Fair Value Measurements (Tables)
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6 Months Ended |
Jun. 30, 2026 |
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| Fair Value Disclosures [Abstract] |
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| Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis |
The following tables present the Company’s assets and liabilities that are measured and recorded at fair value on a recurring basis as of June 30, 2026 and December 31, 2025 (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2026 | | Total | | Level 1 | | Level 2 | | Level 3 | | Assets: | | | | | | | | Money market funds (included in cash equivalents) | $ | 146,630 | | | $ | 146,630 | | | $ | — | | | $ | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total assets | $ | 146,630 | | | $ | 146,630 | | | $ | — | | | $ | — | | | | | | | | | | | Liabilities: | | | | | | | | Warrant liability | $ | 165 | | | $ | — | | | $ | — | | | $ | 165 | | | Embedded derivative | 11,940 | | | — | | | — | | | 11,940 | | | Contingent value rights liability | 356,700 | | | — | | | — | | | 356,700 | | | Total liabilities | $ | 368,805 | | | $ | — | | | $ | — | | | $ | 368,805 | |
| | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2025 | | Total | | Level 1 | | Level 2 | | Level 3 | | Assets: | | | | | | | | Money market funds (included in cash equivalents) | $ | 122,724 | | | $ | 122,724 | | | $ | — | | | $ | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total assets | $ | 122,724 | | | $ | 122,724 | | | $ | — | | | $ | — | | | | | | | | | | | Liabilities: | | | | | | | | Warrant liability | $ | 141 | | | $ | — | | | $ | — | | | $ | 141 | | | | | | | | | | | Contingent value rights liability | 392,100 | | | — | | | — | | | 392,100 | | | | | | | | | | | Total liabilities | $ | 392,241 | | | $ | — | | | $ | — | | | $ | 392,241 | |
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| Schedule of Cash and Cash Equivalents |
The Company’s consolidated statements of cash flows include the following as of June 30, 2026 and 2025 (in thousands): | | | | | | | | | | | | | | | | | | June 30, | | | 2026 | | 2025 | | | | | | | Cash and cash equivalents | $ | 147,606 | | | $ | 160,324 | | | | | | | | | | | | | | | | | Long-term restricted cash | 1,735 | | | 1,735 | | | | | | | | Total cash, cash equivalents, and restricted cash | $ | 149,341 | | | $ | 162,059 | | | | | | |
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| Schedule of Restricted Cash |
The Company’s consolidated statements of cash flows include the following as of June 30, 2026 and 2025 (in thousands): | | | | | | | | | | | | | | | | | | June 30, | | | 2026 | | 2025 | | | | | | | Cash and cash equivalents | $ | 147,606 | | | $ | 160,324 | | | | | | | | | | | | | | | | | Long-term restricted cash | 1,735 | | | 1,735 | | | | | | | | Total cash, cash equivalents, and restricted cash | $ | 149,341 | | | $ | 162,059 | | | | | | |
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| Schedule of Fair Value Measurement Inputs and Valuation Techniques |
A summary of the Black-Scholes pricing model assumptions used to record the fair value of the 2022 Warrants liability is as follows: | | | | | | | | | | | | | June 30, 2026 | | December 31, 2025 | | Risk-free interest rate | 4.01 | % | | 3.48 | % | | Dividend yield | — | | | — | | | Expected life (in years) | 0.78 | | 1.28 | | Expected volatility | 92.40 | % | | 87.36 | % |
The following table sets forth the inputs to the Black-Scholes models that were used to value the Conversion Option as of the Closing Date and June 30, 2026: | | | | | | | | | | | | | June 30, 2026 | | May 22, 2026 | | Stock price | $ | 10.42 | | $ | 6.75 | | Strike price | $ | 8.2526 | | $ | 8.2526 | | Risk-free interest rate | 4.14 | % | | 4.21 | % | | Dividend yield | — | | | — | | | Expected life (in years) | 2.5 | | 3.69 | | Expected volatility | 97.26 | % | | 89.94 | % |
| | | | | | | | | | | | | June 30, 2026 | | December 31, 2025 | | Estimated cash flow dates | 2027 - 2038 | | 2026 - 2037 | | Estimated probability of success | 95.0% - 100.0% | | 95.0% - 100.0% | | Expected volatility of future revenues | 23.0 | % | | 23.0 | % | | | | |
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| Schedule of Roll-Forward of Fair Value for the Company’s Level 3 |
The following table reflects a roll-forward of fair value for the Company’s Level 3 warrant liabilities (see Note 10, “Equity” to these unaudited consolidated financial statements) for the six months ended June 30, 2026 (in thousands): | | | | | | | Warrant liability | Fair value as of December 31, 2025 | $ | 141 | | | | | | Change in fair value | 24 | | Fair value as of June 30, 2026 | $ | 165 | | | | | | | |
The following table reflects a roll-forward of fair value for the Company’s Level 3 Compound Derivative for the six months ended June 30, 2026 (in thousands): | | | | | | | Compound Derivative | Fair value as of December 31, 2025 | $ | — | | | Initial recognition on the Closing Date | 7,405 | | | Change in fair value | 4,535 | | Fair value as of June 30, 2026 | $ | 11,940 | | | | | | | |
The following table reflects a roll-forward of fair value for the Company’s Level 3 CVR liability for the six months ended June 30, 2026 (in thousands): | | | | | | | CVR liability | Fair value as of December 31, 2025 | $ | 392,100 | | | | | | Change in fair value | (35,400) | | Fair value as of June 30, 2026 | $ | 356,700 | |
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