v3.25.4
Fair Value of Financial Instruments and Non-Financial Instruments
12 Months Ended
Dec. 31, 2025
Fair Value of Financial Instruments and Non-Financial Instruments  
Fair Value of Financial Instruments and Non-Financial Instruments

5. Fair Value of Financial Instruments and Non-Financial Instruments

Financial Instruments

Fair value is the price that could be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Fair value determination in accordance with applicable accounting guidance requires that a number of significant judgments be made. Additionally, fair value is used on a nonrecurring basis to evaluate assets for impairment or as required for disclosure purposes by applicable accounting guidance on disclosures about fair value of financial instruments. Depending on the nature of the assets and liabilities, various valuation techniques and assumptions are used when estimating fair value. The carrying amounts of certain of the Company’s financial instruments, including prepaid expense and accounts payable are shown at cost, which approximates fair value due to the short-term nature of

these instruments. The Company follows the provisions of FASB ASC Topic 820, Fair Value Measurement, for financial assets and liabilities measured on a recurring basis. The guidance requires fair value measurements be classified and disclosed in one of the following three categories:

Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.
Level 2: Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liabilities.
Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity).

The following fair value hierarchy table presents information about the Company’s assets measured at fair value on a recurring basis. Included within cash and cash equivalents on the balance sheet, but excluded from the fair value hierarchy table, are cash deposits held at financial institutions:

Fair value measurement at

reporting date using

Quoted prices

 

in active

 

Significant

 

 

markets for

 

other

 

Significant

 

identical

 

observable

 

unobservable

 

assets

 

inputs

inputs

(in thousands)

  ​ ​ ​

(Level 1)

  ​ ​ ​

(Level 2)

  ​ ​ ​

(Level 3)

December 31, 2025:

 

  ​

 

  ​

 

  ​

Assets

 

  ​

 

  ​

 

  ​

Cash equivalents:

Money market funds

$

43,803

$

$

Total cash equivalents

43,803

Total financial assets

$

43,803

$

$

December 31, 2024:

Assets

 

  ​

 

  ​

 

  ​

Cash equivalents:

Money market funds

$

29,058

$

$

Commercial paper

4,988

Total cash equivalents

29,058

4,988

Marketable securities:

Certificates of deposit

5,971

Commercial paper

25,439

Corporate debt securities

1,865

U.S. government securities

5,908

Total marketable securities

39,183

Total financial assets

$

29,058

$

44,171

$

Non-Financial Instruments

Long-lived non-financial assets are measured at fair value on a nonrecurring basis for purposes of calculating impairment using Level 3 inputs as defined in the fair value hierarchy. The fair value of long-lived assets using Level 3

inputs is determined by estimating the amount and timing of net future cash flows (which are unobservable inputs) and discounting them using a risk-adjusted rate of interest. Significant increases or decreases in actual cash flows may result in valuation changes.

The following long-lived assets were measured at fair value, on a nonrecurring basis, during the years ended December 31, 2025 and 2024. Assets remeasured in 2024 or sold in 2025 are not included in the fair value presented as of December 31, 2025. The significant assumptions utilized are further described in Notes 3 and 10:

Fair Value Measurements as of December 31, 2025 of assets remeasured during 2025

Year ended December 31, 2025

(in thousands)

Level 1

Level 2

Level 3

Impairment Losses

Property and equipment, net

$

$

$

3,155

$

3,373

Right of use assets

9,489

2,633

Other assets

139

Total

$

$

$

12,644

$

6,145

Fair Value Measurements as of December 31, 2024 of assets remeasured during 2024

Year ended December 31, 2024

(in thousands)

Level 1

Level 2

Level 3

Impairment Losses

Property and equipment, net

$

$

$

1,668

$

2,279

Right of use assets

1,642

2,516

Other assets

200

438

Total

$

$

$

3,510

$

5,233