Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2026

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

Financial assets and liabilities that are measured at fair value on a recurring basis are classified as Level 1, Level 2 and Level 3 as follows (in thousands):


	As of March 31, 2026
	Total		Level 1		Level 2		Level 3
Assets:


Digital assets	$	1,723	$	—	$	1,723	$	—
Derivative asset	160		—		—		160
Total Assets	$	1,883	$	—	$	1,723	$	160

Liabilities:

Warrant liability - Class 1 and Class 2 warrants	$	11,032	$	—	$	—	$	11,032
Warrant liability - public warrants	1,000		1,000		—		—

Total Liabilities	$	12,032	$	1,000	$	—	$	11,032


	As of December 31, 2025
	Total		Level 1		Level 2		Level 3
Assets:

Digital assets	$	1,238	$	—	$	1,238	$	—
Derivative assets	3,352		—		—		3,352

Total Assets	$	4,590	$	—	$	1,238	$	3,352

Liabilities:

Warrant liability - Class 1 and Class 2 warrants	$	15,589	$	—	$	—	$	15,589
Warrant liability - public warrants	1,143		1,143		—		—
Total Liabilities	$	16,732	$	1,143	$	—	$	15,589

Level 3 Assets

The following table presents changes in Level 3 assets measured at fair value for the three months ended March 31, 2026 (in thousands). Both observable and unobservable inputs were used to determine the fair value of positions that the Company has classified within the Level 3 category.


	Derivative assets
Balance as of December 31, 2025	$	3,352
Settlements	(2,677)
Change in fair value	(515)
Balance as of March 31, 2026	$	160

Fair Value Measurement Inputs and Valuation Techniques

Inputs used to calculate the estimated fair value of the derivative assets at March 31, 2026 were as follows:


	Derivative assets
Volatility	68.6	%
Time to maturity (years)	10
Risk free rate	2.4	%

The significant unobservable inputs used for the fair value measurement of the Class 1 Warrants and Class 2 Warrants liabilities as of March 31, 2026 are summarized as follows:


Expected term (years)			3.43
Continuous risk-free rate			3.8%
Expected volatility			145.0%

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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