Under the 2019 Term Loan, the Company issued the 2019 Warrants to purchase shares of its Series C redeemable convertible preferred stock. At initial recognition, the warrants were recorded at fair value and were subject to remeasurement at each balance sheet date. Subsequent to the IPO in 2021, the outstanding warrants were converted to common stock, which resulted in the re-classification of the convertible preferred stock warrant liability to additional paid-in-capital.

As of December 31, 2020, the estimated fair value of the warrants was $0.3 million. The fair value was calculated using the Black-Scholes option-pricing model with the following assumptions:


		December 31,
		2020
Expected term (in years)		8.1 – 8.5
Expected volatility		42.18% – 42.63%
Risk-free interest rate		2.33% – 2.49%
Dividend yield		–

In conjunction with entering into the 2020 Term Loan agreement, the Company issued the 2020 Warrant to purchase 300,000 shares of its Series F redeemable convertible preferred stock. The warrant was immediately exercisable at an exercise price per share of $21.88 and expires 10 years from its date of issuance.

The estimated fair value of the warrant on the date of issuance was $1.8 million. As of the issuance date, the fair value was calculated using a Multi-scenario Method with Discounts for Lack of Marketability for each class of security.

At initial recognition, the warrant was recorded at its estimated fair values and was subject to remeasurement at each balance sheet date. Upon the completion of the IPO, the outstanding warrant was converted to purchase 600,000 shares of common stock, which resulted in the re-classification of the convertible preferred stock warrant liability to additional paid-in capital. In August 2021, the warrant was net exercised and the Company issued 431,708 shares of common stock.

At December 31, 2020, the estimated fair value of the 2020 Warrant was $1.8 million. The fair value of the redeemable convertible preferred stock warrants was determined using the following assumptions:


		December 31,
		2020
Term (in years)		0.58 – 2.58
Expected volatility		55.9% - 65.6%
Risk-free interest rate		0.08% - 0.18%