Senior Secured Convertible Notes and Warrants (Tables)

6 Months Ended

Jun. 30, 2023

Debt Disclosure [Abstract]

Summary of Notes Payable at Fair Value

Notes payable at June 30, 2023 and December 31, 2022, were comprised of the following (In thousands):

Fair value	Total
Balance as of December 31, 2022	$	—
Issuance of Senior Secured Convertible Notes at January 11, 2023		1,803
Change in fair value of Senior Secured Convertible Notes		(143	)
Balance as of March 31, 2023	$	1,660
Change in fair value of Senior Secured Convertible Notes		657
Balance as of June 30, 2023	$	2,317

Summary of Estimated Probability and Estimated Date of Notes Payable

The Company ascribed following probabilities to five possible scenarios:

	June 30, 2023				January 11, 2023
Scenario description	Estimated probability			Estimated date	Estimated probability			Estimated date
Uplist transaction		—	%	September 30, 2023		60.0	%	June 30, 2023
Held to maturity		45.0	%	October 6, 2023		10.0	%	October 6, 2023
Change of control		5.0	%	September 30, 2023		5.0	%	September 30, 2023
Default		25.0	%	October 6, 2023		—	%	N/A
Dissolution		25.0	%	October 6, 2023		25.0	%	October 6, 2023
Total		100.0	%			100.0	%

Schedule of Senior Secured Convertible Note

Based on these estimates, the Company arrived at the fair value of the Notes liability as shown below:

Senior Secured Convertible Notes:	June 30, 2023			January 11, 2023
Fair value (In thousands)	$	2,317		$	1,803
Face value principle payment (In thousands)	$	3,333		$	3,333
Face value at premium (In thousands)	$	4,166		$	4,166
Conversion price	$	0.25		$	0.78
Maturity date	October 6, 2023			October 6, 2023
Interest rate		6.00	%		6.00	%
Default interest rate		18.00	%		18.00	%
Discount rate		97.50	%		94.00	%
Valuation technique	PWERM			PWERM

Schedule of Warranty Liability and Fair Value Analysis

The Warrants are liability classified and the Company performed a fair value analysis as shown below:

Warrant liability, current:	June 30, 2023			January 11, 2023
Fair value (In thousands)	$	522		$	1,530
Number of warrants		1,666,667			1,666,667
Closing price (OTCB: GIGA)	$	0.31		$	0.80
Volatility		145.70	%		133.60	%
Risk-free discount rate		4.22	%		3.72	%
Term	5 years			5 years
Expiration date	January 11, 2028			January 11, 2028
Valuation technique	Monte Carlo simulation			Monte Carlo simulation

The warrants are classified as equity:

	January 11, 2023
Fair value (In thousands)	$	858
Number of warrants		1,200,000
Closing price (OTCB: GIGA)	$	0.80
Volatility		133.6	%
Risk-free discount rate		3.72	%
Contractual term in years	5 years
Expiration date	January 11, 2028
Valuation technique	Monte Carlo simulation