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Fair Value Measurement | 12 Months Ended
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Dec. 31, 2025
Fair Value Disclosures [Abstract] |
Fair Value Measurement | Fair Value Measurement The following table presents the Company’s fair value hierarchy for its assets and liabilities measured at fair value as of December 31, 2025 and December 31, 2024 (in thousands). All share and per share amounts included below relating to transactions prior to the Reverse Stock Split are presented at pre-split amounts:
| December 31, 2025
| Level 1 |  | Level 2 |  | Level 3 |  | Total
Assets: |  |  |  |  |  |  |
Cash equivalents | $ | 6,857 |  |  | $ | — |  |  | $ | — |  |  | $ | 6,857 |
Total assets | $ | 6,857 |  |  | $ | — |  |  | $ | — |  |  | $ | 6,857 |
Liabilities: |  |  |  |  |  |  |
FPA Put Option liability | $ | — |  |  | $ | — |  |  | $ | 30,015 |  |  | $ | 30,015 |
Fixed Maturity Consideration and current FPA Put Option liability | — |  |  | — |  |  | 4,123 |  |  | 4,123 |
Brookfield Loan liability | — |  |  | — |  |  | 10,900 |  |  | 10,900 |
IPO Private Placement Warrants | — |  |  | — |  |  | 10 |  |  | 10 |
Public Warrants | — |  |  | — |  |  | 1 |  |  | 1 |
Total liabilities | $ | — |  |  | $ | — |  |  | $ | 45,049 |  |  | $ | 45,049 |
| December 31, 2024
| Level 1 |  | Level 2 |  | Level 3 |  | Total
Assets: |  |  |  |  |  |  |
Cash equivalents | $ | 30,136 |  |  | $ | — |  |  | $ | — |  |  | $ | 30,136 |
Total assets | $ | 30,136 |  |  | $ | — |  |  | $ | — |  |  | $ | 30,136 |
Liabilities: |  |  |  |  |  |  |
Convertible Note | $ | — |  |  | $ | — |  |  | $ | 51,112 |  |  | $ | 51,112 |
FPA Put Option liability | — |  |  | — |  |  | 30,015 |  |  | 30,015 |
Fixed Maturity Consideration | — |  |  | — |  |  | 4,123 |  |  | 4,123 |
Brookfield SAFE liability | — |  |  | — |  |  | 13,223 |  |  | 13,223 |
IPO Private Placement Warrants | — |  |  | — |  |  | 1,432 |  |  | 1,432 |
Public Warrants | 2,099 |  |  | — |  |  | — |  |  | 2,099 |
Total Liabilities | $ | 2,099 |  |  | $ | — |  |  | $ | 99,905 |  |  | $ | 102,004 |
Forward Purchase Agreement The fair value upon issuance of the FPA (both the FPA Put Option liability and Fixed Maturity Consideration) and subsequent changes in fair value are included in other expense, net in the consolidated statements of operations and comprehensive loss in the corresponding period. The fair value of the FPA was estimated using a Monte-Carlo Simulation in a risk-neutral framework through March 31, 2024. Because the stock price already traded below the threshold of $3.00 per share for 49 days out of 50 trading days during a 60-day consecutive trading-day period, management determined that estimating the fair value of the FPA using an accelerated FPA Maturity Date was more appropriate. As such, the model calculated the value of the in-substance written put option and the portion of the Maturity Consideration in excess of the Fixed Maturity Consideration as if the Early Termination Option was exercised on June 30, 2024. Thereafter, the in-substance written put option was calculated as the repurchase of the Recycled Shares at the Share Price minus the Company’s share price as of the reporting date. The Maturity Consideration was calculated as 7,500,000 multiplied by $2.00 or $15,000, which included the Fixed Maturity Consideration calculated as 7,500,000 less the Terminated Shares multiplied by $2.00, or $3,167. The following table represents the inputs used in calculating the fair value of the prepaid forward contract and the Fixed Maturity Consideration as of December 31, 2024 on a pre-Reverse Stock Split basis:
|  |  |  | December 31, 2024
Stock price |  |  |  | $ | 1.37
Term (in years) |  |  |  | 0
Expected volatility |  |  |  | N/A
Risk-free interest rate |  |  |  | N/A
Expected dividend yield |  |  |  | —%
The Company filed suit under the FPA against Vellar in July 2024 and fully settled the FPA pursuant to its terms with ACM in October 2024 (see Note 8 — Forward Purchase Agreement, Note 17 — Commitments and Contingencies, and Note 19 — Subsequent Events). Convertible Note The Company has elected to measure the Convertible Note using the fair value option under ASC 825. On May 7, 2025, the Company consummated a Qualified Equity Financing with the Series A Preferred Stock Issuance, resulting in the conversion of the Convertible Note into 340,543 shares of common stock pursuant to the mandatory conversion provision of the Convertible Note. The following table represents the inputs used in calculating the fair value of the Convertible Note as of May 7, 2025 and December 31, 2024:
| May 7, 2025 |  | December 31, 2024
Stock price | $ | 0.24 |  | $ | 1.37
Term (in years) | 0 |  | 4.6
Expected volatility | —% |  | 110.0%
Risk-free interest rate | —% |  | 4.3%
Expected dividend yield | —% |  | —%
Brookfield SAFE Until its extinguishment on February 14, 2025, the Brookfield SAFE was legal form debt that the Company had elected to measure using the FVO under ASC 825. As of February 14, 2025, no part of the Brookfield SAFE had converted to Company common shares as no qualifying projects had been presented to Brookfield yet. There were no cash flows associated with the Brookfield SAFE termination either. As of February 14, 2025, the Company expected to present projects to Brookfield to result in the Brookfield SAFE liability being automatically converted into shares at 75%, with the remaining portion to be outstanding until maturity. For the conversion portion, since the liquidity price was set at the Business Combination, the number of shares that Brookfield receives is fixed. Based on this expectation, the value of the Brookfield SAFE is equal to the Brookfield SAFE's as-converted value, which is the converted portion of the initial purchase amount, divided by the liquidity price, multiplied by the stock price. For the maturity portion, the Brookfield SAFE is not automatically converted prior to maturity. At maturity, the holder could either convert or receive the remaining principal and interest in cash, similar in structure to a standard convertible note. Accordingly, the fair value of the maturity portion was estimated using the Black-Scholes option pricing model. The strike price would be the accrued balance of the Brookfield SAFE at maturity. On a per share basis the strike price would be $14.69 (i.e. $10.00 grown at 8.0% until maturity five (5) years from issuance). The “stock” price input would be the current value of the shares that Brookfield would receive at conversion. On a per share price basis, the stock price input would be the Valuation Date stock price of $0.75. Based on the portion of the Brookfield SAFE expected to automatically convert and the portion of the Brookfield SAFE expected to remain outstanding until maturity, the estimated fair value of the Brookfield SAFE was $13,274 as of February 14, 2025 prior to its extinguishment. Significant inputs for Level 3 Brookfield SAFE measurement as of February 14, 2025 and December 31, 2024 are as follows:
| February 14, 2025 |  | December 31, 2024
Initial purchase amount | $ | 50,000 |  | $ | 50,000
Liquidity price | $ | 10.00 |  | $ | 10.00
Stock price | $ | 0.75 |  | $ | 1.37
Term (in years) | 0.88 |  | 3.11
Expected volatility | 60.0% |  | 67.5%
Risk-free interest rate | 4.3% |  | 4.3%
Expected dividend yield | —% |  | —%
Brookfield Loan The Brookfield Loan is legal form of debt, and management has elected to apply the FVO with the Brookfield Loan classified as a mark-to-market liability. As of February 14, 2025, there were no cash flows associated with execution of the Brookfield Loan, however the initial principal payment of $12,500 to Brookfield was due on or prior to February 21, 2025 and has been paid. The Brookfield Loan accrues interest at a rate of (a) 8.00% per annum, compounded annually through and including October 3, 2027, (b) 8.00% per annum, payable quarterly in cash, from October 4, 2027 through and including December 3, 2028 and (c) 12.00% per annum, payable quarterly in cash, from December 4, 2028 through and including December 3, 2029. The fair value of the Brookfield Loan was determined using a scenario-weighted discounted cash flow model on the adjusted remaining portion of the Brookfield Loan and the Company’s expectation to present projects to Brookfield to result in the Brookfield Loan liability being deemed as repaid at 50% as of December 31, 2025. The remaining portion outstanding is adjusted for repayment at maturity. Significant inputs for Level 3 Brookfield Loan measurement as of December 31, 2025, July 10, 2025, and February 14, 2025 are as follows:
| December 31, 2025 |  | July 10, 2025 |  | February 14, 2025
Adjusted remaining amount | $ | 25,470 |  | $ | 24,526 |  |  | $ | 10,123
Term (in years) | 3.8 |  | 3.3 |  | 1.46
Discount rate | 40.0% |  | 40.0 | % |  | 40.0%
PIPE Warrant Pursuant to the Preferred Stock Purchase Agreement, the Company also agreed to provide the Preferred Stockholder the contingent opportunity to participate in the potential future equity appreciation of the Company in the form of the PIPE Warrant that, similar to a structuring fee, would be issued if and only if certain conditions were satisfied prior to May 7, 2026, including obtaining a required stockholder vote and additional Financing meeting specified criteria. If issued, the PIPE Warrant would provide for the issuance of an aggregate of 7,800,000 shares of common stock at an exercise price equal to $0.0000001 per share (subject to adjustments in certain events) and the other terms to be set forth in the PIPE Warrant. Pursuant to the Preferred Stock Purchase Agreement, the parties agreed that the PIPE Warrant would only be exercised upon consummation of a Subsequent Financing or, with the Preferred Stockholder’s consent, an Other Financing. The initial form of the PIPE Warrant provided that if the Conditions to Exercise are satisfied, the PIPE Warrant will be deemed automatically exercised on a cashless, net-exercise basis at such time (the time immediately following such automatic exercise, the “Expiration Time”). The PIPE Warrant will terminate at the earlier of (i) the Expiration Time and (ii) May 7, 2026. As discussed under Note 19 — Subsequent Events, the PIPE Warrant with amended terms was issued on January 21, 2026 concurrently with the consummation of the January 2026 Financing. The PIPE Warrant, as amended, provides that it is exercisable at any time prior to 5:00 p.m. New York City time on December 31, 2026 (the “Expiration Time”), and, if unexercised, will be automatically exercised on a cashless (net‑share) basis immediately prior to the Expiration Time. Irrespective of the PIPE Warrant being a contingent instrument for which the conditions to issuance have not been satisfied, under applicable accounting guidance, the PIPE Warrant was required to be classified as a current liability at May 7, 2025 and to be remeasured at fair value at each balance sheet date, with changes in fair value recorded in other income (expense), net within the consolidated statements of operations and comprehensive loss. As a result, the Company recorded a current liability of $24.9 million as of May 7, 2025 based on the closing stock price of the Company’s common stock of $0.24 at such date (prior to the Reverse Stock Split) and taking into account the probability that a Subsequent Financing would be consummated. Effective August 18, 2025, following the Authorized Share Increase and the Proportionate Authorized Share Decrease in connection with the Reverse Stock Split, the Company obtained sufficient authorized but unissued shares to be able to settle the PIPE Warrant in shares when it is due. As a result, and in accordance with ASC 815-40, the PIPE Warrant no longer met the criteria for liability classification. The PIPE Warrant was therefore remeasured to fair value immediately prior to reclassification, resulting in a fair value of approximately $16.2 million, and subsequently reclassified from a current liability to Additional Paid-in Capital within stockholders’ equity. Changes in the fair value of the PIPE Warrant were recognized in other income (expense), net within the Company’s consolidated statements of operations and comprehensive loss. Following this reclassification, no further fair value adjustments will be recognized for the PIPE Warrant so long as the settlement conditions continue to permit equity classification. The Company did not consummate a Subsequent Financing by October 15, 2025 and as of December 31, 2025, had not consummated an Other Financing. See Note 19 — Subsequent Events for developments subsequent to December 31, 2025. Public Warrants and IPO Private Placement Warrants As part of AMCI’s initial public offering (“IPO”), AMCI issued warrants to third-party investors. Each public warrant entitles the holder to purchase one share of the Company’s common stock at an exercise price of $1,150 per share (the “Public Warrants”). Simultaneously with the closing of the IPO, AMCI completed the private sale of warrants. Each private sale warrant allows the holder to purchase one share of the Company’s common stock at $1,150 per share. Additionally, prior to the consummation of the Business Combination, AMCI issued warrants for the settlement of a working capital loan. The working capital warrants have the same terms as the private sale of warrants issued at the IPO. Warrants sold in the private sale at the IPO and the warrants issued to convert the working capital loan are collectively referred to as the “IPO Private Placement Warrants”. In connection with the IPO, the Company has 78,081 Public Warrants and 44,661 IPO Private Placement Warrants outstanding as of December 31, 2025. For the Public Warrants, the Company uses inputs such as actual trade data, quoted market prices from dealers or brokers, and other similar sources to determine the fair value. Changes in fair value are recorded in other income (expense), net within the consolidated statements of operations and comprehensive loss. The Company recognized decreases in the fair value of the liability of $2,098 and $1,600 during the years ended December 31, 2025 and 2024, respectively. The fair value of the IPO Private Placement Warrants was estimated using a Black-Scholes option pricing model. The Company recognized decreases in fair value of the liability of $1,422 and $2,483 for the years ended December 31, 2025 and 2024, respectively. Changes in fair value are recorded on the consolidated statements of operations and comprehensive loss within other income (expense), net. The following table represents the weighted average inputs used in calculating the fair value of the IPO Private Placement Warrants outstanding as of December 31, 2025 and December 31, 2024. December 31, 2025 amounts reflect post-reverse Stock Split figures, whereas December 31, 2024 amounts reflect pre-Reverse Stock Split figures:
| December 31, 2025 |  | December 31, 2024
Stock price | $ | 13.76 |  | $ | 1.37
Exercise price | $ | 1,150.00 |  | $ | 11.50
Term (in years) | 2.11 |  | 3.11
Expected volatility | 115.0% |  | 97.5%
Risk-free interest rate | 3.48% |  | 4.28%
Expected dividend yield | —% |  | —%
The following tables represent reconciliations of the fair value measurements of the assets and liabilities using significant unobservable inputs (Level 3) (in thousands):
| Convertible Note |  | PIPE Warrant |  | FPA Put Option |  | Fixed Maturity Consideration |  | Brookfield SAFE |  | Brookfield Loan |  | IPO Private Placement Warrants
Balance as of January 1, 2025 | $ | (51,112) |  |  | $ | — |  |  | $ | (30,015) |  |  | $ | (4,123) |  |  | $ | (13,223) |  |  | $ | — |  |  | $ | (1,432) |
Extinguishment of the Brookfield SAFE | — |  |  | — |  |  | — |  |  | — |  |  | 13,274 |  |  | — |  |  | — |
Issuance of PIPE Warrant | — |  |  | (24,950) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Issuance of the Brookfield Loan | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (19,490) |  |  | — |
Partial settlement of the Brookfield Loan | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 12,500 |  |  | — |
Extinguishment of the Brookfield Loan | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 12,300 |  |  | — |
Issuance of the Amended Brookfield Loan | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (12,300) |  |  | — |
Reclassification of PIPE Warrant to equity | — |  |  | 16,150 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Conversion of Convertible Note to common stock | 8,132 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
(Loss) gain recognized in other expense, net on the consolidated statement of operations and comprehensive loss | 42,980 |  |  | 8,800 |  |  | — |  |  | — |  |  | (51) |  |  | (3,910) |  |  | 1,422 |
Balance as of December 31, 2025 | $ | — |  |  | $ | — |  |  | $ | (30,015) |  |  | $ | (4,123) |  |  | $ | — |  |  | $ | (10,900) |  |  | $ | (10) |
| Convertible Note |  | FPA Put Option |  | Fixed Maturity Consideration |  | Brookfield SAFE |  | IPO Private Placement Warrants
Balance as of January 1, 2024 | $ | — |  |  | $ | (37,523) |  |  | $ | (7,228) |  |  | $ | (25,150) |  |  | $ | (3,914) |
Issuance of the Convertible Note | (40,150) |  |  | — |  |  | — |  |  | — |  |  | — |
Partial settlement of Forward Purchase Agreement | — |  |  | 30,000 |  |  | 4,123 |  |  | — |  |  | — |
(Loss) gain recognized in other expense, net on the consolidated statement of operations and comprehensive loss | (10,962) |  |  | (22,492) |  |  | (1,018) |  |  | 11,927 |  |  | 2,482 |
Balance as of December 31, 2024 | $ | (51,112) |  |  | $ | (30,015) |  |  | $ | (4,123) |  |  | $ | (13,223) |  |  | $ | (1,432) |

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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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