| Summary of Financial assets and Liabilities Measured at Fair Value on Recurring Basis |
The following tables summarize the Company’s financial assets and liabilities measured at fair value by level within the fair value hierarchy:
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June 30, 2026 |
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Adjusted Cost |
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Unrealized Gains |
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Unrealized Losses |
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Fair Value |
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Cash and Cash Equivalent |
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Marketable Securities |
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(in thousands) |
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Assets |
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Cash |
|
$ |
21,392 |
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$ |
— |
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|
$ |
— |
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$ |
21,392 |
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$ |
21,392 |
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|
$ |
— |
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Level 1 |
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Money market funds |
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10,401 |
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— |
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— |
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10,401 |
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10,401 |
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— |
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Level 2 |
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U.S. Government securities |
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31,109 |
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— |
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(17 |
) |
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31,092 |
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— |
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|
31,092 |
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U.S. Treasury securities |
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19,849 |
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|
— |
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(7 |
) |
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19,842 |
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5,968 |
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|
13,874 |
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Commercial paper |
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63,371 |
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— |
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(35 |
) |
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63,336 |
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|
5,474 |
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|
57,862 |
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Corporate bonds |
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31,855 |
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|
— |
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(29 |
) |
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31,826 |
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— |
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|
|
31,826 |
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Subtotal |
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146,184 |
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— |
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(88 |
) |
|
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146,096 |
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|
11,442 |
|
|
|
134,654 |
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Total assets |
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$ |
177,977 |
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$ |
- |
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$ |
(88 |
) |
|
$ |
177,889 |
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$ |
43,235 |
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$ |
134,654 |
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Liabilities |
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Level 3 |
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Convertible notes |
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— |
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— |
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— |
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192,843 |
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— |
|
|
|
— |
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Warrant liabilities |
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— |
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|
|
— |
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|
|
— |
|
|
|
73,961 |
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|
— |
|
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|
— |
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Total liabilities |
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$ |
— |
|
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$ |
— |
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|
$ |
— |
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$ |
266,804 |
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$ |
— |
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$ |
— |
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December 31, 2025 |
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Adjusted Cost |
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Unrealized Gain |
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Unrealized Losses |
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Fair Value |
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Cash and Cash Equivalent |
|
|
Marketable Securities |
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|
(in thousands) |
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Assets |
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|
|
|
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Cash |
|
$ |
16,690 |
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$ |
— |
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$ |
— |
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$ |
16,690 |
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$ |
16,690 |
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$ |
— |
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Level 1 |
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Money market funds |
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16,977 |
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— |
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— |
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16,977 |
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16,977 |
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— |
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Level 2 |
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U.S. Government securities |
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20,818 |
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3 |
|
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(2 |
) |
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20,819 |
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|
3,984 |
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|
16,835 |
|
U.S. Treasury securities |
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13,460 |
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— |
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(2 |
) |
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13,458 |
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7,989 |
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|
5,469 |
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Commercial paper |
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|
45,480 |
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2 |
|
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(4 |
) |
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45,478 |
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|
26,651 |
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|
18,827 |
|
Corporate bonds |
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|
8,478 |
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|
1 |
|
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(2 |
) |
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|
8,477 |
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— |
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|
8,477 |
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Subtotal |
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88,236 |
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6 |
|
|
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(10 |
) |
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|
88,232 |
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|
38,624 |
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|
49,608 |
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Total assets |
|
$ |
121,903 |
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|
$ |
6 |
|
|
$ |
(10 |
) |
|
$ |
121,899 |
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$ |
72,291 |
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$ |
49,608 |
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Liabilities |
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Level 3 |
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Convertible notes |
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|
— |
|
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|
— |
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|
|
— |
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|
100,958 |
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|
— |
|
|
|
— |
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Warrant liabilities |
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|
— |
|
|
|
— |
|
|
|
— |
|
|
|
29,711 |
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|
|
— |
|
|
|
— |
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Total liabilities |
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$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
130,669 |
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$ |
— |
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|
$ |
— |
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| Summary of Changes in Fair Value of Level 3 Financial Instruments |
The following table presents a summary of the changes in the fair value of the Series A and private placement warrants (in thousands):
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|
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|
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June 30, 2026 |
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|
December 31, 2025 |
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Fair value, beginning balance |
|
$ |
29,711 |
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|
$ |
8,258 |
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Change in the fair value of Series A warrants included in other income (expense), net |
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|
44,250 |
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|
21,479 |
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Change in the fair value of private placement warrants included in other income (expense), net |
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|
— |
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|
(26 |
) |
Fair value, closing balance |
|
$ |
73,961 |
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|
$ |
29,711 |
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| Schedule of Option Pricing Model |
The key inputs into the Black-Scholes option pricing model for the private placement warrants were as follows for the relevant periods. These warrants expired on March 12, 2026, and they were no longer traded upon expiration:
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December 31, 2025 |
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Expected term (years) |
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0.2 |
|
Expected volatility |
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|
101.0 |
% |
Risk-free interest rate |
|
|
3.67 |
% |
Dividend yield |
|
|
0 |
% |
Exercise price |
|
$ |
57.50 |
|
The key inputs into the Black-Scholes option pricing model for the Series A warrants were as follows for the relevant periods:
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|
|
|
|
|
|
June 30, 2026 |
|
|
December 31, 2025 |
|
Expected term (years) |
|
|
1.5 |
|
|
|
2.0 |
|
Expected volatility |
|
|
116.0 |
% |
|
|
101.0 |
% |
Risk-free interest rate |
|
|
4.06 |
% |
|
|
3.48 |
% |
Dividend yield |
|
|
0 |
% |
|
|
0 |
% |
Exercise Price |
|
$ |
5.00 |
|
|
$ |
5.00 |
|
|