v3.26.1
FINANCIAL INSTRUMENTS MEASURED AT FAIR VALUE
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
FINANCIAL INSTRUMENTS MEASURED AT FAIR VALUE FINANCIAL INSTRUMENTS MEASURED AT FAIR VALUEFinancial Instruments Measured at Fair Value and Financial Statement Presentation

The accounting guidance establishes a three-tier hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value as of the measurement date as follows:

Level 1: Fair values are based on unadjusted quoted prices in active trading markets for identical assets and liabilities.

Level 2: Fair values are based on observable quoted prices other than those in Level 1, such as quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets.

Level 3: Fair values are based on at least one significant unobservable input for the asset or liability.

The Company’s policy is to recognize transfers between levels of the fair value hierarchy on the date of the event or change in circumstances that caused the transfer. There were no transfers into or out of Level 3 during the three months ended March 31, 2026, and 2025.













Financial Instruments Required to be Carried at Fair Value

The Company’s financial instruments measured at fair value and their respective levels in the fair value hierarchy as of March 31, 2026, and December 31, 2025, were as follows:

March 31, 2026December 31, 2025
Fair Value of LiabilitiesFair Value of Liabilities
In ThousandsLevel 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Common warrants$— $— $89 $89 $— $— $79 $79 
Total$— $— $89 $89 $— $— $79 $79 



The following table summarizes the common warrants activity for the three months ended March 31, 2026:

In ThousandsLevel 3 Fair Value of Liabilities
Balance as of December 31, 2025$79 
Change in fair value10 
Balance as of March 31, 2026$89 


The following table summarizes the common warrants activity for the three months ended March 31, 2025:

In ThousandsLevel 3 Fair Value of Liabilities
Balance as of December 31, 2024$2,268 
Reclassified to stockholders’ equity(1,589)
Change in fair value(462)
Balance as of March 31, 2025$217 


In January 2025, as a result of contractual amendments with certain holders of common warrants, the Company reclassified the fair value of 1,100,000 common warrants issued in 2024 of $1.6 million from Class A common stock warrants liability to a component of stockholders’ equity within additional paid-in capital in the accompanying consolidated balance sheets. The change in fair value of the Class A common stock warrants liability related to these common warrants of $0.3 million between December 31, 2024, and January 24, 2025, is reflected in non-operating (expense) income, net in the Company’s consolidated statements of operations for the three months ended March 31, 2025.

The Company estimates the fair value of the liability classified common warrants as of the date of issuance and at the end of every reporting period using a Black-Scholes option pricing model, which requires it to make assumptions regarding future stock price volatility and dividend yield. The Company estimates the risk-free interest rate based on the United States Treasury zero-coupon yield curve for the remaining life of the common warrants. The Company uses its own historical stock price volatility, over the remaining life of the common warrants. The Company does not pay dividends and does not expect to pay dividends in the foreseeable future.

The estimated fair values of the common warrants, and the assumptions used for the Black-Scholes option pricing model were as follows:
 As of March 31, 2026As of December 31, 2025
Estimated fair value of common warrants per share
$0.02 - $0.86
$0.01 - $0.77
Assumptions: 
Risk-free interest rate
3.7% - 3.8%
3.4% - 3.6%
Expected volatility
113.6% - 114.5%
103.8% - 114.3%
Expected term to liquidation (in years)
1.4 - 3.2
1.6 - 3.5
As of March 31, 2026, and 2025, the Company had no other financial instruments measured at fair value.