v3.26.1
Fair Value Measurements and Disclosures (Tables)
 6 Months Ended
Jun. 30, 2026
Schedule of Fair Value on a Recurring Basis

The following table presents the Company’s financial assets and liabilities accounted for at fair value on a recurring basis as of June 30, 2026 by level within the fair value hierarchy:

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents

 

$

5,602

 

 

$

-

 

 

$

-

 

 

$

5,602

 

Short-term investments

 

 

-

 

 

 

2,001

 

 

 

-

 

 

 

2,001

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Public warrants

 

$

326

 

 

$

-

 

 

$

-

 

 

$

326

 

Private placement warrants

 

 

-

 

 

 

273

 

 

 

-

 

 

 

273

 

2025 GPO Convertible Note

 

 

-

 

 

 

-

 

 

 

17,562

 

 

 

17,562

 

Dragonfly Seller Convertible Notes

 

 

-

 

 

 

-

 

 

 

12,432

 

 

 

12,432

 

Convertible Debentures

 

 

-

 

 

 

-

 

 

 

21,822

 

 

 

21,822

 

The following table presents the Company’s financial assets and liabilities accounted for at fair value on a recurring basis as of December 31, 2025 by level within the fair value hierarchy:

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents

 

$

9,208

 

 

$

-

 

 

$

-

 

 

$

9,208

 

Short-term investments

 

 

-

 

 

 

1,995

 

 

 

-

 

 

 

1,995

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Public warrants

 

$

260

 

 

$

-

 

 

$

-

 

 

$

260

 

Private placement warrants

 

 

-

 

 

 

217

 

 

 

-

 

 

 

217

 

2025 GPO Convertible Note

 

 

-

 

 

 

-

 

 

 

19,235

 

 

 

19,235

 

Dragonfly Seller Convertible Notes

 

 

-

 

 

 

-

 

 

 

11,982

 

 

 

11,982

 

Convertible Debentures

 

 

-

 

 

 

-

 

 

 

26,663

 

 

 

26,663

 
Summary of Changes in Fair Value of Level 3 Liabilities

The following table summarizes changes in fair value of the Company’s level 3 liabilities during the periods presented:

 

 

2025 GPO Convertible Note

 

 

Dragonfly Seller Convertible Notes

 

 

Convertible Debentures

 

Balance at December 31, 2025

 

$

19,235

 

 

$

11,982

 

 

$

26,663

 

Change in fair value included in the determination of net loss (income)

 

 

961

 

 

 

430

 

 

 

(1,810

)

Change in fair value included in accumulated other comprehensive income (a)

 

 

(634

)

 

 

(363

)

 

 

 

Paid in kind interest

 

 

-

 

 

 

563

 

 

 

-

 

Note conversion

 

 

(2,000

)

 

 

-

 

 

 

(3,031

)

Foreign exchange

 

 

-

 

 

 

(180

)

 

 

-

 

Balance at June 30, 2026

 

$

17,562

 

 

$

12,432

 

 

$

21,822

 

(a) - The unrealized change in fair value, as a result of the change in in the Company's specific credit risk, is recorded in accumulated other comprehensive income.
2025 GPO Convertible Note  
Summary of Inputs and Assumptions The following table presents the assumptions used to determine the fair value of the 2025 GPO Convertible Note at June 30, 2026 and at December 31, 2025:

 

 

 

June 30, 2026

 

 

December 31, 2025

 

Common stock share price

 

$

0.12

 

 

$

1.47

 

Risk free rate

 

 

4.2

%

 

 

3.6

%

Yield

 

 

17.6

%

 

 

16.2

%

Expected volatility

 

 

50.0

%

 

 

50.0

%

Expected term (years)

 

 

3.4

 

 

 

3.9

 

 
Dragonfly Seller Convertible Notes  
Summary of Inputs and Assumptions . The unrealized change in the fair value of the Dragonfly Seller Convertible Notes of $363 is recorded in accumulated other comprehensive income for the three and six months ended June 30, 2026. The non-cash loss of $430 and $63 (excluding the non-cash gain recognized from the January 2025 conversion) was recorded in the change in fair value of financial instruments in the condensed consolidated statements of operations and comprehensive income (loss) during the six months ended June 30, 2026 and 2025, respectively. The following table presents the assumptions used to determine the fair value of the Dragonfly Seller Convertible Notes at June 30, 2026 and December 31, 2025:

 

 

 

June 30, 2026

 

 

December 31, 2025

 

Common stock share price

 

$

0.12

 

 

$

1.47

 

Risk free rate

 

 

4.1

%

 

 

3.5

%

Yield

 

 

19.0

%

 

 

16.6

%

Expected volatility

 

 

50.0

%

 

 

50.0

%

Expected term (years)

 

 

1.6

 

 

 

2.1

 

 
Convertible Debentures  
Summary of Inputs and Assumptions The following table presents the assumptions used to determine the fair value of the Convertible Debentures at June 30, 2026 and December 31, 2025:

 

 

 

June 30, 2026

 

 

December 31, 2025

 

Common stock share price

 

$

0.12

 

 

$

1.47

 

Risk free rate

 

4.0% (a)

 

 

3.5% (a)

 

Yield

 

 

113.5

%

 

 

101.5

%

Expected volatility

 

 

140.0

%

 

 

111.0

%

Expected term (years)

 

0.6 and 0.7 (a)

 

 

1.1 and 1.2 (a)