v3.26.1
Fair Value Measurement
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurement

Note 3. Fair Value Measurement

The Company measures and reports certain financial instruments as assets and liabilities at fair value on a recurring basis. The following tables set forth the fair value of the Company’s financial assets, which consist of cash equivalents and marketable securities measured and recognized at fair value (in thousands):

 

 

 

 

 

March 31, 2026

 

 

 

Fair Value
Hierarchy
Level

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

Financial assets included in cash and cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

Level 1

 

$

43,610

 

 

$

—

 

 

$

—

 

 

$

43,610

 

Total

 

 

 

 

43,610

 

 

 

—

 

 

 

—

 

 

 

43,610

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Warrant liability

 

Level 3

 

 

18,372

 

 

 

—

 

 

 

—

 

 

 

18,372

 

Total

 

 

 

$

18,372

 

 

$

—

 

 

$

—

 

 

$

18,372

 

 

 

 

 

 

December 31, 2025

 

 

 

Fair Value
Hierarchy
Level

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

Financial assets included in cash and cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

Level 1

 

$

55,030

 

 

$

—

 

 

$

—

 

 

$

55,030

 

Total

 

 

 

 

55,030

 

 

 

—

 

 

 

—

 

 

 

55,030

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Warrant liability

 

Level 3

 

 

17,791

 

 

 

—

 

 

 

—

 

 

 

17,791

 

Total

 

 

 

$

17,791

 

 

$

—

 

 

$

—

 

 

$

17,791

 

 

The Company evaluates transfers between levels at the end of each reporting period. There were no transfers between Levels 1, 2 and 3 during the three months ended March 31, 2026 and 2025. There have been no realized or unrealized gains or losses recognized for the periods presented.

There were no investments as of March 31, 2026 and December 31, 2025, as such, no allowance for credit losses has been recognized as of March 31, 2026. During the three months ended March 31, 2026 and 2025, the Company did not recognize any impairment losses related to investments.

The warrant liability in the table above consisted of the fair value of the Common Warrants (see Note 5) and was based on significant inputs not observable in the market, which represents a Level 3 measurement within the fair value hierarchy.

The following table provides a full roll forward of the aggregate fair value of the warrant liability categorized within Level 3 inputs (in thousands):

 

 

Warrant Liability

 

Balance at December 31, 2025

 

$

17,791

 

Issuance of common warrants

 

 

—

 

Change in fair value

 

 

581

 

Balance at March 31, 2026

 

$

18,372