v3.25.4
Fair Value Measurements
 12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements

2. Fair Value Measurements

ASC Topic 820, Fair Value Measurement, defines fair value as the exchange price that would be received for an asset, or an exit price paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy defines a three-level valuation hierarchy for disclosure of fair value measurements as follows:

 

Level 1—Fair value is based on observable inputs such as quoted prices for identical assets or liabilities in active markets.

 

Level 2—Fair value is determined using quoted prices for similar assets or liabilities in active markets or quoted prices for identical or similar assets or liabilities in markets that are not active or are directly or indirectly observable.

 

Level 3—Fair value is determined using one or more significant inputs that are unobservable in active markets at the measurement date, such as an option pricing model, discounted cash flow or similar technique.

 

Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis

 

On a recurring basis, the Company measures certain of its financial assets and liabilities at fair value. The fair value of the Company's financial assets and liabilities measured at fair value on a recurring basis was determined using the following inputs:

 

 

As of December 31, 2025

 

(In thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Marketable securities:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. treasury securities

 

$

28,836

 

 

$

—

 

 

$

—

 

 

$

28,836

 

Total assets

 

$

28,836

 

 

$

—

 

 

$

—

 

 

$

28,836

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Warrant liabilities

 

$

928

 

 

$

330

 

 

$

1,514

 

 

$

2,772

 

Other non-current liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Contingent consideration

 

 

—

 

 

 

—

 

 

 

1,382

 

 

 

1,382

 

Total liabilities

 

$

928

 

 

$

330

 

 

$

2,896

 

 

$

4,154

 

 



 

As of December 31, 2024

 

(In thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. treasury securities

 

$

12,927

 

 

$

—

 

 

$

—

 

 

$

12,927

 

Marketable securities:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. treasury securities

 

 

8,883

 

 

 

—

 

 

 

—

 

 

 

8,883

 

Total assets

 

$

21,810

 

 

$

—

 

 

$

—

 

 

$

21,810

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Warrant liabilities

 

$

11,630

 

 

$

4,128

 

 

$

35,638

 

 

$

51,396

 

Total liabilities

 

$

11,630

 

 

$

4,128

 

 

$

35,638

 

 

$

51,396

 

 

As of December 31, 2025, the Company held $28.8 million of available-for-sale debt securities with maturity dates within one year. The fair value of the Company's available-for-sale debt securities approximates their amortized cost basis. The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. The carrying amounts of accounts receivable, unbilled receivables, accounts payable and accrued expenses approximate their fair values because of the relatively short periods until they are required to be settled. The contingent consideration relates to the acquisition of GuideTech during 2025, as discussed in Note 5, Acquisitions. The contingent consideration was initially valued as of November 14, 2025, the acquisition date, and will be remeasured at fair value at each reporting date, or more frequently, if events or changes in circumstances indicate that a remeasurement is warranted. The valuation of the contingent consideration requires the use of a valuation model and assumptions such as projected cash flows and discount rates.

 

The following table sets forth a reconciliation from the opening balances to the closing balances for the Company's Level 3 warrant values:

 

(In thousands)

 

Warrants

 

Balance at December 31, 2024

 

$

35,638

 

Decrease in fair value of warrants

 

 

(23,240

)

Exercise of warrants

 

 

(10,884

)

Balance at December 31, 2025

 

$

1,514