v3.26.1
Fair Value Measurements and Fair Value of Financial Instruments
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements and Fair Value of Financial Instruments
3.
Fair Value Measurements and Fair Value of Financial Instruments

The authoritative guidance on fair value measurements establishes a three-tier fair value hierarchy for disclosure of fair value measurements as follows:

Level 1 - Quoted prices in active markets for identical assets or liabilities.

Level 2 - Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

As of June 30, 2026 and December 31, 2025, financial assets measured at fair value on a recurring basis consisted of cash equivalents and marketable securities. Cash equivalents consist primarily of money market funds and other investments that are readily convertible into cash and have maturities of three months or less at the time of acquisition. The fair value of cash equivalents was $165.4 million and $34.7 million as of June 30, 2026 and December 31, 2025, respectively. The Company considers marketable securities with maturities greater than three months at the time of acquisition to be available-for-sale securities. The fair value of available-for-sale securities was $91.7 million and $78.1 million as of June 30, 2026 and December 31, 2025, respectively. These available-for-sale securities have expected maturities ranging from 0.5 to 19.3 months, and securities with an expected maturity greater than 12 months as of the balance sheet date, are classified in long-term. The fair value of marketable securities, which are Level 2 financial instruments, is based upon market prices quoted on the last day of the fiscal period or other observable market inputs. The Company obtains pricing information from its investment manager and generally determines the fair value of investment securities using standard observable inputs, including reported trades, broker-dealer quotes, bids and/or offers.

The Company evaluates securities with unrealized losses, if any, to determine whether the decline in fair value has resulted from credit loss or other factors, including various qualitative factors. As of June 30, 2026, the Company has not recognized any impairment or credit losses on the Company’s available-for-sale securities. While the Company classifies these securities as available-for-sale, the Company does not intend to sell its investments and based on its current plans, the Company currently believes it has the ability to hold these investments until maturity.

The carrying values of the Company’s accounts payable and accrued expenses and other current liabilities approximate their fair values due to the short-term nature of these liabilities.

Assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires management to make judgments and consider factors specific to the asset or liability.

The Company’s Level 3 liabilities that are measured at fair value on a recurring basis consist of the Series A common stock warrant liability related to the warrant to purchase 1,000 shares of Series A common stock with an exercise price of $69.94 per share and an expiration date of July 18, 2026, the third anniversary date of the closing of the Company’s IPO. The fair value of the Series A common stock warrant liability was immaterial as of June 30, 2026 and December 31, 2025, as well as the change in fair value during the three and six months ended June 30, 2026 and 2025. There were no transfers within the hierarchy during the periods presented.

The following tables set forth the Company’s financial assets that were measured at fair value on a recurring basis by level within the fair value hierarchy as of (in thousands):

 

 

 

 

June 30, 2026

 

 

Valuation

 

Amortized

 

 

Unrealized

 

 

Unrealized

 

 

Fair

 

 

Hierarchy

 

Cost

 

 

Gains

 

 

Losses

 

 

Value

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

Level 1

 

$

165,383

 

 

$

—

 

 

$

—

 

 

$

165,383

 

Total cash equivalents

 

 

 

 

165,383

 

 

 

—

 

 

 

—

 

 

 

165,383

 

Short-term marketable securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial paper

 

Level 2

 

 

20,481

 

 

 

—

 

 

 

(20

)

 

 

20,461

 

Corporate debt securities

 

Level 2

 

 

2,980

 

 

 

—

 

 

 

(2

)

 

 

2,978

 

U.S. Treasury securities

 

Level 2

 

 

40,963

 

 

 

6

 

 

 

(30

)

 

 

40,939

 

Agency securities

 

Level 2

 

 

3,797

 

 

 

—

 

 

 

(5

)

 

 

3,792

 

Asset-backed securities

 

Level 2

 

 

6,055

 

 

 

19

 

 

 

(12

)

 

 

6,062

 

Total short-term marketable securities

 

 

 

 

74,276

 

 

 

25

 

 

 

(69

)

 

 

74,232

 

Long-term marketable securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury securities

 

Level 2

 

 

17,469

 

 

 

—

 

 

 

(33

)

 

 

17,436

 

Total long-term marketable securities

 

 

 

 

17,469

 

 

 

—

 

 

 

(33

)

 

 

17,436

 

Total cash equivalents and
   marketable securities

 

 

 

$

257,128

 

 

$

25

 

 

$

(102

)

 

$

257,051

 

 

 

 

 

December 31, 2025

 

 

Valuation

 

Amortized

 

 

Unrealized

 

 

Unrealized

 

 

Fair

 

 

Hierarchy

 

Cost

 

 

Gains

 

 

Losses

 

 

Value

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

Level 1

 

$

33,219

 

 

$

—

 

 

$

—

 

 

$

33,219

 

U.S. Treasury securities

 

Level 2

 

 

1,499

 

 

 

—

 

 

 

—

 

 

 

1,499

 

Total cash equivalents

 

 

 

 

34,718

 

 

 

—

 

 

 

—

 

 

 

34,718

 

Short-term marketable securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial paper

 

Level 2

 

 

18,061

 

 

 

14

 

 

 

(4

)

 

 

18,071

 

Corporate debt securities

 

Level 2

 

 

1,500

 

 

 

3

 

 

 

—

 

 

 

1,503

 

U.S. Treasury securities

 

Level 2

 

 

50,340

 

 

 

92

 

 

 

—

 

 

 

50,432

 

Agency securities

 

Level 2

 

 

2,033

 

 

 

1

 

 

 

—

 

 

 

2,034

 

Asset-backed securities

 

Level 2

 

 

6,049

 

 

 

16

 

 

 

(2

)

 

 

6,063

 

Total short-term marketable securities

 

 

 

 

77,983

 

 

 

126

 

 

 

(6

)

 

 

78,103

 

Total cash equivalents and
   marketable securities

 

 

 

$

112,701

 

 

$

126

 

 

$

(6

)

 

$

112,821