Warrant Liabilities

6 Months Ended

Jun. 30, 2026

The company issued warrants through RDOs. In the event of certain fundamental transactions involving the company, the holders of the warrants may require the company to make a payment based on a Black-Scholes valuation, using specified inputs that are not considered indexed to the company’s stock in accordance with ASC 815. Therefore, we classified the warrants as a liability at their fair value determined using the Black-Scholes option pricing model. The proceeds from issuance of common stock and warrants are allocated to warrants based on its fair value. The warrants issued by the company are summarized below:

Warrant Liabilities

The following table summarizes the change in carrying amount of warrant liabilities measured at fair value during the six months ended June 30, 2026 (in thousands):


	Total		February 2023 Warrants		July 2023 Warrants		April 2025 Warrants		July 2025 Warrants


Fair value, at December 31, 2025	$	84,417	$	230	$	293	$	41,476	$	42,418
Change in fair value	295,413		13,115		16,704		109,408		156,186
Warrant exercises	(71,637)		—		—		(60,737)		(10,900)
Fair value, at March 31, 2026	308,193		13,345		16,997		90,147		187,704


Change in fair value	44,190		2,061		2,625		12,836		26,668
Fair value, at June 30, 2026	$	352,383	$	15,406	$	19,622	$	102,983	$	214,372

Warrant Exercises

The following table summarizes warrant exercise activity during the six months ended June 30, 2026:


	Total	February 2023 Warrants	July 2023 Warrants	April 2025 Warrants	July 2025 Warrants


Warrants outstanding, at December 31, 2025	65,053,571	2,814,523	3,584,648	29,024,768	29,629,632
Warrant exercises	(17,191,435)	—	—	(15,524,768)	(1,666,667)
Warrants outstanding, at March 31, 2026	47,862,136	2,814,523	3,584,648	13,500,000	27,962,965
Warrant exercises	—	—	—	—	—
Warrants outstanding, at June 30, 2026	47,862,136	2,814,523	3,584,648	13,500,000	27,962,965

Subsequent to June 30, 2026, institutional holders exercised a total of 6,399,171 warrants pursuant to the February and July 2023 warrant agreements at an exercise price of $3.2946. See Note 19 “Subsequent Event” for more information.

Warrant Valuation Assumptions

The estimated fair value of the warrants was computed using the Black-Scholes option pricing model with the following key assumptions at the following dates:


	February and July 2023 Warrants				April 2025 Warrants				July 2025 Warrants
	June 30, 2026		December 31, 2025		June 30, 2026		December 31, 2025		June 30, 2026		December 31, 2025


Exercise price per share	$3.2946		$3.2946		$3.1010		$3.1010		$3.2400		$3.2400
Expected term	0.1 years		0.6 years		3.8 years		4.3 years		4.1 years		4.6 years
Expected average volatility	67.0	%	60.9	%	117.6	%	113.5	%	116.6	%	110.7	%
Expected dividend yield	—		—		—		—		—		—
Risk-free interest rate	3.7	%	3.5	%	4.1	%	3.6	%	4.1	%	3.7	%

The expected term is the time remaining until the expiration of the warrants. The expected average volatility was estimated based on the historical and implied volatility of our common stock. The expected dividend yield was based on our expectation of not paying dividends for the foreseeable future. The risk-free interest rate was based on the U.S. Treasury’s rates for U.S. Treasury zero-coupon bonds with maturities similar to those of the expected term of the award being valued. The significant unobservable inputs used in the warrant valuation are the expected term and the expected average volatility.