| Reconciliation of Equity and Long-Term Investments Balances |
The following table reconciles the change in balances in “Equity and Long-Term Investments” as of each balance sheet date:
|
|
|
|
|
(In thousands) |
|
Amount |
|
Equity and long-term investments as of December 31, 2024 |
|
$ |
341,664 |
|
Purchases of trading securities |
|
|
61,729 |
|
Proceeds from trading securities |
|
|
(8,427 |
) |
Purchases of equity and other long-term investments |
|
|
17,533 |
|
Net sales and purchases of investments managed by ISP Fund |
|
|
(120,955 |
) |
Changes in fair value, net |
|
|
20,160 |
|
Reclassification of current portion |
|
|
91,805 |
|
Other |
|
|
988 |
|
Equity and long-term investments as of December 31, 2025 |
|
$ |
404,497 |
|
Purchases of trading securities |
|
|
43,204 |
|
Purchases of equity and other long-term investments |
|
|
30,021 |
|
Net sales and purchases of investments managed by ISP Fund |
|
|
(47,500 |
) |
Changes in fair value, net |
|
|
4,422 |
|
Reclassification of current portion |
|
|
7,059 |
|
Other |
|
|
(395 |
) |
Equity and long-term investments as of June 30, 2026 |
|
$ |
441,308 |
|
|
| Schedule of Amortized Cost and Estimated Fair Values for Available-for-Sale Securities |
The estimated fair value of available-for-sale securities is based on quoted market prices for these investments that were based on prices obtained from a commercial pricing service. Available-for-sale securities are summarized below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2026 |
|
|
|
|
|
|
Gross |
|
|
Gross |
|
|
|
|
|
|
Amortized |
|
|
Unrealized |
|
|
Unrealized |
|
|
Estimated |
|
(In thousands) |
|
Cost |
|
|
Gains |
|
|
Losses |
|
|
Fair Value |
|
Money market funds (1) |
|
$ |
548,483 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
548,483 |
|
Total |
|
$ |
548,483 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
548,483 |
|
(1) Money market funds are included in cash and cash equivalents in the condensed consolidated balance sheets.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2025 |
|
|
|
|
|
|
Gross |
|
|
Gross |
|
|
|
|
|
|
Amortized |
|
|
Unrealized |
|
|
Unrealized |
|
|
Estimated |
|
(In thousands) |
|
Cost |
|
|
Gains |
|
|
Losses |
|
|
Fair Value |
|
Money market funds (1) |
|
$ |
530,278 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
530,278 |
|
Total |
|
$ |
530,278 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
530,278 |
|
(1) Money market funds are included in cash and cash equivalents in the condensed consolidated balance sheets.
|
| Schedule of Available-for-Sale Securities Measured at Fair Value on a Recurring Basis |
Our available-for-sale securities and equity and long-term investments are measured at fair value on a recurring basis and our debt is carried at amortized cost basis.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Estimated Fair Value Measurements as of June 30, 2026 Using: |
|
Types of Instruments |
|
Quoted Price
in Active
Markets for Identical Assets |
|
|
Significant
Other Observable Inputs |
|
|
Significant Unobservable Inputs |
|
|
|
|
(In thousands) |
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
Money market funds |
|
$ |
548,483 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
548,483 |
|
Investments held by ISP Fund LP |
|
|
32,656 |
|
|
|
— |
|
|
|
1,863 |
|
|
|
34,519 |
|
Equity investment - Armata Common Stock |
|
|
162,498 |
|
|
|
— |
|
|
|
— |
|
|
|
162,498 |
|
Equity investment - Armata Warrants |
|
|
— |
|
|
|
57,044 |
|
|
|
— |
|
|
|
57,044 |
|
Equity investment - InCarda Warrants |
|
|
— |
|
|
|
— |
|
|
|
15 |
|
|
|
15 |
|
Term loan investment - Armata July 2023 Term Loan |
|
|
— |
|
|
|
— |
|
|
|
34,505 |
|
|
|
34,505 |
|
Term loan investment - Armata March 2024 Term Loan |
|
|
— |
|
|
|
— |
|
|
|
45,461 |
|
|
|
45,461 |
|
Term loan investment - Armata March 2025 Term Loan |
|
|
— |
|
|
|
— |
|
|
|
11,710 |
|
|
|
11,710 |
|
Term loan investment - Armata August 2025 Term Loan |
|
|
— |
|
|
|
— |
|
|
|
16,259 |
|
|
|
16,259 |
|
Term loan investment - Armata May 2026 Term Loan |
|
|
— |
|
|
|
— |
|
|
|
25,173 |
|
|
|
25,173 |
|
Convertible debt investment - Armata Note |
|
|
— |
|
|
|
— |
|
|
|
105,036 |
|
|
|
105,036 |
|
Convertible debt investment - InCarda 2024 Convertible Note |
|
|
— |
|
|
|
— |
|
|
|
436 |
|
|
|
436 |
|
Convertible debt investment - InCarda February 2025 Convertible Note |
|
|
— |
|
|
|
— |
|
|
|
475 |
|
|
|
475 |
|
Convertible debt investment - InCarda October 2025 Convertible Note |
|
|
— |
|
|
|
— |
|
|
|
1,225 |
|
|
|
1,225 |
|
Convertible debt investment - Syndeio 2021 Convertible Note |
|
|
— |
|
|
|
— |
|
|
|
70,310 |
|
|
|
70,310 |
|
Convertible debt investment - Lyndra Convertible Note |
|
|
— |
|
|
|
— |
|
|
|
3,492 |
|
|
|
3,492 |
|
Total assets measured at estimated fair value |
|
$ |
743,637 |
|
|
$ |
57,044 |
|
|
$ |
315,960 |
|
|
$ |
1,116,641 |
|
Liability |
|
|
|
|
|
|
|
|
|
|
|
|
2028 Notes |
|
$ |
— |
|
|
$ |
284,490 |
|
|
$ |
— |
|
|
$ |
284,490 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Estimated Fair Value Measurements as of December 31, 2025 Using: |
|
Types of Instruments |
|
Quoted Price
in Active
Markets for Identical Assets |
|
|
Significant
Other Observable Inputs |
|
|
Significant Unobservable Inputs |
|
|
|
|
(In thousands) |
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
Money market funds |
|
$ |
530,278 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
530,278 |
|
Investments held by ISP Fund LP |
|
|
76,993 |
|
|
|
— |
|
|
|
2,748 |
|
|
|
79,741 |
|
Equity investment - Armata Common Stock |
|
|
157,482 |
|
|
|
— |
|
|
|
— |
|
|
|
157,482 |
|
Equity investment - Armata Warrants |
|
|
— |
|
|
|
36,244 |
|
|
|
— |
|
|
|
36,244 |
|
Equity investment - InCarda Warrants |
|
|
— |
|
|
|
— |
|
|
|
43 |
|
|
|
43 |
|
Term loan investment - Armata July 2023 Term Loan |
|
|
— |
|
|
|
— |
|
|
|
32,899 |
|
|
|
32,899 |
|
Term loan investment - Armata March 2024 Term Loan |
|
|
— |
|
|
|
— |
|
|
|
43,290 |
|
|
|
43,290 |
|
Term loan investment - Armata March 2025 Term Loan |
|
|
— |
|
|
|
— |
|
|
|
11,125 |
|
|
|
11,125 |
|
Term loan investment - Armata August 2025 Term Loan |
|
|
— |
|
|
|
— |
|
|
|
15,534 |
|
|
|
15,534 |
|
Convertible debt investment - Armata Note |
|
|
— |
|
|
|
— |
|
|
|
101,358 |
|
|
|
101,358 |
|
Convertible debt investment - InCarda 2024 Convertible Note |
|
|
— |
|
|
|
— |
|
|
|
436 |
|
|
|
436 |
|
Convertible debt investment - InCarda February 2025 Convertible Note |
|
|
— |
|
|
|
— |
|
|
|
475 |
|
|
|
475 |
|
Convertible debt investment - InCarda October 2025 Convertible Note |
|
|
— |
|
|
|
— |
|
|
|
1,225 |
|
|
|
1,225 |
|
Convertible debt investment - Syndeio 2021 Convertible Note |
|
|
— |
|
|
|
— |
|
|
|
62,937 |
|
|
|
62,937 |
|
Convertible debt investment - Syndeio 2025 Convertible Note |
|
|
— |
|
|
|
— |
|
|
|
24,490 |
|
|
|
24,490 |
|
Convertible debt investment - Lyndra Convertible Note |
|
|
— |
|
|
|
— |
|
|
|
3,492 |
|
|
|
3,492 |
|
Total assets measured at estimated fair value |
|
$ |
764,753 |
|
|
$ |
36,244 |
|
|
$ |
300,052 |
|
|
$ |
1,101,049 |
|
Liability |
|
|
|
|
|
|
|
|
|
|
|
|
2028 Notes |
|
$ |
— |
|
|
$ |
267,013 |
|
|
$ |
— |
|
|
$ |
267,013 |
|
|
| Schedule of Income Statements of VIE |
The summarized financial information, including the portion we do not own, is presented for Armata on a one quarter lag as follows: Income Statement Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
Six Months Ended March 31, |
|
(In thousands) |
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
Revenue |
|
$ |
789 |
|
|
$ |
491 |
|
|
$ |
1,874 |
|
|
$ |
1,726 |
|
Loss from operations |
|
$ |
(8,785 |
) |
|
$ |
(8,191 |
) |
|
$ |
(22,608 |
) |
|
$ |
(18,730 |
) |
Net loss |
|
$ |
(115,346 |
) |
|
$ |
(6,531 |
) |
|
$ |
(239,644 |
) |
|
$ |
(3,931 |
) |
|