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CONVERTIBLE NOTES FINANCINGS (Tables)
 6 Months Ended
Jun. 30, 2024
Debt Disclosure [Abstract]  
SCHEDULE OF 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):

 

   Relative   Allocation   Allocation of Proceeds and Costs   Allocation of Proceeds, 
   Fair Value   Percentage   Proceeds   Costs   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 
SCHEDULE OF 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%
SCHEDULE OF ACTIVITY OF CONVERTIBLE NOTES

The following table shows the activity that occurred during the six months ended June 30, 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 balance 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   584    -    584 
Amortization of debt discount and debt issuance costs   -    919    919 
Ending balance as of June 30, 2024  $18,605   $(9,710)   $8,895