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Fair Value Measurements
 3 Months Ended
Mar. 31, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements
(15) Fair Value Measurements
Under ASC 820, Fair Value Measurements and Disclosures, disclosures relating to how fair value is determined for assets and liabilities are required and a hierarchy for which these assets and liabilities must be grouped is established, based on significant levels of inputs, as follows:
•Level 1 – Quoted prices in active markets for identical assets and liabilities.
•Level 2 – Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
•Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.
Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company utilizes several valuation techniques to assess the fair value of its financial assets and liabilities.
The following tables set forth the fair value of the Company’s financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2025 and December 31, 2024 based on the three-tier fair value hierarchy (in thousands):
 March 31, 2025
Balance Sheet ClassificationLevel 1Level 2Level 3Total
Assets
Cash and cash equivalentsCash and cash equivalents$16,445$—$—$16,445
Restricted cashRestricted cash13,018——13,018
Total$29,463$—$—$29,463
Liabilities
Convertible noteConvertible note$—$—$22,401$22,401
Total$—$—$22,401$22,401
December 31, 2024
Balance Sheet ClassificationLevel 1Level 2Level 3Total
Assets
Cash and cash equivalentsCash and cash equivalents$21,845$—$—$21,845
Restricted cashRestricted cash13,160——13,160
Total$35,005$—$—$35,005
Liabilities
Convertible noteConvertible note$—$—$22,336$22,336
Total$—$—$22,336$22,336
Cash, Cash Equivalents and Restricted Cash
Cash, cash equivalents and restricted cash are comprised of credit card receivables and cash and are categorized as Level 1 instruments. The Company maintains cash with various high-quality financial institutions and holds restricted cash with certain credit card processors as a financial guarantee. Cash, cash equivalents and restricted cash are carried at cost, which management believes approximates fair value.
Public Warrants
The Company is party to issued and outstanding Public Warrants, which have been recorded within other noncurrent liabilities within the Condensed Consolidated Balance Sheets. During the year ended December 31, 2024 the Public Warrants were reclassified as equity-based awards and, thus, are no longer required to be reassessed for fair value at each balance sheet date. Prior to the reclassification, the Public Warrants utilized an observable price in an active market to assess their fair value the warrants and therefore were categorized as Level 1 instruments and were subject to remeasurement at each balance sheet date. During the three months ended March 31, 2024, the Company recognized less than $0.1 million in a fair market value adjustment. Fair market value adjustments are recognized to gain on fair value instruments within the Company’s Condensed Consolidated Statements of Operations and Comprehensive Income.
Convertible Note
The estimated fair value of the Note has been determined to be a Level 3 measurement, as the Company utilizes a binomial lattice model where both the debt and stock features of the Note are considered. In reviewing the debt features of the Note, the Company considered its scheduled coupon and principal payments and compared them to those of instruments currently outstanding in the market of companies with similar credit ratings as well as the risk-free rate. In considering the stock features of the Note, the Company considered the value and volatility of its own stock, in addition to considering volatility of similar instruments in the marketplace as well as the conversion feature of the Note, which is discounted at the risk-free rate.