v3.26.1
Subsequent Events
3 Months Ended
Mar. 31, 2026
Subsequent Events [Abstract]  
Subsequent Events Subsequent Events
Strategic Restructuring Plan
On April 28, 2026, the Company approved a strategic restructuring plan (the "Plan") to improve operational efficiencies and better position the Company for long-term sustainability and success. The Plan includes a reduction of the Company's workforce by approximately 76 employees, which has been substantially completed. The Company estimates that it will incur one-time restructuring charges of approximately $1.7 million related to the Plan, consisting primarily of one-time severance payments and related costs. The Company expects to recognize the majority of these charges in the second quarter of fiscal year 2026.
Marketing Services Agreement
On April 28, 2026, the Company approved a marketing services agreement with a contractor to provide services from April 1, 2026 to March 31, 2027. In exchange for the services set forth in the agreement, the Company will pay $10.0 million in aggregate consideration in the form of four quarterly RSU grants of $2.5 million each. The RSUs will be valued based on the 10-day volume-weighted average price of the Company’s Class A common stock leading up to the end of each applicable quarter. As additional consideration, the Company granted options to purchase an aggregate 182,150 shares of the Company’s Class A common stock. The options vest immediately with an exercise price of $10.00.
Modification of Partial Recourse Promissory Notes for Restricted Stock Purchase Agreements
On April 28, 2026, the Company amended its partial recourse promissory notes with two individuals to extend the maturity dates of the notes until the earliest of (i) March 31, 2027, (ii) a change in control or (iii) the date that the notes become prohibited under the Securities Exchange Act of 1934. As these notes were originally issued in conjunction with the execution of restricted stock purchase agreements, the amendment of the notes is considered a modification under ASC 718 and incremental stock-based compensation expense will be recorded in the second fiscal quarter.