Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2026

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following tables present financial assets and liabilities remeasured on a recurring basis by level within the fair value hierarchy:


	March 31, 2026
(in thousands)	Level 1		Level 2		Level 3
Assets:
Money-market funds	$	5,932	$	—	$	—
Digital assets	$	6,197	$	—	$	—
Liabilities:
Warrant liabilities1	$	—	$	—	$	960
Derivative Call Option	$	—	$	—	$	6,294
Notes payable1	$	—	$	—	$	42,018
YT's Market-based Awards	$	—	$	—	$	1,670
Director Awards	$	111	$	—	$	—


1 Includes both related party and non-related party balances for the Company’s notes payable and warrant liabilities.


	December 31, 2025
(in thousands)	Level 1		Level 2		Level 3
Assets:
Money-market funds	$	15,957	$	—	$	—
Digital assets	$	10,250	$	—	$	—
Liabilities:
Warrant liabilities1	$	—	$	—	$	1,950
Derivative Call Option	$	—	$	—	$	12,546
Notes payable1	$	—	$	—	$	56,376
YT's Market-based Awards	$	—	$	—	$	2,371
Director Awards	$	261	$	—	$	—


1 Includes both related party and non-related party balances for the Company’s notes payable and warrant liabilities.

Schedule of Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation

The following table summarizes the activity of Level 3 fair value measurements:


(in thousands)	Warrant Liabilities1			Derivative Call Option1			Notes Payable1			Market-based award4
Balance as of December 31, 2025	$	1,950		$	12,546		$	56,376		$	2,371
Additions	491		2	1,005		2	5,879		3	445
Payment of Notes Payable	—			—			(132)			—
Change in fair value measurements	(1,481)			(7,257)			5,212			(1,146)
Conversions of notes to Class A Common Stock	—			—			(25,317)			—




Balance as of March 31, 2026	$	960		$	6,294		$	42,018		$	1,670

1 Includes both related party and non-related party balances for the Company’s notes payable and warrant liabilities.
2 Addition to Warrant Liabilities and Derivative Call Option are included as loss in line items Change in fair value of notes payable, warrant liabilities, and derivative call options and Change in fair value of related party notes payable, warrant liabilities, and derivative call options in the Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss. This information is presented to facilitate reconciliation to the related amounts reported in the Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss.
3 Additions of Notes Payable measured at fair value are presented net of the initial fair value adjustment recorded at issuance. The aggregate fair value adjustment recognized at issuance reduced the principal amount of notes issued during the period by $3,341 thousand. This reduction reflects the allocation of total transaction proceeds between the SPA Notes and the related SPA Warrants and Incremental Warrants issued as part of the bundled transaction. In addition, the line item Change in fair value of notes payable, warrant liabilities, and derivative call options includes a loss of $1,160 thousand, and the line item Change in fair value of related party notes payable, warrant liabilities, and derivative call options includes a loss of zero, both of which relate to debt issuance costs. These costs are separately identifiable from the fair value adjustments described above and are not included in the Additions of Notes Payable This information is presented to facilitate reconciliation to the related amounts reported in the Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss.
4 As discussed in Note 14, Stock-Based Compensation, the issuance date fair value of the Market-based award is $10.3 million and as of March 31, 2026 the fair value of the Market-based award was $10.0 million. Amounts displayed here represent vesting for the award based on the issuance date fair value and the subsequent remeasurement of amounts vested.