v3.26.1
Financial Instruments
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Financial Instruments Financial Instruments
Our financial instruments consist of warrant liabilities, the contingent earnout liability, a Standby Equity Purchase Agreement ("SEPA") liability, and the revenue based redemption liability related to the Credit Agreement we entered into with OrbiMed (the "OrbiMed Credit Agreement"). The carrying values of cash and cash equivalents, accounts receivable, net and trade payables approximate fair value through the use of publicly available market prices as of June 30, 2026 and December 31, 2025. In general, asset and liability fair values are determined using the following categories:
Level 1 — Inputs utilize quoted prices in active markets for identical assets or liabilities.
Level 2 — Inputs include quoted prices for similar assets or liabilities in active markets, and inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly.
Level 3 — Inputs are unobservable inputs and include situations where there is little, if any, market activity for the balance sheet items at period end. Pricing inputs are unobservable for the terms and are based on the Company’s own assumptions about the assumptions that a market participant would use.
Our contingent earnout liability, warrant liabilities, SEPA liability and revenue base redemption liability are measured at fair value on a recurring basis (see Notes 4, 5, 8, and 9, respectively). The carrying values of the warrant liabilities represent the remeasurement to fair value each reporting period based on Level 1 inputs for the publicly traded Public Warrants and Level 2 inputs for the Private Placement Warrants and Working Capital Warrants. The carrying amounts of the OrbiMed Warrants (defined in Note 5), contingent earnout liability and SEPA liability represent the remeasurement to fair value each reporting period based on unobservable, or Level 3 inputs, using assumptions made by us, including the market price of our common stock and the observed volatility of peer group companies.
The fair value of the Public Warrants has been measured based on the quoted price of such warrants on the Nasdaq Global Market (the "Nasdaq"). The Private Placement Warrants and Working Capital Warrants are similar to the Public Warrants and therefore, use the same fair value as the Public Warrants (see Note 5).
We use a Black-Scholes option pricing model to estimate the fair value of the OrbiMed Warrants (defined in Note 5), as warrants give the holders the right, but not the obligation, to purchase the underlying securities at a contractual exercise price. This method utilizes certain unobservable inputs, including the determination of the expected volatility, and is therefore considered a Level 3 fair value measurement. Certain inputs used in this Black-Scholes pricing model may fluctuate in future periods based upon factors that are outside of our control, including a potential change in control. A significant change in one or more of these inputs used in the calculation of the fair value may cause a significant change to the fair value of the warrant liabilities, which could also result in material non-cash gains or losses being reported in the condensed consolidated statement of operations. The expected volatility was implied from a blend of the Company's own common shares and the average historical share volatilities of several public companies within the Company's industry that the Company considers to be comparable to its own business.
The estimated fair value of the contingent earnout liability was determined using a Monte Carlo simulation valuation model using a distribution of potential outcomes. The inputs and assumptions utilized in the calculation require management to apply judgment and make estimates as further described in Note 4.
The repayment of the loans under the OrbiMed Credit Agreement is referred to as the "revenue base redemption liability" (see Note 9). We determine the value of the revenue base redemption liability using a Monte Carlo simulation of future revenue and valuing the Term Loan (as defined in Note 9) using the with and without method. The fair value of our long-term debt was estimated using a discounted cash flow model, which utilizes Level 3 inputs. The fair value of our long-term debt was $34.6 million and $34.7 million at June 30, 2026 and December 31, 2025, respectively.
As of December 31, 2025 and June 30, 2026, there was no outstanding SEPA liability as the agreement expired on November 1, 2025. The following tables summarize the changes in fair value of our outstanding warrant liabilities, contingent earnout liability and revenue base redemption liability for the six months ended June 30, 2026:
Warrant LiabilitiesFair Value at
December 31,
2025		Change in
Fair Value
(Gains) Losses		Issuances
(Settlements)		Fair Value at
June 30,
2026
Public Warrants - Level 1$2,908 $(1,506)$— $1,402 
Private Placement Warrants - Level 2$7,352 $(3,809)$— $3,543 
Working Capital Warrants - Level 2$1,660 $(860)$— $800 
Level 3 LiabilitiesFair Value at
December 31,
2025		Change in
Fair Value
(Gains) Losses		Issuances
(Settlements)		Fair Value at
June 30,
2026
Contingent earnout liability$10,144 $(6,406)$— $3,738 
OrbiMed Warrant liability$972 $(400)$— $572 
Revenue base redemption liability$383 $106 $— $489 
The following tables summarize the changes in fair value of our outstanding warrant liabilities, contingent earnout liability, SEPA liability and revenue base redemption liability for the six months ended June 30, 2025:
Warrant LiabilitiesFair Value at
December 31,
2024		Change in
Fair Value
(Gains) Losses		Issuances
(Settlements)		Fair Value at
June 30,
2025
Public Warrants - Level 1$1,927 $333 $— $2,260 
Private Placement Warrants - Level 2$4,872 $841 $— $5,713 
Working Capital Warrants - Level 2$1,100 $190 $— $1,290 
Level 3 LiabilitiesFair Value at
December 31,
2024		Change in
Fair Value
(Gains) Losses		Issuances
(Settlements)		Fair Value at
June 30,
2025
Contingent earnout liability$7,401 $121 $— $7,522 
SEPA liability$55 $(52)$— $3 
OrbiMed Warrant liability$362 $3 $366 $731 
Revenue base redemption liability$507 $(149)$— $358