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Fair Value (Tables) | 12 Months Ended
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Dec. 31, 2025
Fair Value Disclosures [Abstract] |
Schedule of Fair Value Hierarchy for Assets and Liabilities Measured at Fair Value | The following tables present the Company’s fair value hierarchy for assets and liabilities measured at fair value on a recurring basis (in thousands):
December 31, 2025 | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3) |  | Total
Assets: |  |  |  |  |  |  |
Investment in debt security - AFS | $ | — |  |  | $ | — |  |  | $ | 9,246 |  |  | $ | 9,246 |
Liabilities: |  |  |  |  |  |  |
Earnout liability | $ | — |  |  | $ | — |  |  | $ | 3,890 |  |  | $ | 3,890 |
2024 WTI Warrant liability | — |  |  | — |  |  | 13,080 |  |  | 13,080 |
2025 WTI Warrant liability | — |  |  | — |  |  | 3,230 |  |  | 3,230 |
Private placement warrant liability | — |  |  | 11,148 |  |  | — |  |  | 11,148 |
December 31, 2024 | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3) |  | Total
Assets: |  |  |  |  |  |  |
Investment in debt security - AFS | $ | — |  |  | $ | — |  |  | $ | 11,187 |  |  | $ | 11,187 |
Liabilities: |  |  |  |  |  |  |
Earnout liability | $ | — |  |  | $ | — |  |  | $ | 14,752 |  |  | $ | 14,752 |
2024 WTI Warrant liability | — |  |  | — |  |  | 17,230 |  |  | 17,230 |
Private placement warrant liability | — |  |  | 16,793 |  |  | — |  |  | 16,793 |
Schedule of Changes in Fair Value of Level 3 Assets | Changes in the estimated fair value of Level 3 financial assets and liabilities that are measured on a recurring basis are as follows (in thousands):
| Forward Contract | Embedded derivative liability - convertible promissory notes | Embedded derivative liability - August 2025 Notes | Investment in debt securities - AFS | Earnout liability | 2024 WTI Warrant liability | 2025 WTI Warrant liability | Embedded derivative liability (asset) - Convertible Debentures
Balance as of January 1, 2024 (Predecessor) | $ | — |  | $ | 1,994 |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |
Additions | — |  | — |  | — |  | 10,110 |  | — |  | — |  | — |  | — |
Settlement | — |  | (2,472) |  | — |  | — |  | — |  | — |  | — |  | — |
Change in fair value | — |  | 478 |  | — |  | 62 |  | — |  | — |  | — |  | — |
Balance as of October 1, 2024 (Predecessor) | $ | — |  | $ | — |  | $ | — |  | $ | 10,172 |  | $ | — |  | $ | — |  | $ | — |  | $ | — |
Balance as of October 2, 2024 Successor) | — |  | — |  | — |  | 10,172 |  | 11,352 |  | — |  | — |  | — |
Additions | 54 |  | — |  | — |  | 106 |  | — |  | 15,690 |  | — |  | — |
Settlement | (99) |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Change in fair value | 45 |  | — |  | — |  | 909 |  | 3,400 |  | 1,540 |  | — |  | — |
Balance as of December 31, 2024 (Successor) | $ | — |  | $ | — |  | $ | — |  | $ | 11,187 |  | $ | 14,752 |  | $ | 17,230 |  | $ | — |  | $ | — |
Balance as of January 1, 2025 (Successor) | $ | — |  | $ | — |  | $ | — |  | $ | 11,187 |  | $ | 14,752 |  | $ | 17,230 |  | $ | — |  | $ | — |
Additions | — |  | — |  | — |  | 7,477 |  | — |  | — |  | 3,090 |  | 1,476 |
Settlement and derecognitions | — |  | — |  | (1,677) |  | (8,756) |  | (873) |  | — |  | — |  | (3,297) |
Change in fair value | — |  | — |  | 1,677 |  | (662) |  | (9,989) |  | (4,150) |  | 140 |  | 1,821 |
Balance as of December 31, 2025 (Successor) | $ | — |  | $ | — |  | $ | — |  | $ | 9,246 |  | $ | 3,890 |  | $ | 13,080 |  | $ | 3,230 |  | $ | — |
Schedule of Changes in Fair Value of Level 3 Liabilities | Changes in the estimated fair value of Level 3 financial assets and liabilities that are measured on a recurring basis are as follows (in thousands):
| Forward Contract | Embedded derivative liability - convertible promissory notes | Embedded derivative liability - August 2025 Notes | Investment in debt securities - AFS | Earnout liability | 2024 WTI Warrant liability | 2025 WTI Warrant liability | Embedded derivative liability (asset) - Convertible Debentures
Balance as of January 1, 2024 (Predecessor) | $ | — |  | $ | 1,994 |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |
Additions | — |  | — |  | — |  | 10,110 |  | — |  | — |  | — |  | — |
Settlement | — |  | (2,472) |  | — |  | — |  | — |  | — |  | — |  | — |
Change in fair value | — |  | 478 |  | — |  | 62 |  | — |  | — |  | — |  | — |
Balance as of October 1, 2024 (Predecessor) | $ | — |  | $ | — |  | $ | — |  | $ | 10,172 |  | $ | — |  | $ | — |  | $ | — |  | $ | — |
Balance as of October 2, 2024 Successor) | — |  | — |  | — |  | 10,172 |  | 11,352 |  | — |  | — |  | — |
Additions | 54 |  | — |  | — |  | 106 |  | — |  | 15,690 |  | — |  | — |
Settlement | (99) |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Change in fair value | 45 |  | — |  | — |  | 909 |  | 3,400 |  | 1,540 |  | — |  | — |
Balance as of December 31, 2024 (Successor) | $ | — |  | $ | — |  | $ | — |  | $ | 11,187 |  | $ | 14,752 |  | $ | 17,230 |  | $ | — |  | $ | — |
Balance as of January 1, 2025 (Successor) | $ | — |  | $ | — |  | $ | — |  | $ | 11,187 |  | $ | 14,752 |  | $ | 17,230 |  | $ | — |  | $ | — |
Additions | — |  | — |  | — |  | 7,477 |  | — |  | — |  | 3,090 |  | 1,476 |
Settlement and derecognitions | — |  | — |  | (1,677) |  | (8,756) |  | (873) |  | — |  | — |  | (3,297) |
Change in fair value | — |  | — |  | 1,677 |  | (662) |  | (9,989) |  | (4,150) |  | 140 |  | 1,821 |
Balance as of December 31, 2025 (Successor) | $ | — |  | $ | — |  | $ | — |  | $ | 9,246 |  | $ | 3,890 |  | $ | 13,080 |  | $ | 3,230 |  | $ | — |
Schedule of Significant Unobservable Inputs | The investment in debt securities is stated at fair value as described in Note 3. Investments. The terms of the securities are such that they are highly likely to convert into Class D Units of AeroFlexx. The fair value of the debt securities is estimated on an as-converted basis using a discounted cash flow model by discounting the contractual debt cash flows at a rate incorporating the credit risk of AeroFlexx as of December 31, 2025 and using a Black-Scholes model as of December 31, 2024 incorporating breakpoints upon which each tranche of AeroFlexx equity participates in distributions.
| December 31, 2025 |  | December 31, 2024
Volatility | n/a |  | 120 | %
Time to liquidity | n/a |  | 2 years
Discount for lack of marketability | n/a |  | 31.00 | %
Weighted average cost of capital | n/a |  | 45.00 | %
Risk-free rate | n/a |  | 4.23 | %
AeroFlexx yield | 17.01 | % |  |
The following table summarizes the inputs used in simulating the Company’s stock price for purposes of valuing the Earnout Shares:
| December 31, 2025 |  | December 31, 2024
Term | 5.8 years |  | 6.8 years
Stock price | $ | 4.18 |  |  | $ | 13.85 |
Volatility | 60.00 | % |  | 56.00 | %
Risk-free rate | 3.77 | % |  | 4.42 | %
Revenue risk premium | 27.80 | % |  | 36.10 | %
Revenue volatility | 157.30 | % |  | 176.00 | %
The following table summarizes the inputs used in the GBM for purposes of valuing the WTI Warrants as of each year end:
|  |  | December 31, 2025 |  | December 31, 2024
2025 WTI Warrants:
| Geometric Brownian Motion | Stock price | $ | 4.18 |  |  | N/A
|  | Stock price volatility | 60.00 | % |  | N/A
|  | Credit spread | 26.00 | % |  | N/A
2024 WTI Warrants:
| Geometric Brownian Motion | Stock price | $ | 4.18 |  |  | $ | 13.85 |
|  | Stock price volatility | 60.00 | % |  | 56.00 | %
|  | Credit spread | 26.00 | % |  | 18.80 | %
A summary of the significant unobservable inputs utilized to estimate the fair value at settlement is as follows:
Embedded derivative within 2025 Notes issued August 18, 2022 with a principal balance of $4,000 | Settlement
Discount Rate | 35 | %
Probability of Expected Outcomes |
Financing | 100 | %
Change in control | — | %
Other | — | %
Embedded derivative within 2025 Notes issued June 7 & July 3, 2023 with an aggregate principal balance of 2,000 |
Discount Rate | 71% - 87%
Probability of Expected Outcomes |
Financing | 100 | %
Change in control | — | %
Other | — | %
|  |  | September 30, 2025
Embedded derivative asset - Convertible Debentures:
| Binomial Lattice Model | Stock price | $ | 5.79 |
|  | Stock price volatility | 60.00 | %
|  | Debt yield | 38.70 | %
|  | Debt spread | 35.00 | %

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- Definition Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 101 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-101 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-3 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 + Details
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- Definition Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and gains or losses recognized in other comprehensive income (loss) and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs) by class of liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-3 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 + Details
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- Definition Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 + Details
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