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CONVERTIBLE NOTES (Tables)
 6 Months Ended
Jun. 30, 2023
Debt Disclosure [Abstract]  
Schedule of Convertible Notes
The carrying value of the convertible notes at June 30, 2023 and December 31, 2022 consisted of the following (in thousands):

June 30,December 31,
20232022
Outstanding principal at par
$67,619 $56,595 
Debt premium
5,936 — 
Unamortized debt discount
(37,606)— 
Unamortized debt issuance costs
(2,934)(182)
Net carrying amount
$33,015 $56,413 

At June 30, 2023 and December 31, 2022 the convertible notes were classified as follows (in thousands):

June 30,December 31,
20232022
Current portion of convertible notes$726 $56,413 
Non-current portion of convertible notes32,289 — 
Total convertible notes$33,015 $56,413 
The carrying value of the 2.50% Notes at June 30, 2023 and December 31, 2022 consisted of the following (in thousands):

June 30,December 31,
20232022
Outstanding principal at par
$726 $56,595 
Unamortized debt issuance— (182)
Net carrying amount
$726 $56,413 

At June 30, 2023 and December 31, 2022 the 2.50% Notes were classified as follows (in thousands):

June 30,December 31,
20232022
Current portion of convertible notes$726 $56,413 
Non-current portion of convertible notes— — 
Total convertible notes$726 $56,413 
The carrying value of the 5.00% Notes at June 30, 2023 and December 31, 2022 consisted of the following (in thousands):

June 30,December 31,
20232022
Outstanding principal at par
$66,893 $— 
Debt premium5,936 — 
Unamortized debt discount
(37,606)— 
Unamortized debt issuance(2,934)— 
Net carrying amount
$32,289 $— 

At June 30, 2023 and December 31, 2022 the 5.00% Notes were classified as follows (in thousands):

June 30,December 31,
20232022
Current portion of convertible notes$— $— 
Non-current portion of convertible notes32,289 — 
Total convertible notes$32,289 $— 
Schedule of Interest Expense
Interest expense during the three and six months ended June 30, 2023 and 2022 was as follows (in thousands):

Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
Contractual coupon interest$656 $666 $892 $1,449 
Amortization of debt discount and issuance costs
510 154 692 265 
Total interest expense on convertible notes$1,166 $820 $1,584 $1,714 
Interest expense for the 2.50% Notes during the three and six months ended June 30, 2023 and 2022 were as follows (in thousands):

Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
Contractual coupon interest$321 $666 $557 $1,449 
Amortization of debt issuance costs— 154 182 265 
Total interest expense on convertible notes$321 $820 $739 $1,714 
Interest expense for the 5.00% Notes during the three and six months ended June 30, 2023 and 2022 were as follows (in thousands):

Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
Contractual coupon interest$334 $— $334 $— 
Amortization of debt discount and issuance costs
510 — 510 — 
Total interest expense on convertible notes$844 $— $844 $— 
Interest expense in connection with the Secured Note during the three and six months ended June 30, 2023 and 2022 was as follows (in thousands):

Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
Contractual interest
$343 $— $784 $— 
Amortization of the debt discount462 — 1,034 — 
Total interest expense
$805 $— $1,818 $— 
Schedule of Gain on Extinguishment
(Loss) gain on extinguishment of exchanged convertible notes during the three and six months ended June 30, 2023 and 2022 was as follows (in thousands):

Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
(Loss) gain on extinguishment$(6,550)$199 $(6,550)$3,565 
Schedule of Derivative Instruments The derivative financial instrument activity for the three and six months ended June 30, 2023 and 2022 is comprised of the following (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
Beginning balance
$— $— $— $— 
Derivative liability, June 9, 2023
38,160 — $38,160 $— 
Change in value - loss
4,626 — 4,626 — 
Ending balance$42,786 $— $42,786 $— 
Schedule of Future Principal Payments
Future principal payments on the 5.00% Notes as of June 30, 2023 are as follows (in thousands):

2023$— 
2024— 
2025— 
202679,612 
2027— 
Total including PIK interest, before unamortized discount and issuance costs$79,612 
Less: unaccrued paid-in-kind interest(12,719)
Less: unamortized discount and deferred issuance costs(34,604)
Total notes payable$32,289 
Summary of Significant Inputs Used to Estimate Fair Value
The table below summarizes the significant inputs used to estimate the fair value of the 5.00% Notes as of June 30, 2023:

June 30,June 9,
20232023
Coupon rate5.00%5.00%
Term (years)3.53.5
Volatility55.00 %55.00 %
Risk-free rate4.41 %4.15 %
Discount yield25.00 %25.00 %
Discount factor44.00 %44.00 %
The table below summarizes the significant inputs used to estimate the fair value of the Conversion Option as of June 30, 2023 and June 9, 2023:

June 30,June 9,
20232023
Stock price$8.10$7.40
Initial conversion price$7.20$7.20
Conversion cap$8.30$8.30
Term (years)3.53.5
Time to call (years)2.02.0
Volatility55.00 %55.00 %
Risk-free rate4.41 %4.15 %
Discount yield25.00 %25.00 %
The table below summarizes the significant inputs used to estimate the fair value of the Schuler Purchase Obligation as of June 30, 2023 and June 9, 2023:
June 30,June 9,
20232023
Stock price$8.10$7.40
Exercise price$7.20$7.20
Term (years)0.460.52
Volatility55.00 %55.00 %
Risk-free rate5.46 %5.38 %
Fixed commitment purchase price (in thousands)$10,000$10,000
Number of Shares1,387,9491,387,949