The fair value hierarchy established under U.S. GAAP requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three levels of inputs that may be used to measure fair value are as follows:

•Level 2: inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices in active markets for similar assets or liabilities, 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 assets or liabilities; and

We consider an active market as one in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. Conversely, we view an inactive market as one in which there are few transactions for the asset or liability, the prices are not current, or price quotations vary substantially either over time or among market makers. Where appropriate, our non-performance risk, or that of our counterparty, is considered in determining the fair values of liabilities and assets, respectively.

We classify our cash deposits and money market funds within Level 1 of the fair value hierarchy because they are valued using bank balances or quoted market prices. We classify our investments as Level 2 instruments based on market pricing and other observable inputs. We did not classify any of our investments within Level 3 of the fair value hierarchy.

Assets and liabilities measured at fair value are classified in their entirety based on the lowest level input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the entire

The carrying amount of our accounts receivable, prepaid expenses and other current assets, accounts payable, accrued expenses and other liabilities, current, approximate fair value due to their short maturities.


	June 30, 2026								December 31, 2025
(In thousands)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets
Cash and cash equivalents	$	61,003	$	—	$	—	$	61,003	$	60,496	$	3,211	$	—	$	63,707
Investments:

Corporate debt securities	—		20,203		—		20,203		—		23,250		—		23,250
U.S. government & agency securities	—		155,667		—		155,667		—		192,549		—		192,549
Total investments	—		175,870		—		175,870		—		215,799		—		215,799

Short-term restricted cash	33		—		—		33		20		—		—		20
Long-term restricted cash	1,571		—		—		1,571		1,532		—		—		1,532
Total assets measured at fair value	$	62,607	$	175,870	$	—	$	238,477	$	62,048	$	219,010	$	—	$	281,058

During the six months ended June 30, 2026, there were no transfers between Level 1, Level 2, or Level 3 assets reported at fair value on a recurring basis, and our valuation techniques did not change compared to the prior year.

In connection with the August 2023 Apton Biosystems, Inc. (“Apton”) acquisition, contingent consideration of $25.0 million, which we could elect to pay in cash, shares of our common stock or a combination of cash and shares of our common stock, was due upon the achievement of a milestone, defined as the achievement of $50.0 million in revenue associated with Apton's technology, provided that the milestone event occurred prior to the five-year anniversary of the closing date of the acquisition.

On January 30, 2026, we completed a disposition of certain assets (the "Asset Sale") to Illumina Cambridge Limited (the “Buyer”) pursuant to an Asset Purchase Agreement dated January 30, 2026. Under the agreement, Buyer acquired certain intellectual property and other assets related to our short-read DNA sequencing technology and related clustering, sequencing reagent, and detection technologies. In consideration, Buyer paid $50.0 million in cash, assumed certain liabilities, and granted us a non-exclusive license to certain intellectual property included in the purchased assets.

During the three months ended March 31, 2026, in connection with the Asset Sale, Buyer paid, at our direction, 4% of the net cash proceeds to the former equity holders of Apton in connection with the waiver of remaining milestone obligations from the Apton acquisition. As a result, we received approximately $48.1 million in net cash proceeds from the Asset Sale. In connection with the transaction, the Company incurred transaction costs of $2.3 million in the first quarter of 2026 that are offset against the gain on disposal of assets on our condensed consolidated statements of operations and comprehensive loss.

The contingent consideration was accounted for as a liability at fair value, with changes during each reporting period recognized in our condensed consolidated statements of operations and comprehensive loss. The fair value of the contingent consideration liability was calculated using a Monte Carlo simulation to estimate the volatility and systematic relative risk of revenues subject to sales milestone payments and discounting the associated cash payment amounts to their present values using a credit-risk-adjusted interest rate.

We classified contingent consideration within Level 3, as factors used to develop the estimate of fair value include unobservable inputs that are not supported by market activity and are significant to the fair value. Estimates and assumptions used in the Monte Carlo simulation include risk-adjusted forecasted revenues for products and services leveraging Apton's technology and an estimated credit spread.

As of March 31, 2025, primarily due to management's decision to cease development of the high-throughput short-read system, and the resulting changes in the expected future revenues, among other factors, and as the milestone event needed to occur prior to the five-year anniversary of the closing date of the acquisition, the estimated fair value of the contingent consideration liability was $0, resulting in a change in fair value for the first quarter of 2025 of $18.7 million. Changes to the fair value are recorded as change in fair value of contingent consideration in the condensed consolidated statements of operations and comprehensive loss for the three months ended March 31, 2025.


	As of June 30, 2026
(In thousands)	Amortized Cost		Gross unrealized gains		Gross unrealized losses		Fair Value
Cash and cash equivalents	$	61,003	$	—	$	—	$	61,003
Investments:

Corporate debt securities	20,242		15		(54)		20,203
U.S. government & agency securities	156,131		17		(481)		155,667
Total investments	176,373		32		(535)		175,870
Total cash, cash equivalents and investments	$	237,376	$	32	$	(535)	$	236,873

Short-term restricted cash	$	33	$	—	$	—	$	33
Long-term restricted cash	$	1,571	$	—	$	—	$	1,571

	As of December 31, 2025
(In thousands)	Amortized Cost		Gross unrealized gains		Gross unrealized losses		Fair Value
Cash and cash equivalents	$	63,707	$	—	$	—	$	63,707
Investments:

Corporate debt securities	23,172		78		—		23,250
U.S. government & agency securities	192,170		380		(1)		192,549
Total investments	215,342		458		(1)		215,799
Total cash, cash equivalents and investments	$	279,049	$	458	$	(1)	$	279,506

Short-term restricted cash	$	20	$	—	$	—	$	20
Long-term restricted cash	$	1,532	$	—	$	—	$	1,532

Investment income included in other income, net on the condensed consolidated statements of operations and comprehensive loss was $2.2 million and $4.7 million for the three and six months ended June 30, 2026, respectively and $3.4 million and $7.3 million for the three and six months ended June 30, 2025, respectively.