Note 12. Stock Warrants

Private Placement Warrants and Public Warrants

On September 26, 2024, the NYSE notified the Company that the NYSE had determined to delist the Public Warrants due to “abnormally low” trading price levels pursuant to Section 802.01D of the NYSE Listed Company Manual. The Company did not appeal the NYSE’s determination and expects that the Public Warrants will be delisted from the NYSE in the near future.

The Private Placement Warrants were initially recognized as a liability on July 14, 2021 at a fair value of $5.7 million. The Private Placement Warrants were remeasured to a fair value of nil as of September 30, 2024. The Company recorded a gain of $0.1 million and a loss of $0.1 million for the three months ended September 30, 2024 and 2023, respectively. The Company recorded gains of $0.2 million for the nine months ended September 30, 2024 and 2023, respectively. The changes in fair value were included in change in fair value of derivative liabilities on the unaudited condensed consolidated statements of operations.

The Company benchmarks the change in fair value of the Private Placement Warrants against the market price of the publicly traded warrants at each quarter end, the closing price of which was nil as of September 30, 2024 and $0.14/warrant as of September 30, 2023.

The Public Warrants were recognized in stockholder’s equity at a fair value of $9.7 million on July 14, 2021.