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

9. Recurring Fair Value Measurements

The following tables summarize the Company's fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis (in thousands):

June 30, 2026

 

 

 

 

Quoted Prices in Active Markets for Identical Assets

 

 

Significant Other Observable Inputs

 

 

Significant Unobservable Inputs

 

Assets

 

Total

 

 

(Level 1)

 

 

(Level 2)

 

 

(Level 3)

 

Money market funds included in cash and cash equivalents

 

$

61,408

 

 

$

61,408

 

 

$

-

 

 

$

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Warrant liabilities

 

$

62

 

 

$

 

 

 

$

-

 

 

$

62

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2025

 

 

 

 

Quoted Prices in Active Markets for Identical Assets

 

 

Significant Other Observable Inputs

 

 

Significant Unobservable Inputs

 

Assets

 

Total

 

 

(Level 1)

 

 

(Level 2)

 

 

(Level 3)

 

Money market funds included in cash and cash equivalents

 

$

4,275

 

 

$

4,275

 

 

$

-

 

 

$

-

 

The Company is party to certain funding awards with the CFF. Prior to October 2025, the funding awards included embedded derivatives arising from provisions that, upon the occurrence of a change of control or sale or license of funded assets (each a disposition event), the Company would be required to make payments to the CFF. In October 2025, this requirement was terminated. With the termination of the embedded derivative-related terms, the value of the related embedded derivatives was zero as of June 30, 2026 and December 31, 2025.

The September 2023 Warrants and the September 2023 Placement Agent Warrants, which were issued as part of the September 2023 Registered Direct Offering, are classified as liabilities within Level 3 due to certain early settlement provisions that preclude them from equity classification. The Company determined the value of the September 2023 Warrants and the September 2023 Placement Agent Warrants was immaterial as of December 31, 2025. The value of the

September 2023 Warrants and the September 2023 Placement Agent Warrants was determined to be $0.1 million as of June 30, 2026, calculated using Black-Scholes models on June 30, 2026 with the following assumptions: volatility of 68.76%, stock price of $13.88, risk-free rates of 4.15% and 4.14%, respectively, and terms of 2.75 and 2.25 years, respectively.

The table below provides a summary of the fair value of the derivative liabilities and the warrant liabilities, which were Level 3 fair value estimates (in thousands), for the three and six months ended June 30, 2026 and 2025:

 

 

 

Three Months Ended June 30,

 

 

 

Six Months Ended June 30,

 

 

 

 

2026

 

 

 

2025

 

 

 

2026

 

 

 

2025

 

Fair value of derivative liabilities, beginning of period

 

$

 

—

 

 

$

 

95

 

 

$

 

—

 

 

$

 

95

 

Change in fair value of derivative liabilities

 

 

 

—

 

 

 

 

—

 

 

 

 

—

 

 

 

 

—

 

Fair value of derivative liabilities, end of period

 

$

 

—

 

 

$

 

95

 

 

$

 

—

 

 

$

 

95

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

 

 

Six Months Ended June 30,

 

 

 

 

2026

 

 

 

2025

 

 

 

2026

 

 

 

2025

 

Fair value of warrant liabilities, beginning of period

 

 

 

—

 

 

 

 

—

 

 

 

 

—

 

 

 

 

—

 

Change in fair value of warrant liabilities

 

 

 

62

 

 

 

 

—

 

 

 

 

62

 

 

 

 

—

 

Fair value of warrant liabilities, end of period

 

$

 

62

 

 

$

 

—

 

 

$

 

62

 

 

$

 

—