XML 31 R22.htm IDEA: XBRL DOCUMENT
v3.24.3

Term Loan and Warrant Liabilities | 12 Months Ended
--- | ---
Sep. 30, 2024
Term Loan And Warrant Liabilities [Abstract] |
Term Loan and Warrant Liabilities | 12. TERM LOAN AND WARRANT LIABILITIES On May 13, 2024, the Company entered into a term loan and security agreement, pursuant to which the Company received $14,700 in cash proceeds in exchange for a $15,000 term loan (“Term Loan”) and the issuance of warrants to purchase up to 3,068,182 shares of the Company’s common stock (“Warrants”). Because the Term Loan and Warrants were determined to be freestanding financial instruments both recorded subsequently at fair value, the proceeds received were allocated to each instrument on a relative fair value basis. Term Loan The principal of the Term Loan is $15,000 and is payable upon maturity on May 13, 2026. The Term Loan provides a two percent original issue discount to the lenders. The Company is required to make quarterly interest payments on the Term Loan. The Company may elect to pay quarterly interest on the Term Loan based on the three-month Secured Overnight Financing Rate ("SOFR") plus five percent (5%) in cash or the Company may elect to pay interest based on the three-month SOFR plus six percent (6%) with 50% paid in cash and the remainder paid by issuing shares of the Company’s common stock. The Company may voluntarily redeem the Term Loan within one year of the issuance at 101% of the principal amount and after one year at par value. The Term Loan includes financial covenants and contains other customary affirmative and negative covenants and events of default. All obligations under the Term Loan are secured by substantially all of the Company’s assets. As of September 30, 2024, the Company was in compliance with all financial and reporting covenants of the Term Loan. The Company determined that the Term Loan was eligible for the FVO and accordingly elected the FVO for the Term Loan. This election was made because of operational efficiencies in valuing and reporting for the Term Loan instrument in its entirety at each reporting date. As a result of electing the FVO, the Term Loan was recorded at fair value with subsequent remeasurements at fair value each reporting period. The Company recognizes the resulting gain or loss related to changes to the fair value of the Term Loan on the condensed consolidated statements of operations within other income (expense). The change in fair value related to the accrued interest components of the Term Loan is also included within other income (expense) on the condensed consolidated statement of operations. Direct costs and fees related to the Term Loan were expensed as incurred within other income (expense) on the condensed consolidated statement of operations. The Company utilized the discounted cash flow method with reliance on the Monte Carlo simulation model to determine the fair value of the Term Loan at issuance and subsequently at each reporting date. The fair value of the Term Loan was determined based on significant inputs not observable in the market, which represents a Level 3 measurement within the fair value hierarchy. The significant fair value assumption is the discount rate, which was 27.2% and 26.0% as of May 13, 2024 and September 30, 2024, respectively. A summary of the changes in the fair value of the Term Loan Level 3 roll forward was as follows:
|  | Year Ended |
|  | September 30, 2024 |
Beginning Balance |  | $ | — |
Transfer in |  |  | 11,575 |
Change in fair value related to non-credit risk in net income |  |  | 435 |
Change in fair value related to credit risk in OCI |  |  | — |
Fair value as of September 30, 2024 |  | $ | 12,010 |
Warrant Liabilities The Company issued Warrants to the lenders to purchase up to 3,068,182 shares of the Company’s common stock at an initial exercise price of $2.53 per share, subject to certain adjustments. The Warrants are exercisable upon issuance through May 13, 2029 and may be exercised via cashless exercise. The Warrants are recognized as liabilities in the condensed consolidated balance sheet and are subject to remeasurement at each balance sheet date from issuance. Any change in fair value is recognized in other income (expense) within the condensed consolidated statement of operations. The Company utilized the Monte Carlo simulation model to determine the fair value of the warrant liabilities at issuance and subsequently at each reporting date. The fair value of the warrant liabilities is the present value of the warrant payoff at expiration; discounted at the risk-free rate. The fair value of the warrant liabilities was determined based on significant inputs not observable in the market, which represents a Level 3 measurement within the fair value hierarchy. The following is a summary of the fair value assumptions applied in determining the initial fair value and the subsequent fair value of the warrant liabilities as of each respective date:
|  | Year Ended |
|  | September 30, 2024 |
Beginning Balance |  | $ | — |
Transfer in |  |  | 3,125 |
Change in fair value in net income |  |  | 3,515 |
Fair value as of September 30, 2024 |  | $ | 6,640 |
A summary of the changes in the fair value of the warrant liabilities Level 3 roll forward was as follows:
|  | May 13, |  |  | September 30, |
|  | 2024 |  |  | 2024 |
Discount Rate |  |  | 4.5 | % |  |  | 3.6 | %
Volatility |  |  | 55.0 | % |  |  | 58.0 | %

X
- Definition Debt and warrants liabilities. + References No definition available. + Details
Name: | gnss_DebtAndWarrantsLiabilitiesTextBlock
Namespace Prefix: | gnss_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Term loan and warrant liabilities. + References No definition available. + Details
Name: | gnss_TermLoanAndWarrantLiabilitiesAbstract
Namespace Prefix: | gnss_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration