v3.26.1
Fair Value Measurements (Tables)
 3 Months Ended
Mar. 31, 2026
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]  
Summary of Financial Assets Measured at Fair Value on Recurring Basis

The following tables present information about the Company’s financial assets measured at fair value on a recurring basis, based on the three-tier fair value hierarchy:

 

 

As of March 31, 2026

 

(in thousands)

Level 1

 

Level 2

 

Level 3

 

Total

 

Cash equivalents:

 

 

 

 

 

 

 

 

Money market funds

$

4,079

 

$

-

 

$

-

 

$

4,079

 

U.S. Treasury securities

 

-

 

 

1,996

 

 

-

 

 

1,996

 

Total cash equivalents

$

4,079

 

$

1,996

 

$

-

 

$

6,075

 

Current marketable securities:

 

 

 

 

 

 

 

 

U.S. Treasury securities

$

-

 

$

5,952

 

$

-

 

$

5,952

 

Total current marketable securities

$

-

 

$

5,952

 

$

-

 

$

5,952

 

Total marketable securities and cash equivalents

$

4,079

 

$

7,948

 

$

-

 

$

12,027

 

Financial liabilities:

 

 

 

 

 

 

 

 

Loan Facility

$

-

 

$

-

 

$

46,139

 

$

46,139

 

Warrant liabilities

 

-

 

 

-

 

 

2,193

 

 

2,193

 

Non-qualified deferred compensation plan liability

 

-

 

 

3,860

 

 

-

 

 

3,860

 

Total financial liabilities

$

-

 

$

3,860

 

$

48,332

 

$

52,192

 

Financial assets:

 

 

 

 

 

 

 

 

Corporate-owned life insurance policies

$

-

 

$

3,044

 

$

-

 

$

3,044

 

Total financial assets

$

-

 

$

3,044

 

$

-

 

$

3,044

 

 

 

As of December 31, 2025

 

(in thousands)

Level 1

 

Level 2

 

Level 3

 

Total

 

Cash equivalents:

 

 

 

 

 

 

 

 

Money market funds

$

8,448

 

$

-

 

$

-

 

$

8,448

 

Total cash equivalents

$

8,448

 

$

-

 

$

-

 

$

8,448

 

Current marketable securities:

 

 

 

 

 

 

 

 

U.S. Treasury securities

$

-

 

$

7,942

 

$

-

 

$

7,942

 

Total current marketable securities

$

-

 

$

7,942

 

$

-

 

$

7,942

 

Total marketable securities and cash equivalents

$

8,448

 

$

7,942

 

$

-

 

$

16,390

 

Financial liabilities:

 

 

 

 

 

 

 

 

Loan Facility

$

-

 

$

-

 

$

42,984

 

$

42,984

 

Warrant liabilities

 

501

 

 

-

 

 

742

 

 

1,243

 

Non-qualified deferred compensation plan liability

 

-

 

 

3,973

 

 

-

 

 

3,973

 

Total financial liabilities

$

501

 

$

3,973

 

$

43,726

 

$

48,200

 

Financial assets:

 

 

 

 

 

 

 

 

Corporate-owned life insurance policies

$

-

 

$

3,116

 

$

-

 

$

3,116

 

Total financial assets

$

-

 

$

3,116

 

$

-

 

$

3,116

 

 
Summary of Fair Value Measurement Inputs and Valuation Techniques

 

As of March 31, 2026

 

Price of common stock

$

3.70

 

Expected term

10.50 years

 

Expected volatility

 

48.15

%

Exercise price

$

3.4019

 

Risk-free interest rate

 

4.28

%

Expected dividends

 

0.00

%
The fair value of the $10.218 Warrants liability, which is reported within Warrant liabilities on the Consolidated Balance Sheets, is estimated by the Company based on the Black-Scholes option pricing model with the following key inputs:

 

 

As of

 

 

March 31, 2026

 

December 31, 2025

 

Price of common stock

$

3.70

 

$

3.45

 

Expected term

7.56 years

 

7.80 years

 

Expected volatility

 

79.78

%

 

68.94

%

Exercise price

$

10.2180

 

$

10.2180

 

Risk-free interest rate

 

4.11

%

 

3.97

%

Expected dividends

 

0.00

%

 

0.00

%
Level 3  
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]  
Summary of Changes in Fair Value

The following table presents the summary of changes in the fair value of the Company’s Level 3 financial instruments:

 

 

As of March 31, 2026

 

As of December 31, 2025

 

(in thousands)

Loan facility

 

Warrant liability

 

Loan facility

 

Warrant liability

 

Balance beginning of period

$

42,984

 

$

742

 

$

42,245

 

$

3,432

 

Extinguishment of Previous Credit Agreement

 

(42,984

)

 

-

 

 

-

 

 

-

 

Loan Facility fair value, at issuance

 

48,357

 

 

1,043

 

 

-

 

 

-

 

Change in fair value in earnings

 

(198

)

 

408

 

 

1,322

 

 

(2,690

)

Change in fair value in other comprehensive loss

 

(2,020

)

 

-

 

 

(583

)

 

-

 

Balance end of period, at fair value

$

46,139

 

$

2,193

 

$

42,984

 

$

742