v3.26.1
Marketable Securities and Fair Value Measurements
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Marketable Securities and Fair Value Measurements Marketable Securities and Fair Value Measurements
Marketable Securities
The Company accounted for its investment securities as available for sale using the fair value election pursuant to ASC 825, where changes in fair value are recorded in Other, net non-operating income (expense) on the Company's Condensed Consolidated Statements of Operations. The Company’s investments in cash equivalents at June 30, 2026 and December 31, 2025 is as follows:
June 30, 2026
(in thousands)Amortized CostGross Unrealized GainsGross Unrealized LossesFair Value
Cash equivalents:
Money Market Fund$39,081 $— $— $39,081 

December 31, 2025
(in thousands)Amortized CostGross Unrealized GainsGross Unrealized LossesFair Value
Cash equivalents:
Money Market Fund$27,230 $— $— $27,230 

The contractual maturities of the Company's investments in cash equivalents as of June 30, 2026 and December 31, 2025 is as follows:
June 30, 2026 (in thousands)
Due in One Year or LessDue After One Year through Five YearsDue After Five YearsTotal
Cash equivalents:
Money Market Fund$39,081 $— $— $39,081 
December 31, 2025 (in thousands)
Due in One Year or LessDue After One Year through Five YearsDue After Five YearsTotal
Cash equivalents:
Money Market Fund$27,230 $— $— $27,230 
Accrued interest receivable on cash equivalents was $82 and $53 at June 30, 2026 and December 31, 2025, respectively, and is included within other receivables in the Condensed Consolidated Balance Sheets.
Fair Value Measurements
The following table presents the carrying amounts of the Company’s recurring and non-recurring fair value measurements at June 30, 2026 and December 31, 2025:
June 30, 2026
(in thousands)Total Level 1Level 2Level 3
Financial assets:
Cash equivalents$39,081 $— $39,081 — 
Financial liabilities:
Derivative warrant liabilities$89 $— $89 $— 
Optional redemption derivative liabilities10,838 — — 10,838 
December 31, 2025
(in thousands)TotalLevel 1Level 2Level 3
Financial assets:
Cash equivalents$27,230 $— $27,230 $— 
Financial liabilities:
Derivative warrant liabilities$264 $— $264 $— 
Conversion option derivative liabilities12,591 — — 12,591 
There were no transfers between levels for the six months ended June 30, 2026 and twelve months ended December 31, 2025.
The Company measures its investments (including cash equivalents, marketable securities, and non-current investments) at fair value on a recurring basis and classifies those instruments within Level 2 of the fair value hierarchy. Investment securities, including U.S. Treasury Bills purchased in the secondary market and U.S. Treasury bonds, are classified within Level 2 of the fair value hierarchy because pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reporting date, and fair value is determined using models or other valuation methodologies.
The Company measures its private derivative warrants on a recurring basis and classifies those instruments within Level 2 of the fair value hierarchy because the valuation is based on the observable input of a similar instrument. The Company measures its convertible note warrant derivative liability, optional redemption derivative liability and conversion option derivative liability on a recurring basis and classifies those instruments within level 3 of the fair value hierarchy because unobservable inputs are used to measure fair value. See Note 2 for a summary of the Company’s policies relating to fair value measurements, and Note 11 for more detail on the convertible note warrant, optional redemption, and conversion option derivative liabilities.
The following table presents information about the Company’s Level 3 financial liabilities that are measured at fair value on a recurring basis at June 30, 2026:
(in thousands)Derivative Liabilities
Balance at December 31, 2024$385 
Decrease in fair value included in other expense12,206 
Balance at December 31, 2025$12,591 
Change in fair value included in other expense(1,753)
Balance at June 30, 2026$10,838 
As of June 30, 2026 and December 31, 2025, the optional redemption and conversion option derivative were valued using a Black-Scholes, which is considered to be a Level 3 fair value measurement. A summary of the level 3 fair value measurements inputs used in the valuations is as follows:
June 30, 2026
Optional Redemption Derivative Liability
Unit price$5.43
Term (in years)1.11
Volatility80.00 %
Risk-free rate3.94 %
Dividend yield— 
Cost of equity— 
December 31, 2025
Conversion Option Derivative Liability
Unit price$3.56
Term (in years)1.61
Volatility114.00 %
Risk-free rate3.45 %
Dividend yield— 
Cost of equity— 
Uncertainty of Fair Value Measurement from Use of Significant Unobservable Inputs
The inputs to estimate the fair value of the Company’s conversion option and optional redemption derivative liabilities were the market price of the Company’s common stock, their remaining expected term, the volatility of the Company’s common stock price and the risk-free interest rate over the expected term. Significant changes in any of those inputs in isolation can result in a significant change in the fair value measurement.
Generally, an increase in the market price of the Company’s shares of common stock, an increase in the volatility of the Company’s shares of common stock, and an increase in the remaining term of the derivative liabilities would each result in a directionally similar change in the estimated fair value of the Company’s derivative liabilities. Such changes would increase the associated liability while decreases in these assumptions would decrease the associated liability. An increase in the risk-free interest rate would result in a decrease in the estimated fair value measurement and thus a decrease in the associated liability. The Company has not, and does not plan to, declare dividends on its common stock and, as such, there is no change in the estimated fair value of the derivative warrant liabilities due to the dividend assumption.