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 the Public Warrants were delisted from NYSE on January 6, 2025.

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 value of nil as of December 31, 2024. The company recorded a gain of $0.1 million and a gain of $0.5 million during the years ended December 31, 2024 and December 31, 2023, respectively. The changes in fair value were included in change in fair value of derivative liabilities on the 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 which was nil as of December 31, 2024 and $0.06/warrant as of December 31, 2023.

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