Fair Value Measurement

12 Months Ended

Dec. 31, 2022

Fair Value Disclosures [Abstract]

Fair Value Measurement

11. Fair Value Measurement

Assets and liabilities measured at fair value on a recurring basis

As of December 31, 2022, the derivative liability was measured at fair value on a recurring basis in periods subsequent to their initial recognition using Monte Carlo Simulation model, which were classified in Level 3 of the fair value hierarchy.

The Group identified derivative instruments arising from embedded conversion features in the convertible promissory note issued to Streeterville Capital, LLC (“Streeteryille”) (see Note 14). The following table presents the quantitative information about the Group’s Level 3 fair value measurements of derivative liability on a recurring basis in 2022, which utilize significant unobservable internally-developed inputs:

	Valuation techniques	Unobservable inputs	Range of rates
Derivative liability in 2022 related to Streeterville convertible bond	Monte Carlo Simulation	Expected term	0.87-1.04
		Risk-free interest rate	4.44%-4.63%
		Expected volatility	86.2%-87.3%
		Expected dividend yield	0

Derivative liability as of December 31, 2022 and 2021 is $3,406 and nil respectively, with the change in fair value of $(183) and $67 recorded in the consolidated statements of operations for the years ended December 31, 2022 and 2021, respectively.

Assets measured at fair value on a nonrecurring basis

The Company measures its property, equipment, and intangible assets at fair value on a nonrecurring basis whenever events or changes in circumstances indicate that the carrying value may no longer be recoverable. Goodwill is evaluated for impairment annually or more frequently if events or conditions indicate the carrying value of a reporting unit may be greater than its fair value. Impairment testing compares the carrying amount of the reporting unit with its fair value.