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Derivative Liability

9 Months Ended

Sep. 30, 2025

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Note 13 – Derivative Liability

During the nine months ended September 30, 2025, the Company had derivative warrant liabilities that were measured at fair value on a recurring basis. These fair value measurements were estimated using a Monte Carlo simulation model, with the key inputs described below. Each of these fair value measurements was considered to be a Level 3 measurement by the Company as they used significant unobservable inputs, including the probability and expected date of stockholder approval.

The key inputs for the Series A warrant liabilities were as follows:

Warrant Liability – Series A Warrants	January 17, 2025			December 31, 2024
Stock price on valuation date	$	8.38		$	18.00
Exercise price	$	8.38		$	34.00
Number of shares of common stock		1,133,652			279,412
Remaining term (years)		4.88			4.93
Annual equity volatility		126.0	%		113.0	%
Annual volume volatility		377.0	%		379.0	%
Risk-free interest rate		4.32	%		4.29	%
Expected stockholder approval date		January 13, 2025			January 14, 2025
Expected stockholder approval probability		100	%		50	%

The Series B warrant liabilities were remeasured on each exercise date based on the closing price of the Company’s common stock on the date the warrants were exercised.

On January 13, 2025, the Company’s shareholders approved the issuance of the Series A and Series B Warrants. This approval triggered the adjustment to the exercise price described above. In connection with this approval, the holders of the Series B warrants exercised their warrants in full under the alternative cashless exercise provision, resulting in the issuance of 1,910,975 shares of common stock and no additional proceeds received by the Company. The Series A warrants became exercisable for 1,133,652 shares of common stock at an exercise price of $8.38 per share after the shareholder approval adjustment was finalized on March 17, 2025. In addition, the Company reassessed the classification of the Series A warrants after the shareholder approval adjustment was finalized, concluding that the Series A warrants now met the requirements for equity classification under ASC 480 and ASC 815. The Company adjusted the Series A Warrants to fair value upon reclassification and reclassified that value to additional paid-in capital during the nine months ended September 30, 2025.

The following table provides a roll-forward of the fair value of the derivative liabilities described above during the nine months ended September 30, 2025:

	Series A Warrants			Series B Warrants			Total Warrant Liabilities
Balance at December 31, 2024	$	5,456,000		$	11,147,000		$	16,603,000
Balance	$	5,456,000		$	11,147,000		$	16,603,000
Exercises		—			(15,214,000	)		(15,214,000	)
Loss on change in fair value		2,401,000			4,067,000			6,468,000
Reclassification to equity		(7,857,000	)		—			(7,857,000	)
Balance at September 30, 2025	$	—		$	—		$	—
Balance	$	—		$	—		$	—

The following table provides a roll-forward of the number of warrants issued during the nine months ended September 30, 2025:

	Series A Warrants		Series B Warrants			Other Warrants		Total
Balance at December 31, 2024		279,412		279,412			4,511		563,335
Balance		279,412		279,412			4,511		563,335
Exercises		—		(279,412	)		—		(279,412	)
Balance at September 30, 2025		279,412		—			4,511		283,923
Balance		279,412		—			4,511		283,923

The Company did not issue any warrants during the three and nine months ended September 30, 2024 and did not have any warrants outstanding as of September 30, 2024.