| Summary of Fair Value Measurement on Recurring Basis |
The following table presents information about the Company’s financial assets and liabilities that are measured at fair value on a recurring basis and indicates the fair value hierarchy of the valuation (in thousands):
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Fair Value Measurements as of |
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December 31, 2025 |
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Level 1 |
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Level 2 |
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Level 3 |
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Total |
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Assets: |
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Cash equivalents: |
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Money market funds |
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$ |
65,423 |
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$ |
— |
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$ |
— |
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$ |
65,423 |
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Investment in securities at fair value: |
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U.S. treasuries |
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— |
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135,351 |
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— |
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135,351 |
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Other current investments held at fair value |
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35,389 |
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— |
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— |
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35,389 |
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Digital assets |
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8,735 |
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— |
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— |
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8,735 |
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$ |
109,547 |
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$ |
135,351 |
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$ |
— |
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$ |
244,898 |
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Liabilities: |
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Contingent consideration liability - related party |
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$ |
— |
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$ |
— |
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$ |
104 |
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$ |
104 |
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Contingent consideration liabilities |
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— |
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— |
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|
205 |
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|
205 |
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Pre-funded warrant liabilities |
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44,379 |
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— |
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— |
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44,379 |
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$ |
44,379 |
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$ |
— |
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$ |
309 |
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$ |
44,688 |
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Fair Value Measurements as of |
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December 31, 2024 |
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Level 1 |
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Level 2 |
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Level 3 |
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Total |
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Assets: |
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Cash equivalents: |
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Money market funds |
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$ |
6,196 |
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$ |
— |
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$ |
— |
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$ |
6,196 |
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Investment in securities at fair value: |
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U.S. treasuries |
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— |
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44,825 |
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— |
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44,825 |
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Other investments held at fair value |
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26,104 |
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— |
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2,783 |
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28,887 |
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$ |
32,300 |
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$ |
44,825 |
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$ |
2,783 |
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$ |
79,908 |
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Liabilities: |
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Short-term convertible promissory note conversion option - related party |
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$ |
— |
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$ |
— |
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$ |
995 |
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$ |
995 |
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Short-term convertible promissory note conversion option |
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— |
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— |
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|
1,616 |
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|
1,616 |
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Contingent consideration liability - related party |
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— |
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— |
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|
110 |
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|
110 |
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Contingent consideration liabilities |
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— |
|
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— |
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|
212 |
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|
212 |
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$ |
— |
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$ |
— |
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$ |
2,934 |
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$ |
2,934 |
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| Fair value of Contingent Consideration liability |
The fair value of the DemeRx contingent consideration liability - related parties was calculated using the following significant unobservable inputs:
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December 31, 2025 |
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December 31, 2024 |
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Valuation Technique |
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Significant Unobservable Inputs |
Input Range |
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Input Range |
Discounted cash flow |
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Milestone contingent consideration: |
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Discount rate |
12.4%-12.6% |
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11.7%-11.8% |
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Probability of the milestone |
4.0% - 5.0% |
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4.0% - 5.0% |
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| Summary of Fair Value Measurement on Recurring Basis, Unobservable Input Reconciliation |
The following table provides a roll forward of the aggregate fair values of the Company’s financial instruments described above, for which fair value is determined using Level 3 inputs (in thousands):
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Beckley Psytech Additional Warrants |
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New Convertible Notes Conversion Feature |
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Contingent
Consideration
Liability -
Related Parties (i) |
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Contingent
Consideration
Liabilities (ii) |
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Balance as of December 31, 2024 |
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$ |
2,783 |
|
|
$ |
2,611 |
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|
$ |
110 |
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$ |
212 |
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Change in fair value |
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(2,783 |
) |
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|
20,249 |
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(6 |
) |
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(7 |
) |
Conversion of convertible notes |
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|
— |
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(22,860 |
) |
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|
— |
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|
|
— |
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Balance as of December 31, 2025 |
|
$ |
— |
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|
$ |
— |
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$ |
104 |
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$ |
205 |
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(i) Includes Perception milestone based contingent consideration liability.
(ii) Includes contingent consideration liability related to DemeRx IB Stock Purchase and contingent consideration liability related to the TryptageniX research and development milestone success fee payments and royalties payments.
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IntelGenx Convertible Notes Receivable |
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IntelGenx Investments Held at Fair Value (i) |
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IntelGenx Subsequent DIP Loan Commitment |
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Contingent
Consideration
Liability -
Related Parties (ii) |
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Contingent
Consideration
Liabilities (iii) |
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New Convertible Notes Conversion Feature |
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Beckley Psytech Additional Warrants |
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Balance as of December 31, 2023 |
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$ |
11,202 |
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$ |
6,124 |
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$ |
— |
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$ |
620 |
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$ |
1,637 |
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$ |
2,385 |
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$ |
— |
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Initial fair value of instrument |
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8,243 |
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|
420 |
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|
680 |
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— |
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— |
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3,590 |
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|
2,645 |
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Change in fair value, including interest |
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|
(13,729 |
) |
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(6,544 |
) |
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— |
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(510 |
) |
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(1,425 |
) |
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(3,363 |
) |
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|
1,676 |
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Additional Warrants received |
|
|
— |
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— |
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|
— |
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— |
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— |
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— |
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(1,538 |
) |
Reduction in commitment |
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— |
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|
— |
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(680 |
) |
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|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Consideration for acquisition |
|
|
(5,715 |
) |
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|
— |
|
|
|
— |
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|
|
— |
|
|
|
— |
|
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|
— |
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|
— |
|
Balance as of December 31, 2024 |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
110 |
|
|
$ |
212 |
|
|
$ |
2,611 |
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|
$ |
2,783 |
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(i) Includes, Initial Warrants, Additional Unit Awards, 2023 Initial Warrants, 2023 Subsequent Warrants, and Call Option Units.
(ii) Includes Perception's milestone-based contingent consideration liability.
(iii) Includes the contingent consideration liability related to DemeRx IB Stock Purchase and the contingent consideration liability related to the TryptageniX
research and development milestone success fee payments and royalties payments.
|