Related Party Transactions (Predecessor)

9 Months Ended

Sep. 30, 2024

Related Party Transactions (Predecessor)

Related Party Transactions (Predecessor)

Note 4.    Related Party Transactions (Predecessor)

2019 Debt Financings

During the periods from July 1, 2023 to July 21, 2023 (Predecessor) and January 1, 2023 to July 21, 2023 (Predecessor), the Predecessor recognized $0.9 million and $1.6 million, respectively, of expense related to the increase in the fair value of the 2019 Convertible Notes. The 2019 Convertible Notes were converted into shares of the Successor’s common stock at the Closing and were recorded “on the line” as part of the shares issued as consideration in the Merger (see Note 3 Forward Merger).

SCH Convertible Note

During the periods from July 1, 2023 to July 21, 2023 (Predecessor) and January 1, 2023 to July 21, 2023 (Predecessor), the Predecessor recognized $2.1 million and $4.2 million, respectively, of expense related to the increase in the fair value of the SCH Convertible Note. The SCH Convertible Note was converted into shares of the Successor’s common stock at the Closing and was recorded “on the line” as part of the shares issued as consideration in the Merger (see Note 3 Forward Merger).

A1 Convertible Notes

During the periods from July 1, 2023 to July 21, 2023 (Predecessor) and January 1, 2023 to July 21, 2023 (Predecessor), the Predecessor recognized $1.8 million and $3.0 million, respectively, of expense related to the increase in the fair value of the 2021 A1 Convertible Notes; $2.5 million and $4.2 million, respectively, of expense related to the increase in the fair value of the 2022 A1 Convertible Notes; $10.2 million and $10.1 million, respectively, of expense related to the increase in the fair value of the March 2023 A1 Convertible Notes. All of the A1 Convertible Notes were converted into shares of the Successor’s common stock and was recorded “on the line” at the Closing (see Note 3 Forward Merger).