v3.26.1
Fair Value of Financial Assets and Liabilities
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
Fair Value of Financial Assets and Liabilities

4. Fair value of financial assets and liabilities

The following tables present information about the Company’s financial assets and liabilities measured at fair value on a recurring basis and indicate the level of the fair value hierarchy utilized to determine such fair values (in thousands):

 

 

Fair value measurements as of March 31, 2026

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

109,746

 

 

$

—

 

 

$

—

 

 

$

109,746

 

Marketable securities:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government agency debt securities

 

 

—

 

 

 

226,466

 

 

 

—

 

 

 

226,466

 

Corporate debt securities

 

 

—

 

 

 

161,884

 

 

 

—

 

 

 

161,884

 

Commercial paper

 

 

—

 

 

 

81,745

 

 

 

—

 

 

 

81,745

 

Total assets

 

$

109,746

 

 

$

470,095

 

 

$

—

 

 

$

579,841

 

 

 

Fair value measurements as of December 31, 2025

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

104,212

 

 

$

—

 

 

$

—

 

 

$

104,212

 

Corporate debt securities

 

 

—

 

 

 

27,353

 

 

 

—

 

 

 

27,353

 

Commercial paper

 

 

—

 

 

 

25,922

 

 

 

—

 

 

 

25,922

 

Marketable securities:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government agency debt securities

 

 

—

 

 

 

231,915

 

 

 

—

 

 

 

231,915

 

Corporate debt securities

 

 

—

 

 

 

167,268

 

 

 

—

 

 

 

167,268

 

Commercial paper

 

 

—

 

 

 

93,278

 

 

 

—

 

 

 

93,278

 

Total assets

 

$

104,212

 

 

$

545,736

 

 

$

—

 

 

$

649,948

 

 

For the three months ended March 31, 2026, there were no transfers between Level 1, Level 2 and Level 3.

The purchasers of Series A-1 convertible preferred stock received an obligation to purchase additional shares in the future, which was considered to be a freestanding instrument. Consideration was allocated to this instrument at fair value upon issuance. This instrument was adjusted to fair value on each reporting date, with changes in fair value reported within other income, net in the condensed consolidated statements of operations and comprehensive loss. A portion of this instrument was settled during the period from May 8, 2024 (inception) to December 31, 2024. The portion of the instrument that was settled was determined to not have any fair value as the underlying shares were purchased at fair value. On May 8, 2025, the Company issued convertible promissory notes (the “Notes”), for an aggregate purchase price of $100.0 million, and as a result, their outstanding obligations under the preferred stock tranche obligation were satisfied. The fair value of the preferred stock tranche obligation at settlement was recorded as proceeds received for the Notes. At settlement, there was no value associated with the preferred stock tranche obligation as the convertible promissory notes were purchased for fair value. The Company elected to account for the Notes using the fair value option, with changes in fair value recognized as a component of other income, net in the condensed consolidated statements of operations and comprehensive loss. The Notes were settled on October 31, 2025, in connection with the issuance of Series B convertible preferred stock.

 

The fair value of the preferred stock tranche obligation at settlement was considered to be equal to the fair value of the Notes that were issued in settlement of the provision. As the Notes were issued at fair value, the fair value of the preferred stock tranche obligation was considered to be zero at settlement. The fair value of the Notes at settlement were considered to be equal to the fair value of the preferred stock issued at settlement.

 

In May 2024, the Company entered into a license and collaboration agreement with Jiangsu Hengrui Pharmaceuticals Co., Ltd. (“Hengrui”) which contained a payment obligation upon the Company’s receipt of certain partnership payments, as defined in the agreement, that may have occurred prior to November 15, 2025. This feature was determined to represent an embedded derivative instrument, which was recorded at fair value upon issuance and recognized as acquired in-process research and development expense. The feature was adjusted to fair value on each reporting date, with changes in fair value reported within other income, net in the condensed consolidated statements of operations and comprehensive loss. The feature was concluded to have a de minimis value as of December 31, 2024 due to the anticipated expiration of the feature. The feature ultimately expired with no related payments during 2025.

 

There were no changes in instrument-specific credit risk for the three months ended March 31, 2026 and 2025.