| Summary of Financial Assets Measured at Fair Value on Recurring Basis |
The following tables present information about the Company’s financial assets measured at fair value on a recurring basis, based on the three-tier fair value hierarchy:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of June 30, 2026 |
|
(in thousands) |
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total |
|
Cash equivalents: |
|
|
|
|
|
|
|
|
Money market funds |
$ |
7,418 |
|
$ |
- |
|
$ |
- |
|
$ |
7,418 |
|
Total cash equivalents |
$ |
7,418 |
|
$ |
- |
|
$ |
- |
|
$ |
7,418 |
|
Current marketable securities: |
|
|
|
|
|
|
|
|
U.S. Treasury securities |
$ |
- |
|
$ |
1,996 |
|
$ |
- |
|
$ |
1,996 |
|
Total current marketable securities |
$ |
- |
|
$ |
1,996 |
|
$ |
- |
|
$ |
1,996 |
|
Total marketable securities and cash equivalents |
$ |
7,418 |
|
$ |
1,996 |
|
$ |
- |
|
$ |
9,414 |
|
Financial liabilities: |
|
|
|
|
|
|
|
|
Loan Facility |
$ |
- |
|
$ |
- |
|
$ |
46,659 |
|
$ |
46,659 |
|
Warrant liabilities |
|
- |
|
|
- |
|
|
879 |
|
|
879 |
|
Non-qualified deferred compensation plan liability |
|
- |
|
|
4,433 |
|
|
- |
|
|
4,433 |
|
Total financial liabilities |
$ |
- |
|
$ |
4,433 |
|
$ |
47,538 |
|
$ |
51,971 |
|
Financial assets: |
|
|
|
|
|
|
|
|
Corporate-owned life insurance policies |
$ |
- |
|
$ |
3,208 |
|
$ |
- |
|
$ |
3,208 |
|
Total financial assets |
$ |
- |
|
$ |
3,208 |
|
$ |
- |
|
$ |
3,208 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2025 |
|
(in thousands) |
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total |
|
Cash equivalents: |
|
|
|
|
|
|
|
|
Money market funds |
$ |
8,448 |
|
$ |
- |
|
$ |
- |
|
$ |
8,448 |
|
Total cash equivalents |
$ |
8,448 |
|
$ |
- |
|
$ |
- |
|
$ |
8,448 |
|
Current marketable securities: |
|
|
|
|
|
|
|
|
U.S. Treasury securities |
$ |
- |
|
$ |
7,942 |
|
$ |
- |
|
$ |
7,942 |
|
Total current marketable securities |
$ |
- |
|
$ |
7,942 |
|
$ |
- |
|
$ |
7,942 |
|
Total marketable securities and cash equivalents |
$ |
8,448 |
|
$ |
7,942 |
|
$ |
- |
|
$ |
16,390 |
|
Financial liabilities: |
|
|
|
|
|
|
|
|
Loan Facility |
$ |
- |
|
$ |
- |
|
$ |
42,984 |
|
$ |
42,984 |
|
Warrant liabilities |
|
501 |
|
|
- |
|
|
742 |
|
|
1,243 |
|
Non-qualified deferred compensation plan liability |
|
- |
|
|
3,973 |
|
|
- |
|
|
3,973 |
|
Total financial liabilities |
$ |
501 |
|
$ |
3,973 |
|
$ |
43,726 |
|
$ |
48,200 |
|
Financial assets: |
|
|
|
|
|
|
|
|
Corporate-owned life insurance policies |
$ |
- |
|
$ |
3,116 |
|
$ |
- |
|
$ |
3,116 |
|
Total financial assets |
$ |
- |
|
$ |
3,116 |
|
$ |
- |
|
$ |
3,116 |
|
|
| Summary of Fair Value Measurement Inputs and Valuation Techniques |
|
|
|
|
|
As of June 3, 2026 |
|
Price of common stock |
$ |
4.16 |
|
Expected term |
10.00 years |
|
Expected volatility |
|
37.51 |
% |
Exercise price |
$ |
3.4019 |
|
Risk-free interest rate |
|
4.44 |
% |
Expected dividends |
|
0.00 |
% |
The fair value of the $10.218 Warrant liability, which is reported within Warrant liabilities on the Consolidated Balance Sheets, is estimated by the Company based on the Black-Scholes option pricing model with the following key inputs:
|
|
|
|
|
|
|
|
As of |
|
|
June 30, 2026 |
|
December 31, 2025 |
|
Price of common stock |
$ |
4.13 |
|
$ |
3.45 |
|
Expected term |
7.31 years |
|
7.80 years |
|
Expected volatility |
|
66.80 |
% |
|
68.94 |
% |
Exercise price |
$ |
10.2180 |
|
$ |
10.2180 |
|
Risk-free interest rate |
|
4.27 |
% |
|
3.97 |
% |
Expected dividends |
|
0.00 |
% |
|
0.00 |
% |
|
| Summary of Changes in Fair Value |
The following table presents the summary of changes in the fair value of the Company’s Level 3 financial instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of June 30, 2026 |
|
As of December 31, 2025 |
|
(in thousands) |
Loan facility |
|
Warrant liability |
|
Loan facility |
|
Warrant liability |
|
Balance beginning of period |
$ |
42,984 |
|
$ |
742 |
|
$ |
42,245 |
|
$ |
3,432 |
|
Extinguishment of Previous Credit Agreement |
|
(42,984 |
) |
|
- |
|
|
- |
|
|
- |
|
Loan Facility fair value, at issuance |
|
48,357 |
|
|
1,043 |
|
|
- |
|
|
- |
|
Reclassification of warrant liability to equity due to issuance |
|
- |
|
|
(1,290 |
) |
|
- |
|
|
- |
|
Change in fair value in earnings |
|
(409 |
) |
|
384 |
|
|
1,322 |
|
|
(2,690 |
) |
Change in fair value in other comprehensive loss |
|
(1,289 |
) |
|
- |
|
|
(583 |
) |
|
- |
|
Balance end of period, at fair value |
$ |
46,659 |
|
$ |
879 |
|
$ |
42,984 |
|
$ |
742 |
|
|