v3.26.1
DERIVATIVE INSTRUMENTS
 6 Months Ended
Jun. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVE INSTRUMENTS

NOTE 10. DERIVATIVE INSTRUMENTS

 

The Company recorded a derivative liability related to the derivatives embedded within the Series I Preferred Stock, primarily related to make-whole and penalty dividend features (see Note 8. Stockholders’ Equity). Changes in fair value are recognized in earnings in change in fair value – derivative liability in the unaudited condensed consolidated statements of operations. This note presents only the embedded derivative bifurcated from the Series I Preferred Stock. The embedded features of the Series K Preferred Stock were evaluated and determined not to require bifurcation, as discussed in Note 8. Stockholders’ Equity. The anti-dilution liability associated with the Series J Preferred Stock is accounted for separately and is disclosed in Note 11. Fair Value Measurements.

 

The following table presents the fair value of the Company’s embedded derivatives as of June 30, 2026:

 

   Balance Sheet Location  Fair Value 
Series I derivative liability  Non-current liabilities  $89,000 
Total     $89,000 

 

For the three and six months ended June 30, 2026, the Company recognized a gain of $43,000 and $37,000, respectively, related to embedded derivatives.