v3.26.1
NOTES PAYABLE AND DERIVATIVE LIABILITY (Tables)
 3 Months Ended
Mar. 31, 2026
Notes Payable And Derivative Liability  
SCHEDULE OF SUPPLEMENTAL BALANCE SHEET INFORMATION

Supplemental balance sheet information is as follows:

  

   March 31,   December 31, 
(in thousands)  2026   2025 
Amount repayable at maturity  $40,095   $19,525 
Unamortized debt discount   (7,462)   (313)
Unamortized issuance costs   (492)   - 
Net carrying amount   32,141    19,212 
SCHEDULE OF COMPONENTS INTEREST EXPENSE

  

   March 31,   March 31, 
(in thousands)  2026   2025 
Amortization of debt discount and issuance costs  $2,743   $3,502 
Interest expense from modification of notes payable   -    2,057 
Discount on warrants (see Note 8. Warrant Liability)   -    7,325 
Other   10    19 
Total interest expense  $2,753   $12,903 
SCHEDULE OF MATURITIES LONG TERM DEBT

Maturities of partial repayments, if elected by the Holder, are as follows:

 

     
(in thousands)  Maturities 
Years Ended December 31,     
2026 (remainder)  $31,629 
2027   8,466 
Total partial repayments  $40,095 
SCHEDULE OF FAIR VALUE OF DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS

The fair value of derivatives not designated as hedging instruments are as follows:

  

   March 31,   December 31, 
(in thousands)  2026   2025 
Derivative liability  $2,035   $    - 
Total  $2,035   $- 
SCHEDULE OF UNREALIZED GAIN AND LOSS INSTRUMENTS

Unrealized gains and losses associated with derivatives not designated as hedging instruments are as follows:

  

   March 31,   March 31, 
(in thousands)  2026   2025 
Unrealized gain on derivative liability  $3,380   $842 
Total  $3,380   $842 
SCHEDULE OF LIABILITIES MEASURED AT FAIR VALUE ON A RECURRING BASIS

The valuation inputs hierarchy classification for liabilities measured at fair value on a recurring basis are summarized below as of March 31, 2026 and December 31, 2025 (in thousands). See Note 6. Investment Securities, Available-For-Sale and Fair Value Measurements, for discussion of the fair value level hierarchy.

 

As of March 31, 2026  Level 1   Level 2   Level 3 
Derivative liability  $-   $-   $2,035 
Total  $-   $-   $2,035 

 

 

As of December 31, 2025  Level 1   Level 2   Level 3 
Derivative liability  $-   $-   $- 
Total  $-   $-   $- 
SCHEDULE OF ACTIVITY RELATED TO DERIVATIVE LIABILITIES

Activity related to the derivative liability during the three months ended March 31, 2026 is as follows:

 

   March 31, 
   2026 
Beginning balance  $- 
Initial valuation associated with new debt   6,315 
Fair value associated with conversions during the period   (900)
Change in fair value during the period   (3,380)
Ending balance  $2,035 

 

Activity related to the derivative liability during the three months ended March 31, 2025 is as follows:

 

   March 31, 
   2025 
Beginning balance  $14,581 
Fair value associated with conversions during the period   (1,701)
Reclassification of derivative on debt modification   (186)
Extinguishment of derivative liability on debt modification   (14,199)
Initial valuation associated with new debt   7,214 
Change in fair value during the period   (842)
Ending balance  $4,867 
SCHEDULE OF REVALUATION DERIVATIVE LIABILITY

The table below lists the inputs and assumptions for the Company’s valuations of the 2026 Convertible Notes as of March 31, 2026 and February 23, 2026 and of the Prior Note as of December 31, 2025:

  

   March 31,   February 23,     December 31, 
   2026   2026     2025 
Expected term (years)   1.9     2.0      0.8 
Risk-free interest rate   3.75%    3.40 %    3.50%
Dividend yield   0%    0 %    0%
Volatility   60.20%    55.93 %    67.16%
Discount rate   58.8%    58.4 %    50.0%