Fair Value |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value | Fair ValueAs of September 30, 2023 and December 31, 2022, the Company had financial instruments which were measured at fair value on a recurring basis using significant unobservable inputs (Level 3). Significant changes in the inputs could result in a significant change in the fair value measurements. See each respective footnote for information on the assumptions used in calculating the fair value of financial instruments. See Notes 5 and 11 for disclosures related to the decline in fair value of SAFE notes and common stock warrant liabilities, respectively, that resulted in unrealized fair value adjustment gains recognized in other expense (income) in the condensed consolidated statements of operations for the nine months ended September 30, 2023. The initial fair value of the forward purchase contract asset at the Closing Date was $18,475,421, net, which includes a forward purchase contract asset related to the payment of the $37,261,790 (including $189,684 in transaction costs) to Meteora at the Closing Date, offset by the change in the fair value of the forward purchase contract asset of $18,596,685 which has been recorded as a charge to unrealized fair value adjustments in the Company’s condensed consolidated statements of operations. The estimated fair value of the forward purchase contract derivative was calculated using a Black-Scholes option pricing model and used significant assumptions including the risk free rate and volatility. As of September 30, 2023, the change in fair value of the forward purchase derivative contract from the Closing Date reflected a further decrease in the fair value of the forward purchase contract asset, and a corresponding remeasurement loss of $16,495,261 was recognized, resulting in a cumulative loss of $34,970,682 reflected in unrealized fair value adjustments in our condensed consolidated statements of operations for both the three and nine months ended September 30, 2023. The forward purchase contract asset was reported at its fair value of $2,101,424, net, as of September 30, 2023, and its decline in fair value is primarily driven by a decrease in the common stock price per share of ELIQ, and to a lesser extent to a decrease in remaining time value on the contract. The forward purchase contract asset of $2,101,424, net, as of September 30, 2023 reflects a prepayment to Meteora at the Closing Date of the Business Combination of $37,072,106, less the fair value of the forward purchase contract derivative of $34,970,682. The valuation of the forward purchase derivative contract was made using the option-pricing method and the following assumptions as of September 30, 2023:
The following table sets forth the Company’s financial instruments that were measured at fair value using Level 3 inputs on a recurring basis for the nine months ended September 30, 2023:
The following table sets forth the Company’s financial instruments that were measured at fair value using Level 3 inputs on a recurring basis for the nine months ended September 30, 2022:
There were no transfers into or out of Level 3 financial instruments during the nine months ended September 30, 2023 and 2022.
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