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

4. FAIR VALUE MEASUREMENTS

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value are performed in a manner to maximize the use of observable inputs and minimize the use of unobservable inputs.

The Company classified its money market funds within Level 1 because their fair values are based on their quoted market prices. The Company classified its debt securities within Level 2 because their fair values are determined using alternative pricing sources or models that utilized market observable inputs.

A summary of the assets that are measured at fair value as of March 31, 2026 and December 31, 2025 is as follows (in thousands):

 

 

 

Fair Value Measurement at
March 31, 2026

 

Assets:

 

Carrying
Value

 

 

Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)

 

 

Significant
other
Observable
Inputs
(Level 2)

 

 

Significant
Unobservable
Inputs
(Level 3)

 

Money market funds(1)

 

$

202,396

 

 

$

202,396

 

 

$

—

 

 

$

—

 

Total

 

$

202,396

 

 

$

202,396

 

 

$

—

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Paramora warrant obligation

 

$

4,984

 

 

$

—

 

 

$

4,984

 

 

$

—

 

Total

 

$

4,984

 

 

$

—

 

 

$

4,984

 

 

$

—

 

 

 

 

Fair Value Measurement at
December 31, 2025

 

Assets:

 

Carrying
Value

 

 

Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)

 

 

Significant
other
Observable
Inputs
(Level 2)

 

 

Significant
Unobservable
Inputs
(Level 3)

 

Money market funds(1)

 

$

200,628

 

 

$

200,628

 

 

$

—

 

 

$

—

 

Total

 

$

200,628

 

 

$

200,628

 

 

$

—

 

 

$

—

 

 

(1)
Money market funds with maturities of 90 days or less at the date of purchase are included within cash and cash equivalents in the accompanying consolidated balance sheets and are recognized at fair value.

Paramora warrant obligation

 

The Paramora Warrant Obligation is considered a Level 2 liability based on observable market data for substantially the full term of the liability. The Paramora Warrant Obligation is measured each period using a Black-Scholes model to estimate the fair value of the option grant. Changes in the fair value of the Paramora Warrant Obligation are recorded as stock-based compensation within Research and development expenses for non-employees who provided pre-clinical development services.