v3.26.1
NOTES PAYABLE (Tables)
3 Months Ended
Mar. 31, 2026
Debt Disclosure [Abstract]  
Schedule of Fair Value Allocation
The following table summarizes the allocation of fair value of the Venture Loan and Security Agreement, as determined by Level 3 inputs for the Initial Horizon Warrants, as of January 12, 2026:
Fair ValueAllocationAllocated Fair ValueLender Fees3rd Party FeesTotal
Term Loans$30,000 95 %$28,638 $663 $1,814 $26,161 
Initial Horizon Warrants1,427 %1,362 — — 1,362 
$31,427 100 %$30,000 $663 $1,814 $27,523 
Fair Value Measurement Inputs and Valuation Techniques
The following table presents the significant inputs and valuation methodologies used for the Company’s fair value of the Initial Horizon Warrants as of as of January 12, 2026:
Valuation methodologyBlack-Scholes
Expected volatility85.67 %
Risk-free interest rate4.19 %
Expected term (in years)10
Expected dividend yield— %
Weighted-average fair value per option$21.79 
The following tables present the significant inputs and valuation methodologies used for the Company’s fair value of the Convertible Notes as of March 31, 2026 and December 31, 2025:
March 31, 2026December 31, 2025
Valuation model utilizedMonte-CarloScenario-Based
Valuation methodology - PrincipalDiscounted Cash FlowsDiscounted Cash Flows
     Expected term (in years)
4.301.85
     PIK period (years)4.300.85
     Discount rate16.45 %5.94 %
Valuation methodology - Convertible featureBlack-ScholesBlack-Scholes
     Conversion price$29.73 $29.73 
     Expected volatility116.00 %152.00 %
     Risk-free interest rate3.81 %3.41 %
     Expected term (in years)4.301.85
     Expected dividend yield— %— %
As described above, on January 12, 2026 the Company entered into the Venture Loan and Security Agreement with Horizon, which met the definition of permitted senior indebtedness per the Convertible Notes. The Venture Loan and Security Agreement secured substantially all of the borrowers' assets. In addition, the Convertible Notes Subordination Agreement, also described above, subordinated all payment obligations under the Convertible Notes, including principal and accrued interest, until 90-days after the Venture Loan and Security Agreement has been repaid in full.
The Company calculated the December 31, 2025 discount rate used in the valuation of the Convertible Notes based upon a B- yield curve to approximate the Company’s estimate of a market participant’s assessment of the credit risk associated with both the Company and the instrument.
The Company calculated the March 31, 2026 discount rate used in the valuation of the Convertible Notes based on the following:
Subordination premium3.12 %
Company specific risk premium6.24 %
Bloomberg B- yield curve7.09 %
16.45 %
Schedule of Carrying Value of Loan
The following table presents the carrying value of the Venture Loan and Security Agreement as of January 12, 2026 and March 31, 2026:
March 31, 2026January 12, 2026
Term Loan$30,000 $30,000 
Final Payment1,500 1,500 
Venture Loan and Security Agreement, gross$31,500 $31,500 
Debt Discount(5,144)(5,339)
Venture Loan and Security Agreement, net$26,356 $26,161 
Schedule of Loss on Issuance of Convertible Note
The following table summarizes the change in fair value, as determined by Level 3 inputs for the Convertible Notes for the three months ended March 31, 2026:
Fair value of convertible note at December 31, 2025$31,441 
Payment-in-kind on convertible debt234 
Change in fair value recognized in other comprehensive income(2,188)
Change in fair value recognized in net loss9,632 
Fair value of convertible note at March 31, 2026$39,119 
Schedule of Maturities of Long-Term Debt
The following table presents the maturity of the Term Loan, including the final payment fee, under the Venture Loan and Security Agreement as of March 31, 2026:
Term Loan
2026 (April 1 - December 31)$— 
2027— 
2028— 
202912,500 
203015,000 
2031 and thereafter4,000 
Total $31,500 
The following table presents the maturity of the Convertible Notes, including expected payment-in-kind, as of March 31, 2026:
Convertible Notes
2026 (April 1 - December 31)$— 
2027— 
2028— 
2029— 
2030— 
2031 and thereafter39,119 
Total$39,119 
Schedule of Debt Discount Rate
The Company calculated the March 31, 2026 discount rate used in the valuation of the Convertible Notes based on the following:
Subordination premium3.12 %
Company specific risk premium6.24 %
Bloomberg B- yield curve7.09 %
16.45 %