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Derivative Liability

6 Months Ended

Jun. 30, 2025

8. Derivative Liability

Convertible Notes

The 2030 Notes, discussed in Note 7, contained an embedded conversion option that initially met the criteria to be bifurcated and accounted for separately from the 2030 Notes. The conversion option derivative liability was recorded at fair value upon the issuance of the 2030 Notes and was subsequently remeasured to fair value at March 31, 2025. In June 2025, conditions necessary for separate accounting of the conversion options as a derivative liability were no longer met. Accordingly, the conversion option derivative liability was remeasured as of the date of this change and subsequently reclassified to additional paid-in capital on the Company’s condensed consolidated statements of shareholders’ equity (deficit).

The change in the conversion option derivative liability during the period ended June 30, 2025, includes the following (in thousands):


December 31, 2024	$	—
Addition of derivative liability		124,062
Change in fair value		(17,400	)
March 31, 2025		106,661
Change in fair value		16,780
Reclassification to shareholders' equity		(123,441	)
June 30, 2025	$	—