Schedule of Company's financial instruments at fair value based on the fair value hierarchy for each class of instrument

The following tables summarize the Company’s financial instruments at fair value based on the fair value hierarchy for each class of instrument (in thousands):


December 31, 2024 (Successor)	Level 1		Level 2		Level 3
Assets:
Money market account	$	19,014	$	—	$	—
Liabilities:
Convertible Securities Notes	$	—	$	—	$	16,076
Convert Warrants	$	—	$	—	$	152
PIPE Pre-funded Warrants	$	—	$	—	$	—


December 31, 2023 (Predecessor)	Level 1		Level 2		Level 3
Assets:
Money market account	$	24	$	—	$	—
Liabilities:
Legacy Adagio Convertible Notes	$	—	$	—	$	36,430
SVB Warrants	$	—	$	—	$	78

Schedule of presents changes in the Level 3 warrant liabilities measured at fair value

The following table presents changes in the Level 3 convertible promissory notes measured at fair value for the year ended December 31, 2023 (Predecessor) (in thousands):


Year ended December 31, 2023 (Predecessor)		Balance (beginning of year)		Additions		Fair value measurement adjustments		Balance (end of year)
October 2022 Convertible Notes	$	9,500	$	—	$	3,061	$	12,561
April 2023 Convertible Notes		—		15,000		(243)		14,757
November 2023 Convertible Notes		—		5,000		4,112		9,112

The following table presents changes in the Level 3 convertible promissory notes measured at fair value for the period from January 1, 2024 to July 30, 2024 (Predecessor) (in thousands):


Period from January 1 to July 30, 2024 (Predecessor)	Balance (beginning of year)		Additions		Fair value measurement adjustments		Balance (end of period)
October 2022 Convertible Notes	$	12,561	$	—	$	(4,304)	$	8,257
April 2023 Convertible Notes		14,757		—		3,378		18,135
November 2023 Convertible Notes		9,112		3,000		(2,373)		9,739
February 2024 Convertible Notes		—		7,000		(256)		6,744
May 2024 Convertible Notes		—		3,000		685		3,685
June 2024 Convertible Notes		—		2,500		577		3,077
July 2024 Convertible Notes		—		1,000		233		1,233

Schedule of assumptions used in estimating fair value of convertible promissory notes and common stock warrant liabilities


	Predecessor			Successor
Convertible Securities Notes	July 31, 2024			December 31, 2024
Stock price	6.64		$	1.05
Discount rate	25.8	%		20.6	%
Expected term (years)	3.75			3.33
Risk-free interest rate	4.01	%		4.20	%
Volatility	60	%		60	%

Schedule of presents changes in the Level 3 warrant liabilities measured at fair value

The following table presents changes in the Level 3 Convert Warrants measured at fair value for the period from July 31, 2024 to December 31, 2024 (Successor) (in thousands):


Convert Warrants - July 31, 2024 to December 31, 2024 (Successor)
Balance (beginning of period)	$	2,996
Additions		—
Fair value measurement adjustments		(2,844)
Balance (end of period)	$	152

Schedule of presents changes in the Level 3 warrant liabilities measured at fair value

The following table presents changes in the Level 3 PIPE Pre-funded Warrants measured at fair value for the period from July 31, 2024 to December 31, 2024 (Successor) (in thousands):


PIPE Pre-funded Warrants - July 31, 2024 to December 31, 2024 (Successor)
Balance (beginning of period)	$	4,442
Exercises		(710)
Additions		—
Fair value measurement adjustments		(3,732)
Balance (end of period)	$	—