three tranches: Warrant Tranche A to purchase Common Stock at an exercise price of $42,050,761 per share, Warrant Tranche B to purchase Common Stock at an exercise price of $50,460,913 per share, and Warrant Tranche C at an exercise price of

In February 2026, the Warrants were amended and restated (as so amended, the "Amended and Restated Warrants"). The Amended and Restated Warrants were exercisable, in whole or in part (and at any time), for an aggregate number of shares of Common Stock representing 12% of the Common Stock outstanding on the date of any exercise (less the aggregate number of shares of Common Stock previously issued as a result of any partial exercise) at an exercise price of $0.01 per share. The Amended and Restated Warrants were exercised in whole on March 24, 2026, and the Company issued 2,867 shares of Common Stock upon the exercise of the Amended and Restated Warrants for net proceeds of $2 thousand, resulting in a $0.2 million loss, which is the excess amount of fair value of the Amended and Restated Warrants issued over the net proceeds received, included in "other expense" on the condensed consolidated statements of operations.

The Company identified certain embedded derivatives related to the conversion features of the Convertible Notes. In accordance with ASC 815-40, Derivatives and Hedging Activities, the embedded conversion options contained within the Convertible Notes were accounted for as derivative liabilities at the date of issuance and shall be adjusted to fair value through each reporting date. The Company utilized a binomial lattice model to calculate the fair value of the embedded derivatives. Significant observable and unobservable inputs include conversion price, stock price, dividend rate, expected volatility, risk-free rate, optional conversion price and term. The binomial lattice model is a Level 3 fair value technique because it requires the development of significant internal assumptions in addition to observable market indicators.


	June 30, 2026	December 31, 2025
Conversion price (1)	$1.28 (2)	$1.21 (3)
Common Stock price	$1.25 (2)	$1.70 (3)
Contractual term to maturity (years)	5.5 years	6.0 years
Expected market volatility %	170.0%	165.0%
Risk-free interest rate	4.2%	3.8%
Traded WHLRL price, % of par	316.3%	350.0%
(1) Represents the volume weighted average of the Company's closing Common Stock price for the 10 trading days preceding the valuation, less a discount of 45%.
(2) Value as of June 30, 2026 and was not restated for any subsequent stock splits.
(3) Value as of December 31, 2025 and was not restated for any subsequent stock splits.

The following table sets forth a summary of the changes in fair value of the Company's derivative liabilities, which include both the warrant and embedded derivative liabilities (in thousands):


	Six Months Ended June 30, 2026		Year Ended December 31, 2025
Balance at the beginning of period	$	7,243	$	11,985
Changes in fair value - Warrants	(10)		—
Changes in fair value - Convertible Notes conversion features	(4,186)		(4,742)
Balance at end of period	$	3,047	$	7,243