v3.26.1
Fair Value of Financial Instruments and Non-Financial Instruments (Q1)
 3 Months Ended 12 Months Ended
Mar. 31, 2026
Dec. 31, 2025
Fair Value of Financial Instruments and Non-Financial Instruments    
Fair Value of Financial Instruments and Non-Financial Instruments
4. Fair Value of Financial Instruments and Non-Financial Instruments
Financial Instruments
Fair value is the price that could be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Fair value determination in accordance with applicable accounting guidance requires that a number of significant judgments be made. Additionally, fair value is used on a nonrecurring basis to evaluate assets for impairment or as required for disclosure purposes by applicable accounting guidance on disclosures about fair value of financial instruments. Depending on the nature of the assets and liabilities, various valuation techniques and assumptions are used when estimating fair value. The carrying amounts of certain of the Company’s financial instruments, including prepaid expenses and accounts payable are shown at cost, which approximates fair value due to the short-term nature of these instruments. The Company follows the provisions of FASB ASC Topic 820, Fair Value Measurement, for financial assets and liabilities measured on a recurring basis. The guidance requires fair value measurements be classified and disclosed in one of the following three categories:
•
Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.
•
Level 2: Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liabilities.
•
Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity).
The Company considers all highly liquid investments that have maturities of three months or less when acquired to be cash equivalents. Cash equivalents include money market funds that are carried at cost, which approximates their fair value. The fair values are based on quoted market prices in active markets for identical assets and therefore are classified within Level 1 of the fair value hierarchy.
Non-Financial Instruments
Long-lived non-financial assets are measured at fair value on a nonrecurring basis for purposes of calculating impairment using Level 3 inputs as defined in the fair value hierarchy. The fair value of long-lived assets using Level 3 inputs is determined by estimating the amount and timing of net future cash flows (which are unobservable inputs) and
discounting them using a risk-adjusted rate of interest. Significant increases or decreases in actual cash flows may result in valuation changes. There were no assets remeasured in the three months ended March 31, 2026. Assets remeasured in the three months ended March 31, 2025 included laboratory equipment and certain other assets which were sold prior to March 31, 2025 and were not included in the balance sheet as of March 31, 2025. The impairment related to the remeasurement of $2.6 million is included in the statement of operations for the three months ended March 31, 2025.
5. Fair Value of Financial Instruments and Non-Financial Instruments
Financial Instruments
Fair value is the price that could be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Fair value determination in accordance with applicable accounting guidance requires that
a number of significant judgments be made. Additionally, fair value is used on a nonrecurring basis to evaluate assets for impairment or as required for disclosure purposes by applicable accounting guidance on disclosures about fair value of financial instruments. Depending on the nature of the assets and liabilities, various valuation techniques and assumptions are used when estimating fair value. The carrying amounts of certain of the Company’s financial instruments, including prepaid expense and accounts payable are shown at cost, which approximates fair value due to the short-term nature of these instruments. The Company follows the provisions of FASB ASC Topic 820, Fair Value Measurement, for financial assets and liabilities measured on a recurring basis. The guidance requires fair value measurements be classified and disclosed in one of the following three categories:
•
Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.
•
Level 2: Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liabilities.
•
Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity).
The following fair value hierarchy table presents information about the Company’s assets measured at fair value on a recurring basis. Included within cash and cash equivalents on the balance sheet, but excluded from the fair value hierarchy table, are cash deposits held at financial institutions:

 
 
 
 
 
 
 
Fair value measurement at
reporting date using
(in thousands)
 
 
Quoted prices
in active
markets for
identical
assets
(Level 1)
 
 
Significant
other
observable
Inputs
(Level 2)
 
 
Significant
unobservable
Inputs
(Level 3)
December 31, 2025:
 
 
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
 
 
Cash equivalents:
 
 
 
 
 
 
 
 
 
Money market funds
 
 
$43,803
 
 
$—
 
 
$—
Total cash equivalents
 
 
43,803
 
 
—
 
 
—
Total financial assets
 
 
$43,803
 
 
$—
 
 
$—
December 31, 2024:
 
 
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
 
 
Cash equivalents:
 
 
 
 
 
 
 
 
 
Money market funds
 
 
$29,058
 
 
$—
 
 
$—
Commercial paper
 
 
—
 
 
4,988
 
 
—
Total cash equivalents
 
 
29,058
 
 
4,988
 
 
—
Marketable securities:
 
 
 
 
 
 
 
 
 
Certificates of deposit
 
 
—
 
 
5,971
 
 
—
Commercial paper
 
 
—
 
 
25,439
 
 
—
Corporate debt securities
 
 
—
 
 
1,865
 
 
—
U.S. government securities
 
 
—
 
 
5,908
 
 
—
Total marketable securities
 
 
—
 
 
39,183
 
 
—
Total financial assets
 
 
$29,058
 
 
$44,171
 
 
$—
 
 
 
 
 
 
 
 
 
 
Non-Financial Instruments
Long-lived non-financial assets are measured at fair value on a nonrecurring basis for purposes of calculating impairment using Level 3 inputs as defined in the fair value hierarchy. The fair value of long-lived assets using Level 3
inputs is determined by estimating the amount and timing of net future cash flows (which are unobservable inputs) and discounting them using a risk-adjusted rate of interest. Significant increases or decreases in actual cash flows may result in valuation changes.
The following long-lived assets were measured at fair value, on a nonrecurring basis, during the years ended December 31, 2025 and 2024. Assets remeasured in 2024 or sold in 2025 are not included in the fair value presented as of December 31, 2025. The significant assumptions utilized are further described in Notes 3 and 10:

 
 
 
 
 
 
 
 
 
 
Fair Value Measurements as of December 31, 2025 of
assets remeasured during 2025
 
 
Year ended
December 31, 2025
(in thousands)
 
 
Level 1
 
 
Level 2
 
 
Level 3
 
 
Impairment Losses
Property and equipment, net
 
 
$—
 
 
$—
 
 
$3,155
 
 
$3,373
Right of use assets
 
 
—
 
 
—
 
 
9,489
 
 
2,633
Other assets
 
 
—
 
 
—
 
 
—
 
 
139
Total
 
 
$—
 
 
$—
 
 
$12,644
 
 
$6,145
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
Fair Value Measurements as of December 31, 2024 of
assets remeasured during 2024
 
 
Year ended
December 31, 2024
(in thousands)
 
 
Level 1
 
 
Level 2
 
 
Level 3
 
 
Impairment Losses
Property and equipment, net
 
 
$—
 
 
$—
 
 
$1,668
 
 
$2,279
Right of use assets
 
 
—
 
 
—
 
 
1,642
 
 
2,516
Other assets
 
 
—
 
 
—
 
 
200
 
 
438
Total
 
 
$—
 
 
$—
 
 
$3,510
 
 
$5,233