SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

6 Months Ended

Jun. 30, 2026

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Schedule of cash, cash equivalents and restricted cash

The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported on the condensed consolidated balance sheet as of June 30, 2026 and December 31, 2025, to the amounts reported on the condensed consolidated statement of cash flows (in thousands):


		June 30,			December 31,
		2026			2025
Cash		$	145		$	538
Cash equivalents			401			174
Restricted cash			310			309
Total cash, cash equivalents and restricted cash		$	856		$	1,021

Schedule of fair value hierarchy for financial assets and liabilities

The following table represents the fair value hierarchy for the financial assets and liabilities held by the Company measured at fair value on a recurring basis (in thousands):


		As of June 30, 2026
(in thousands)		Level 1			Level 2			Level 3			Total
Money market funds		$	401		$	—		$	—		$	401
Total financial assets		$	401		$	—		$	—		$	401

Convertible debt subject to credit risk analysis		$	—		$	5,856		$	—		$	5,856
Series P and P 2 Preferred Stock liability			—			—			5,045			5,045
Total financial liabilities		$	—		$	5,856		$	5,045		$	10,901


		As of December 31, 2025
(in thousands)		Level 1			Level 2			Level 3			Total
Money market funds		$	174		$	—		$	—		$	174
Total financial assets		$	174		$	—		$	—		$	174

Convertible debt subject to credit risk analysis		$	—		$	8,923		$	—		$	8,923
Total financial liabilities		$	—		$	8,923		$	—		$	8,923

Schedule of changes in Series P Preferred Stock liability

The following table presents the roll-forward of the Series P and Series P 2 Preferred Stock liability balance for the six months ended June 30, 2026 (in thousands):


(in thousands)		Series P Amount			Series P 2 Amount			Total Series Preferred Stock Liability Amount
Balance at December 31, 2025		$	—		$	—		$	—
Initial recognition			2,791			2,461			5,252
Change in fair value			(102)			(105)			(207)
Balance at June 30, 2026		$	2,689		$	2,356		$	5,045

Schedule of measurement inputs for Preferred Stock

The following table provides the inputs used to measure the Series P and Series P 2 Preferred Stock at the issuance date and June 30, 2026:


		Series P				Series P 2
Share price at issuance date		$	13.25			$	0.15
Share price at June 30, 2026		$	0.21			$	0.21
Discount rate at issuance date			22.72	%			26.08	%
Discount rate at June 30, 2026			32.59	%			31.90	%
Volatility at issuance date			88.05	%			125.79	%
Volatility at June 30, 2026			127.88	%			124.57	%
Risk free rate at issuance date			3.75	%			4.08	%
Risk free rate at June 30, 2026			4.08	%			4.09	%
Dividend yield at issuance date and June 30, 2026			0.00	%			0.00	%
Probability of a change in control at issuance date and June 30, 2026			50.00	%			50.00	%
Probability of a dissolution scenario at issuance date and June 30, 2026			10.00	%			10.00	%
Probability of a maturity expiration scenario at issuance date and June 30, 2026			40.00	%			40.00	%
Timing of a change in control scenario at issuance date (in years)			1.00				0.67
Timing of a change in control scenario at June 30, 2026 (in years)			0.59				0.59
Timing of a dissolution scenario at issuance date (in years)			2.00				1.67
Timing of a dissolution scenario at June 30, 2026 (in years)			1.59				1.59
Timing of a maturity expiration scenario at issuance date (in years)			5.00				5.00
Timing of a maturity expiration scenario at June 30, 2026 (in years)			4.60				4.93

Tabular disclosure of the nature and terms of the financial instruments and the rights and obligations embodied in those instruments, information about settlement alternatives, if any, in the contract and identification of the entity that controls the settlement alternatives including: a. The amount that would be paid, or the number of shares that would be issued and their fair value, determined under the conditions specified in the contract if the settlement were to occur at the reporting date b. How changes in the fair value of the issuer's equity shares would affect those settlement amounts (for example, "the issuer is obligated to issue an additional x shares or pay an additional y dollars in cash for each $1 decrease in the fair value of one share") c. The maximum amount that the issuer could be required to pay to redeem the instrument by physical settlement, if applicable d. The maximum number of shares that could be required to be issued, if applicable e. That a contract does not limit the amount that the issuer could be required to pay or the number of shares that the issuer could be required to issue, if applicable f. For a forward contract or an option indexed to the issuer's equity shares, the forward price or option strike price, the number of issuer's shares to which the contract is indexed, and the settlement date or dates of the contract, as applicable. g. The components of the liability that would otherwise be related to shareholders' interest and other comprehensive income (if any) subject to the redemption feature (for example, par value and other paid in amounts of mandatorily redeemable instruments are disclosed separately from the amount of retained earnings or accumulated deficit).

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