Warrants

6 Months Ended

Jun. 30, 2026

Note 8. Warrants

Warrants Classified as Liabilities

The securities purchase agreements governing warrants issued in registered direct offerings completed in November 2022 and June 2023 (collectively, the “Purchase Warrants”) provide for a value calculation for such warrants using the Black Scholes model in the event of certain fundamental transactions. The fair value calculation provides for a floor on the volatility amount utilized in the value calculation at 100% or greater. The Company has determined this provision introduces leverage to the holders of the Purchase Warrants that could result in a value that would be greater than the settlement amount of a fixed-for-fixed option on the Company’s own equity shares. Therefore, pursuant to ASC 815, the Company has classified the Purchase Warrants as liabilities in its consolidated balance sheet. The classification of the Purchase Warrants, including whether the Purchase Warrants should be recorded as liabilities or as equity, is evaluated at the end of each reporting period with changes in the fair value reported in other income (expense) in the consolidated statements of operations.

As of June 30, 2026, the Company had the following Purchase Warrants outstanding (share amounts in thousands):

	Number of Shares		Exercise Price		Expiration Date
Warrants issued - November 2022		92	$	40.00	May 28, 2028
Warrants issued - June 2023		143	$	28.00	June 2, 2028
		235

The following table sets forth changes in the fair value of the Purchase Warrants outstanding (amounts in thousands):

	Number of warrants on
	common shares		Amount
Balance as of December 31, 2025		235	$	24
Change in fair value of warrants		—		9
Balance as of March 31, 2026		235		33
Change in fair value of warrants		—		(14	)
Balance as of June 30, 2026		235	$	19

The outstanding Purchase Warrants had no intrinsic value at June 30, 2026.

The fair value of the Purchase Warrants at June 30, 2026 was determined using the Black Scholes model with the following assumptions:

	2022 Purchase Warrant			2023 Purchase Warrant
Expected term based on contractual term		1.9 years			1.9 years
Interest rate (risk-free rate):		4.19	%		4.19	%
Expected volatility		136	%		135	%
Expected dividend		—			—
Fair value of warrants (in thousands)	$	9		$	10

The fair value of the Purchase Warrants at December 31, 2025 was determined using the Black Scholes model with the following assumptions:

	2022 Purchase Warrant			2023 Purchase Warrant
Expected term based on contractual term		2.4 years			2.4 years
Interest rate (risk-free rate):		3.71	%		3.71	%
Expected volatility		129	%		129	%
Expected dividend		—			—
Fair value of warrants (in thousands)	$	11		$	13

Warrants Classified as Equity

The following table summarizes the activity in warrants classified as equity during the three and six months ended June 30, 2026 (share amounts in thousands):

	Number of Shares
Balance as of December 31, 2025		8,837
Series C warrants expired		(1,294	)
Balance as of March 31, 2026		7,543
Warrants issued		—
Balance as of June 30, 2026		7,543

As of June 30, 2026, the Company had the following equity-classified common stock purchase warrants outstanding (share amounts in thousands):

Warrant Type	Number of Shares		Exercise Price		Expiration
Common stock warrants		7	$	28.00	June 2, 2028
Series A warrants issued		3,975	$	2.250	February 8, 2029
Series A warrants issued		139	$	2.625	February 8, 2029
Series C warrants issued		157	$	1.625	November 6, 2029
Series D warrants issued		2,246	$	1.610	November 6, 2029
Series E warrants issued		952	$	1.250	September 12, 2031
Series E warrants issued		67	$	1.475	September 12, 2030
Balance as of June 30, 2026		7,543

The outstanding equity-classified warrants had no intrinsic value at June 30, 2026.