The Company uses various inputs in determining the fair value of its investments and measures these assets on a recurring basis. Assets and liabilities recorded at fair value in the condensed consolidated balance sheets are categorized by the level of objectivity associated with the inputs used to measure their fair value. The following levels are directly related to the amount of subjectivity associated with the inputs to fair valuation of these assets and liabilities:

•Level 2 - other significant observable inputs (including quoted prices for similar investments, market corroborated inputs, etc.), which includes corporate debt securities

The inputs or methodology used for valuing securities are not necessarily an indication of the credit risk associated with investing in those securities. The following tables provide the fair value measurements of applicable Company assets that are measured at fair value on a recurring basis according to the fair value levels defined above. There were no transfers between Level 1 and Level 2 during the periods presented.


	Assets at Fair Value as of June 30, 2026
	Level 1		Level 2		Level 3		Total
	(in thousands)

Cash and cash equivalents	$	40,924	$	—	$	—	$	40,924
Short-term investments	116,825		32,861		—		149,686

Total cash and cash equivalents and short-term investments	$	157,749	$	32,861	$	—	$	190,610


	Assets at Fair Value as of December 31, 2025
	Level 1		Level 2		Level 3		Total
	(in thousands)

Cash and cash equivalents	$	34,326	$	—	$	—	$	34,326
Short-term investments	39,026		22,878		—		61,904
Restricted cash	29,000		—		—		$	29,000
Total cash and cash equivalents, short-term investments and restricted cash	$	102,352	$	22,878	$	—	$	125,230

The carrying amount of prepaid expenses and other assets, accounts payable, and accrued expenses are generally considered to be representative of their respective fair values because of the short-term nature of those instruments. The fair value of the Hercules Term Loan is determined under Level 2 in the fair value hierarchy and approximates carrying value as the loan bears interest at a rate that approximates prevailing market rates for instruments with similar characteristics. See Note 6, Debt Obligations for a further discussion of our debt and related instruments.