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Fair Value Measurements (Tables)
 6 Months Ended 12 Months Ended
Jun. 30, 2023
Dec. 31, 2022
Fair Value Disclosures [Abstract]    
Schedule of fair value assets measured on a recurring basis
The following table presents the Company’s financial assets and liabilities that are measured at fair value on a recurring basis and the level of inputs used in such measurements (in thousands):
 
    
June 30, 2023
  
    
Balance
     
Quoted
Prices in
Active
Markets
(Level 1)
     
Significant
Other
Observable
Inputs
(Level 2)
     
Significant
Unobservable
Inputs

(Level 3)
  
Liabilities
                                    
Convertible Debentures
    $ 18,440      $ —       $ —       $ 18,440  
Derivative liabilities
      6,566        —         —         6,566  
Other long-term liabilities
      169        —         —         169  
    
 
 
     
 
 
     
 
 
     
 
 
  
Total liabilities measured at fair value
    $ 25,175      $ —       $ —       $ 25,175  
    
 
 
     
 
 
     
 
 
     
 
 
  
 

    
December 31, 2022
  
    
Balance
     
Quoted Prices
in Active
Markets
(Level 1)
     
Significant
Other
Observable
Inputs (Level 2)
     
Significant
Unobservable
Inputs (Level 3)
  
Liabilities
                                    
Derivative liabilities
    $ 1,231      $ —       $ —       $ 1,231  
Other long-term liabilities
      163        —         —         163  
    
 
 
     
 
 
     
 
 
     
 
 
  
Total liabilities measured at fair value
    $ 1,394      $ —       $ —       $ 1,394  
    
 
 
     
 
 
     
 
 
     
 
 
  
The following table presents the Company’s financial assets and liabilities that are measured at fair value (in thousands):
 
 
  
Fair value measurements at December 31, 2022
 
 
  
Balance
 
  
Quoted
Prices
in Active
Markets
(Level 1)
 
  
Significant
Other
Observable
Inputs (Level 2)
 
  
Significant
Unobservable
Inputs (Level 3)
 
Assets
  
  
  
  
Cash and cash equivalents
    $ 2,184      $ 2,184      $ —      $ —  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets measured at fair value
    $ 2,184      $ 2,184      $ —      $ —  
    
 
 
     
 
 
     
 
 
     
 
 
  
Liabilities
                                    
Derivative liabilities
    $ 1,231      $ —      $ —      $ 1,231  
Other long-term liabilities
      163        —        —        163  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total liabilities measured at fair value
    $   1,394      $ —      $ —      $   1,394  
    
 
 
     
 
 
     
 
 
     
 
 
  

 
  
Fair value measurements at December 31, 2021
 
 
  
Balance
 
  
Quoted Prices
in Active
Markets
(Level 1)
 
  
Significant
Other
Observable
Inputs (Level 2)
 
  
Significant
Unobservable
Inputs (Level 3)
 
Assets
  
  
  
  
Cash and cash equivalents
    $ 4,338      $ 4,338      $ —      $ —  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets measured at fair value
    $ 4,338      $ 4,338      $ —      $ —  
    
 
 
     
 
 
     
 
 
     
 
 
  
Liabilities
                                    
Derivative liabilities
    $ 35,700      $ —      $ —      $ 35,700  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total liabilities measured at fair value
    $ 35,700      $ —      $ —      $ 35,700  
    
 
 
     
 
 
     
 
 
     
 
 
  
Schedule of convertible debentures A summary of inputs used in valuing the Convertible Debentures is as follows:
 
    
June 30,
2023
  
Risk -Free Rate
      5.29 % 
Corporate Bond Yield
      16.33 % 
Coupon Interest Rate
      7.0 % 
Volatility
      42.0 % 
Dividend Yield
      0.0 % 
Conversion Price
    $ 8.00  
  
Schedule of the derivative liabilities measured at fair value using significant unobservable inputs Level 3
The following table includes a summary of the derivative liabilities measured at fair value using significant unobservable inputs (Level 3) during the six months ended June 30, 2023 (in thousands):
 
    
Fair Value
  
Ending Balance as of December 31, 2022
    $ 1,231  
Change in fair value measurement
      5,335  
    
 
 
  
Ending Balance as of June 30, 2023
    $ 6,566  
    
 
 
  
The following table includes a summary of the derivative liabilities measured at fair value using significant unobservable inputs (Level 3) during the year ended December 31, 2022:
 
 
  
Fair value
 
Ending Balance at December 31, 2019
    $ 33,400  
Loan derivative liability
      2,800  
Re-measurement
of fair value
      (800 ) 
    
 
 
  
Ending Balance at December 31, 2020
    $ 35,400  
Re-measurement
of fair value
      300  
    
 
 
  
Balance at December 31, 2021
    $ 35,700  
Private Warrant liability acquired as part of the Business Combination
      2,545  
Forfeiture of Private Warrants
      1,696  
Change in fair value measurement
      (38,710 ) 
    
 
 
  
Balance at December 31, 2022
    $ 1,231  
    
 
 
  
Schedule of quantitative information regarding Level 3 fair value measurements The expected volatility assumption is based on historical volatilities of comparable companies whose share prices are publicly available as well as the implied volatility of the Public Warrants, described in Note 8 of the Notes to Consolidated Financial Statements in the Annual Report on Form
10-K.
A summary of the inputs used in valuing the derivative warrant liabilities is as follows:
 
    
June 30,
2023
    
December 31,
2022
  
Equity value
    $ 5.57     $ 3.99  
Exercise price
    $ 11.50     $ 11.50  
Term, in years
      4.36       4.86  
Volatility
      55.0 %      35.0 % 
Risk-free rate
      4.20 %      3.94 % 
Dividend yield
      0.0 %      0.0 % 
Call option value
    $ 1.60     $ 0.30  
 The primary unobservable input utilized in determining the fair value of the warrant is the expected volatility of the Common Stock. The expected volatility assumption is based on historical volatilities of comparable companies whose share prices are publicly available as well as the implied volatility of the Public Warrants. A summary of the inputs used in valuing the derivative warrant liabilities is as follows:
 
    
December 31,
2022
    
November 10,
2022
  
    
Fair value
    
Fair Value
  
Equity Value
  
$
3.99
 
 
$
9.01
 
Exercise Price
  
$
11.50
 
 
$
11.50
 
Term (in years)
  
 
4.86
 
 
 
5.00
 
Volatility
  
 
35.0
% 
 
 
10.0
% 
Risk-free rate
  
 
3.94
% 
 
 
3.91
% 
Dividend yield
  
 
0.00
% 
 
 
0.00
% 
Call option value
  
$
0.30
 
 
$
0.62