v3.26.1
Debt (Tables)
 6 Months Ended
Jun. 30, 2026
Debt Disclosure [Abstract]  
Summary of Convertible Note Obligations

The Company's convertible note obligations, including the level within the fair value hierarchy (see note 4. Fair Value Measurements), are as follows:

 

 

 

As of June 30, 2026

 

As of December 31, 2025

 

 

 

Outstanding
Principal

 

Unamortized convertible note premium and issuance costs

 

Net Carrying Value

 

Fair Value

 

Outstanding
Principal

 

Unamortized convertible note premium and issuance costs

 

Net Carrying Value

 

Fair Value

 

(in thousands)

 

Amount

 

Level

 

Amount

 

Level

 

2028 Convertible Notes*

 

$

150,000

 

$

2,494

 

$

152,494

 

$

151,408

 

 

3

 

$

150,000

 

$

3,012

 

$

153,012

 

$

150,105

 

 

3

 

2026 Convertible Notes**

 

 

4,060

 

 

(14

)

 

4,046

 

 

3,879

 

 

2

 

 

4,060

 

 

(23

)

 

4,037

 

 

3,764

 

 

2

 

Total carrying value of convertible notes

 

 

 

 

 

$

156,540

 

 

 

 

 

 

 

 

 

$

157,049

 

 

 

 

 

 

(*) The fair value was calculated using a binomial lattice model which incorporates the terms and conditions of the convertible notes and market-based risk measurement that are indirectly observable, such as market credit spread, and therefore are Level 3 investments. The lattice model produced an estimated fair value based on changes in the price of the underlying common share price over successive periods of time. An estimated yield based on market data was used to discount straight debt cash flows.

(**) The fair value is influenced by interest rates, the Company's stock price and is determined by prices observed in market trading. Since the market for trading of the 2026 Convertible Notes is not considered to be an active market, the estimated fair value is based on Level 2 inputs.

Summary of Convertible Notes

The following table presents details of the Company's convertible notes as of June 30, 2026 which are further discussed below:

 

 

 

Date of Issuance

Maturity Date

Contractual Interest Rate

 

Outstanding Principal
(in thousands)

 

Conversion Rate for Each $1,000 Principal

 

Initial Conversion Price per Share

 

2028 Convertible Notes - related party

 

August 2024

10/1/2028

 

7.50

%

$

150,000

 

$

62.50

 

$

16.00

 

2026 Convertible Notes

 

September 2021

10/1/2026

 

0.25

%

$

4,060

 

$

13.68

 

$

73.11

 
Summary of Total Interest Expense Recognized Related to Financing Obligation

The total interest expense recognized related to the Company’s convertible notes and financing obligation consists of the following:

 

 

 

Three months ended June 30,

 

 

Six months ended June 30,

 

(in thousands)

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Contractual interest expense

 

$

2,815

 

 

$

2,815

 

 

$

5,630

 

 

$

5,647

 

Amortization of (premium) and issuance costs

 

 

(256

)

 

 

(243

)

 

 

(509

)

 

 

(458

)

Capitalization of interest expense

 

 

(69

)

 

 

(50

)

 

 

(148

)

 

 

(124

)

Total

 

$

2,490

 

 

$

2,522

 

 

$

4,973

 

 

$

5,065