The Company’s cash and cash equivalents consisted of the following (in thousands):


	June 30,		December 31,
	2026		2025
Cash	$	1,783	$	2,872
Cash equivalents
Money market funds		10,327		7,836
Yankee CD		500		—
Total cash and cash equivalents	$	12,610	$	10,708

Marketable Securities

The Company's available-for-sale marketable securities consisted of the following (in thousands):


	June 30, 2026
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Marketable securities—short-term
U.S. treasury and government agencies	$	6,527	$	—	$	(18	)	$	6,509
Corporate debt		16,387		8		(23	)		16,372
Asset-backed securities		8,747		2		(21	)		8,728
Yankee CD		1,400		—		—			1,400
Total marketable securities—short-term	$	33,061	$	10	$	(62	)	$	33,009


	December 31, 2025
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Marketable securities—short-term
U.S. treasury and government agencies	$	6,709	$	9	$	—		$	6,718
Corporate debt		19,254		48		—			19,302
Asset-backed securities		10,423		16		(1	)		10,438
Yankee CD		1,201		—		—			1,201
Total marketable securities—short-term	$	37,587	$	73	$	(1	)	$	37,659

As of June 30, 2026, there were no available-for-sale securities with unrealized losses greater than 12 months. An allowance for credit losses was not required for available-for-sale securities as of June 30, 2026 and December 31, 2025.

As of June 30, 2026, the Company had no plans to sell securities with unrealized losses, and believes it is more likely than not that it would not be required to sell such securities before recovery of their amortized cost. For the three and six months ended June 30, 2026 and 2025, there were no material gains or losses from sales of available-for-sale securities.

As of June 30, 2026 and December 31, 2025, accrued interest of $0.3 million and $0.3 million, respectively, is excluded from the amortized cost basis of available-for-sale securities in the tables above and is recorded in prepaid expenses and other current assets on the Condensed Balance Sheets.

As of June 30, 2026, all marketable securities mature within two years, except for asset-backed securities. Asset-backed securities are not due at a single maturity date. As such, these securities were not included.

Property and equipment, net

The Company’s property and equipment, net consisted of the following (in thousands):


	June 30,			December 31,
	2026			2025
Furniture and fixtures	$	2,569		$	2,569
Construction in progress		199			1,069
Machinery and equipment		4,397			3,663
Capitalized surgical equipment1		36,343			33,147
Computer equipment		1,237			1,225
Leasehold improvements		10,719			10,591
Software and website development		2,246			1,357
Total property and equipment		57,710			53,621
Less: accumulated depreciation and amortization		(25,214	)		(23,869	)
Property and equipment, net	$	32,496		$	29,752

1 Capitalized surgical equipment includes $30.2 million and $28.0 million that is ready for its intended use and have started depreciating and $6.1 million and $5.1 million that is not ready for its intended use and have not started depreciating as of June 30, 2026 and December 31, 2025, respectively.

Depreciation expense on property and equipment was $1.5 million and $2.3 million for the three months ended June 30, 2026 and 2025, respectively. Depreciation expense on property and equipment was $2.1 million and $4.4 million for the six months ended June 30, 2026 and 2025, respectively. The decrease in depreciation expense is from a change in useful life of capitalized surgical instruments. Refer to Note 2, "Summary of Significant Accounting Policies," for more information regarding the change in accounting estimate.

Amortization expense on internal-use software and website development costs was $0.2 million and $0.1 million for the three months ended June 30, 2026 and 2025, respectively. Amortization expense on internal-use software and website development costs was $0.3 million and $0.2 million for the six months ended June 30, 2026 and 2025, respectively. Accumulated amortization for software and website development costs was $0.9 million and $0.6 million as of June 30, 2026 and December 31, 2025, respectively.

The Company did not record impairment charges for its property and equipment, net for the six months ended June 30, 2026 and 2025.

Accrued liabilities

Accrued liabilities consist of the following (in thousands):


	June 30,		December 31,
	2026		2025
Accrued royalties expense	$	1,617	$	1,830
Accrued interest		515		239
Accrued professional services		2,403		1,532
Other accrued expense		1,746		2,183
Total accrued liabilities	$	6,281	$	5,784

Other liabilities

Other liabilities consist of the following (in thousands):


	June 30,		December 31,
	2026		2025
Current portion of operating lease liabilities	$	388	$	552
Short-term debt1		3,169		1,745
SLR term loan fees for tranches two and three		360		—
Other		410		132
Total other liabilities	$	4,327	$	2,429

l See Note 6, "Long-Term Debt," for information regarding the legal cost financing related to the lawsuit against Stryker Corporation and its subsidiary Wright Medical Technology, Inc. Short-term debt includes $2.3 million and $1.1 million in financed legal costs as of June 30, 2026 and December 31, 2025, respectively, and reflects the amount that may be called within the next twelve months. In addition, short-term debt includes $0.8 million and $0.6 million of insurance premiums payable over the next three months and six months, respectively.

Cash and Cash Equivalents

Marketable Securities

Property and equipment, net

Accrued liabilities

Other liabilities