9. WARRANTS

On August 2, 2023, the Company issued 10,000,000 warrants with a $1.00 exercise price in connection with the financing arrangement entered into with the Secured Notes. The warrants allow the holder to purchase common stock at an exercise price equal to $1.00 per share at any time on or after their issuance date and on or prior to June 30, 2030. At the time of issuance, the Company determined that the warrants had a fair value of $4.3 million and required classification as equity. On December 21, 2023, the total warrants issued increased by 142,874 warrants with an exercise price of $1.00 per warrant in connection with the Secured Notes amendment as described on Note 10. The additional warrants had an estimated fair value of approximately $8,000 and they were classified as equity in the Consolidated Balance Sheets as of December 31, 2025 and 2024.