | 577 | | | 3,077 | July 2024 Convertible Notes | | | — | | | 1,000 | | | 233 | | | 1,233 |
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| Convertible Securities Notes |
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| Fair Value Measurements |
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| Schedule of assumptions used in estimating fair value of convertible promissory notes and common stock warrant liabilities |
| | | | | | | | | Successor | | Successor | Convertible Securities Notes | | December 31, 2025 | | December 31, 2024 | Stock price | $ | 1.04 | | $ | 1.05 | | Discount rate | | 26.3 | % | | 20.6 | % | Expected term (years) | | 2.33 | | | 3.33 | | Risk-free interest rate | | 3.44 | % | | 4.20 | % | Volatility | | 70 | % | | 60 | % |
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| Schedule of presents changes in the Level 3 warrant liabilities measured at fair value |
The following table presents changes in the Level 3 convertible promissory notes measured at fair value for the period from July 31, 2024 to December 31, 2024 (Successor) (in thousands): | | | | Convertible Securities Notes - July 31, 2024 to December 31, 2024 (Successor) | | | Balance (beginning of period) | | $ | 17,005 | Accrued interest | | | 1,104 | Fair value measurement adjustments | | | (929) | Balance (end of year*) | | $ | 17,180 | *As of December 31, 2024, the balance includes accrued interest, which is recorded within “Other Accrued Liabilities.” | | | |
The following table presents changes in the Level 3 convertible promissory notes measured at fair value for the year ended December 31, 2025 (Successor) (in thousands): | | | | Convertible Securities Notes - Year Ended December 31, 2025 (Successor) | | | Balance (beginning of year*) | | $ | 17,180 | Accrued interest | | | 2,880 | Fair value measurement adjustments | | | 980 | Balance (end of year) | | $ | 21,040 | *As of December 31, 2024, the balance includes accrued interest, which is recorded within “Other Accrued Liabilities.” | | | |
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| Convert Warrants |
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| Fair Value Measurements |
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| Schedule of assumptions used in estimating fair value of convertible promissory notes and common stock warrant liabilities |
| | | | | | | | | | Successor | | Successor | | Convert Warrants | | December 31, 2025 | | December 31, 2024 | | Common stock price | | $ | 1.04 | | $ | 1.05 | | Expected volatility | | | 70.0 | % | | 65.0 | % | Risk free rate | | | 3.72 | % | | 4.36 | % | Expected dividend yield | | | — | % | | — | % | Expected term (years) | | | 5.58 | | | 6.58 | |
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| 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 period from July 31, 2024 to December 31, 2024 (Successor) (in thousands): | | | | Convert Warrants - July 31, 2024 to December 31, 2024 (Successor) | | | Balance (beginning of period) | | $ | 2,996 | Fair value measurement adjustments | | | (2,844) | Balance (end of year) | | $ | 152 |
The following table presents changes in the Level 3 Convert Warrants measured at fair value for the year ended December 31, 2025 (Successor) (in thousands): | | | | Convert Warrants - Year Ended December 31, 2025 (Successor) | | | Balance (beginning of year) | | $ | 152 | Fair value measurement adjustments | | | (20) | Balance (end of year) | | $ | 132 |
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| PIPE Pre-funded warrants |
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| Fair Value Measurements |
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| Schedule of presents changes in the Level 3 warrant liabilities measured at fair value |
The following table presents changes in the Level 3 PIPE Pre-funded Warrants measured at fair value for the period from July 31, 2024 to December 31, 2024 (Successor) (in thousands): | | | | PIPE Pre-funded Warrants - July 31, 2024 to December 31, 2024 (Successor) | | | Balance (beginning of period) | | $ | 4,442 | Exercises | | | (710) | Fair value measurement adjustments | | | (3,732) | Balance (end of year) | | $ | — |
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