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Derivative Financial Instruments
12 Months Ended
Dec. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments

(12) Derivative Financial Instruments

 

The Company does not use derivative financial instruments for trading or speculative purposes. As of December 31, 2022 and 2021, the Company had no foreign currency forward contracts outstanding. The Company did not utilize foreign currency forward contracts during the years ended December 31, 2022 and 2021.

 

As a result of the Company’s analysis of all the embedded conversion and put features within the Series A Preferred Stock, the contingent redemption put options in the Series A Preferred Stock were determined to not be clearly and closely related to the debt-type host and also did not meet any other scope exceptions for derivative accounting. Therefore, the contingent redemption put options are being accounted for as derivative instruments and the fair value of these derivative instruments was bifurcated from the Series A Preferred Stock and recorded as a liability. At the time of issuance of the Series A redeemable convertible preferred stock the fair value of these derivative instruments were recorded as a reduction to preferred stock. As of December 31, 2022 and 2021, the fair value of these derivative instruments was $821,726 and $776,623, respectively, and were included in "other long-term liabilities" within the consolidated balance sheets. The loss on the change in fair value of these derivative instruments for 2022 of $45,103 and the loss on the change in fair value of these derivative instruments for 2021 of $72,876, were included in “interest and other loss, net” within the consolidated statement of operations.