Fair Value (Tables)

3 Months Ended

Mar. 31, 2023

Fair Value Disclosures [Abstract]

Summary of derivative liabilities and the contingent earnout fall

	Fair Value Measurements at March 31, 2023
	Level 1		Level 2		Level 3		Total
Crom Derivative Liabilities	$	—	$	—	$	421,000	$	421,000
Prior Crom Note warrant liability	$	—	$	—	$	539,000	$	539,000
Contingent earnout	$	—	$	—	$	794,000	$	794,000
Total	$	—	$	—	$	1,754,000	$	1,754,000

	Fair Value Measurements at December 31, 2022
	Level 1		Level 2		Level 3		Total
Crom Derivative Liabilities	$	-	$	-	$	824,000	$	824,000
Contingent earnout	$	-	$	-	$	812,000	$	812,000
Total	$	-	$	-	$	1,636,000	$	1,636,000

Summary of derivative liabilities

The Company’s derivative liabilities as of March 31, 2023 and December 31, 2022 associated with the Derivative Liabilities are as follows.

	March 31, 2023		December 31, 2022		Inception
Fair value of conversion option of Prior Crom note	$	—	$	191,000	$	314,000
Fair value of 656,250 warrants on April 4, 2022	539,000		633,000		378,000
Fair value of conversion option of Crom Cortana Fund LLC convertible note	162,000		—		162,000
Fair value of 700,000 warrants on February 13, 2023	259,000		—		259,000
	$	960,000	$	824,000

Summary of fair value measurements

Changes to these inputs could produce a significantly higher or lower fair value measurement. The fair value of each Derivative Instrument is estimated using a binomial valuation model. The following assumptions were used for the periods as follows:

	3/31/2023
Expected term – conversion option	1 year
Expected term - warrants	5 years
Stock price as of measurement date	$	1.12
Equity volatility - unadjusted	131.90		%
Volatility haircut	5.00		%
Selected volatility – post haircut	124.20		%
Senior unsecured synthetic credit rating	CCC+
OAS differential between CCC+ and B- bonds	1047bps
Risk-free interest rate	4.90		%