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Investments | 3 Months Ended
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Mar. 31, 2026
Equity Method Investments and Joint Ventures [Abstract] |
Investments | 4. Investments On February 19, 2026, the Company acquired a 20.0% equity interest in Sarborg, a Cayman Islands-based related party, for total consideration of $123 million. Total consideration consisted of 23,920 shares of the Company’s Common Stock, pre-funded warrants to purchase up to 4,399,156 shares of the Company’s Common Stock and $8 million of cash, payable upon the Company raising no less than $20 million through the use of an at-the-market facility program (the “Sales Agreement”). The Company expects to raise the $20 million and pay the investors of Sarborg the $8 million cash consideration within the next 12 months. The pre-funded warrants portion of the consideration transferred have an exercise price of $0.0025 per share, subject to adjustment as set forth therein and may not be exercised until such time as the Company obtains the requisite approval from its stockholders in accordance with applicable Nasdaq rules and requirements, including approval for the issuance of the pre-funded warrant shares upon exercise of the pre-funded warrants, as a whole and in the aggregate, in excess of 19.99% of the Common Stock or the voting power that was outstanding on the date of the Securities Purchase Agreement. On March 19, 2026, all 4,399,156 of the pre-funded warrants were exercised through a cashless exercise into 4,398,218 shares of the Company’s Common Stock. See Note 16 for further discussion of the pre-funded warrants issued to the investors of Sarborg. The Company determined that it does have the ability to exercise significant influence over Sarborg through its ownership interest and participation in certain strategic and operating decisions and, accordingly, accounts for this investment under the equity method of accounting in accordance with ASC 323. The Company will account for the investment at its carrying value less any impairment. For the three months ended March 31, 2026, the Company recognized a loss of approximately $68 thousand, representing its proportionate share of Sarborg’s results of operations during the three months ended March 31, 2026. As of March 31, 2026, the carrying value of the Company’s investment in Sarborg was approximately $122.9 million. The Company evaluated the equity method investment for impairment as of March 31, 2026 and determined that the decline in the Company’s share price triggered that an impairment indicator was present. Based on the impairment indicator present, the Company evaluated Sarborg for impairment and determined no impairment existed as of March 31, 2026. The Company will continue to periodically assess the equity method investment for impairment and record an impairment if deemed necessary in accordance with ASC 323. Subsequent to the Company’s review of the transactions and financial statements for the quarter ended March 31, 2026, and in conjunction with discussions with the Company’s auditors, management determined that the accounting treatment for the Sarborg transaction requires the filing of Sarborg’s historical financial statements pursuant to applicable SEC reporting requirements. The Company intends to file such historical financial statements in an amendment to the Company’s Current Report on Form 8-K filed on February 24, 2026, as promptly as practicable. The investment in Sarborg has been accounted for using the equity method as follows: Schedule of Investment in Sarborg Using Cost Method
|  | March 31, 2026 |
Balance as of December 31, 2025 |  | $ | - |
Investment in Sarborg |  |  | 123,000 |
Loss on equity investment in Sarborg |  |  | (68 | )
Impairment on equity investment in Sarborg |  |  | - |
Balance as of March 31, 2026 |  | $ | 122,932 |
The following table presents the summarized financial information for Sarborg: Summary of Financial Information for Sarborg
|  | March 31, 2026 |
Current assets |  | $ | 233 |
Non-current assets |  | $ | 5 |
Total assets |  | $ | 238 |
Current liabilities |  | $ | 808 |
Total liabilities |  | $ | 808 |
Net liabilities |  | $ | (570 | )
Company share of net liabilities |  | $ | (114 | )
Revenue |  | $ | 300 |
Net loss |  | $ | (338 | )
Company share of net loss |  | $ | (68 | )

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- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://www.xbrl.org/2003/role/recommendedDisclosureRef -Topic 740 -SubTopic 323 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478156/740-323-50-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 323 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (a)(3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481687/323-10-50-3 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 323 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481687/323-10-50-3 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 323 -Publisher FASB -URI https://asc.fasb.org/323/tableOfContent + Details
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