Senior Secured Convertible Notes and Warrants (Tables)

12 Months Ended

Dec. 31, 2023

Line of Credit Facility [Line Items]

Schedule of Senior Secured Convertible Note

The Company arrived at the fair value of the Notes liability as shown below:

Senior Secured Convertible Notes:	December 31, 2023				Modification date				Issuance date
Fair value (In thousands)	$		5,544		$		4,296			$		1,803
Face value principal payment (In thousands)	$		4,600		$		4,600			$		3,333
Face value at premium (In thousands)	$		5,750		$		5,750			$		4,166
Conversion discount			10	%			10	%				10	%
Maturity date		October 11, 2024				October 11, 2024					October 11, 2023
Interest rate			7.00	%			7.00	%				6.00	%
Default interest rate			18.00	%			18.00	%				18.00	%
Discount rate			23.50	%			25.60	%				92.50	%
Valuation technique		PWERM				PWERM					PWERM

Summary of Rollforward Convertible Notes at Fair Value

The rollforward of the Convertible notes is as follows (in thousands):

Fair value	Total
Balance as of December 31, 2022	$	—
Issuance of Senior Secured Convertible Notes		1,803
Change in fair value of Senior Secured Convertible Notes		2,493
Balance upon modification of senior secured convertible note		4,296
Change in fair value of Senior Secured Convertible Notes		1,248
Balance as of December 31, 2023	$	5,544

Summary of Warrant Liability at Fair Value

The warrant liability on December 31, 2023 and December 31, 2022, were comprised of the following (in thousands):

Fair value	Total
Balance as of December 31, 2022	$	—
Issuance of initial warrants with senior secured convertible notes		2,388
Issuance of warrants with modification of senior secured convertible notes		726
Change in fair value of warrants		(2,437	)
Balance as of December 31, 2023	$	677

Schedule of Warranty Liability and Assumptions to Fair Value Warrants

The Warrants are liability classified and the following assumptions were used to fair value the warrants:

Warrant liability, current:	December 31, 2023			Modification date			Issuance date
Volatility		153	%		139	%		134	%
Risk-free discount rate		4	%		5	%		4	%
Term (weighted average)	4.4 years			4.6 years			5 years
Valuation technique	Monte Carlo simulation			Monte Carlo simulation			Monte Carlo simulation

Common Shares Issuable Upon Conversion of Senior Secured Convertible Notes [Member]

Line of Credit Facility [Line Items]

Summary of Notes Payable at Fair Value

Notes payable, related parties, net on December 31, 2023 and December 31, 2022, were comprised of the following (in thousands):

Senior Secured Convertible Notes, Related Party	Total
Fair value at December 31, 2021	$	—
Issuance of senior secured convertible notes, related party		11,365
Change in fair value of senior secured convertible notes, related party		(1,357	)
Fair value at December 31, 2022		10,008
Issuance of senior secured convertible notes, related party		1,000
Change in fair value of senior secured convertible notes, related party		(7	)
Balance at December 31, 2023	$	11,001

Summary of Estimated Probability and Estimated Date of Notes Payable

The Company elected to account for the Senior Secured Convertible Notes using the fair value option and ascribed the following probabilities to four possible scenarios:

	December 31, 2023				December 31, 2022
Scenario description	Estimated probability			Estimated date	Estimated probability			Estimated date
Qualified Financing		25.0	%	October 11, 2024		25.0	%	June 1, 2024
Non-qualified Financing		35.0	%	October 11, 2024		35.0	%	October 1, 2023
Held to Maturity		25.0	%	January 15, 2025		15.0	%	December 31, 2024
Default/Dissolution		15.0	%	October 11, 2024		25.0	%	June 1, 2024
Total		100.0	%			100.0	%

Schedule of Senior Secured Convertible Note

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

Senior Secured Convertible Notes, related party:		December 31, 2023			December 31, 2022
Fair value (In thousands)	$		11,001	$		10,008
Face value principal payment (In thousands)	$		12,133	$		11,133
Face value at premium (In thousands)	$		15,166	$		13,916
Interest rate (weighted average)		10.10%			10.00%
Default interest rate		18.00%			18.00%
Discount rate		43.50%			45.50%
Valuation technique		PWERM			PWERM