NOTES PAYABLE AND DERIVATIVE LIABILITY (Tables)

6 Months Ended

Jun. 30, 2025

Notes Payable And Derivative Liability

SCHEDULE OF SUPPLEMENT BALANCE SHEET

Supplemental balance sheet information is as follows:

	June 30,			December 31,
(in thousands)	2025			2024
Amount repayable at maturity	$	36,025		$	47,575
Unamortized debt discount		(3,754	)		(12,021	)
Unamortized issuance costs		-			(2,552	)
Net carrying amount	$	32,271		$	33,002

SCHEDULE OF COMPONENTS INTEREST EXPENSE

	Three Months Ended June 30,						Six Months Ended June 30,
(in thousands)	2025			2024			2025			2024
Amortization of debt discount and issuance costs	$	(2,164	)	$	-		$	(5,666	)	$	-
Interest expense from modification of notes payable		-			-			(2,057	)		-
Discount on warrants (see Note 7. Warrant Liability)		-			-			(7,325	)		-
Other expense		(6	)		(13	)		(25	)		(32	)
Total interest expense	$	(2,170	)	$	(13	)	$	(15,073	)	$	(32	)

SCHEDULE OF MATURITIES LONG TERM DEBT

Maturities of partial repayments, if elected by the Holder, are as follows as of June 30, 2025:

(in thousands)
Years Ended December 31,	Maturities
2025 (remainder)	$	22,000
2026		14,025
Total partial repayments	$	36,025

SCHEDULE OF DERIVATIVES INSTRUMENTS

The fair value of derivatives not designated as hedging instruments as of June 30, 2025 and December 31, 2024 are as follows:

	June 30,		December 31,
(in thousands)	2025		2024
Derivative liability	$	2,915	$	14,581
Total	$	2,915	$	14,581

SCHEDULE OF UNREALIZED GAIN AND LOSS INSTRUMENTS

Unrealized gains and losses associated with derivatives not designated as hedging instruments for the three and six months ended June 30, 2025 and 2024 are as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in thousands)	2025		2024		2025		2024
Unrealized gain (loss) on derivative liability	$	1,952	$	-	$	2,794	$	-

SCHEDULE OF HIERARCHY LIABILITIES FAIR VALUE

The valuation inputs hierarchy classification for liabilities measured at fair value on a recurring basis are summarized below as of June 30, 2025 and December 31, 2024 (in thousands). See Note 5. Investment Securities, Available-For-Sale and Fair Value Measurements, for discussion of the fair value level hierarchy.

As of June 30, 2025	Level 1		Level 2		Level 3
Derivative liability	$	-	$	-	$	2,915
Total	$	-	$	-	$	2,915

As of December 31, 2024	Level 1		Level 2		Level 3
Derivative liability	$	-	$	-	$	14,581
Total	$	-	$	-	$	14,581

SCHEDULE OF REVALUATION DERIVATIVE LIABILITY

The table below lists the inputs and assumptions for the Company’s valuations as of June 30, 2025 and December 31, 2024:

	June 30,			December 31,
	2025			2024
Expected term (years)		1.25			1.75
Risk-free interest rate		3.86	%		4.18	%
Dividend yield		0	%		0	%
Volatility		88.96	%		78.02	%
Discount rate		50.0	%		50.0	%