Summary of Fair Value Option to Account for Convertible Notes and Exchange Notes

The Company has elected the fair value option to account for its January 2025 Exchange Notes upon issuance in February 2025 as the exchange was accounted for as an extinguishment.


	January 2025
(in thousands)	Exchange Notes
Carrying amount at February 4, 2025	$	5,380
Conversion to common stock		(5,391	)
Gain on extinguishment of debt with related party		(279	)
Change in estimated fair value of convertible notes		290
Fair value at March 31, 2025	$	—
Change in estimated fair value of convertible notes		—
Fair value at June 30, 2025	$	—

Promissory Notes [Member]

The carrying value of the promissory note is as follows:


	June 30,			December 31,
(in thousands)	2025			2024
Principal and interest	$	2,033		$	—
Unamortized debt discount		(535	)		—
Aggregate carrying value	$	1,498		$	—

Interest expense recognized on the promissory note is as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2025		2024		2025		2024
Contractual interest expense	$	33	$	—	$	33	$	—
Amortization of debt discount		31		—		31		—
Total	$	64	$	—	$	64	$	—

Term Loan [Member]

The carrying value of the Term Loan is as follows:


	June 30,			December 31,
(in thousands)	2025			2024
Principal and interest	$	1,228		$	1,019
Guarantee fees		2,348			2,348
Unamortized debt discount		(76	)		(146	)
Aggregate carrying value	$	3,500		$	3,221

February 2024 Convertible Notes [Member]

Interest expense recognized on the Term Loan is as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2025		2024		2025		2024
Contractual interest expense	$	176	$	226	$	197	$	284
Amortization of debt discount		31		121		71		460
Total	$	207	$	347	$	268	$	744

Summary of Fair Value Option to Account for Convertible Notes and Exchange Notes


	February 2024
(in thousands)	Convertible Notes
Fair value at December 31, 2024	$	2,557
Cash paid for interest		(88	)
Conversion to common stock		(1,212	)
Change in estimated fair value of convertible notes		284
Fair value at March 31, 2025	$	1,541
Change in estimated fair value of convertible notes		118
Fair value at June 30, 2025	$	1,659

January 2025 Convertible Notes [Member]

The carrying value of the January 2025 Convertible Notes is as follows:


	June 30,			December 31,
(in thousands)	2025			2024
Principal and interest	$	2,018		$	—
Unamortized debt discount		(1,549	)		—
Unamortized issuance costs		(225	)		—
Aggregate carrying value	$	244		$	—

March 2025 Convertible Notes [Member]

Interest expense recognized on the January 2025 Convertible Notes is as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2025		2024		2025		2024
Contractual interest expense	$	58	$	—	$	758	$	—
Amortization of debt discount		162		—		416		—
Amortization of debt issuance costs		24		—		60		—
Total	$	244	$	—	$	1,234	$	—

The carrying value of the March 2025 Convertible Notes is as follows:


	June 30,			December 31,
(in thousands)	2025			2024
Principal and interest	$	259		$	—
Unamortized debt discount		(246	)		—
Unamortized issuance costs		(13	)		—
Aggregate carrying value	$	—		$	—

June 2025 Convertible Exchangeable Notes [Member]

Interest expense recognized on the March 2025 Convertible Notes is as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2025		2024		2025		2024
Contractual interest expense	$	1,879	$	—	$	1,906	$	—
Amortization of debt discount		1,793		—		1,831		—
Amortization of debt issuance costs		92		—		94		—
Total	$	3,764	$	—	$	3,831	$	—