v3.26.1
Fair Value Measurement
 3 Months Ended 12 Months Ended
Mar. 31, 2026
Dec. 31, 2025
Fair Value Measurement [Abstract]    
Fair value measurement

Note 11 - Fair Value Measurement:

 

The following is a listing of the Company’s assets and liabilities required to be measured at fair value on a recurring basis and where they are classified within the fair value hierarchy as of March 31, 2026 and December 31, 2025:

 

   March 31, 2026   December 31, 2025 
   Fair
value		   Carrying
amount		   Fair
value		   Carrying
amount		 
Warrant liabilities – Level 3  $
—
   $
—
   $1,874   $1,874 
Earn-out share liabilities - Level 3   7,164    7,164    
—
    
—
 
SIF Loan – Level 3   23,493    27,612    23,609    27,536 
FedDev Loan – Level 2   2,421    2,421    2,462    2,462 

 

The following summarizes the change in fair value of the Company’s warrant and earn-out share liabilities for the three months ended March 31, 2026:

 

   Warrant Liability   Earn out Share Liability   Total 
Fair value as of December 31, 2025  $1,874   $
—
   $1,874 
Establishment of earn out share liabilities   
—
    9,997    9,997 
Change in estimated fair value, net of changes in foreign exchange rates (1)   895    (2,833)   (1,938)
Reclassification of warrant liability to equity   (2,769)   
—
    (2,769)
Fair value as of March 31, 2026  $
—
   $7,164   $7,164 

 

(1)Changes in fair value of warrant liabilities have been recognized within other operating income, net and changes in earn-out liabilities have been recognized in gain on fair value of earn-out share liabilities in the consolidated statements of operations and comprehensive loss.

The fair values of the Company’s long-term debt, including the SIF Loan and FedDev Loan, are estimated based on discounting future cash flows at currently available interest rates with comparable terms. The fair value measurement of the SIF Loan is considered a Level 3 valuation as it is based on a significant unobservable input related to the projected timing and amount of future revenues which determine expected future repayments.

 

Valuation of the Earn out Share Liability

 

The Company valued the earn out share liability using a Monte Carlo simulation which includes Level 3 unobservable inputs on the initial valuation date (March 26, 2026) and March 31, 2026. The following table summarizes the significant inputs:

 

   As of: 
   March 26, 2026   March 31, 2026 
Share Price  $10.00   $7.66 
Expected Volatility   80%   80%
Risk-free interest rate   4.00%   3.83%
Remaining term (in years)   4.00    3.99 

6. Fair value measurement:

 

The carrying amounts of the Company’s prepaid expenses and other current assets and due to related party approximate their fair values due to the short-term maturity of these instruments.