| Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis |
The Company’s assets and liabilities that were measured at fair value on a recurring basis were as follows:
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Fair Value Measured as of March 31, 2026 |
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($ in thousands) |
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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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Assets: |
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Cash equivalents (money market funds) |
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$ |
43,998 |
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$ |
— |
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$ |
— |
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$ |
43,998 |
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Common Stock Purchase Agreement derivative asset |
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— |
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672 |
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— |
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|
672 |
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Total financial assets |
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$ |
43,998 |
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$ |
672 |
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$ |
— |
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$ |
44,670 |
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Liabilities: |
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Contingent Earnout Liability |
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$ |
— |
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$ |
— |
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$ |
6,760 |
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$ |
6,760 |
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Private Placement Warrants liability |
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— |
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— |
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— |
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— |
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October 2024 RDO Warrants liability |
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— |
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— |
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430 |
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430 |
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November 2024 RDO Warrants liability |
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— |
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— |
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219 |
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219 |
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October 2025 RDO Warrants liability |
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— |
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— |
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9,081 |
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9,081 |
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Loan Agreement Warrants liability |
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— |
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— |
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1,106 |
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1,106 |
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Loan Agreement conversion derivative liability |
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— |
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— |
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|
869 |
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|
869 |
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JDRF Agreement derivative liability |
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— |
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— |
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227 |
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227 |
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Total financial liabilities |
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$ |
— |
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$ |
— |
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$ |
18,692 |
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$ |
18,692 |
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Fair Value Measured as of December 31, 2025 |
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($ in thousands) |
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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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Assets: |
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Cash equivalents (money market funds) |
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$ |
43,887 |
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$ |
— |
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$ |
— |
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$ |
43,887 |
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Common Stock Purchase Agreement derivative asset |
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— |
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672 |
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— |
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|
672 |
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Total financial assets |
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$ |
43,887 |
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$ |
672 |
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$ |
— |
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$ |
44,559 |
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Liabilities: |
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Contingent Earnout Liability |
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$ |
— |
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$ |
— |
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$ |
11,492 |
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$ |
11,492 |
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Private Placement Warrants liability |
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— |
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— |
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15 |
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15 |
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October 2024 RDO Warrants liability |
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— |
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— |
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862 |
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|
862 |
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November 2024 RDO Warrants liability |
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— |
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— |
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437 |
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|
437 |
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October 2025 RDO Warrants liability |
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— |
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— |
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16,356 |
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16,356 |
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Loan Agreement Warrants liability |
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— |
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— |
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1,722 |
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1,722 |
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Loan Agreement conversion derivative liability |
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— |
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— |
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|
850 |
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|
850 |
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JDRF Agreement derivative liability |
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— |
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— |
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216 |
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216 |
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Total financial liabilities |
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$ |
— |
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$ |
— |
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$ |
31,950 |
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$ |
31,950 |
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| Schedule of Changes in Fair Value |
The following table presents a summary of the changes in the fair value of the Contingent Earnout Liability:
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Contingent Earnout Liability |
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Three Months Ended March 31, |
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($ in thousands) |
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2026 |
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2025 |
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Fair value as of beginning of period |
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$ |
(11,492 |
) |
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$ |
(70,961 |
) |
Change in fair value included in other income (expense), net |
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4,732 |
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49,731 |
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Fair value as of end of period |
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$ |
(6,760 |
) |
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$ |
(21,230 |
) |
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Contingent Derivative Liability |
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($ in thousands) |
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Three Months Ended March 31, 2025 |
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Fair value as of beginning of period |
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$ |
(2,415 |
) |
Change in fair value included in other income (expense), net |
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|
(1,049 |
) |
Fair value as of end of period |
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$ |
(3,464 |
) |
The following tables present a summary of the changes in the fair value of the Registered Direct Offering Warrants liabilities:
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Three Months Ended March 31, 2026 |
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($ in thousands) |
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October 2024
RDO Warrants |
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November 2024
RDO Warrants |
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October 2025
RDO Warrants |
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Fair value as of beginning of period |
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$ |
(862 |
) |
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$ |
(437 |
) |
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$ |
(16,356 |
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Change in fair value included in other income (expense), net |
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432 |
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218 |
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7,275 |
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Fair value as of end of period |
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$ |
(430 |
) |
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$ |
(219 |
) |
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$ |
(9,081 |
) |
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Three Months Ended March 31, 2025 |
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($ in thousands) |
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October 2024
RDO Warrants |
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November 2024
RDO Warrants |
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Fair value as of beginning of period |
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$ |
(12,437 |
) |
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$ |
(6,432 |
) |
Change in fair value included in other income (expense), net |
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10,290 |
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5,352 |
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Fair value as of end of period |
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$ |
(2,147 |
) |
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$ |
(1,080 |
) |
The following table presents a summary of the changes in the fair value of the Private Placement Warrants liability:
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Private Placement Warrants |
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Three Months Ended March 31, |
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($ in thousands) |
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2026 |
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2025 |
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Fair value as of beginning of period |
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$ |
(15 |
) |
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$ |
(385 |
) |
Change in fair value included in other income (expense), net |
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15 |
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|
292 |
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Fair value as of end of period |
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$ |
— |
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$ |
(93 |
) |
The following table presents a summary of the changes in the fair value of the Loan Agreement Warrants liability:
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Loan Agreement Warrants |
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($ in thousands) |
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Three Months Ended March 31, 2026 |
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Fair value as of beginning of period |
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$ |
(1,722 |
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Change in fair value included in other income (expense), net |
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|
616 |
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Fair value as of end of period |
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(1,106 |
) |
The following table presents a summary of the changes in the fair value of the Loan Agreement conversion derivative liability:
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Loan Agreement Conversion Derivative Liability |
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($ in thousands) |
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Three Months Ended March 31, 2026 |
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Fair value as of beginning of period |
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$ |
(850 |
) |
Change in fair value included in other income (expense), net |
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(19 |
) |
Fair value as of end of period |
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(869 |
) |
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