Convertible Note - Related Party (Tables)

3 Months Ended

Mar. 31, 2024

Convertible Notes [Abstract]

Summary of Convertible Notes

In accordance with ASU 2020-06, the 2022 Convertible Note is accounted for as a single unit of account and consists of the following:

	March 31,			December 31,
	2024			2023
	(In thousands)
Convertible note, principal	$	100,000		$	100,000
Payment in-kind		18,318			18,318
Accrued interest		2,810			-
Discount on convertible note, net of accumulated amortization		(2,990	)		(3,209	)
Debt issuance costs, net of accumulated amortization		(108	)		(117	)
Convertible note	$	118,030		$	114,992

The 2022 Convertible Note does not have current observable inputs such as recent trading prices (Level 1) and is measured at fair value using a combination of option pricing and discounted cash flow models and incorporate management’s assumptions for stock price, volatility and risk rate. In general, fair values determined by Level 1 inputs utilize observable inputs such as quoted prices in active markets for identical assets or liabilities. Fair values determined by Level 2 inputs utilize data points that are either directly or indirectly observable, such as quoted prices for similar instruments in active markets, interest rates and yield curves. Fair values

determined by Level 3 inputs utilize unobservable data points in which there is little or no market data, which require the Company to develop its own assumptions for the asset or liability.

The Company estimated the fair value of the 2022 Convertible Notes is approximately $118.7 million as of March 31, 2024. However, as the Company has not elected to utilize the fair value option, it is carried at amortized cost of $118.0 million.