v3.26.1
Fair Value
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Fair Value Fair Value
The following fair value hierarchy tables present information about each major category of the Company’s financial assets and liabilities measured at fair value on a recurring basis (in thousands):
Fair Value Measurement at June 30, 2026
Fair ValueLevel 1Level 2Level 3
Assets
Money market funds$110,082 $110,082 $— $— 
Total assets at fair value$110,082 $110,082 $— $— 
Fair Value Measurement at Fair Value Measurement at December 31, 2025
Fair ValueLevel 1Level 2Level 3
Assets
Money market funds$9,244 $9,244 $— $— 
Total assets at fair value$9,244 $9,244 $— $— 
Fair Value Measurement at Fair Value Measurement at December 31, 2025
Fair ValueLevel 1Level 2Level 3
Liabilities
SARs liability$809 $— $— $809 
Total Liabilities809 — — 809 
For the Company’s money market funds which are included as a component of cash and cash equivalents on the consolidated balance sheet, realized gains and losses are included in interest income on the consolidated statements of operations.
Our money market fund account is held in our bank in the U.S. and was earning interest at a rate of 3.5% in a U.S. Government money market fund.
The Company has cash balances in banks in excess of the maximum amount insured by the FDIC and other international agencies as of June 30, 2026. The Company has not historically experienced any credit losses with balances in excess of FDIC limits.
The Company recorded a SARs liability of $0 and $0.8 million as of June 30, 2026 and December 31, 2025, respectively, as a result of the grant of up to 3.5 million SARs in July 2025 (see note 7). The fair value of the SARs liability was classified as Level 3 under the fair value hierarchy up until June 29, 2026 when the shareholders approved an increase of an additional 6 million allowable shares related to the 2019 Equity Plan. Upon the approval of additional shares, the Company determined it meets the other criteria to be classified as an equity classified award and therefore no longer needs to be marked to market each quarter. Any previous liability that was recognized for these awards was reclassified to Additional Paid-in Capital during the quarter ended June 30, 2026. A rollforward of the fair value of the SARs liability is as follow (in thousands):
Fair value of SARs liability at December 31, 2025$809 
Change in fair value of SARs liability for the three months ended March 31, 20261,901 
Fair value of SARs liability at March 31, 20262,710 
Change in fair value of SARs liability from April 1, 2026 through June 29, 20262,488 
Reclassification of the fair value of SARs liability to equity(5,198)
Fair value of SARs liability at June 30, 2026$— 
The Company utilized a Monte Carlo simulation model in conjunction with a Probability-Weighted Expected Return Model (“PWERM”) to estimate the fair value of the SARs liabilities. This valuation model incorporates various assumptions, including stock price volatility, risk-free interest rate, corporate transaction probability and the expected term of the underlying equity instruments and SARs.
The following table summarizes the key assumptions used in estimating the fair value of the SARs at June 29, 2026, and December 31, 2025:


June 29, 2026December 31, 2025
Expected term (years)
0.09-2.71
1.00-2.40
Risk-free interest rate
4.02%-4.34%
3.64%-4.11%
Stock price volatility
85%-110%
65%-115%
Probability (1)
50%-50%
50%-50%
Dividend rate
—%
—%

(1) Scenario probability was based on timing expectations of the Company that a corporate transaction occurring was estimated at 50%; and a corporate transaction not occurring at 50%.
The carrying amounts of other current assets and prepaid expenses, accounts payable, accrued expenses, and other current liabilities approximate their fair values due to their short-term nature. The fair value and book value of the money market funds presented in the table above are the same.