Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2025

Fair Value Measurements [Abstract]

Liabilities Measured at Fair Value on a Recurring Basis

The following table summarizes the Company’s liabilities which were measured at fair value on a recurring basis as of the periods presented and their classification within the fair value hierarchy:

	Fair Value Measurement as of September 30, 2025
	Total		Level 1		Level 2		Level 3
	(In thousands)
Assets:
Commodity derivative contracts	$	19,657	$	—	$	19,657	$	—
Liabilities:
Subordinated note warrants – related party	$	300	$	—	$	—	$	300
Series F Preferred Stock embedded derivatives	$	11,596	$	—	$	—	$	11,596
Series F Preferred Stock warrants	$	62,776	$	—	$	—	$	62,776

	Fair Value Measurement as of December 31, 2024
	Total		Level 1		Level 2		Level 3
	(In thousands)
Liabilities:
Commodity derivative contracts	$	4,395	$	—	$	4,395	$	—
SEPA	$	790	$	—	$	—	$	790
Senior convertible note	$	12,555	$	—	$	—	$	12,555
Subordinated note – related party	$	4,609	$	—	$	4,609	$	—
Subordinated note warrants – related party	$	4,159	$	—	$	—	$	4,159

Reconciliation of Financial Instruments Presented at Fair Value

The following table presents the changes in the Company’s financial instruments presented at fair value for the periods presented:

	September 30, 2025			December 31, 2024
	(In thousands)
SEPA, at the beginning of the period	$	790		$	—
(Gain) loss on adjustment to fair value		(790	)		790
SEPA, at the end of the period	$	—		$	790
Senior convertible note, at the beginning of the period	$	12,555		$	—
Borrowing		—			14,250
Repayments		—			(3,748	)
Conversions		(18,057	)		—
Loss on adjustment to fair value		5,502			2,053
Senior convertible note, at the end of the period	$	—		$	12,555
Subordinated note – related party, at the beginning of the period	$	4,609		$	—
Borrowing		—			5,000
Repayments		(3,214	)		(1,786	)
Loss on issuance of debt		—			281
Loss on adjustment to fair value		63			1,114
Subordinated note – related party, at the end of the period	$	1,458		$	4,609
Subordinated note warrants – related party, at the beginning of the period	$	4,159		$	—
Loss on issuance of debt		—			2,758
(Gain) loss on adjustment to fair value		(3,859	)		1,401
Subordinated note warrants – related party, at the end of the period	$	300		$	4,159
Series F Preferred Stock embedded derivatives, at the beginning of the period	$	—		$	—
Embedded derivatives recognized at issuance of Series F Preferred Stock		25,479			—
Gain on adjustment to fair value		(13,883	)		—
Series F Preferred Stock embedded derivatives, at the end of the period	$	11,596		$	—
Series F Preferred Stock warrants, at the beginning of the period	$	—		$	—
Issuance of Series F Preferred Stock		22,115			—
Loss on adjustment to fair value		40,661			—
Series F Preferred Stock warrants, at the end of the period	$	62,776		$	—

Fair Value on Financial Instrument Balance Sheets

The following table presents the face value and fair value of each financial instrument presented at fair value on the Company’s condensed consolidated balance sheet as of the periods presented:

	September 30, 2025				December 31, 2024
	Face Value		Fair Value		Face Value		Fair Value
	(In thousands)
SEPA	$	—	$	—	$	—	$	790
Senior convertible note		—		—		11,252		12,555
Subordinated note – related party		1,458		1,458		3,214		4,609
Subordinated note warrants – related party		—		300		—		4,159
Series F Preferred Stock embedded derivatives		—		11,596		—		—
Series F Preferred Stock warrants	$	—	$	62,776	$	—	$	—

Fair Value Instruments Unobservable Market Data

The Company engaged a third-party valuation expert to assist in preparing the fair value of the Subordinated Note Warrants as of September 30, 2025. These estimates were derived using a Monte Carlo simulation model using the significant inputs listed below, which are based on unobservable market data and are therefore considered Level 3 inputs within the fair value hierarchy.

Subordinated Note Warrants – Monte Carlo Simulation Model	Key Inputs
Time to termination (years)		4.00
Stock price – as of September 30, 2025	$	1.985
Exercise price	$	8.89
Risk-free rate		3.61	%
Equity volatility rate		85.0	%

The Company engaged a third-party valuation expert to assist in preparing the fair value of the Series F Preferred Stock embedded derivatives as of September 30, 2025. These estimates were derived using a Monte Carlo simulation model using the significant inputs listed below, which are based on unobservable market data and are therefore considered Level 3 inputs within the fair value hierarchy.

Series F Preferred Stock Embedded Derivatives – Monte Carlo Simulation Model	Key Inputs
Time to termination (years)		3.42
Stock price – as of September 30, 2025	$	1.985
Conversion rate		202.02
Stated dividend rate		12.0	%
Transaction discount		34.7	%
Risk-free rate		3.57	%
Preferred equity volatility rate		51.0	%

The Company engaged a third-party valuation expert to assist in preparing the fair value of the Series F Preferred Stock Warrants as of September 30, 2025. These estimates were derived using a Monte Carlo simulation model using the significant inputs listed below, which are based on unobservable market data and are therefore considered Level 3 inputs within the fair value hierarchy.

Series F Preferred Stock Warrants – Monte Carlo Simulation Model	Key Inputs
Time to termination (years)		5.48
Stock price – as of September 30, 2025	$	1.985
Exercise price	$	6.59
Future value of one Series F Preferred Stock Warrant share	$	0.54
Risk-free rate		3.72	%
Equity volatility rate		90.0	%