v3.26.1
Fair Value Measurements
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
The Company follows the guidance in ASC 820 - Fair Value Measurements for its financial assets and liabilities that are re-measured and reported at fair value at each reporting period.
The fair value of the Company’s financial assets and liabilities reflects management’s estimate of amounts that the Company would have received in connection with the sale of the assets or paid in connection with the transfer of the liabilities in an orderly transaction between market participants at the measurement date. In connection with measuring the fair value of its assets and liabilities, the Company seeks to maximize the use of observable inputs (market data obtained from independent sources) and to minimize the use of unobservable inputs (internal assumptions about how market participants would price assets and liabilities). The following fair value hierarchy is used to classify assets and liabilities based on the observable inputs and unobservable inputs used in order to value the assets and liabilities:
•Level 1: Quoted prices in active markets for identical assets or liabilities. An active market for an asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis.
•Level 2: Observable inputs other than Level 1 inputs. Examples of Level 2 inputs include quoted prices in active markets for similar assets or liabilities and quoted prices for identical assets or liabilities in markets that are not active.
•Level 3: Unobservable inputs based on the Company assessment of the assumptions that market participants would use in pricing the asset or liability.
The following table presents information about the Company’s assets and liabilities that are measured at fair value on a recurring basis at June 30, 2026 and December 31, 2025, and indicates the fair value hierarchy of the valuation inputs the Company utilized to determine such fair value (in thousands):
LevelJune 30, 2026December 31, 2025
Assets:
Cash equivalents:
Money Market1$— $84 
U.S. Treasury Bills1$— $9,936 
$— $10,020 
Liabilities:
Warrant liability – Public Warrants(1)
1$— $125 
Warrant liability – Private Placement Warrants(1)
3— 70 
Total warrant liability$— $195 
1 Both the Public and Private Placement Warrants expired on June 16, 2026 and ceased to be exercisable.
Investments
Cash equivalents
As of December 31, 2025, the carrying amount of cash equivalents was equal to or approximated fair value due to their short-term nature and proximity to current market rates. Cash equivalents consist of Money market and U.S. Treasury Bills that are readily convertible into cash and have original maturities of three months or less at the date of purchase.
In June 2026, the Company liquidated its investments in U.S. Treasury Bills, highly rated corporate bonds and municipal bonds. The proceeds from these sales were primarily placed into the interest-bearing savings account included in Cash in the accompanying consolidated balance sheets. This action was taken because the incremental yield on the investments were not sufficiently higher than the rates available in the Company’s savings account.
Warrant liabilities
The following tables summarize the changes in the fair value of the warrant liabilities (in thousands):
Three Months Ended
June 30, 2026		Six Months Ended
June 30, 2026
Public WarrantsPrivate Placement WarrantsWarrant LiabilitiesPublic WarrantsPrivate Placement WarrantsWarrant Liabilities
Fair value, beginning of period$62 $36 $98 $125 $70 $195 
Change in valuation inputs or other assumptions(62)(36)(98)(125)(70)(195)
Fair value, end of period(1)
$— $— $— $— $— $— 
1 Both the Public and Private Placement Warrants expired on June 16, 2026 and ceased to be exercisable.
Three Months Ended
June 30, 2025		Six Months Ended
June 30, 2025
Public WarrantsPrivate Placement WarrantsWarrant LiabilitiesPublic WarrantsPrivate Placement WarrantsWarrant Liabilities
Fair value, beginning of period$375 $210 $585 $375 $210 $585 
Change in valuation inputs or other assumptions(250)(140)(390)(250)(140)(390)
Fair value, end of period$125 $70 $195 $125 $70 $195 
Public Warrants
The Company determined the fair value of the Public Warrants, based on the publicly listed trading price of such warrants as of the valuation date. Accordingly, the Public Warrants were classified as Level 1 financial instruments. The Public Warrants expired on June 16, 2026 and ceased to be exercisable. The fair value of the Public Warrants was nil and $0.1 million as of June 30, 2026 and December 31, 2025, respectively.
Private Placement Warrants
The estimated fair value of the Private Placement Warrants was determined with Level 3 inputs using the Black-Scholes model. The significant inputs and assumptions in this method are the stock price, exercise price, volatility, risk-free rate, and term or maturity. The underlying stock price input is the closing stock price as of each valuation date and the exercise price is the price as stated in the warrant agreement. The volatility input was determined using the historical volatility of comparable publicly traded companies which operate in a similar industry or compete directly against the Company. Volatility for each comparable publicly traded company is calculated as the annualized standard deviation of daily continuously compounded returns. The Black-Scholes analysis is performed in a risk-neutral framework, which requires a risk-free rate assumption based upon constant-maturity treasury yields, which are interpolated based on the remaining term of the Private Placement Warrants as of each valuation date. The Private Placement Warrants expired on June 16, 2026 and ceased to be exercisable.
The following table provides quantitative information regarding Level 3 fair value measurements inputs at December 31, 2025:
December 31, 2025
Exercise price$11.50 
Stock price$0.83 
Volatility170.0 %
Term (years)0.46
Risk-free interest rate3.60 %
Significant changes in the volatility would result in a significant lower or higher fair value measurement, respectively. The fair value of the Private Placement Warrants was nil and $0.1 million as of June 30, 2026 and December 31, 2025, respectively. There were no transfers in or out of Level 3 from other levels in the fair value hierarchy.