v3.26.1
Employee Retirement Plans
 12 Months Ended
Dec. 31, 2025
Retirement Benefits [Abstract]  
Employee Retirement Plans

13. Employee retirement plans

Defined benefit plan

The Company, in compliance with Swiss Law, is contracted with AXA, for the provision of pension benefits in a defined benefit plan. All benefits are organized in a semi-autonomous collective foundation within the framework of the contract with AXA. Insurance benefits due are paid directly to the entitled persons by AXA in the name of and for the account of the collective foundation. The pension plan is financed by contributions of both employees and the Company.

The contract between the Company and the collective foundation can be terminated by either side. In the event of a termination, the Company would have an obligation to find alternative pension arrangements for its employees. Because there is no guarantee that the employee pension arrangements would be continued under the same conditions, there is a risk, albeit remote, that a pension obligation may fall on the Company.

The pension assets are pooled for all affiliated companies; the investment of assets is done by the governing bodies of the collective foundation.

The following table represents the changes in benefit obligations and plan assets and the net amount recognized on the consolidated balance sheets (in thousands):

 

 

Year ended
 December 31,

 

 

2025

 

 

2024

 

Change in benefit obligation:

 

 

 

 

 

 

Benefit obligation—beginning of period

 

$

13,115

 

 

$

12,029

 

Service cost employer

 

 

1,233

 

 

 

1,029

 

Contributions paid by employees

 

 

502

 

 

 

425

 

Interest cost

 

 

140

 

 

 

174

 

Contributions paid by plan participants

 

 

219

 

 

 

690

 

Benefits paid

 

 

(343

)

 

 

(1,276

)

Plan Amendment

 

 

—

 

 

 

(9

)

Actuarial loss

 

 

833

 

 

 

960

 

Foreign currency revaluation

 

 

2,006

 

 

 

(907

)

Benefit obligation—end of period

 

$

17,705

 

 

$

13,115

 

Change in plan assets:

 

 

 

 

 

 

Fair value of plan assets—beginning of period

 

$

9,413

 

 

$

9,316

 

Actual return on plan assets

 

 

253

 

 

 

106

 

Contributions paid by employer

 

 

973

 

 

 

826

 

Contributions paid by employees

 

 

502

 

 

 

425

 

Contributions paid by plan participants

 

 

219

 

 

 

690

 

Benefits paid

 

 

(343

)

 

 

(1,276

)

Foreign currency revaluation

 

 

1,423

 

 

 

(674

)

Fair value of plan assets—end of period

 

$

12,440

 

 

$

9,413

 

Defined benefit plan liability

 

$

5,265

 

 

$

3,702

 

 

The net pension cost was as follows (in thousands):

 

 

Year ended
December 31,

 

 

2025

 

 

2024

 

Service cost

 

$

1,233

 

 

$

1,029

 

Interest cost

 

 

140

 

 

 

174

 

Net pension cost

 

$

1,373

 

 

$

1,203

 

 

The provision for pension benefit obligation recognized in other comprehensive loss was as follows (in thousands):

 

 

Year ended
 December 31,

 

 

2025

 

 

2024

 

Actuarial (loss) gain arising from experience adjustments

 

$

(1,589

)

 

$

80

 

Actuarial gain (loss) arising from changes in financial assumptions

 

 

756

 

 

 

(1,040

)

Defined benefit cost for the year recognized in other comprehensive loss

 

$

(833

)

 

$

(960

)

 

 

The assumptions used to measure the projected benefit obligation and net pension costs were as follows:

 

 

Year ended
 December 31,

 

2025

 

2024

Inflation rate

 

0.90%

 

1.00%

Discount rate

 

1.35%

 

1.00%

Interest rate on savings accounts

 

1.25%

 

1.00%

Expected rate of return on assets

 

1.35%

 

1.00%

Salary increase

 

1.25%

 

1.25%

Social Security increase

 

0.90%

 

1.00%

Pension increase

 

0.00%

 

0.00%

Retirement age

 

100% Male 65 Female 65

 

100% Male 65 Female 65

Mortality and disability rates

 

BVG 2020 Table

 

BVG 2020 Table

 

Estimated benefit payments, which reflect future expected service, are expected to be paid as follows (in thousands):

 

 

December 31,

 

2026

 

$

1,166

 

2027

 

$

1,197

 

2028

 

$

1,225

 

2029

 

$

1,249

 

2030

 

$

1,272

 

2031-2035

 

$

7,419

 

 

Defined contribution plans

In February 2021, the Company adopted a defined contribution plan intended to qualify under Section 401(k) of the Internal Revenue Code covering all eligible U.S. based employees of the Company. All employees are eligible to become participants of the plan immediately upon hire. Each active employee may elect, voluntarily, to contribute a percentage of their compensation to the plan each year, subject to certain limitations. The Company reserves the right, but is not obligated, to make additional contributions to this plan. The Company makes safe-harbor match contributions of 100% of the first 4% of each participant’s eligible compensation. In January 2024, the Company adopted a defined contribution supplemental pension plan for eligible Swiss based employees defined by Swiss Law Art.1e BVV 2, or the 1e Plan. Employees earning above a defined threshold are eligible and automatically enrolled in the 1e Plan and required contributions are determined by age and salary under Swiss Law. The Company and the employee share the costs of the 1e Plan. The Company recorded $1.0 million and $0.8 million in defined contribution related expenses during the years ended December 31, 2025 and 2024, respectively.