v3.26.1
Fair Value Measurement
12 Months Ended
Dec. 31, 2025
Fair Value Measurement [Abstract]  
Fair value measurement
16.
Fair value measurement

Assets and liabilities measured at fair value on a recurring basis are comprised of:

 

 

As of December 31, 2024

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Warrant liabilities

 

$

4,711

 

 

 

 

 

 

 

 

$

4,711

 

 

$

4,711

 

 

$

 

 

$

 

 

$

4,711

 

 

The warrant liability fair value is based on quoted market prices in active markets, and therefore is classified within Level 1 of the fair value hierarchy. The earnouts based on revenue and earnings before interest, taxes, depreciation and amortization (“EBITDA”) as well as the earnouts based on the Company’s stock price were classified within Level 3 of the hierarchy as the fair value was derived using a Monte Carlo simulation analysis in a risk neutral framework, which used a combination of observable (Level 2) and unobservable (Level 3) inputs. Key estimates and assumptions impacting the fair value measurement include the Company’s revenue and EBITDA forecasts as well as the assumptions listed in the tables below.

The Company estimated the fair value per share of the underlying common stock based, in part, on the results of third-party valuations and additional factors deemed relevant. The risk-free interest rate was determined by reference to the U.S. Treasury yield curve for time periods approximately equal to the remaining contractual term of the earnouts. The Company has not paid cash dividends and does not intend to do so in the foreseeable future. The payment of any dividends is within the discretion of the Company’s board of directors and will be dependent upon the Company’s revenue and earnings, if any, capital requirements, and general financial condition. Further, the Company’s ability to declare dividends may be limited by the terms of financing or other agreements entered into by us or our subsidiaries from time to time, including certain consent rights in connection with the Strategic Investment.

On September 30, 2024, following the earnout forfeiture, the Company adjusted the fair value of all earnout shares a final time, immediately before the modification (see "Note 14 – Earnouts" for details on the modification), and ignoring the effect of the modification. The total adjusted liability balance, including the amount associated with the forfeited earnout shares, was reclassified into equity on September 30, 2024. After reclassification into equity, the earnout shares do not require subsequent fair value measurement.

Unobservable inputs of the earnout liability for earnout shares based on revenue and EBITDA targets are as follows:

 

 

September 30,
 2024

 

Current stock price

 

8.26

 

Earnout period – beginning

 

July 1, 2023

 

Earnout period – end

 

December 31, 2024

 

Equity volatility, EBITDA volatility

 

 

30.0

%

Operational leverage ratio

 

 

65.00

%

Revenue volatility

 

 

10.00

%

Revenue/stock price correlation

 

 

40.00

%

EBITDA/stock price correlation

 

 

30.00

%

Revenue discount rate

 

 

12.17

%

Dividend yield

 

 

0.00

%

 

Unobservable inputs of the earnout liability for earnout shares based on the Company’s stock price are as follows:

 

 

September 30,
 2024

 

Term (years)

 

5.0

 

Volatility

 

 

40.00

%

Risk-free rate

 

 

3.55

%

Dividend yield

 

 

0.00

%

Current stock price

 

 

8.26

 

 

There were no transfers between Level 1 and Level 2, nor into and out of Level 3, during the periods presented. As of September 30, 2024, all earnouts were adjusted to fair value and reclassified into equity. See "Note 14 – Earnouts" for details on the fair value of the earnout liability as of September 30, 2024.