v3.26.1
Fair Value Measurements
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
The Company records certain of its financial assets and liabilities at fair value. The accounting guidance for fair value provides a framework for measuring fair value and clarifies the definition of fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the reporting date. The accounting guidance establishes a three-tiered hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring 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; and
•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 certain financial instruments of the Company, including cash and cash equivalents, prepaid expenses and other current assets, accounts payable and accrued liabilities, approximate fair value due to their relatively short maturities. The fair value of the Company’s financial assets include treasury bills, money market funds and deposits for leases of the Company's facilities. As of March 31, 2026 and December 31, 2025, the Company had the following financial instruments measured at fair value (in thousands of dollars):

March 31, 2026Level ILevel IILevel IIITotalBalance Sheet LineRecorded Method
Assets
Money market funds$29,659 $— $— $29,659 Cash and cash equivalentsFair value
Treasury bills100,924 — — 100,924 Short-term investmentsAmortized cost
Certificates of deposit— 75,000 — 75,000 Short-term investmentsAmortized cost
Deposits for the leases1,657 — — 1,657 Restricted cashFair value
Total assets$132,240 $75,000 $— $207,240 
Liabilities
Acquisition-related contingent consideration$— $— $1,239 $1,239 Acquisition-related contingent considerationFair value
December 31, 2025Level ILevel IILevel IIITotalBalance Sheet LineRecorded Method
Assets
Money market funds$29,300 $— $— $29,300 Cash and cash equivalentsFair value
Treasury bills50,300 — — 50,300 Cash and cash equivalentsFair value
Treasury bills50,311 — — 50,311 Short-term investmentsAmortized cost
Deposits for the leases1,648 — — 1,648 Restricted cashFair value
Total assets$131,559 $— $— $131,559 
Liabilities
Acquisition-related contingent consideration$— $— $1,589 $1,589 Acquisition-related contingent considerationFair value
There were no transfers between Levels 1, 2 or 3 for the three months ended March 31, 2026 and 2025.
 
As of March 31, 2026 and December 31, 2025, the contingent consideration related to the acquisition of the exclusive global diagnostic license to the nCounter Analysis System was remeasured to $1.2 million and $1.6 million, respectively. For the three months ended March 31, 2026 and 2025, reversal of expense of $0.4 million and zero, respectively, was recorded. As of March 31, 2026, the achievement of one of the milestones is forecasted to occur within the next 12 months. As a result, $1.0 million of the contingent consideration is included in short term liabilities at March 31, 2026.

The fair value of contingent consideration includes inputs that are not observable in the market. The estimation of the fair value of the contingent consideration is based on the present value of the expected payments calculated by assessing the likelihood of when the related milestones would be achieved and estimating the Company's borrowing rate. These estimates form the basis for making judgments about the carrying value of the contingent consideration that are not readily apparent from other sources. Changes to the forecasts for the achievement of the milestones and the borrowing rate can significantly affect the estimated fair value of the contingent consideration. As of March 31, 2026 and December 31, 2025, the Company calculated the estimated fair value of the milestones using the following significant unobservable inputs:
 
Value or Range (Weighted-Average)
Unobservable inputMarch 31, 2026December 31, 2025
Discount rate
5.3%
4.8%
Probability of achievement
4% - 30% (25%)
4% - 40% (34%)
 
Short-Term Investments Held-to-Maturity

The Company's short-term investments consist of United States treasury securities and certificates of deposit with maturities, at the time of purchase, that were between three months and one year. Based upon the Company's intent and ability to hold its short-term investments to maturity, the Company classified these investments as held-to-maturity and recorded them at amortized cost. As of March 31, 2026 and December 31, 2025, the Company had the following short-term investments (in thousands of dollars):

March 31, 2026
Amortized CostGross Unrealized Holding GainsGross Unrealized Holding LossesFair Value
Treasury bills$100,924 $57 $— $100,981 
Certificates of deposit75,000 — (125)74,875 
Total short-term investments$175,924 $57 $(125)$175,856 

December 31, 2025
Amortized CostGross Unrealized Holding GainsGross Unrealized Holding LossesFair Value
Treasury bills$50,311 $69 $— $50,380