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Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2024

Fair Value Measurement Inputs and Valuation Techniques [Line Items]

Schedule of Fair Value Hierarchy for Assets and Liabilities Measured at Fair Value at Issuance Date and on Recurring Basis

The following tables present the fair value hierarchy for assets and liabilities that are measured at fair value at issuance date and on a recurring basis and indicate the level within the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value (in thousands):

Fair Value Measurement as of December 31, 2024
		Total Carrying Value				Level 1				Level 2				Level 3
Assets:
Cash equivalents
Money market funds		$	11,992			$	11,992			$	—			$	—
Total assets		$	11,992			$	11,992			$	—			$	—
Liabilities:
Legacy Allurion Common Stock Warrant Liabilities		$	41			$	—			$	—			$	41
Public Warrants			396				396				—				—
Public Offering Warrants			3,630				—				—				3,630
Private Placement Warrants			500				—				—				500
Revenue Interest Financing			49,200				—				—				49,200
Earn-out Liability			1,090				—				—				1,090
RTW Convertible Notes			35,710				—				—				35,710
Success Fee Derivative Liability			14				—				—				14
Total Liabilities		$	90,581			$	396			$	—			$	90,185

Fair Value Measurement as of December 31, 2023
		Total Carrying Value				Level 1				Level 2				Level 3
Assets:
Cash equivalents
Money market funds		$	30,582			$	30,582			$	—			$	—
Total assets		$	30,582			$	30,582			$	—			$	—
Liabilities:
Legacy Allurion Common Stock Warrant Liability		$	821			$	—			$	—			$	821
Public Warrants			5,943				5,943				—				—
Revenue Interest Financing			36,200				—				—				36,200
PIPE Conversion Option (Restated)			6,410				—				—				6,410
Earn-out Liability			23,990				—				—				23,990
Term Loan Derivative Liability			1,895				—				—				1,895
Success Fee Derivative Liability			14				—				—				14
Total Liabilities		$	75,273			$	5,943			$	—			$	69,330

Schedule of Assumptions used in Pricing Model

The Company has classified the Legacy Allurion Common Stock Warrants, Public Offering Warrants (defined below), and Private Placement Warrants (defined below) within Level 3 of the hierarchy as the fair value is derived using the Black-Scholes option pricing model, which uses a combination of observable (Level 2) and unobservable (level 3) inputs. See table below for the

assumptions used in the pricing model of the Legacy Allurion Common Stock Warrants, Public Offering Warrants, and Private Placement Warrants:

		Measurement Date		Interest Rate		Exercise Price				Estimated Fair Value of Underlying Share Price				Expected Volatility		Expected Life (Years)
Legacy Allurion Series C Preferred Stock warrants (as converted to Common)		December 31, 2024		4.44%			168.25				10.75			90%			6.25
Legacy Allurion Other Common Stock		December 31, 2024		4.26%			26.25				10.75			90%			2.69
Legacy Allurion Series D-1 Preferred Stock warrants (as converted to Common)		December 31, 2024		4.44%-4.5%			303.50				10.75			90%		6.25-7.71
Public Offering Warrants		December 31, 2024		4.35%			30.00				10.75			90%			4.50
Private Placement Warrants		December 31, 2024		4.35%			30.00				10.75			90%			4.50

		Measurement Date		Interest Rate				Exercise Price				Estimated Fair Value of Underlying Share Price				Expected Volatility				Expected Life (Years)
Legacy Allurion Series C Preferred Stock warrants (as converted to Common)		December 31, 2023			3.88	%		$	168.25			$	93.50				100	%			7.25
Legacy Allurion Other Common Stock		December 31, 2023			3.95	%			26.25				93.50				100	%			3.69
Legacy Allurion Series D-1 Preferred Stock warrants (as converted to Common)		December 31, 2023			3.88	%			303.50				93.50				100	%		7.25-8.71

Schedule of Changes in Fair Values

The following table reconciles the changes in fair value for the years ended December 31, 2024 and 2023 of the warrant liabilities valued using Level 3 inputs:

		Preferred Stock Warrants (as converted to Common)				Common Stock Warrants				Public Offering Warrants				Private Placement Warrants				Total
Balance – January 1, 2023		$	1,777			$	596				—				—			$	2,373
Change in fair value			(720	)			172				—				—				(548	)
Exercise of warrants			(75	)			—				—				—				(75	)
Derecognition of liability to equity			(340	)			(589	)			—				—				(929	)
Balance – December 31, 2023		$	642			$	179			$	—			$	—			$	821
Fair value at issuance		$	—			$	—			$	13,157			$	1,670			$	14,827
Change in fair value			(610	)			(170	)			(9,527	)			(1,170	)			(11,477	)
Balance – December 31, 2024		$	32			$	9			$	3,630			$	500			$	4,171

Schedule of Estimated Fair Value was Measured Using a Monte Carlo Simulation Method

The assumptions used in the Black-Scholes option-pricing model are as follows:

		Year Ended December 31,
		2024				2023
Expected volatility			71.2	%			85.8	%
Risk-free interest rate			4.4	%			4.5	%
Expected dividend yield			—	%			—	%
Expected term (in years)		6.1					5.8

Public Warrants

Fair Value Measurement Inputs and Valuation Techniques [Line Items]

Schedule of Changes in Fair Values

The changes in the fair values of the Success Fee derivative liability, 2023 Convertible Notes, PubCo Additional Shares liability, Base PubCo Shares and Backstop Shares liability, Revenue Interest Financing, PIPE Conversion Option, Earn-out liability, Term Loan Derivative Liability, and RTW Convertible Notes categorized with Level 3 inputs for the years ended December 31, 2024 and 2023 were as follows:

		Success Fee Derivative Liability				2023 Convertible Notes				Revenue Interest Financing				PIPE Conversion Derivative				Earn-Out Liability				Term Loan Derivative Liability				RTW Convertible Notes				PubCo Share Liability				Base PubCo & Backstop Share Liability				Total
Balance – January 1, 2023		$	178			$	—			$	—			$	—			$	—			$	—			$	—			$	—			$	—			$	178
Fair value upon issuance			—				28,700				40,000				3,340				53,040				1,895				—				3,370				3,264				133,609
Change in fair value (Restated) (1)			(164	)			3,751				(2,008	)			3,070				(29,050	)			—				—				(642	)			10,106				(14,937	)
Change in fair value - OCI (Restated) (1)			—				—				(700	)			—				—				—				—				—				—				(700	)
Repayments of debt			—				(10,750	)			(1,092	)			—				—				—				—				—				—				(11,842	)
Derecognition of liability to    equity			—				(21,701	)			—				—				—				—				—				(2,728	)			(13,370	)			(37,799	)
Balance – December 31, 2023 (Restated)		$	14			$	—			$	36,200			$	6,410			$	23,990			$	1,895			$	—			$	—			$	—			$	68,509
Fair value upon issuance			—			$	—				—				—				—				—				49,100				—				—				49,100
Change in fair value (Restated) (1)			—				—				4,328				990				(22,900	)			(1,895	)			(18,090	)			—				—				(37,567	)
Change in fair value - OCI (Restated) (1)			—				—				4,370				—				—				—				4,700				—				—				9,070
Exercise of warrants			—				—				—				—				—				—				—				—				—				—
Exercise of PIPE Conversion Option			—				—				7,400				(7,400	)			—				—				—				—				—				—
Repayments of debt			—				—				(3,098	)			—				—				—				—				—				—				(3,098	)
Balance – December 31, 2024		$	14			$	—			$	49,200			$	—			$	1,090			$	—			$	35,710			$	—			$	—			$	86,014

(1) As discussed in FN 2, Restatement of Previously Issued Financial Statements, the Company identified an Error in its historical financial statements related to the change in fair value due to instrument specific credit risk for the Revenue Interest Financing and RTW Convertible Notes, as well as a change in fair value of the PIPE Conversion Option. The only restated numbers in the table above relate to the

'Change in fair value' and 'Change in fair value - OCI' for both the Revenue Interest Financing and RTW Convertible Notes, as well as the 'Change in fair value' related to the PIPE Conversion Option.

Earn-Out Liability

Fair Value Measurement Inputs and Valuation Techniques [Line Items]

Schedule of Estimated Fair Value was Measured Using a Monte Carlo Simulation Method

The estimated fair value of the earn-out shares was determined using a Monte Carlo Simulation Method using the following assumptions at the following valuation dates:

		December 31, 2024				December 31, 2023
Stock Price		10.75				93.5
Risk-free interest rate			4.3	%			3.9	%
Expected term (in years)		3.6				4.6
Expected volatility			109.0	%			87.0	%

Revenue Interest Financing and PIPE Conversion Option

Fair Value Measurement Inputs and Valuation Techniques [Line Items]

Schedule of Estimated Fair Value was Measured Using a Monte Carlo Simulation Method

The fair value of the PIPE Conversion Option was accounted for as a derivative under ASC 815. The instrument was measured using a Monte Carlo Simulation Method using the number of shares convertible of 42,614 and the below assumptions. Upon the exercise of the PIPE Conversion Option and resulting New RIFA on October 30, 2024, the PIPE Conversion Option was reclassified as an additional to the Revenue Interest Financing liability, and as such there is no PIPE Conversion Option liability as of December 31, 2024.

		December 31, 2023
Stock Price		93.5
Risk-free interest rate		4.46%
Expected term (in years)		1.6
Expected volatility		82.5%

RTW Convertible Notes

Fair Value Measurement Inputs and Valuation Techniques [Line Items]

Schedule of Estimated Fair Value was Measured Using a Monte Carlo Simulation Method

The fair value was measured using the $48.0 million principal amount of the RTW Convertible Notes and the following assumptions:

		December 31, 2024
Stock Price		10.75
Risk-free interest rate			4.4	%
Expected term (in years)		6.3
Expected volatility			90.0	%

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