v3.26.1
Fair Value Measurement
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurement Fair Value Measurement
The Company’s financial assets and liabilities subject to fair value measurements on a recurring basis and the level of inputs used for such measurements were as follows:
Fair Value as of March 31, 2026
(in thousands)Level 1Level 2Level 3Total
Assets:
Cash equivalents$3,993 $— $— $3,993 
Marketable securities— 13,457 — 13,457 
Total fair value$3,993 $13,457 $— $17,450 
Liabilities:
Common stock warrants (Public)$60 $— $— $60 
Common stock warrants (Private Placement)— 29 — 29 
Earnout liability— — 24 24 
Convertible notes, net of issuance costs— — 6,979 6,979 
Total fair value$60 $29 $7,003 $7,092 
Fair Value as of December 31, 2025
(in thousands)Level 1Level 2Level 3Total
Assets:
Cash equivalents$21,171 $— $— $21,171 
Marketable securities— 20,545 — 20,545 
Total fair value$21,171 $20,545 $— $41,716 
Liabilities:
Common stock warrants (Public)$114 $— $— $114 
Common stock warrants (Private Placement)— 53 — 53 
Earnout liability— — 24 24 
Convertible notes, net of issuance costs— — 14,970 14,970 
Total fair value$114 $53 $14,994 $15,161 

The Company performs routine procedures such as comparing prices obtained from independent sources to ensure that appropriate fair values are recorded. The cash equivalents and Public Warrants are categorized as Level 1 instruments as the fair value was determined based on the unadjusted quoted prices are available in active markets for identical assets or liabilities as of the reporting date. The marketable securities are categorized as Level 2 instruments as the estimated fair
value was determined based on the estimated or actual bids and offers of the marketable securities in an over-the-counter market on the last business day of the period. The Private Placement Warrants are classified within Level 2 because the transfer of Private Placement Warrants to anyone outside of certain permitted transferees of Artius Acquisition Partners LLC (the “Sponsor”) would result in the Private Placement Warrants having substantially the same terms as the Public Warrants, the Company determined that the fair value of each Private Placement Warrant is consistent with that of a Public Warrant. Accordingly, the Private Placement Warrants are classified as Level 2 financial instruments.
The value of the earnout liability is classified as Level 3 measurements under the fair value hierarchy, as these liabilities have been valued based on significant inputs not observable in the market (see Note 9 for additional details). Zero and a gain of $2.5 million during the three months ended March 31, 2026 and 2025, respectively, was recorded on the unaudited condensed consolidated statements of operations and comprehensive loss in the gain in fair value of earnout liability.
The value of the convertible notes, net of issuance costs is classified as a Level 3 measurements under the fair value hierarchy, as these liabilities have been valued based on significant inputs that are both observable and unobservable in the market. The Company utilized the Black-Scholes Merton model to estimate the fair value of the convertible notes. The key inputs and assumptions used in the Black-Scholes Merton model, including volatility and risk-free rate, were utilized to estimate the fair value of the associated liability (see Note 8 for additional details).
The following table summarizes the activities for the earnout liability during the three months ended March 31, 2026 and 2025:
Three Months Ended
March 31,
(in thousands)20262025
Balance at beginning of period$24 $2,486 
Gain in fair value of earnout liability— (2,462)
Balance at end of period$24 $24 

As of March 31, 2026 and December 31, 2025, the carrying values of accounts receivable, other receivables, accounts payable, and accrued expenses approximate their respective fair values due to their short-term nature. The Company has determined the fair value of notes payable and Canadian government research and development program liability approximates the carrying value due to the standard terms of the arrangement including but not limited to the amount borrowed, the term, and the interest rate.
Nonrecurring Fair Value Measurements
The Company estimates the value of certain long-lived assets associated with suspension of the furanics platform development and land held of sale using Level 3 measurements under the fair value hierarchy due to the absence of observable market prices and significant reliance on management judgment and estimation techniques. These assets include:
•Assets meeting the held for sale classification that are actively being marketed for sale. We utilized an estimated fair market based on a portion of the land sold previously, including costs to sell, as there were no observable market prices available. We expect to complete the sale of land in fiscal year 2026.
•Origin 1 plant which included property, plant, and equipment, net, that do not meet the held for sale classification but are capable of being sold through alternate use purposes. These assets were evaluated for recoverability and the impairment loss was measured using an orderly liquidation valuation approach. The impairment loss was recognized as the difference between the estimated liquidation value and the net book value of the assets as of March 31, 2026 and December 31, 2025. There have been no significant changes in the estimated net realizable value for the remaining assets as of March 31, 2026 and December 31, 2025.
The table below presents the nonrecurring fair value measurements of these long-lived assets, categorized within the fair value hierarchy:
Fair Value as of March 31, 2026
(in thousands)Level 1Level 2Level 3Total
Assets:
Land held for sale$— $— $9,125 $9,125 
Origin 1 (within property, plant, and equipment, net)— — 18,034 18,034 
Total fair value$— $— $27,159 $27,159 
Fair Value as of December 31, 2025
(in thousands)Level 1Level 2Level 3Total
Assets:
Land held for sale$— $— $9,126 $9,126 
Origin 1 (within property, plant, and equipment, net)— — 18,041 18,041 
Total fair value$— $— $27,167 $27,167 
Marketable Securities
The Company’s marketable securities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy. Amortized cost net of unrealized gain (loss) is equal to fair value. The following table summarizes the marketable securities by major security type as follows:
As of March 31, 2026
(in thousands)Amortized CostUnrealized GainsUnrealized LossesFair Value
Corporate bonds$2,584 $9 $(1)$2,592 
Asset-backed securities10,415 9 (517)9,907 
U.S. government and agency securities1,043 — (85)958 
Total marketable securities$14,042 $18 $(603)$13,457 
As of December 31, 2025
(in thousands)Amortized CostUnrealized GainsUnrealized LossesFair Value
Corporate bonds$3,480 $10 $(2)$3,488 
Asset-backed securities11,195 8 (518)10,685 
U.S. government and agency securities6,434 1 (63)6,372 
Total marketable securities$21,109 $19 $(583)$20,545 
The realized gains and losses are included in other income (expenses), net in the unaudited condensed consolidated statements of operations and comprehensive loss.
The Company sold marketable securities for proceeds of $132.8 million and $282.4 million during the three months ended March 31, 2026 and 2025, respectively. As a result of those sales, the Company realized a gain of $0.1 million and a loss of $0.1 million during the three months ended March 31, 2026 and 2025, respectively. The Company regularly reviews its available-for-sale marketable securities in an unrealized loss position and evaluates the current expected credit loss by considering factors such as historical experience, market data, issuer-specific factors, and current economic conditions. The aggregate fair value of the marketable securities in an unrealized loss position was $10.5 million and $10.8 million as of March 31, 2026 and December 31, 2025, respectively. The unrealized losses were attributable to changes in interest rates that impacted the value of the investments, and not related to increased credit risk. Accordingly, the Company has not recorded an allowance for credit losses associated with these investments.
The contractual maturities of the investments classified as marketable securities are as follows:
As of March 31, 2026
(in thousands)Mature within one yearMature after one year through two yearsMature over two yearsFair Value
Corporate bonds$1,195 $1,397 $— $2,592 
Asset-backed securities— — 9,907 9,907 
U.S. government and agency securities— — 958 958 
Total marketable securities$1,195 $1,397 $10,865 $13,457 
As of December 31, 2025
(in thousands)Mature within one yearMature after one year through two yearsMature over two yearsFair Value
Corporate bonds$1,392 $2,096 $— $3,488 
Asset-backed securities— — 10,685 10,685 
U.S. government and agency securities5,269 — 1,103 6,372 
Total marketable securities$6,661 $2,096 $11,788 $20,545 
Derivative Assets and Liabilities
The Company entered into foreign currency derivative contracts with financial institutions to reduce foreign exchange risk related to certain marketable securities denominated in foreign currency. Foreign currency derivative contracts are marked-to-market at the end of each reporting period with gains and losses recognized as other income (expenses). The Company recognized zero and a net loss of less than $0.1 million during the three months ended March 31, 2026 and 2025, on the fair value adjustment of the foreign currency derivative contracts. The notional amount of foreign currency derivative contracts as of March 31, 2026 and December 31, 2025 was zero.