FAIR VALUE MEASUREMENT

9 Months Ended

Sep. 30, 2024

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENT

FAIR VALUE MEASUREMENT

Measured or disclosed at fair value on a recurring basis

The Group measured its financial assets and liabilities, including cash and cash equivalents, restricted cash and warrant liability on a recurring basis as of December 31, 2023 and cash and cash equivalents, restricted cash and warrant liability, Convertible loan with shareholder and relative warrant at fair value on a recurring basis as of September 30, 2024. Cash and cash equivalents and restricted cash are classified within Level 1 of the fair value hierarchy because they are valued based on the quoted market price in an active market. The fair value of the warrant liability, Convertible Loan with shareholder are based on significant unobservable inputs, which represent Level 3 measurements within the fair value hierarchy. In determining the fair value of the warrant liability, the Company used the Monte Carlo Model that assumes optimal exercise of the Company’s redemption option at the earliest possible date. See Note 11 – Warrants. The Convertible Loan and relative warrants were valued using the following assumptions under the Black-Scholes-Merton model, which is a generally accepted computational model typically used for pricing options and is considered a Level 3 fair value measurement. See Note 15 – Convertible loan with shareholder measured at fair value.

As of September 30, 2024 and December 31, 2023, information about inputs for the fair value measurements of the Group’s assets and liabilities that are measured at fair value on a recurring basis in periods subsequent to their initial recognition is as follows:

	Fair Value Measurement as of September 30, 2024
	Quoted Prices in Active Market for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)		Total
Cash and cash equivalents	$	63,585	—	—		$	63,585
Restricted cash	51,382		—	—		51,382
Total financial asset	$	114,967	—	—		$	114,967
Warrant liability	$	—	—	$	1	$	1
Convertible loan with shareholder measured at fair value	—		—	24,423		24,423
Total financial liability	$	—	—	$	24,424	$	24,424

	Fair Value Measurement as of December 31, 2023
	Quoted Prices in Active Market for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)		Total
Cash and cash equivalents	$	44,541	—	—		$	44,541
Restricted cash	43,648		—	—		43,648
Total financial asset	$	88,189	—	—		$	88,189
Warrant liability	$	—	—	$	67	$	67
Total financial liability	$	—	—	$	67	$	67

The following is a reconciliation of the beginning and ending balances for Level 3 warrant liability during the nine months ended September 30, 2024 and 2023:

	Nine Months Ended September 30,
	2024		2023
Balance at the beginning of the period	$	67	$	126
Changes in fair value	(66)		25
Balance at end of the period	$	1	$	151

The following is a reconciliation of the beginning and ending balances for Level 3 convertible loan with shareholder during the nine months ended September 30, 2024:

	Nine Months Ended September 30, 2024
Balance at the beginning of the period	$	—
Issuance of convertible loan with shareholder	25,944
Interest paid during the period	(347)
Changes in fair value	(1,174)
Balance at end of the period	$	24,423

Measured or disclosed at fair value on a nonrecurring basis

The Company’s assets measured at fair value on a nonrecurring basis include long-lived assets. The Company reviews the carrying amounts of such assets when events indicate that their carrying amounts may not be recoverable. Any resulting asset impairment would require that the asset be recorded at its fair value. The fair value of the asset or asset group is determined using cost approach, sales comparison approach and income capitalization approach with unobservable inputs (Level 3), depending on the underlying nature of the asset or the asset group.