XML 25 R15.htm IDEA: XBRL DOCUMENT
v3.24.3

Warrants Classified as Liabilities | 9 Months Ended
--- | ---
Sep. 30, 2024
Warrants Classified as Liabilities [Abstract] |
Warrants Classified as Liabilities | Note 9. Warrants Classified as Liabilities In November 2022 and June 2023, the Company completed registered direct offerings and sold shares of its common stock and common stock purchase warrants (the “Purchase Warrants”). The securities purchase agreements governing the Purchase Warrants provide for a value calculation for such warrants using the Black Scholes model in the event of certain fundamental transactions. The fair value calculation provides for a floor on the volatility amount utilized in the value calculation at 100% or greater. The Company has determined this provision introduces leverage to the holders of the Purchase Warrants that could result in a value that would be greater than the settlement amount of a fixed-for-fixed option on the Company’s own equity shares. Therefore, pursuant to ASC 815, the Company has classified the Purchase Warrants as liabilities in its condensed consolidated balance sheets. The classification of the Purchase Warrants, including whether the Purchase Warrants should be recorded as liabilities or as equity, is evaluated at the end of each reporting period with changes in the fair value reported in other income (expense) in the consolidated statements of operations and comprehensive loss. As of September 30, 2024 and December 31, 2023, the Company had the following Purchase Warrants outstanding (share amounts in thousands):
|  | Number of Shares |  |  | Exercise Price |  |  | Expiration Date
Warrants issued - November 2022 |  |  | 92 |  |  | $ | 40.00 |  |  | May 28, 2028
Warrants issued - June 2023 |  |  | 143 |  |  | $ | 28.00 |  |  | June 2, 2028
|  |  | 235 |  |  |  |  |  |  |
The following table sets forth changes in the fair value of the Purchase Warrants outstanding (amounts in thousands):
|  | Number of Shares |  |  | Fair Value |
Balance as of December 31, 2023 |  |  | 235 |  |  | $ | 1,748 |
Change in fair value of warrants |  |  | — |  |  |  | (1,591 | )
Balance as of March 31, 2024 |  |  | 235 |  |  |  | 157 |
Change in fair value of warrants |  |  | — |  |  |  | (54 | )
Balance as of June 30, 2024 |  |  | 235 |  |  |  | 103 |
Change in fair value of warrants |  |  | — |  |  |  | (4 | )
Balance as of September 30, 2024 |  |  | 235 |  |  | $ | 99 |
The fair value of the Purchase Warrants at September 30, 2024 was determined using the Black Scholes model with the assumptions in the following table.
|  | 2022 Purchase Warrant |  |  | 2023 Purchase Warrant |
Expected term based on contractual term |  |  | 3.7 years |  |  |  | 3.7 years |
Interest rate (risk-free rate) |  |  | 3.51 | % |  |  | 3.51 | %
Expected volatility |  |  | 121 | % |  |  | 121 | %
Expected dividend yield |  |  | — |  |  |  | — |
Fair value of warrants (in thousands) |  | $ | 35 |  |  | $ | 64 |
The fair value of the Purchase Warrants at December 31, 2023 was determined using the Black Scholes model with the assumptions in the following table.
|  | 2022 Purchase Warrant |  |  | 2023 Purchase Warrant |
Expected term based on contractual term |  |  | 4.4 years |  |  |  | 4.4 years |
Interest rate (risk-free rate) |  |  | 3.84 | % |  |  | 3.84 | %
Expected volatility |  |  | 116 | % |  |  | 116 | %
Expected dividend yield |  |  | — |  |  |  | — |
Fair value of warrants (in thousands) |  | $ | 653 |  |  | $ | 1,095 |

X
- Definition The entire disclosure for other liabilities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 210 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02(20)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480566/210-10-S99-1 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 210 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02(24)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480566/210-10-S99-1 Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 405 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/405/tableOfContent + Details
Name: | us-gaap_OtherLiabilitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_WarrantsAndRightsNoteDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration