v3.26.1
Fair value of financial instruments
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
Fair value of financial instruments Fair value of financial instruments
Term Loan Credit Facility and debt derivative liability
The Term Loan Credit Facility contains various features that meet the definition of an embedded derivative and require bifurcation. These features, which were necessary for the Company to accept in order for Alcon to agree to provide the term loan financing, comprise various options for early prepayment of the term loans at stated premiums above par if certain future events were to occur, as described more fully in note 9. These embedded derivatives were initially recorded at fair value as a noncurrent liability (“debt derivative liability”) offset by a discount to the carrying value of the Term Loan Credit Facility that is being amortized to interest expense over the term of that facility. The debt derivative liability is being subsequently remeasured at fair value every reporting period with changes in fair value reported as a non-operating item on the statement of operations.
The disclosed fair value of the term loan and the recorded fair value of the debt derivative liability are estimated using a discounted cash flow method (a level 3 measurement) that includes annually weighted probabilities that the lender exercises its option to require payment of the term loans upon a qualifying change in control or that the debt is held to maturity and refinanced. As of March 31, 2026, the fair value of the term loan, excluding the value of the embedded debt derivative liability, was $142,700 with a carrying value of $137,306; the fair value of the debt derivative liability was $29,719, which was the same as its carrying value. As of December 31, 2025, the fair value of the term loan, excluding the value of the embedded debt derivative liability, was $149,400 with a carrying value of $130,563; the fair value of the debt derivative liability was $26,564, which was the same as its carrying value.
The debt derivative liability is currently the only financial instrument recorded at fair value on a recurring basis in the accompanying balance sheets. The following table presents information about those measurements:
Type of measurementMeasurement dateType of measurement
Level 1Level 2Level 3
Liabilities
Debt derivative liabilityRecurringMarch 31, 2026— — 29,719 
Debt derivative liabilityRecurringDecember 31, 2025— — 26,564 
The following table presents the rollforward reconciliation of this level 3 recurring fair value measurement:
Three months ended
March 31,
2026		February 23,
2025
Balance at beginning of period$26,564 $23,300 
Change in fair value recorded in earnings
3,155 600 
Balance at end of period$29,719 $23,900 
The key inputs to the valuation model are (i) the probability and timing of a change in control event occurring over the remaining term of the debt; and (ii) the discount rate, which can be influenced by changes in the risk-free rate, the Company's credit rating and/or changes in the overall credit market. Factors that can affect the estimate of fair value at each reporting date, and therefore the amount of gain or loss recorded for a particular period, include imprecision in estimating unobservable market inputs and the selection of particular methodologies and assumptions used to determine the fair value.
Key inputs used to develop the fair value measurement were as follows:
March 31,
2026		December 31,
2025
Probability of change in control event80.0 %80.0 %
Weighted average discount rate21.1 %17.6 %
The weighted average discount rate was calculated based on the individual discount rate used for each future payment and weighted by both the present value of the future payments and the probability of each scenario.
Cash and Revolving Credit Facility
Cash and outstanding borrowings under the Company's Revolving Credit Facility, if any, are carried at cost, which approximates fair value due to their short duration and variable rates of interest (a level 2 measurement).
Leaseback liability with related party
As discussed further in note 9, the Company maintains a financial liability for an equipment sale and leaseback with Alcon for which control of the asset was deemed not to have transferred.
In accordance with U.S. GAAP, the Company presents supplemental fair value information based on market conditions of the underlying financial instrument. The fair value information does not change the stated rate or carrying value of the instrument. The fair value of the leaseback liability was estimated using a discounted cash flow method (a level 3 measurement) that assumes a weighted-average discount rate of 5.4% and 5.1% as of March 31, 2026 and December 31, 2025, respectively. As of March 31, 2026 and December 31, 2025, the fair value of the leaseback liability approximated its carrying value of $5,604 and $5,798, respectively.
Customer deposit
A significant customer of the Company agreed to provide an upfront cash deposit in order to finance working capital requirements for the duration of its commercial supply agreement with the Company. The deposit bears no interest and is to be repaid after a wind-up period following expiration or termination of the commercial supply agreement. The commercial supply agreement, which was previously extended through December 31, 2026, automatically renewed on December 31, 2025 for one additional year, resulting in a current term ending December 31, 2027.
In accordance with U.S. GAAP, the Company presents supplemental fair value information based on market conditions of the underlying financial instrument. The fair value information does not change the stated rate or carrying value of the instrument. The fair value of the deposit is estimated using a discounted cash flow method (a level 3 measurement) that includes assumed discount rates of 6.2% and 6.0% as of March 31, 2026 and December 31, 2025, respectively. The fair value assumes repayment in 1.8 years and 2.0 years as of March 31, 2026 and December 31, 2025, respectively, which was the remaining contractual term of the agreement as of each measurement date. As of March 31, 2026 and December 31, 2025, the fair value of the deposit approximated its carrying value of $4,632 and $4,515, respectively.