Quarterly report [Sections 13 or 15(d)]

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

v3.26.1
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)
 3 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Schedule of carrying value and total estimated fair value
The carrying value and estimated fair value of the Company’s debt were as follows (in thousands):
June 30, 2026 March 31, 2026
Carrying Value Fair Value Carrying Value Fair Value
Term Loan $ —  $ —  $ 55,906  $ 51,339 
Schedule of ranges of assumptions and estimates
The following table summarizes the key assumptions used in estimating the fair value of the Forbearance Warrant at issuance and at June 30, 2026 and March 31, 2026:
June 30, 2026 March 31, 2026
Discount period (years) 6.23 years 6.48 years
Risk-free interest rate
3.94% - 4.21%
3.65% - 4.02%
Stock price volatility 100.00% 100.00%
Stock price at valuation date $11.00 $4.75
Probability1
10% - 15% - 75%
15% - 15% - 70%
Fair value (in thousands) $30,395 $14,105

(1) Scenario probability as of issuance was based on timing expectations of management that a liquidation event occurring was estimated at 35%; a fundamental transaction occurring was estimated at 15%; and none of the previous events were estimated at 50% at March 31, 2026 and were revised at June 30, 2026 to a 10% of a liquidation event occurring; a 15% of a fundamental transaction occurring; and none of the previous events were estimated at 75%.
The following table summarizes the key assumptions used in estimating the fair value of the Conversion Warrant at issuance and at June 30, 2026:
June 30, 2026 June 1, 2026
Discount period (years) 4.92 years 5 years
Risk-free interest rate
3.94% - 4.15%
3.81% - 4.14%
Stock price volatility 100.00% 100.00%
Stock price at valuation date $11.00 $10.49
Probability1
10% - 15% - 75%
10% - 15% - 75%
Fair value (in thousands) $1,295 $1,280

(1) Scenario probability as of issuance was based on timing expectations of management that a liquidation event occurring was estimated at 10%; a fundamental transaction occurring was estimated at 15%; and none of the previous events were estimated at 50% and were not revised at June 30, 2026.
Schedule of changes in level 2 liabilities
The table below sets forth a summary of changes in the fair value of the Company’s Forbearance Warrant liabilities for the period ended June 30, 2026:

Balance at March 31, 2026 $ 14,105 
Change in fair value of warrant liabilities 16,290 
Balance at June 30, 2026
 $ 30,395 
The table below sets forth a summary of changes in the fair value of the Company’s Conversion warrant liabilities for the period ended June 30, 2026:
Balance at March 31, 2026 $ — 
Issuance of warrants 1,280 
Change in fair value of warrant liabilities 15 
Balance at June 30, 2026
 $ 1,295 
Schedule of fair value liabilities measured on recurring basis
The table below sets forth a summary of changes in the fair value of the Company’s Convertible Note for the period ended June 30, 2026:

Balance at March 31, 2026 $ 90,034 
Change in fair value of convertible note 129,715 
Exercise of convertible note (219,749)
Balance at June 30, 2026
 $ —