v3.26.1
Fair Value Measurements
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
The Company’s assets and liabilities measured and reported in the financial statements at fair value on a recurring basis were as follows:
March 31, 2026
Level 1Level 2Level 3Balance
Assets:
Money market funds$10,072$—$—$10,072
Total assets$10,072$—$—$10,072
Liabilities:
SBG Public Warrants$— $— $— $— 
SBG Private Placement Warrants— — — — 
Series A Warrants——648648
Total liabilities$—$—$648$648
December 31, 2025
Level 1Level 2Level 3Balance
Assets:
Money market funds$17,398 $— $— $17,398 
Total assets$17,398$—$—$17,398
Liabilities:
SBG Public Warrants$— $— $— $— 
SBG Private Placement Warrants————
Series A Warrants——3,2733,273
Total liabilities$—$—$3,273$3,273

Money market funds are included within Level 1 of the fair value hierarchy because they are valued using quoted market prices.

The SBG Public Warrants and SBG Private Placement Warrants as of March 31, 2026 are presented as Level 3 measurements, relying on unobservable inputs reflecting the Company’s own assumptions. Level 3 measurements, which are not based on quoted prices in active markets, introduce a higher degree of subjectivity and may be more sensitive to fluctuations in stock price, volatility rates, and U.S. Treasury Bond rates.
The Company measured the fair value of both the SBG Public Warrants and the SBG Private Placement Warrants as of March 31, 2026 and December 31, 2025 using the Black-Scholes option pricing model with the following assumptions:

SBG Common Stock Warrants - Black-Scholes InputsMarch 31, 2026December 31, 2025
OWLT stock price$5.14 $16.19 
Exercise price of warrants$161.00 $161.00 
Term in years0.290.54
Risk-free interest rate3.70 %3.58 %
Volatility115.00 %80.00 %

The Series A Warrants presented as Level 3 measurements rely on unobservable inputs reflecting the Company’s own assumptions.

The Company measured the fair value of the Series A Warrants as of March 31, 2026 and December 31, 2025, using the Black-Scholes option pricing model with the following assumptions:

Series A Warrants - Black-Scholes InputsMarch 31, 2026December 31, 2025
OWLT stock price$5.14 $16.19 
Exercise price of warrants$4.66 $4.66 
Term in years1.882.13
Risk-free interest rate3.77 %3.48 %
Volatility82.00 %75.00 %

The following table presents a reconciliation of the Company’s SBG Public Warrants, SBG Private Placement Warrants, and Series A Warrants (together, the “Level 3 Warrants”) measured at fair value on a recurring basis as of March 31, 2026:
Level 3 Warrants
Balance as of December 31, 2025$3,273 
Change in fair value included within common stock warrant liability adjustment(2,625)
Balance as of March 31, 2026$648 

There were no transfers between Level 1 and Level 2 in the periods reported. The SBG Public Warrants and SBG Private Placement Warrants were transferred into Level 3 in 2023.

Equity-Classified Warrants

The fair value of the Titan Warrants on September 11, 2024 was $382. The Company measured the fair value of the Titan Warrants at issuance on September 11, 2024, using the Black-Scholes option pricing model with the following assumptions:

Titan Warrants - Black-Scholes InputsSeptember 11, 2024
OWLT stock price$4.35 
Exercise price of warrants$4.63 
Term in years5.50
Risk-free interest rate3.47 %
Volatility85.00 %

Mezzanine-Classified Redeemable Common Stock

As described in Note 4, the vested shares issued to WTI are contingently redeemable at the option of the holder during the put period and are recorded in mezzanine equity on the unaudited condensed consolidated balance sheets. The vested redeemable common shares were recorded at their fair value of $7.66 per share, which was an aggregate value of $4,308. The value of the redeemable common shares was determined using a combination of the value of the Company's stock on the date of issuance and the theoretical value of a stand-alone put option valued using a Black-Scholes put option model discounted by a present value factor that considers the credit spread between an estimated Company specific discount rate and the risk-free rate of return. The valuation model used the following assumptions:
Redeemable Common Stock - Valuation InputsSeptember 11, 2024
Common stock value per share$4.35 
Put price$8.40 
Term in years5.00
Risk-free interest rate3.42 %
Volatility85.00 %
Credit spread9.27 %
Present value discount63.49 %