10. Convertible Preferred Stock

The Company recognizes changes in the redemption value of the Convertible Preferred Stock, which include accretion of the associated issuance costs and accrual of unpaid dividends using the effective interest method, over the period from the issuance date to the earliest redemption date, November 12, 2031. Any accrued but unpaid dividends will become part of the liquidation preference of the Convertible Preferred Stock, as set forth in the Certificate of Designation. As of June 30, 2026 the Company had not paid any dividends in cash, and all such dividends had been accrued and added to the liquidation preference of the Convertible Preferred Stock. During the six months ended June 30, 2026, and June 30, 2025, the Company increased the carrying value of the Convertible Preferred Stock by $6,075 and $5,558, respectively, which resulted in a corresponding decrease to additional paid-in-capital during the same periods.