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2021 Securities Purchase Agreement Tranche Right
9 Months Ended
Sep. 30, 2021
Equity [Abstract]  
2021 Securities Purchase Agreement Tranche Right 2021 SECURITIES PURCHASE AGREEMENT TRANCHE RIGHT
As discussed in Note 17, Stockholders’ Equity, the September 2021 Securities Purchase Agreement contemplated that the closing of the purchase and sale of the Series A Preferred Shares would occur in two tranches. The first tranche closed on the date of the execution of the September 2021 Securities Purchase Agreement whereby Series A Preferred Shares were issued and sold to the Schuler Purchasers during the three months ended September 30, 2021. The second tranche (the “Tranche Right”) had not closed by September 30, 2021 and was concluded to be an obligation of the Schuler Purchasers to acquire, and the Company to sell an additional 1,318,182 shares of Series A Preferred Stock at a purchase price of $7.70 per share for proceeds of $10.2 million, subsequent to the balance sheet date. The Company concluded the Tranche Right met the definition of a freestanding financial instrument which is classified in stockholders equity. The value of this Tranche Right as September 30, 2021 was $2.5 million. The value of this Tranche Right was recorded within stockholder's equity.

The estimated fair value of the Company’s Tranche Right represents a Level 3 measurement as this financial instrument has no market activity. The estimated fair value of the Tranche Right was determined as the excess value of the forward contract when compared to the underlying asset. The fair value of this forward contract can be represented by the difference between the contractual forward price of $7.70 and the prevailing exchange-traded common stock price ($5.81 at 9/22/2021 and $5.83 at 9/30/2021), multiplied by the number of shares 1,318,182.

On October 29, 2021, the Company closed the final and second tranche in connection with the September 2021 Securities Purchase Agreement and received total proceeds of approximately $10.2 million. See Note 20, Subsequent Events for additional information.