v3.25.4
Fair value of financial assets and liabilities
 12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
Fair value of financial assets and liabilities Fair value of financial assets and liabilities
The following tables present information about the Company’s financial assets and liabilities measured at fair value on a recurring basis and indicate the level of the fair value hierarchy used to determine such fair values (in thousands):
Fair value measurements as of December 31, 2025
Level 1Level 2Level 3Total
Assets
Cash equivalents$12,132 $— $— $12,132 
Short-term investments18,266 — — 18,266 
$30,398 $— $— $30,398 
Liabilities
Warrant liability$— $— $186 $186 
$— $— $186 $186 
Fair value measurements at December 31, 2024
Level 1Level 2Level 3Total
Assets
Cash equivalents$13,721 $— $— $13,721 
Short-term investments33,821 — — 33,821 
$47,542 $— $— $47,542 
Level 3 liability valuations are based on unobservable inputs, which reflect the Company's own assumptions incorporated in valuation techniques used to determine fair value; further discussion of these assumptions is set forth below. During the years December 31, 2025 and 2024, there were no transfers in or out of Level 3.
Cash equivalents
Cash equivalents consist of money market funds and treasury bills, and are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices in active markets. The Company considers all highly liquid interest-earning investments with a maturity of 90 days or less at the date of purchase to be cash equivalents. The fair values of these investments approximate their carrying values.
Valuation of short-term investments
U.S. Treasury bills and notes included in short-term investments were valued by the Company using quoted prices in active markets for identical securities, which represents a Level 1 measurement within the fair value hierarchy.
Valuation of warrant liability
Under the LSA, the Company is required to issue warrants to purchase shares of the Company's Class A common stock for the draw down of the initial tranche on August 8, 2025 of $20.0 million, and the subsequent second and third tranches of $10.0 million and $10.0 million, respectively. The exercise price for each warrant shall be equal to the lower of (a) the volume-weighted average price over the ten days prior to the drawdown and (b) the closing price on the day immediately prior to the drawdown, of the Company's Class A common stock. The number of shares of the Company's Class A common stock for which each warrant is exercisable is equal to 3.0% of the drawn down amount of the applicable tranche, divided by the exercise price.

In connection with the draw down of the initial tranche on August 8, 2025, the Company issued warrants to purchase up to an aggregate of 179,104 shares of Company's Class A Common Stock at an exercise price of $3.35 per share.
As it relates to the warrants issued for the initial tranche, the Company concluded they meet the requirements for equity classification given the exercise price and number of shares are fixed. As it relates to the subsequent second and third tranche, given the strike price is a floating strike price which will not be set until drawn, the Company concluded they should be accounted for as liabilities until drawn.
The fair value of the warrant liability at December 31, 2025 was determined using the Black-Scholes option pricing model. This represents a Level 3 measurement within the fair value hierarchy. The key inputs for the Black-Scholes valuation model were as follows:
Fair value inputs as of December 31, 2025
Exercise price$3.35 
Stock price$2.90 
Expected volatility40.09 %
Expected term (in years)5.0
Risk-free interest rate3.73 %
Expected dividend yield— %
Change in fair value of Level 3 liabilities
The following table presents a reconciliation of the warrant liability measured at fair value on a recurring basis as of December 31, 2025:
Warrant liability
Balance at August 8, 2025 (Issuance date)$317 
Net gain in revaluation of warrant liability(131)
Balance at December 31, 2025$186 
The change in fair value of the warrant liability is recognized in the other expenses line of the consolidated statements of operations.