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

NOTE 4. FAIR VALUE MEASUREMENTS

The following tables show the Company's cash, cash equivalents and marketable securities measured at fair value on a recurring basis as of March 31, 2026 and December 31, 2025:

 

 

Fair Value Measurements as of March 31, 2026

 

 

 

 

 

 

Unaudited

 

(in thousands)

 

Adjusted Cost Basis

 

 

Unrealized Gains

 

 

Unrealized Losses

 

 

Fair Value

 

 

Cash and Cash Equivalents

 

 

Marketable Securities

 

    Cash

 

$

1,600

 

 

$

—

 

 

$

—

 

 

$

1,600

 

 

$

1,600

 

 

$

—

 

Level 1:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    Money market funds

 

 

29,811

 

 

 

—

 

 

 

—

 

 

 

29,811

 

 

 

29,811

 

 

 

—

 

    Commercial paper

 

 

1,852

 

 

 

—

 

 

 

(1

)

 

 

1,851

 

 

 

—

 

 

 

1,851

 

Total Level 1:

 

 

31,663

 

 

 

—

 

 

 

(1

)

 

 

31,662

 

 

 

29,811

 

 

 

1,851

 

Level 2:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    U.S. Treasury securities

 

 

5,755

 

 

 

—

 

 

 

(6

)

 

 

5,749

 

 

 

—

 

 

 

5,749

 

    U.S. Government securities

 

 

19,307

 

 

 

6

 

 

 

(6

)

 

 

19,307

 

 

 

—

 

 

 

19,307

 

    Certificates of deposit

 

 

338

 

 

 

—

 

 

 

—

 

 

 

338

 

 

 

—

 

 

 

338

 

    Corporate debt securities

 

 

25,592

 

 

 

4

 

 

 

(40

)

 

 

25,556

 

 

 

—

 

 

 

25,556

 

Total Level 2:

 

 

50,992

 

 

 

10

 

 

 

(52

)

 

 

50,950

 

 

 

—

 

 

 

50,950

 

 

 

$

84,255

 

 

$

10

 

 

$

(53

)

 

$

84,212

 

 

$

31,411

 

 

$

52,801

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair Value Measurements as of December 31, 2025

 

(in thousands)

 

Adjusted Cost Basis

 

 

Unrealized Gains

 

 

Unrealized Losses

 

 

Fair Value

 

 

Cash and Cash Equivalents

 

 

Marketable Securities

 

    Cash

 

$

1,059

 

 

$

—

 

 

$

—

 

 

$

1,059

 

 

$

1,059

 

 

$

—

 

Level 1:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    Money market funds

 

 

36,293

 

 

 

—

 

 

 

—

 

 

 

36,293

 

 

 

36,293

 

 

 

—

 

    Commercial paper

 

 

986

 

 

 

—

 

 

 

—

 

 

 

986

 

 

 

—

 

 

 

986

 

Total Level 1:

 

 

37,279

 

 

 

—

 

 

 

—

 

 

 

37,279

 

 

 

36,293

 

 

 

986

 

Level 2:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    U.S. Treasury securities

 

 

3,783

 

 

 

2

 

 

 

—

 

 

 

3,785

 

 

 

—

 

 

 

3,785

 

    U.S. Government securities

 

 

14,988

 

 

 

28

 

 

 

—

 

 

 

15,016

 

 

 

—

 

 

 

15,016

 

    Certificates of deposit

 

 

1,201

 

 

 

1

 

 

 

—

 

 

 

1,202

 

 

 

—

 

 

 

1,202

 

    Corporate debt securities

 

 

34,219

 

 

 

28

 

 

 

(2

)

 

 

34,245

 

 

 

—

 

 

 

34,245

 

Total Level 2:

 

 

54,191

 

 

 

59

 

 

 

(2

)

 

 

54,248

 

 

 

—

 

 

 

54,248

 

 

 

$

92,529

 

 

$

59

 

 

$

(2

)

 

$

92,586

 

 

$

37,352

 

 

$

55,234

 

 

The carrying value of the Company’s cash, cash equivalents, accounts receivable, other current assets, accounts payable, and accrued expenses and other current liabilities approximate fair value because of the relatively short-term nature of the underlying assets or liabilities. The Company's marketable securities are managed by an external investment advisor. These securities are recorded at fair value and are generally classified within Level 1 or Level 2 of the fair value hierarchy using quoted market prices or quotes from market makers or broker-dealers. Marketable securities classified within Level 1 are valued based on quoted market prices in active markets and consist of commercial paper. Level 2 marketable securities primarily consist of investment grade and high-yield corporate debt, U.S. Treasury securities, U.S. Government securities and certificates of deposit. Financial instruments classified as Level 2 are valued based on quoted market prices for similar assets or liabilities or 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. The Company periodically validates the prices provided by the investment advisor by comparing them to other independent pricing sources or through an internal review of the advisor's valuation methodology.

 

 

 

 

Contractual Maturities

The following table summarizes the remaining contractual maturities of the Company's marketable securities as of March 31, 2026:

 

 

As of March 31, 2026

 

(in thousands)

 

Fair Value

 

Due within one year

 

$

44,248

 

Due after one year to two years

 

 

8,553

 

Total

 

$

52,801

 

Private Placement Warrants

Private Placement Warrants are valued using the Black-Scholes-Merton Model, which is considered to be a Level 3 fair value measurement, as such they are classified within Level 3 of the fair value hierarchy. The primary unobservable input utilized in determining the fair value of the Private Placement Warrants is the implied volatility from trading prices of the Company's Public Warrants. Significant increases (decreases) in this input in isolation would have resulted in a significantly higher (lower) fair value measurement.

The following table presents the Company's Private Placement Warrants measured at fair value on a recurring basis for the three months ended March 31, 2026 and 2025:

 

 

Level 3 Liabilities

 

 

 

 

 

 

Unaudited

 

 

 

 

 

 

For the Three Months Ended March 31, 2026

 

(in thousands)

 

Beginning Balance

 

 

Change in Fair Value

 

 

Ending Balance

 

Private Placement Warrants

 

$

199

 

 

$

(165

)

 

$

34

 

 

 

 

 

 

 

 

 

 

 

 

 

Level 3 Liabilities

 

 

 

 

 

 

Unaudited

 

 

 

 

 

 

For the Three Months Ended March 31, 2025

 

(in thousands)

 

Beginning Balance

 

 

Change in Fair Value

 

 

Ending Balance

 

Private Placement Warrants

 

$

1,690

 

 

$

(484

)

 

$

1,206

 

 

 

 

 

 

 

 

 

 

 

The following were the inputs utilized in determining the fair value of the Private Placement Warrants as of March 31, 2026 and 2025:

 

March 31,

 

Unaudited

 

2026

 

 

2025

 

Dividend yield (1)

 

 

0

%

 

 

0

%

Expected volatility (2)

 

 

62.6

%

 

 

80.5

%

Risk-free interest rate (3)

 

 

3.71

%

 

 

4.00

%

Term to warrant expiration (years)

 

 

0.22

 

 

 

1.22

 

(1) No dividends were paid during the three months ended March 31, 2026 and 2025.

(2) The expected volatility is based on the back-solved implied volatility of the Company's public warrants as of the valuation date.

(3) The risk-free interest rate is based on the yield from U.S. Treasury bonds with an equivalent term to the time to maturity of the warrants.