v3.26.1
Fair Value Measurements
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements
4.
Fair value measurements

Carrying amounts of certain of the Company’s financial instruments, including accounts receivable, prepaid expenses and other current assets, accounts payable, and accrued liabilities approximate fair value due to their relatively short maturities.

On a recurring basis, the Company measures certain financial assets and liabilities at fair value, including the Company’s cash equivalents. There were no transfers between levels during the six months ended June 30, 2026 and 2025. The following table sets forth the Company’s financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2026 based on the three-tier fair value hierarchy (in thousands):

 

 

 

Fair Value at June 30, 2026

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Financial assets included within cash and cash
   equivalents and short-term investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

 

107,602

 

 

$

 

—

 

 

$

 

—

 

 

$

 

107,602

 

U.S. treasury securities

 

 

 

—

 

 

 

 

133,026

 

 

 

 

—

 

 

 

 

133,026

 

Total assets at fair value

 

$

 

107,602

 

 

$

 

133,026

 

 

$

 

—

 

 

$

 

240,628

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Phantom stock options

 

$

 

—

 

 

$

 

—

 

 

$

 

125

 

 

$

 

125

 

Total liabilities at fair value

 

$

 

—

 

 

$

 

—

 

 

$

 

125

 

 

$

 

125

 

 

The following table sets forth the Company’s financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2025 based on the three-tier fair value hierarchy (in thousands):

 

 

 

Fair Value at December 31, 2025

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Financial assets included within cash and cash
   equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

 

19,665

 

 

$

 

—

 

 

$

 

—

 

 

$

 

19,665

 

Total assets at fair value

 

$

 

19,665

 

 

$

 

—

 

 

$

 

—

 

 

$

 

19,665

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Warrant liabilities

 

$

 

—

 

 

$

 

—

 

 

$

 

247

 

 

$

 

247

 

Phantom stock options

 

 

 

—

 

 

 

 

—

 

 

 

 

8

 

 

 

 

8

 

Total liabilities at fair value

 

$

 

—

 

 

$

 

—

 

 

$

 

255

 

 

$

 

255

 

 

Warrant liabilities

The Company issued a warrant to purchase shares of its convertible preferred stock, which did not meet the criteria for equity classification and was therefore classified as a liability. In connection with the Company's IPO in April 2026, this warrant automatically converted into a warrant to purchase common stock in accordance with the warrant. As a result, the preferred stock warrant liability was remeasured to fair value and reclassified to additional paid-in-capital on IPO date. The estimated fair value of the convertible preferred stock warrant liability prior to conversion was determined based on significant inputs not observable in the market, which represents a Level 3 measurement within the fair value hierarchy.

There were no material changes in the fair value of the Company’s warrant liabilities in the three and six months ended June 30, 2026 and 2025.

Convertible notes

Prior to conversion to common stock on IPO date, the total estimated fair value of the convertible notes issued in January 2026 was $66.5 million. The fair value was determined based on a probability-weighted approach assuming the notes settled through an automatic conversion either upon an IPO or upon maturity. The value in an IPO scenario is directly calculated based on contractual terms, including the number of shares receivable upon conversion, and the share price of the Company's common stock. Refer to Note 7—Financing arrangements for additional terms of the convertible notes.

The following table summarizes the changes in carrying value of the convertible notes for the three and six months ended June 30, 2026:

 

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

 

2026

 

 

2026

 

Balance at beginning of period

 

 

$

65,094

 

 

$

—

 

Issuance of convertible notes

 

 

 

—

 

 

 

56,500

 

Remeasurement of notes to fair value

 

 

 

1,377

 

 

 

9,971

 

Conversion of convertible notes to common stock

 

 

 

(66,471

)

 

 

(66,471

)

Balance at end of period

 

 

$

—

 

 

$

—