v3.26.1
Fair Value Measurements and Investments
 12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements and Investments

4. Fair Value Measurements and Investments

The Company determines the fair value of financial and non-financial assets and liabilities using the fair value hierarchy, which establishes three levels of inputs that may be used to measure fair value, as follows:

•
Level I: Inputs which include quoted prices in active markets for identical assets and liabilities.
•
Level II: Inputs other than Level I that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
•
Level III: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

The carrying amounts of the Company’s financial instruments, including restricted cash, accounts receivable, accounts payable and accrued liabilities approximate fair value due to their relatively short maturities. The Company’s financial instruments consist of Level I and Level II assets which consist primarily of highly liquid money market funds, some of which are included in restricted cash and U.S. Treasury securities that are included in short-term investments. Our Level II marketable securities are valued using third-party pricing sources, which can include observable market prices, interest rates and yield curves observable at commonly quoted intervals for similar assets as observable inputs for pricing.

The following tables set forth the fair value of the Company’s investments subject to fair value measurements on a recurring basis and the level of inputs used in such measurements:

 

 

 

 

 

December 31, 2025

 

 

 

Valuation
Hierarchy

 

Amortized
Cost

 

 

Unrealized
Gains

 

 

Aggregate
Fair Value

 

 

 

 

 

(in thousands)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

Level I

 

$

12,775

 

 

$

—

 

 

$

12,775

 

Restricted cash (money market funds)

 

Level I

 

 

1,527

 

 

 

—

 

 

 

1,527

 

U.S. Treasury securities

 

Level II

 

 

124,274

 

 

 

111

 

 

 

124,385

 

Total

 

 

 

$

138,576

 

 

$

111

 

 

$

138,687

 

 

 

 

 

 

 

December 31, 2024

 

 

 

Valuation
Hierarchy

 

Amortized
Cost

 

 

Unrealized
Gains

 

 

Aggregate
Fair Value

 

 

 

 

 

(in thousands)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

Level I

 

$

28,313

 

 

$

—

 

 

$

28,313

 

Restricted cash (money market funds)

 

Level I

 

 

1,027

 

 

 

—

 

 

 

1,027

 

U.S. Treasury securities

 

Level II

 

 

72,503

 

 

 

27

 

 

 

72,530

 

Total

 

 

 

$

101,843

 

 

$

27

 

 

$

101,870

 

 

As of December 31, 2025, the remaining contractual terms of the U.S. Treasury securities are less than a year. Based on the scheduled maturities of our marketable securities, we determined that it was more likely than not that we will hold these marketable securities to maturity for a recovery of our cost basis.