Note 12. Stock Warrants

Private Placement Warrants and Public Warrants

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 $0.2 million as of March 31, 2024. The Company recorded a de minimis gain and $0.2 million gain for the three months ended March 31, 2024 and 2023, respectively. The changes in fair value are included in change in fair value of derivative liabilities on the 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 $0.05/warrant as of March 31, 2024 and $0.15/warrant as of March 31, 2023.

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