v3.26.1
Fair Value Measurements (Tables)
3 Months Ended
Mar. 31, 2026
Fair Value Measurements [Abstract]  
Schedule of Assets and Liabilities Measured at Fair Value

The following table presents assets and liabilities measured at fair value by classification within the fair value hierarchy:

 

March 31, 2026

in thousands

 

Level I

 

Level II

 

Level III

Assets:

 

 

   

 

   

 

 

Money Market Funds

 

$

4,750

 

$

 

$

 

December 31, 2025

in thousands

 

Level I

 

Level II

 

Level III

Assets:

 

 

   

 

   

 

 

Money Market Funds

 

$

11,671

 

$

 

$

Liabilities:

 

 

   

 

   

 

 

July Investment Agreement Derivative

 

$

 

$

 

$

379,205

CPU Share Allocation Obligation

 

$

 

$

 

$

292,680

Schedule of Fair Value Using Significant Unobservable Inputs

The following table provides a reconciliation of the beginning and ending balance associated with the liabilities measured at Level III fair value using significant unobservable inputs for the three months ended March 31, 2026:

in thousands

 

July
Investment
Agreement
Derivative

 

CPU
Share
Allocation
Obligation

Balance, December 31, 2025

 

$

379,205

 

 

$

292,680

 

Change in fair value

 

 

234,739

 

 

 

190,488

 

Settlements (equity-based)

 

 

(588,944

)

 

 

(296,402

)

Reclassification out of Level III

 

 

(25,000

)

 

 

(186,766

)

Balance, March 31, 2026

 

$

 

 

$

 

Schedule of Investment Agreement Derivative

The Company utilized the following assumptions to value the July Investment Agreement Derivative:

 

December 31,
2025

Expected Business Combination date

 

January 5, 2026

Term (years)

 

0.01

Risk free rate

 

3.7%

CCC credit rating

 

15.7%

Present value factor

 

1.00

Probability of Business Combination close

 

90.0%

Market adjustment(1)

 

45.5%

Expected Company fully diluted ownership of New EM

 

96.5%

Additional share allocation percentage

 

10.0%

(1)      Market adjustment inherently considers probability of Business Combination close and post Business Combination close price movements to the New EM common share price per share.

The Company utilized the following assumptions to value the CPU Share Allocation Obligations as of the balance sheet dates:

 

December 31,
2025

Expected Business Combination date

 

January 5, 2026

Term (years)

 

0.01

Risk free rate

 

3.7%

Present value factor

 

1.00

Probability of Business Combination close

 

NA

Market adjustment(1)

 

45.5%

Expected Company fully diluted ownership of New EM

 

96.5%

Additional share allocation percentages

 

11.28%