v3.26.1
DERIVATIVE LIABILITIES (Tables)
6 Months Ended
Jun. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
SCHEDULE OF USING A MONTE CARLO SIMULATION MODEL WITH KEY ASSUMPTIONS

At issuance, the Company recorded the embedded derivative liability at its estimated fair value of $1,050 determined using an options pricing model.

 

The resulting debt discount of $1,050 is being amortized to interest expense using the effective interest method over the term of the Notes. As of June 30, 2026, the derivative liability was remeasured at fair value of $763, resulting in a gain of $287, recorded within other income in the accompanying condensed consolidated statements of operations. The following table summarizes the key assumptions at issuance date and at remeasurement date on June 30, 2026:

 

Assumption  At Issuance   At June 30, 2026 
Stock price  $2.40   $1.81 
Conversion price  $1.50   $1.38 
Expected volatility   95%   91.68%
Risk-free interest rate   4.40%   3.62%
Expected term (years)   1.5    1.1 
Dividend yield   0%   0%
SCHEDULE OF CHANGES IN THE DERIVATIVE LIABILITY

The changes in the Derivative liabilities are during the period are as follows: (in thousands)

 

      
Balance, January 1, 2026  $ 
Fair value of liability at issuance  $1,050 
Change in fair value during the period  $(287)
Balance, June 30, 2026   $763