XML 22 R12.htm IDEA: XBRL DOCUMENT
v3.25.3

Fair Value Measurements | 9 Months Ended
--- | ---
Sep. 30, 2025
Fair Value Disclosures [Abstract] |
Fair Value Measurements | Fair Value Measurements The following tables present the Company’s fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis as of the periods presented:
| September 30, 2025
(in thousands) | (Level 1) |  | (Level 2) |  | (Level 3) |  | Total
Assets: |  |  |  |  |  |  |
Money market funds (1) | $ | 15,087 |  |  | $ | — |  |  | $ | — |  |  | $ | 15,087 |
U.S. Treasuries | 11,889 |  |  | — |  |  | — |  |  | 11,889 |
Total assets | $ | 26,976 |  |  | $ | — |  |  | $ | — |  |  | $ | 26,976 |
Liabilities: |  |  |  |  |  |  |
Debt derivative liabilities | $ | — |  |  | $ | — |  |  | $ | 1,868 |  |  | $ | 1,868 |
__________ (1)Money market funds are included in Cash and cash equivalents on the Condensed Consolidated Balance Sheet.
| December 31, 2024
(in thousands) | (Level 1) |  | (Level 2) |  | (Level 3) |  | Total
Assets: |  |  |  |  |  |  |
Money market funds (1) | $ | 19,399 |  |  | $ | — |  |  | $ | — |  |  | $ | 19,399 |
U.S. Treasuries | 5,928 |  |  | — |  |  | — |  |  | 5,928 |
Total assets | $ | 25,327 |  |  | $ | — |  |  | $ | — |  |  | $ | 25,327 |
Liabilities: |  |  |  |  |  |  |
Debt derivative liabilities | $ | — |  |  | $ | — |  |  | $ | 2,400 |  |  | $ | 2,400 |
__________ (1)Money market funds are included in Cash and cash equivalents on the Condensed Consolidated Balance Sheet. The changes in Level 3 liabilities measured at fair value on a recurring basis for the periods indicated were as follows:
| Three Months Ended September 30,
(in thousands) | 2025 |  | 2024
Balance at June 30, 2025 and 2024 | $ | 2,078 |  |  | $ | 2,458 |
Change in fair value included in net income (loss) | (210) |  |  | (13) |
Balance at September 30, 2025 and 2024 | $ | 1,868 |  |  | $ | 2,445 |
| Nine Months Ended September 30,
(in thousands) | 2025 |  | 2024
Balance at December 31, 2024 and 2023 | $ | 2,400 |  |  | $ | 2,987 |
Change in fair value included in net loss | (531) |  |  | (542) |
Balance at September 30, 2025 and 2024 | $ | 1,868 |  |  | $ | 2,445 |
There were no changes in the levels or methodology of the measurement of financial assets or liabilities during the three and nine months ended September 30, 2025 and 2024. The debt derivative liabilities are measured using a “with and without” valuation model to compare the fair value of each tranche of the credit facility the Company has with Oberland Capital and its affiliates (the “Credit Facility”) including the identified embedded derivative features and the fair value of a plain vanilla note with the same terms. The fair value of the Credit Facility including the identified embedded derivative features was determined using a probability-weighted expected return model based on three potential settlement scenarios for the Credit Facility included in the table below. The estimated settlement value of each scenario, which would include any required make-whole payment, is then discounted to present value using a discount rate that is derived based on the initial terms of the Credit Facility at issuance and corroborated utilizing a synthetic credit rating analysis. The significant inputs that are included in the valuation of the debt derivative liability - first tranche as of the periods presented include:
Input |  | September 30, 2025 |  | December 31, 2024
Remaining term |  | 1.8 years |  |  | 2.5 years |
Maturity date |  | June 30, 2027 |  |  | June 30, 2027 |
Coupon rate |  | 9.5% - 13.0% |  |  | 9.5% - 13.0% |
Revenue participation payments |  | Maximum each year |  |  | Maximum each year |
Discount rate |  | 11.29% |  | (1) |  | 12.22% |  | (1)
Probability of mandatory prepayment event |  | 15.0% |  | (1) |  | 15.0% |  | (1)
Estimated timing of mandatory prepayment event |  | March 31, 2026 | (1) |  | March 31, 2026 | (1)
Probability of optional prepayment event |  | 5.0% |  | (1) |  | 5.0% |  | (1)
Estimated timing of optional prepayment event |  | December 31, 2025 | (1) |  | December 31, 2025 | (1)
Probability of note held-to-maturity (2) |  | 80.0% |  | (1) |  | 80.0% |  | (1)
__________ (1)Represents a significant unobservable input. (2)See maturity date in table. The significant inputs that are included in the valuation of the debt derivative liability - second tranche as of the periods presented include:
Input |  | September 30, 2025 |  | December 31, 2024
Remaining term |  | 2.8 years |  |  | 3.5 years |
Maturity date |  | June 30, 2028 |  |  | June 30, 2028 |
Coupon rate |  | 9.5% - 13.0% |  |  | 9.5% - 13.0% |
Revenue participation payments |  | Maximum each year |  |  | Maximum each year |
Discount rate |  | 14.45% |  | (1) |  | 15.48% |  | (1)
Probability of mandatory prepayment event |  | 15.0% |  | (1) |  | 15.0% |  | (1)
Estimated timing of mandatory prepayment event |  | March 31, 2026 | (1) |  | March 31, 2026 | (1)
Probability of optional prepayment event |  | 5.0% |  | (1) |  | 5.0% |  | (1)
Estimated timing of optional prepayment event |  | December 31, 2025 | (1) |  | December 31, 2025 | (1)
Probability of held-to-maturity (2) |  | 80.0% |  | (1) |  | 80.0% |  | (1)
__________ (1)Represents a significant unobservable input. (2)See maturity date in table. The fair values of cash, restricted cash, accounts receivable, accounts payable and accrued expenses approximate the carrying values because of the short-term nature of these instruments. The carrying value and fair value of the Credit Facility were $50,000 and $51,137 at September 30, 2025 and $47,496 and $51,307 at December 31, 2024, respectively. See Note 8 - Long-Term Debt, Net of Debt Discount and Financing Fees.

X
- References No definition available. + Details
Name: | us-gaap_FairValueDisclosuresAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (bbb)(1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 107 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-107 Reference 3: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 100 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-100 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c)(3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2E -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2E Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (g) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 940 -SubTopic 820 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478119/940-820-50-1 + Details
Name: | us-gaap_FairValueDisclosuresTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration