3. Fair value measurements

There were no transfers between Level 1, 2, or 3 during the three and six months ended June 30, 2026 and during the year ended December 31, 2025.

As of June 30, 2026, no significant facts or circumstances were present to indicate a deterioration in the creditworthiness of the issuers of the marketable securities, and the Company has no requirement or intention to sell these securities before maturity or recovery of their amortized cost basis. The Company considered the current and expected future

economic and market conditions and determined that its investments were not significantly impacted. For the three and six months ended June 30, 2026 and 2025 the Company did not recognize any impairment losses on its investments.

Series A Preferred Stock Tranche Obligations

In June 2024, the Company entered into a Series A Preferred Stock purchase agreement (Note 9, “Redeemable Convertible Preferred Stock”). The preferred stock tranche asset and liability represented the fair value of the Company’s obligations to issue Series A Preferred Stock in two subsequent closings upon satisfaction of certain conditions. These instruments were measured at fair value on a recurring basis and were classified within Level 3 of the fair value hierarchy as the valuation incorporates significant unobservable inputs.

The fair value was determined using a probability-weighted expected return method as it represents a contingent commitment for the additional shares. The valuation reflected market-participant assumptions, and considered, among other inputs, the estimated fair value per share of the Series A Preferred Stock as of each measurement date, probability of meeting certain milestone events, the expected time until certain milestone events would be met, and the discount rate.

The most significant unobservable inputs were the estimated fair value of the Company’s Series A Preferred Stock and the probability and expected timing of achieving certain milestone events as of the measurement dates. The Company determined the fair value per share of the underlying Series A Preferred Stock by taking into consideration the most recent sales of its Series A Preferred Stock, results obtained from third-party valuations and additional factors the Company deemed relevant. Changes in these inputs can materially affect the fair value of the preferred stock tranche obligations.

Fair value of Series A Preferred Stock was $21.24 per share as of June 30, 2025.

During the six months ended June 30, 2025, upon the closing of the Third Tranche, the related preferred stock tranche obligation was derecognized and the shares of preferred stock issued in connection with the settlement were recorded at the fair value as of settlement date. No change in fair value was recognized in the condensed consolidated statement of operations and comprehensive loss upon settlement of the Third Tranche obligation.

During the six months ended June 30, 2025, the Company remeasured the Second Tranche obligation, and the associated change in fair value of preferred stock tranche obligation of $3.9 million was recognized in the condensed consolidated statement of operations and comprehensive loss.

Both the Second and Third Tranches of the Series A Preferred Stock were closed during the year ended December 31, 2025, and accordingly, no change in fair value was recorded for the six months ended June 30, 2026.

Prolaio Contingent Milestone Liabilities

On February 24, 2025, the Company acquired Prolaio, Inc., and, as part of the consideration transferred in the acquisition, recognized a contingent consideration liability. The liability represented the estimated fair value of future milestone payments of up to $200.0 million payable to Prolaio's former stockholders upon the achievement of specified post-closing operational, financial and regulatory milestones. On May 1, 2026, the Company entered into an amendment to the Agreement and Plan of Merger with Prolaio's former stockholders to amend the applicable milestone provisions, which replaced the original milestones with new milestones tied to the Company's achievement of specified valuation thresholds through May 2032, while keeping the aggregate maximum milestone payments unchanged at $200.0 million (Note 5, "Acquisitions and Licensing Agreements").

The Company utilizes significant estimates and assumptions it believes would be made by a market participant in determining the estimated fair value of contingent milestone liabilities at each balance sheet date.

Prior to the amendment, the fair value of the Prolaio contingent consideration was determined by calculating the probability-weighted estimated value of the specified milestone payments, based on the assessment of the likelihood and estimated timing that the milestones would be achieved and the applicable discount rates. The discount rate captured the credit risk associated with the payment of the contingent consideration when earned and due.

As of the amendment date and subsequently, the fair value of the Prolaio contingent milestone liabilities was determined based on the Monte Carlo valuation method, reflecting the shift to valuation-based milestones tied to the Company's market valuation thresholds through May 2032.

The estimated fair value of contingent milestone liabilities may change significantly as development progresses and additional data is obtained, impacting the assumptions regarding probabilities of successful achievement of the Company's valuation thresholds used to estimate the fair value of the liability and the timing in which they are expected to be achieved. In evaluating the fair value assumptions, judgment is required to interpret the market data used to develop the estimates. Accordingly, the use of different market assumptions, inputs and/or different valuation techniques could result in materially different fair value estimates.

PhysIQ Contingent Consideration (Assumed Liability)

The Company utilized significant estimates and assumptions it believes would be made by a market participant in determining the estimated fair value of the contingent consideration liability. The fair value of the PhysIQ contingent consideration, as of the acquisition date, was determined by calculating the probability-weighted estimated value of the specified milestone payments, based on the assessment of the likelihood and estimated timing that the milestones would be achieved and the applicable discount rates. The discount rate captures the credit risk associated with the payment of the contingent consideration when earned and due.

The weighted-average unobservable inputs were calculated based on the relative value of the specified milestones. The estimated fair value of contingent consideration liabilities may change significantly as development progresses and additional data is obtained, impacting the assumptions regarding probabilities of successful achievement of the milestones used to estimate the fair value of the liability and the timing in which they are expected to be achieved. In evaluating the fair value assumptions, judgment is required to interpret the market data used to develop the estimates. Accordingly, the use of different market assumptions, inputs and/or different valuation techniques could result in materially different fair value estimates. Following the initial recognition at the acquisition date, the acquired contingency is not subsequently measured at fair value. Refer to Note 5, “Acquisitions and Licensing Agreements” for further details on the change in the carrying value of the PhyslQ contingent consideration.