v3.26.1
Fair Value Measurements
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
The fair value measurements of assets and liabilities that are measured at fair value on a recurring basis consisted of the following as of March 31, 2026 (in thousands):
As of March 31, 2026
Level 1Level 2Level 3Total
Current assets:
Money market funds$392,993 $- $- $392,993 
Total assets$392,993 $- $- $392,993 
Liabilities:
Common stock warrants$- $8,924 $- $8,924 
Term loan- - 90,005 90,005 
Total liabilities$- $8,924 $90,005 $98,929 

The fair value measurements of assets and liabilities that are measured at fair value on a recurring basis consisted of the following as of December 31, 2025 (in thousands):
As of December 31, 2025
Level 1Level 2Level 3Total
Current assets:
Money market funds$359,813 $- $- $359,813 
Total assets$359,813 $- $- $359,813 
Liabilities:
Common stock warrants$- $9,282 $- $9,282 
Term loan- - 57,226 57,226 
Total liabilities$- $9,282 $57,226 $66,508 
Level 3 instruments consist of the Company’s term loan due to the lack of relevant observable market data for the respective fair value inputs of the instrument.
In August 2024, the Company entered into a term loan agreement which the Company elected to account for using the fair value option. As such, the fair value of the debt is calculated by using the probability weighting of the present value of settlement scenarios (See Note 6).
The significant assumptions used in preparing the income approach model for valuing the term loan as of March 31, 2026 and December 31, 2025, are as follows:
March 31,
2026		December 31,
2025
Discount rate7.10 %7.10 %
Annual interest rate8.00 %8.00 %
Expected term (years) – Scenario 144.25
Expected term (years) – Scenario 25.355.6
The fair values of the common stock warrants are measured using a probability weighted option pricing model.

The significant assumptions used in preparing the option pricing model for valuing the common stock warrant liability as of March 31, 2026 and December 31, 2025 are as follows:
March 31,
2026		December 31,
2025
Exercise price
$2.80 - $10.92
$2.80 – $10.92
Volatility70.9 %53.5 %
Expected term (years)0.10.3
Risk-free rate3.74 %3.63 %
Dividend yield- %- %
The redeemable convertible preferred stock warrant liability was reclassified to equity upon the exercise of the underlying warrants; as such, the redeemable convertible preferred stock warrant liability fair value was determined as of the date of exercise, on November 14, 2025.
The following tables present a summary of the changes in the fair value of the Company’s Level 3 financial instruments (in thousands):
Term Loan
Balance at December 31, 2025$57,226 
Additions30,000 
Adjustments to fair value2,779 
Balance at March 31, 2026$90,005 
Common Stock
Warrants		Redeemable
Convertible
Preferred Stock
Warrants		Term Loan
Balance at December 31, 2024$2,533 $230 $51,481 
Adjustments to fair value(58)2 1,797 
Balance at March 31, 2025$2,475 $232 $53,278 
For the three months ended March 31, 2026 and 2025, the Company recognized losses related to the change in fair value of the term loan in change in fair value of term loan in the statements of operations and comprehensive income (loss).

For the three months ended March 31, 2026 and 2025, the Company recognized gains (losses) related to the change in the fair value of the common stock warrant liability and for the three months ended March 31, 2025, the Company recognized a loss related to the change in convertible preferred stock warrant liability in other expense, net in the statements of operations and comprehensive income (loss).

The common stock warrant liability is recorded within common stock warrant liability on the balance sheet as of March 31, 2026 and December 31, 2025. The term loan is recorded within long-term debt on the balance sheets as of March 31, 2026 and December 31, 2025.
During the three months ended March 31, 2026 and 2025, the Company had no transfers of financial assets or liabilities between different levels of the fair value hierarchy.