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CONVERTIBLE NOTES (Tables)

12 Months Ended

Dec. 31, 2024

The carrying value of the 16.00% Notes consisted of the following at December 31, 2024 (in thousands):


Principal	$	15,960
Accretion of exit premium	1,204
Unamortized debt issuance costs	(652)
Net carrying amount	$	16,512

As of December 31, 2024 and 2023, the convertible note obligations were classified as follows in the consolidated balance sheets (in thousands):


	2024		2023
2.50% Notes	$	—	$	726
5.00% Notes	$	46,839	$	36,102
Total convertible notes	$	46,839	$	36,828
Current portion of convertible notes	$	—	$	726
Convertible notes, non-current	$	46,839	$	36,102

Schedule of Interest Expense

Interest expense related to the Company’s 16.00% Note obligation consisted of the following for the year ended December 31, 2024 (in thousands):



Contractual coupon interest	$	961
Amortization of premium, discount and issuance costs, net	1,320
Total interest expense	$	2,281

Interest expense related to the Company’s convertible note obligations consisted of the following for the years ended December 31 (in thousands):


	2024		2023
Contractual coupon interest	$	3,433	$	2,425
Amortization of premium, discount and issuance costs, net	7,360		3,278
Total interest expense on convertible notes	$	10,793	$	5,703

Schedule of Gain (Loss) on Extinguishment

Gain (loss) on extinguishment of exchanged convertible notes was as follows for the years ended December 31 (in thousands):


	2024		2023
(Loss) gain on extinguishment	$	—	$	(6,499)

Schedule of Convertible Notes

The carrying value of the 2.50% Notes was included in current portion of convertible notes and consisted of the following at December 31 (in thousands):


	2024		2023
Outstanding principal	$	—	$	726
Unamortized debt issuance	—		—
Net carrying amount	$	—	$	726

The carrying value of the 5.00% Notes consisted of the following at December 31 (in thousands):


	2024		2023
Outstanding principal at par	$	70,974	$	67,634
Unamortized debt premium	4,140		5,408
Unamortized debt discount	(26,229)		(34,267)
Unamortized debt issuance costs	(2,046)		(2,673)
Net carrying amount	$	46,839	$	36,102

Schedule of Derivative Financial Instrument Activity

The derivative financial instrument activity for the year ended December 31, 2023 is comprised of the following (in thousands):


Beginning balance	$	—
Initial measurement	38,160
Reduction as a result of conversion of 5.00% Notes	(380)
Change in value - gain	(10,872)
Reclassification to contributed capital	(26,908)
Ending balance	$	—

Schedule of Significant Inputs used to Estimate Fair Value

The following table summarizes the significant inputs used to estimate the fair value of the 5.00% Notes as of December 31, 2024, December 31, 2023 and the June 9, 2023 issuance date:


	December 31,				June 9,
	2024		2023		2023
Coupon rate	5.00%		5.00%		5.00%
Term (years)	2.0		3.0		3.5
Volatility	42.00%		55.00%		55.00%
Risk-free rate	4.30	%	4.02	%	4.15	%
Discount yield	24.80	%	25.00	%	25.00	%
Discount factor	65.00%		50.00%		44.00%

The following table summarizes the significant inputs used to estimate the fair value of the Conversion Option as of October 17, 2023 and June 9, 2023:


	October 17,			June 9,
	2023			2023
Stock price	$	5.94		$	7.40
Initial conversion price	$	7.20		$	7.20
Conversion cap	$	8.30		$	8.30
Term (years)	3.2			3.5
Time to call (years)	1.7			2.0
Volatility	55.00		%	55.00		%
Risk-free rate	5.00		%	4.15		%
Discount yield	25.00		%	25.00		%

The following table summarizes the significant inputs used to estimate the fair value of the Schuler Purchase Obligation as of December 31, 2023 and June 9, 2023:


	December 31,			June 9,
	2023			2023
Stock price	$	3.92		$	7.40
Exercise price	$	7.20		$	7.20
Term (years)	0.13			0.52
Volatility	55.00		%	55.00		%
Risk-free rate	5.55		%	5.38		%
Fixed commitment purchase price (in thousands)	$	10,000		$	10,000
Number of shares	1,387,949			1,387,949
Obligation probability	75%			100%

The following table summarizes the significant inputs used to estimate the fair value of the Common Warrant liability as of December 31, 2024 and January 23, 2024:


	December 31, 2024			January 23, 2024
Exercise price	$	1.65		$	1.65
Term (years)	4.1			5.0
Volatility	59.00		%	55.00		%
Risk-free rate	4.37		%	4.06		%
Dividend yield	0.00		%	0.00		%

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

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+ Details

- Definition

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

+ References + Details