v3.26.1
Fair Value Measurements
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
Assets and liabilities recorded at fair value in the consolidated financial statements are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Hierarchical levels which are directly
related to the amount of subjectivity associated with the inputs to the valuation of these assets or liabilities are as follows:
Level 1—Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access as of the measurement date.
Level 2—Inputs are observable, unadjusted quoted prices in active markets for similar assets or liabilities, unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities.
Level 3—Unobservable inputs for the asset or liability only used when there is little, if any, market activity for the asset or liability at the measurement date. This hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value.
Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis—Financial assets and liabilities held by the Company measured at fair value on a recurring basis include money market funds and marketable securities.
Assets and Liabilities Measured and Recorded at Fair Value on a Nonrecurring Basis—The Company determines the fair value of long-lived assets held and used by reference to independent appraisals, quoted market prices (e.g., an offer to purchase) and other factors. An impairment charge is recorded when the carrying value of the asset exceeds its fair value. There have been no impairment charges recorded to date. Based on the borrowing rates currently available to the Company for debt with similar terms and consideration of default and credit risk, the carrying value of the term loan approximates the fair value. The fair value of the term loan is estimated using Level 2 inputs.
Assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires management to make judgments and consider factors specific to the asset or liability.
The following tables summarize the types of assets and liabilities measured at fair value on a recurring basis by level within the fair value hierarchy (in thousands):
June 30, 2026
Level 1Level 2Level 3Total
Assets:
Cash equivalents:
Money market funds$550 $— $— $550 
Total cash equivalents550 — — 550 
Total financial assets$550 $— $— $550 
Liabilities:
Common stock warrant liability$— $— $238 $238 
Total financial liabilities$— $— $238 $238 
December 31, 2025
Level 1Level 2Level 3Total
Assets:
Cash equivalents:
Money market funds$1,038 $— $— $1,038 
Total cash equivalents1,038 — — 1,038 
Total financial assets$1,038 $— $— $1,038 
There were no liabilities measured at fair value on a recurring and non-recurring basis as of December 31, 2025.
As of June 30, 2026 and December 31, 2025, the Company did not hold any marketable securities.
The Company values the common stock warrant liability using the probability-weighted Black-Scholes Merton option-pricing model using unobservable inputs including the expected term, expected volatility, risk-free interest rate, dividend yield and probability of Additional Loan Draws occurring (see Notes 6 and 7). The common stock warrant liability was valued using the following assumptions:
IssueJune 30,
Date2026
Stock price
$1.53
$1.30
Weighted average expected term (in years)
7.0
6.7
Volatility
81.7%
83.6%
Risk-free interest rate
3.8%
4.3%
Dividend yield——
The probability assessment considers both the likelihood of the Company satisfying certain conditions, including specified revenue milestones, which give the Company the option to draw future debt tranches, as well as the
likelihood that the Company will exercise the right to draw one or more future debt tranches. The probability was not a material input to the value of the common stock warrant liability.
The change in fair value of the common stock warrant liability is summarized below (in thousands):
Common Stock
Warrant Liability
Fair value as of December 31, 2025$— 
Issuance of common stock warrants277 
Change in fair value included in other (expense) income, net(39)
Fair value as of June 30, 2026
$238