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CONVERTIBLE NOTES FINANCINGS (Tables)

3 Months Ended

Mar. 31, 2024

CONVERTIBLE NOTES FINANCINGS [Abstract]

Based on Relative Fair Value Allocation of Proceeds and Costs

The Company determined that there were no embedded derivatives within the convertible notes that required bifurcation from the host agreement.  In connection with the December 2023 convertible notes that were issued on January 11, 2024, the Company allocated the gross proceeds received and the fees incurred over the applicable convertible notes and warrants based on their relative fair values as follows (in thousands):

									Allocation of Proceeds and Costs								Allocation of
	Relative Fair Value				Allocation Percentage				Proceeds				Costs				Proceeds, Net
Convertible notes		$	1,750				46.24	%		$	650			$	(31	)		$	619
Note warrants			2,035				53.76	%			755				(35	)			720
		$	3,785				100.00	%		$	1,405			$	(66	)		$	1,339

Fair Value Assumptions

The Company estimated the fair values of the convertible notes as of January 11, 2024 based off a valuation performed by a third-party specialist as of December 15, 2023 using a binomial tree model and the following assumptions:

	Stock Price				Credit Spread				Volatility				Risk-Free Rate
Convertible notes		$	1.75				2,000				109	%			3.90	%

The fair value of the note warrants, all of which qualified for equity classification, was determined using the Black-Scholes pricing model as of January 11, 2024 using the following assumptions:

	Stock Price				Exercise Price				Expected Life	Volatility				Dividend				Risk-Free Rate
Warrants		$	1.75			$	1.43		5 years			102	%			0.00	%			3.90	%

Activity of Convertible Notes

The following table shows the activity that occurred during the three months ended March 31, 2024 for the convertible notes on the accompanying condensed consolidated balance sheet:

		Gross convertible notes				Debt discount and debt issuance costs				Convertible notes, net
Beginning balanace as of January 1, 2024		$	16,616			$	(9,843	)		$	6,773
December 2023 notes issued in January 2024			1,405				(786	)			619
Paid-in-kind interest added to principal			177				-				177
Amortization of debt discount and debt issuance costs			-				445				445
Ending balanace as of March 31, 2024		$	18,198			$	(10,184	)		$	8,014

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- Definition

Tabular disclosure of convertible debt instrument. Includes, but is not limited to, principal amount and amortized premium or discount.

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- Definition

Tabular disclosure of input and valuation technique used to measure fair value and change in valuation approach and technique used to measure similar asset in prior period by class of asset or liability on non-recurring basis.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (bbb)
-SubTopic 10
-Topic 820
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482106/820-10-50-2

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Tabular disclosure of information pertaining to short-term and long-debt instruments or arrangements, including but not limited to identification of terms, features, collateral requirements and other information necessary to a fair presentation.

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