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Fair Value Measurements | 6 Months Ended | 12 Months Ended
--- | --- | ---
Jun. 30, 2025 | Dec. 31, 2024
Fair Value Disclosures [Abstract] |  |
Fair Value Measurements | 5. Fair Value Measurements The following tables present the Company’s fair value hierarchy for its assets and liabilities that are measured at fair value on a recurring basis and indicate the level within the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value:
|  | Fair Value Measurements at June 30, 2025 |
|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Assets: |  |  |  |  |  |  |  |  |  |  |  |
Cash equivalents: |  |  |  |  |  |  |  |  |  |  |  |
Money market mutual funds |  |  | 5,156 |  |  |  | — |  |  |  | — |  |  |  | 5,156 |
|  | $ | 5,156 |  |  | $ | — |  |  | $ | — |  |  | $ | 5,156 |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |
Warrant liability - public warrants |  | $ | 277 |  |  | $ | — |  |  | $ | — |  |  | $ | 277 |
Warrant liability - private placement warrants |  |  | — |  |  |  | 476 |  |  |  | — |  |  |  | 476 |
Warrant liability - Series A penny warrants |  |  | — |  |  |  | — |  |  |  | 1,480 |  |  |  | 1,480 |
|  | $ | 277 |  |  | $ | 476 |  |  | $ | 1,480 |  |  | $ | 2,233 |
|  | Fair Value Measurements at December 31, 2024 |
|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Assets: |  |  |  |  |  |  |  |  |  |  |  |
Cash equivalents: |  |  |  |  |  |  |  |  |  |  |  |
Money market mutual funds |  | $ | 2,710 |  |  | $ | — |  |  | $ | — |  |  | $ | 2,710 |
Investments in Securities |  |  | 849 |  |  |  | 64,692 |  |  |  | — |  |  |  | 65,541 |
|  | $ | 3,559 |  |  | $ | 64,692 |  |  | $ | — |  |  | $ | 68,251 |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |
Warrant liability - public warrants |  | $ | 454 |  |  | $ | — |  |  | $ | — |  |  | $ | 454 |
Warrant liability - private placement warrants |  |  | — |  |  |  | 780 |  |  |  | — |  |  |  | 780 |
Warrant liability - Series A penny warrants |  |  | — |  |  |  | — |  |  |  | 1,780 |  |  |  | 1,780 |
|  | $ | 454 |  |  | $ | 780 |  |  | $ | 1,780 |  |  | $ | 3,014 |
The fair values of government money market funds have been measured on a recurring basis using Level 1 inputs, which are based on unadjusted quoted market prices within active markets. The short-term investments, including investments in fixed income securities, have been measured using quoted pricing on active markets for Level 1 investments and inputs based on alternative pricing sources and models utilizing observable market inputs for Level 2 investments. The fair value of the Public Warrants is classified as Level 1 due to the use of an observable market quote in an active market. The fair value of the Private Placement Warrants is classified as Level 2 due to the use of an observable market quote for the Public Warrants, which are considered to be a similar asset in an active market. The warrant liability is calculated by multiplying the quoted market price of the Company’s Public Warrants by the total number of Public Warrants and Private Placement Warrants. The Company’s Level 3 liability consists of the Series A Penny Warrants associated with the issuance of Series A Preferred Stock. This liability has been classified as Level 3 due to the use of unobservable inputs within the valuation, namely volatility. The fair value of the Series A Penny Warrant liability as of June 30, 2025 and December 31, 2024 was determined utilizing a Monte Carlo simulation valuation method, using the following inputs and assumptions:
$ in thousands, except for Stock price, Strike price, and share amounts |  | June 30, 2025 |
Warrant Shares |  |  | 1,304,742 |
Aggregate Value Cap |  | $ | 11,250 |
Stock price |  | $ | 1.95 |
Strike price |  | $ | 0.01 |
Term (in years) |  | 3.7 years |
Volatility |  |  | 100.0 | %
Risk free rate |  |  | 3.7 | %
Dividend Rate |  |  | — | %
$ in thousands, except for Stock price, Strike price, and share amounts |  | December 31, 2024 |
Warrant Shares |  |  | 1,274,742 |
Aggregate Value Cap |  | $ | 11,250 |
Stock price |  | $ | 3.15 |
Strike price |  | $ | 0.01 |
Term (in years) |  | 4.2 |
Volatility |  |  | 100.0 | %
Risk free rate |  |  | 4.3 | %
Dividend Rate |  |  | — | %
The following table shows the change in the fair value of the Series A Penny Warrant liability for the six months ended June 30, 2025.
|  | June 30, 2025 |
Balance as of December 31, 2024 |  | $ | 1,780 |
Issuance of Series A Penny Warrants |  |  | — |
Change in fair value of Series A Penny Warrants |  |  | (300 | )
Balance as of June 30, 2025 |  | $ | 1,480 |
There have been no other changes in valuation techniques and related inputs. As of June 30, 2025 and December 31, 2024, there were no transfers between Level 1, Level 2, and Level 3. | 5. Fair Value M easurements The following tables present the Company’s fair value hierarchy for its assets and liabilities that are measured at fair value on a recurring basis and indicate the level within the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value:
(in thousands) |  |  | Fair Value Measurements at December 31, 2024 |
|  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |
Cash equivalents: |  |  |  |  |  |  |  |  |  |  |  |  |
Money market mutual funds |  | $ | 2,710 |  | $ | — |  | $ | — |  | $ | 2,710 |
Investments in securities |  |  | 849 |  |  | 64,692 |  |  | — |  |  | 65,541 |
|  | $ | 3,559 |  | $ | 64,692 |  | $ | — |  | $ | 68,251 |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |
Warrant liability - public warrants |  | $ | 454 |  | $ | — |  | $ | — |  | $ | 454 |
Warrant liability - private placement warrants |  |  | — |  |  | 780 |  |  | — |  |  | 780 |
Warrant liability - Series A penny warrants |  | $ | — |  | $ | — |  | $ | 1,780 |  | $ | 1,780 |
|  | $ | 454 |  | $ | 780 |  | $ | 1,780 |  | $ | 3,014 |
(in thousands) |  |  | Fair Value Measurements at December 31, 2023 |
|  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |
Cash equivalents: |  |  |  |  |  |  |  |  |  |  |  |  |
Money market mutual funds |  | $ | 887 |  | $ | — |  | $ | — |  | $ | 887 |
Investments in securities |  |  | 849 |  |  | 70,381 |  |  | — |  |  | 71,230 |
|  | $ | 1,736 |  | $ | 70,381 |  | $ | — |  | $ | 72,117 |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |
Warrant liability - public warrants |  | $ | 1,555 |  | $ | — |  | $ | — |  | $ | 1,555 |
Warrant liability - private placement warrants |  | $ | — |  | $ | 953 |  | $ | — |  | $ | 953 |
|  | $ | 1,555 |  | $ | 953 |  | $ | — |  | $ | 2,508 |
The fair values of government money market funds have been measured on a recurring basis using Level 1 inputs, which are based on unadjusted quoted market prices within active markets. The investments in securities, including investments in fixed income securities, have been measured using quoted pricing on active markets for Level 1 investments and inputs based on alternative pricing sources and models utilizing observable market inputs for Level 2 investments. The fair value of the Public Warrants is classified as Level 1 due to the use of an observable market quote in an active market. The fair value of the Private Placement Warrants is classified as Level 2 due to the use of an observable market quote for the Public Warrants, which are considered to be a similar asset in an active market. The warrant liability is calculated by multiplying the quoted market price of the Company’s Public Warrants by the total number of Public Warrants and Private Placement Warrants. The Company’s Level 3 liability consists of the Series A Penny Warrants associated with the issuance of Series A Preferred Stock and Series B Preferred Stock. This liability has been classified as Level 3 due to the use of unobservable inputs within the valuation, namely volatility. The fair value of the Series A Penny Warrant liability as of March 4, 2024 and December 31, 2024 was determined utilizing a Monte Carlo simulation valuation method, using the following inputs and assumptions:
$ in thousands, except for Stock price, Strike price, and share amounts |  |  | March 4, 2024 |
Warrant Shares |  |  | 1,304,907 |
Aggregate Value Cap |  | $ | 11,250 |
Stock price |  | $ | 15.49 |
Strike price |  | $ | 0.01 |
Term (in years) |  |  | 5 years |
Volatility |  |  | 95.0% |
Risk free rate |  |  | 4.2% |
Dividend Rate |  |  | —% |
$ in thousands, except for Stock price, Strike price, and share amounts |  |  | December 31, 2024 |
Warrant Shares |  |  | 1,274,742 |
Aggregate Value Cap |  | $ | 11,250 |
Stock price |  | $ | 3.15 |
Strike price |  | $ | 0.01 |
Term (in years) |  |  | 4.2 years |
Volatility |  |  | 100.0% |
Risk free rate |  |  | 4.3% |
Dividend Rate |  |  | —% |
The following table shows the change in the fair value of the Series A Penny Warrant liability for the year ended December 31, 2024
(in thousands) |  |  | Amount |
Balance as of December 31, 2023 |  | $ | — |
Issuance of Series A Penny Warrants |  |  | 3,747 |
Change in fair value of Penny Warrant liability |  |  | (1,967) |
Balance as of December 31, 2024 |  | $ | 1,780 |
The following table shows the change in the fair value of the derivative liability associated with the Company's Bridge Notes for the year ended December 31, 2024 and December 31, 2023:
(in thousands) |  |  | Amount |
Balance as of December 31, 2022 |  | $ | 971 |
Change in fair value of derivative liability |  |  | 14,589 |
Derecognition of derivative liability |  |  | (15,560) |
Balance as of December 31, 2023 |  |  | — |
Change in fair value of derivative liability |  |  | — |
Derecognition of derivative liability |  |  | — |
Balance as of December 31, 2024 |  | $ | — |
There have been no changes in valuation techniques and related inputs. As of December 31, 2024 and December 31, 2023, there were no transfers between Level 1, Level 2, and Level 3.

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- 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
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