| Fair Value Measurements |
Note 9. Fair Value Measurements The following tables summarize the Company’s financial liabilities that are measured at fair value on a recurring basis in the condensed consolidated financial statements (in thousands):
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Fair Value Measurements at March 31, 2026 Using: |
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Level 1 |
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Level 2 |
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Level 3 |
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Total |
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Liabilities: |
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Convertible notes at fair value |
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$ |
— |
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$ |
— |
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$ |
58,896 |
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$ |
58,896 |
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SAFE-T notes at fair value |
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— |
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— |
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3 |
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3 |
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New LamVen Note |
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— |
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— |
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100 |
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100 |
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GEM Derivative |
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— |
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— |
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4,052 |
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4,052 |
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HT Side Letter Agreement |
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2,509 |
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2,509 |
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Liability classified warrants |
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— |
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— |
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1,024 |
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1,024 |
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Total financial liabilities |
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$ |
— |
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$ |
— |
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$ |
66,584 |
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$ |
66,584 |
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Fair Value Measurements at December 31, 2025 Using: |
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Level 1 |
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Level 2 |
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Level 3 |
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Total |
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Liabilities: |
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Convertible notes at fair value |
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$ |
— |
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$ |
— |
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$ |
67,457 |
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$ |
67,457 |
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SAFE-T notes at fair value |
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— |
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— |
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5 |
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5 |
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New LamVen Note |
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— |
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— |
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100 |
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100 |
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Liability classified warrants |
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— |
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— |
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2,831 |
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2,831 |
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Total financial liabilities |
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$ |
— |
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$ |
— |
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$ |
70,393 |
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$ |
70,393 |
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The following table provides a reconciliation of the Company’s financial liabilities that are measured at fair value using inputs classified as Level 3 (in thousands):
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Convertible Notes at Fair Value |
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SAFE Notes |
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New LamVen Note |
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GEM Derivative |
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HT Side-Letter Agreement |
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Liability Classified Warrants |
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Balance at December 31, 2025 |
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$ |
67,457 |
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$ |
5 |
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$ |
100 |
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$ |
— |
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$ |
— |
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$ |
2,831 |
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Change in fair value |
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3,132 |
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(2 |
) |
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— |
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789 |
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1,501 |
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(1,807 |
) |
Debt and equity financing issuances |
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— |
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— |
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— |
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12,000 |
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1,008 |
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— |
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Transfers |
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182 |
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— |
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— |
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(77 |
) |
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— |
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— |
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Conversions into common stock |
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(1,875 |
) |
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— |
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— |
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(8,660 |
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— |
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— |
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Payments and share settlement |
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(10,000 |
) |
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— |
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— |
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— |
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— |
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— |
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Balance at March 31, 2026 |
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$ |
58,896 |
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$ |
3 |
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$ |
100 |
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$ |
4,052 |
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$ |
2,509 |
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$ |
1,024 |
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Long-Term Debt The carrying amounts and fair values of the Company’s long-term debt obligations were as follows (in thousands):
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As of March 31, 2026 |
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As of December 31, 2025 |
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Carrying Amount |
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Fair Value |
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Carrying Amount |
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Fair Value |
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Long-term debt, including current maturities |
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$ |
16,501 |
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$ |
16,258 |
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$ |
17,101 |
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$ |
16,988 |
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In assessing the fair value of the Company’s long-term debt, including current maturities, the Company primarily uses an estimation of discounted future cash flows of the debt at rates currently applicable to the Company for similar debt instruments of comparable maturities and comparable collateral requirements.
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