v3.26.1
Fair Value Measurements (Tables)
3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
Schedule of Financial Liabilities Measured at Fair Value on Recurring Basis

The following table presents information regarding the Company’s financial liabilities that were measured at fair value on a recurring basis:

 

 

March 31, 2026

 

(in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Earnout liability

 

$

 

 

$

 

 

$

1,963

 

 

$

1,963

 

 

 

 

December 31, 2025

 

(in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Earnout liability

 

$

 

 

$

 

 

$

4,112

 

 

$

4,112

 

Summary of Significant Inputs Used to Measure Fair Value of Level 3 Earnout Liability

The following table provides the significant inputs used to measure the fair value of the level 3 earnout liability related to the Business Combination Agreement:

 

 

As of

 

 

 

March 31, 2026

 

 

December 31, 2025

 

Stock price

 

$

1.35

 

 

$

2.60

 

Risk-free rate

 

 

3.6

%

 

 

3.4

%

Volatility

 

 

72.5

%

 

 

74.1

%

Term (in years)

 

 

1.2

 

 

 

1.4

 

The following table provides the significant inputs used to measure the fair value of the level 3 earnout liability related to the acquisition of Simpatra:

 

 

As of

 

 

 

March 31, 2026

 

 

December 31, 2025

 

Stock price

 

$

1.35

 

 

$

2.60

 

Risk-free rate

 

 

3.7

%

 

 

3.5

%

Equity volatility

 

 

56.0

%

 

 

64.5

%

Revenue volatility

 

 

57.8

%

 

 

57.0

%

Revenue discount rate

 

 

15.6

%

 

 

14.5

%

Correlation factor

 

 

3.0

%

 

 

3.0

%

Term (in years)

 

 

1.8

 

 

 

2.0

 

Changes in Fair Value of Level 3 Financial Instruments

Changes in the fair value of the Company’s Level 3 financial instruments were as follows:

(in thousands)

 

Earnout Liability

 

Fair value as of December 31, 2025

 

$

4,112

 

Gain from change in fair value

 

 

(2,149

)

Fair value as of March 31, 2026

 

$

1,963