v3.26.1
Fair Value of Financial Instruments
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
FAIR VALUE OF FINANCIAL INSTRUMENTS

(4) FAIR VALUE OF FINANCIAL INSTRUMENTS

The fair value of the Company’s financial assets and liabilities are determined in accordance with the fair value hierarchy established in ASC 820, Fair Value Measurements and Disclosures.

The following table presents the Company’s investments, which consist of cash equivalents and investments classified as available-for-sale investments, that are measured at fair value on a recurring basis by level within the fair value hierarchy as of March 31, 2026 and December 31, 2025 (in thousands):

 

 

March 31, 2026

 

 

 

Fair Value
Hierarchy
Level

 

Amortized Cost

 

 

Unrealized Gains

 

 

Unrealized Losses

 

 

Fair Value

 

Cash equivalents

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

Level 1

 

$

24,285

 

 

$

—

 

 

$

—

 

 

$

24,285

 

U.S. Treasury securities

 

Level 1

 

 

4,980

 

 

 

—

 

 

 

—

 

 

 

4,980

 

Corporate debt securities

 

Level 2

 

 

1,000

 

 

 

—

 

 

 

—

 

 

 

1,000

 

Short-term investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury securities

 

Level 1

 

 

27,551

 

 

 

3

 

 

 

(22

)

 

 

27,532

 

Corporate debt securities

 

Level 2

 

 

68,919

 

 

 

2

 

 

 

(143

)

 

 

68,778

 

Commercial paper

 

Level 2

 

 

11,748

 

 

 

—

 

 

 

(18

)

 

 

11,730

 

Long-term investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury securities

 

Level 1

 

 

7,004

 

 

 

1

 

 

 

(10

)

 

 

6,995

 

Corporate debt securities

 

Level 2

 

 

21,846

 

 

 

—

 

 

 

(58

)

 

 

21,788

 

Total

 

 

 

$

167,333

 

 

$

6

 

 

$

(251

)

 

$

167,088

 

 

 

 

December 31, 2025

 

 

 

Fair Value
Hierarchy
Level

 

Amortized Cost

 

 

Unrealized Gains

 

 

Unrealized Losses

 

 

Fair Value

 

Cash equivalents

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

Level 1

 

$

14,682

 

 

$

—

 

 

$

—

 

 

$

14,682

 

Short-term investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury securities

 

Level 1

 

 

5,462

 

 

 

5

 

 

 

—

 

 

 

5,467

 

U.S. government agency securities

 

Level 2

 

 

996

 

 

 

—

 

 

 

—

 

 

 

996

 

Corporate debt securities

 

Level 2

 

 

19,194

 

 

 

21

 

 

 

—

 

 

 

19,215

 

Commercial paper

 

Level 2

 

 

2,738

 

 

 

1

 

 

 

—

 

 

 

2,739

 

Long-term investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debt securities

 

Level 2

 

 

3,493

 

 

 

1

 

 

 

—

 

 

 

3,494

 

Total

 

 

 

$

46,565

 

 

$

28

 

 

$

—

 

 

$

46,593

 

The fair value of cash equivalents and available-for-sale investments by classification included in the condensed consolidated balance sheets was as follows as of March 31, 2026 and December 31, 2025 (in thousands):

 

 

March 31,

 

 

December 31,

 

 

 

2026

 

 

2025

 

Cash equivalents

 

$

30,265

 

 

$

14,682

 

Short-term investments

 

 

108,040

 

 

 

28,417

 

Long-term investments

 

 

28,783

 

 

 

3,494

 

Total

 

$

167,088

 

 

$

46,593

 

Cash and cash equivalents in the above table excludes bank account cash of $2.0 million and $1.7 million as of March 31, 2026 and December 31, 2025, respectively.

The fair value of cash equivalents and available-for-sale investments by contractual maturity was as follows as of March 31, 2026 and December 31, 2025 (in thousands):

 

 

March 31,

 

 

December 31,

 

 

 

2026

 

 

2025

 

Maturing in one year or less

 

$

138,305

 

 

$

43,099

 

Maturing after one year through five years

 

 

28,783

 

 

 

3,494

 

Total

 

$

167,088

 

 

$

46,593

 

The primary objective of the Company’s investment portfolio is to maintain safety of principal, prudent levels of liquidity and acceptable levels of risk. The Company’s investment policy limits investments to certain types of instruments issued by institutions with investment-grade credit ratings, and it places restrictions on maturities and concentration by asset class and issuer.

There were no transfers of financial instruments between the fair value measurement levels during the three months ended March 31, 2026 and 2025 and there were no financial instruments classified as Level 3 as of March 31, 2026 and December 31, 2025.

As of March 31, 2026 and December 31, 2025, accrued interest receivable related to the Company’s investments of $1.0 million and $0.3 million was included in prepaid expenses and other current assets on the condensed consolidated balance sheet.

As of March 31, 2026, the unrealized losses for available-for-sale investments were non-credit related and the Company does not intend to sell the investments that were in an unrealized loss position, nor does it foresee or project that it will be required to sell those investments before recovery of their amortized costs basis, which may be maturity. As of March 31, 2026 and 2025, no allowance for credit losses for the Company’s investments was recorded. As of March 31, 2026 and December 31, 2025, no securities were in a continuous net unrealized loss position for more than 12 months. As of March 31, 2026 and 2025, the Company has not recognized any impairment losses on available-for-sale investments.