Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2024

Fair Value Disclosures [Abstract]

Summary of Assets and Liabilities Fair Value Measurement

The following table presents information about the Company’s assets and liabilities measured and reported in the financial statements at fair value on a recurring basis and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value.

	March 31, 2024
	Level 1		Level 2		Level 3		Balance
Assets:
Money market funds	$	17,917	$	—	$	—	$	17,917
Total assets	$	17,917	$	—	$	—	$	17,917
Liabilities:
SBG Public Warrants	$	—	$	—	$	21	$	21
SBG Private Placement Warrants	—		—		12		12
Series A Warrants	—		—		20,876		20,876
Series B Warrants	—		—		4,548		4,548
Total liabilities	$	—	$	—	$	25,457	$	25,457
	December 31, 2023
	Level 1		Level 2		Level 3		Balance
Assets:
Money market funds	$	16,489	$	—	$	—	$	16,489
Total assets	$	16,489	$	—	$	—	$	16,489
Liabilities:
SBG Public Warrants	$	—	$	—	$	61	$	61
SBG Private Placement Warrants	—		—		35		35
Series A Warrants	$	—	$	—	$	27,685	$	27,685
Total liabilities	$	—	$	—	$	27,781	$	27,781

Schedule of Black-Scholes Option Pricing Model Assumptions

The Company measured the fair value of both the SBG Public Warrants and the SBG Private Placement Warrants as of March 31, 2024 and December 31, 2023 using the Black-Scholes option pricing model with the following assumptions:

SBG Common Stock Warrants - Black-Scholes Inputs	March 31, 2024			December 31, 2023
OWLT stock price	$	4.31		$	5.28
Exercise price of warrants	$	161.00		$	161.00
Term in years	2.29			2.54
Risk-free interest rate	4.53		%	4.11		%
Volatility	85.00		%	85.00		%

The Company measured the fair value of the Series A Warrants as of March 31, 2024 and December 31, 2023, using the Black-Scholes option pricing model with the following assumptions:

Series A Warrants - Black-Scholes Inputs	March 31, 2024			December 31, 2023
OWLT stock price	$	4.31		$	5.28
Exercise price of warrants	$	4.66		$	4.66
Term in years	3.88			4.13
Risk-free interest rate	4.32		%	3.91		%
Volatility	85.00		%	85.00		%

The Series B Warrants are presented as Level 3 measurements, relying on unobservable inputs reflecting the Company’s own assumptions. Level 3 measurements, which are not based on quoted prices in active markets, introduce a higher degree of subjectivity and may be more sensitive to fluctuations in stock price, volatility rates, and U.S. Treasury Bond rates.

The Company measured the fair value of the Series B Warrants at issuance and again as of March 31, 2024, using the Black-Scholes option pricing model with the following assumptions:

Series B Warrants - Black-Scholes Inputs	March 31, 2024			February 29, 2024
OWLT stock price	$	4.31		$	5.68
Exercise price of warrants	$	7.71		$	7.71
Term in years	4.91			5.00
Risk-free interest rate	4.22		%	4.26		%
Volatility	85.00		%	90.00		%

The Company measured the fair value of the SVB Warrants (see Note 4) at issuance as of March 27, 2023, using the Black-Scholes option pricing model with the following assumptions:

SVB Warrants - Black-Scholes Inputs	March 27, 2023
OWLT stock price	$	4.62
Exercise price of warrants	$	5.32
Term in years	12.00
Risk-free interest rate	3.60		%
Volatility	85.00		%

Reconciliation of Preferred Stock Warrant Liability Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3)

The following table presents a reconciliation of the Company’s SBG Public Warrants, SBG Private Placement Warrants, Series A Warrants, and Series B Warrants (together, the “Level 3 Warrants”) measured at fair value on a recurring basis as of March 31, 2024:

	Level 3 Warrants
Balance as of December 31, 2023	$	27,781
Issuance of Series B Warrants	6,855
Change in fair value included within common stock warrant liability adjustment	(9,179)
Balance as of March 31, 2024	$	25,457