v3.26.1
Fair Value Measurements
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
Derivative instruments

The Company primarily uses derivative instruments to manage its interest rate risk (see Note 12). The Company recognizes derivative instruments in the condensed consolidated balance sheets at fair value and classify them primarily within Level 2 in the fair value hierarchy.

The following table presents the fair value of the Company's interest rate collar included in the condensed consolidated balance sheets as of the dates presented:

June 30, 2026
Asset DerivativesLiability Derivatives
(in thousands)Balance Sheet ClassificationFair ValueBalance Sheet ClassificationFair Value
Derivatives Designated as Hedging Instruments
Interest Rate CollarPrepaids and other current assets$6 Other long-term liabilities$90 

Other financial instruments

The fair value of the Company’s financial assets and liabilities reflects management’s estimate of amounts that the Company would have received in connection with the sale of the assets or paid in connection with the transfer of the liabilities in an orderly transaction between market participants at the measurement date. In connection with measuring the fair value of its assets and liabilities, the Company seeks to maximize the use of observable inputs (market data obtained from independent sources) and to minimize the use of unobservable inputs (internal assumptions about how market participants would price assets and liabilities).
The carrying values of certain accounts such as cash, restricted cash, accounts receivable, prepaids and other current assets, accounts payable and accrued expenses are deemed to approximate their fair values due to their short-term nature. The fair value of the Credit Agreement also closely approximates carrying value due to the variable nature of the debt. There were no assets measured on a recurring basis using significant unobservable inputs (Level 3) as of June 30, 2026 and December 31, 2025.
The estimated fair value of the DOE Loan was based on Level 3 inputs, which are comprised of interest rates currently available to the Company for the issuance of debt with similar terms and remaining maturities as a discount rate for the remaining principal payments. As of June 30, 2026, the fair value of the DOE Loan was $222.4 million compared to the carrying value of $226.1 million, which excludes deferred debt issuance costs and includes paid-in-kind interest. The DOE Loan was valued using a discounted cash flow model. Assumptions used in the valuation of the DOE Loan were as follows as of June 30, 2026:
June 30, 2026
Interest payment frequencyQuarterly
First interest payment dateMarch 15, 2030
Credit spread (semi-annual)1.4%
Risk-free interest rateU.S. Constant Maturity Treasury
The following table presents information about the Company’s assets and liabilities that are measured at fair value on a recurring basis and indicates the level within the fair value hierarchy of the valuation inputs the Company utilized to determine such fair value:
June 30, 2026December 31, 2025
(in thousands)LevelBalanceLevelBalance
Cash equivalents
Money market funds1$92,125 1$102,125 
Liabilities
Earnout liability3$— 3$22 
Warrant liability — Public Warrants1139 11,121 
Warrant liability — Private Placement Warrants329 3249 
Total liabilities$168 $1,392 
The earnout liability was valued using the Monte Carlo simulation methodology. As of June 30, 2026, the earnout liability was zero. Assumptions used in the valuation of the earnout liability at December 31, 2025 were as follows:
December 31, 2025
Stock price$2.91
Risk-free interest rate3.6%
Expected restriction period (in years)0.5
Expected volatility100%
Dividend rate— %
The warrants are accounted for as liabilities in accordance with ASC 815 and are presented as warrant liabilities on the condensed consolidated balance sheets. The warrant liabilities are measured at fair value at inception and on a recurring basis, with changes in fair value presented within change in fair value of warrant liabilities in the condensed consolidated statements of operations. The closing price of the Public Warrants was used as its fair value as of each relevant date. The Public Warrants expired July 1, 2026.
The Private Placement Warrants expired on July 1, 2026, therefore as of June 30, 2026, the Private Placement Warrants have been assessed as de minimis. As of December 31, 2025, the Private Placement Warrants were valued using the Monte Carlo simulation methodology, which is considered a Level 3 fair value measurement. Assumptions used in the valuation of the Private Placement Warrant liability using the Monte Carlo simulation methodology are as follows:

December 31, 2025
Stock price$2.91
Risk-free interest rate3.6%
Expected term (in years)0.5
Expected volatility120%
Dividend rate— %
Exercise price$11.50
The following table presents a reconciliation for all liabilities measured and recognized at fair value on a recurring basis using significant unobservable inputs (Level 3):
(in thousands)Earnout LiabilityPrivate Placement Warrant Liability
Fair value as of December 31, 2025$22 $249 
Change in fair value of liability(22)(220)
Fair value as of June 30, 2026$— $29