v3.25.2
Fair Value Measurements (Tables)
 6 Months Ended
Jun. 30, 2025
Fair Value Disclosures [Abstract]  
Schedule of Fair Value Financial Assets Measured on a Recurring Basis
The following tables present the Company’s fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis as of the periods presented:
June 30, 2025
(in thousands)(Level 1)(Level 2)(Level 3)Total
Assets:
Money market funds (1)
$10,869 $— $— $10,869 
U.S. Treasuries
9,886 — — 9,886 
Total assets$20,755 $— $— $20,755 
Liabilities:
Debt derivative liabilities$— $— $2,078 $2,078 
__________
(1)Money market funds are included in Cash and cash equivalents on the Condensed Consolidated Balance Sheet.
December 31, 2024
(in thousands)(Level 1)(Level 2)(Level 3)Total
Assets:
Money market funds (1)
$19,399 $— $— $19,399 
U.S. Treasuries
5,928 — — 5,928 
Total assets$25,327 $— $— $25,327 
Liabilities:
Debt derivative liabilities$— $— $2,400 $2,400 
__________
(1)Money market funds are included in Cash and cash equivalents on the Condensed Consolidated Balance Sheet.
Schedule of Fair Value Instruments Classified Level 3
The changes in Level 3 liabilities measured at fair value on a recurring basis for the periods indicated were as follows:
Three Months Ended June 30,
(in thousands)20252024
Balance at March 31, 2025 and 2024$2,558 $2,922 
Change in fair value included in net income (loss)(480)(464)
Balance at June 30, 2025 and 2024$2,078 $2,458 
Six Months Ended June 30,
(in thousands)20252024
Balance at December 31, 2024 and 2023$2,400 $2,987 
Change in fair value included in net loss(322)(529)
Balance at June 30, 2025 and 2024$2,078 $2,458 
Schedule of Significant Inputs in Liability Valuation
The significant inputs that are included in the valuation of the debt derivative liability - first tranche as of the periods presented include:
InputJune 30, 2025December 31, 2024
Remaining term
2.0 years2.5 years
Maturity dateJune 30, 2027June 30, 2027
Coupon rate
9.5% - 13.0%
9.5% - 13.0%
Revenue participation paymentsMaximum each yearMaximum each year
Discount rate11.68%(1)12.22%(1)
Probability of mandatory prepayment event15.0%(1)15.0%(1)
Estimated timing of mandatory prepayment event March 31, 2026(1)March 31, 2026(1)
Probability of optional prepayment event5.0%(1)5.0%(1)
Estimated timing of optional prepayment eventDecember 31, 2025(1)December 31, 2025(1)
Probability of note held-to-maturity (2)
80.0%(1)80.0%(1)
__________
(1)Represents a significant unobservable input.
(2)See Maturity date in table.
The significant inputs that are included in the valuation of the debt derivative liability - second tranche as of the periods presented include:
InputJune 30, 2025December 31, 2024
Remaining term
3.0 years3.5 years
Maturity dateJune 30, 2028June 30, 2028
Coupon rate
9.5% - 13.0%
9.5% - 13.0%
Revenue participation paymentsMaximum each yearMaximum each year
Discount rate14.67%(1)15.48%(1)
Probability of mandatory prepayment event15.0%(1)15.0%(1)
Estimated timing of mandatory prepayment eventMarch 31, 2026(1)March 31, 2026(1)
Probability of optional prepayment event5.0%(1)5.0%(1)
Estimated timing of optional prepayment eventDecember 31, 2025(1)December 31, 2025(1)
Probability of held-to-maturity (2)
80.0%(1)80.0%(1)
__________
(1)Represents a significant unobservable input.
(2)See Maturity date in table.