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.

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.

During the three and six months ended June 30, 2026, financial assets measured on a recurring basis consist of cash invested in money market accounts, short-term investments, and long-term investments. The fair value of short- and long-term investments 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.

There were no transfers in or out of Level 3 fair value measurements during the three and six months ended June 30, 2026 and 2025.

Marketable securities, all of which are classified as available-for-sale securities, consisted of the following at June 30, 2026 and December 31, 2025 (in thousands):

 

 

 

June 30, 2026

 

 

 

Amortized

 

 

Unrealized

 

 

Unrealized

 

 

Estimated

 

 

 

Cost

 

 

Gains

 

 

Losses

 

 

Fair Value

 

Asset-backed securities

 

$

2,510

 

 

$

—

 

 

$

(1

)

 

$

2,509

 

Commercial paper

 

 

1,738

 

 

 

—

 

 

 

—

 

 

 

1,738

 

Corporate debt securities

 

 

1,000

 

 

 

—

 

 

 

—

 

 

 

1,000

 

Total

 

$

5,248

 

 

$

—

 

 

$

(1

)

 

$

5,247

 

 

 

 

 

 

December 31, 2025

 

 

 

Amortized

 

 

Unrealized

 

 

Unrealized

 

 

Estimated

 

 

 

Cost

 

 

Gains

 

 

Losses

 

 

Fair Value

 

Asset-backed securities

 

$

5,334

 

 

$

6

 

 

$

—

 

 

$

5,340

 

U.S. treasury securities

 

 

991

 

 

 

1

 

 

 

—

 

 

 

992

 

Other agency securities

 

 

995

 

 

 

—

 

 

 

—

 

 

 

995

 

Commercial paper

 

 

7,682

 

 

 

1

 

 

 

—

 

 

 

7,683

 

Corporate debt securities

 

 

5,128

 

 

 

1

 

 

 

—

 

 

 

5,129

 

Total

 

$

20,130

 

 

$

9

 

 

$

—

 

 

$

20,139

 

 

As of June 30, 2026, the unrealized losses for available-for-sale investments were primarily due to changes in interest rates and not due to increased credit risks associated with specific securities. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost bases of the investments. The Company does not currently intend to sell the investments. As of June 30, 2026, no allowance for credit losses was recorded and the Company did not recognize any impairment losses related to investments.

The tables below show the gross unrealized losses and fair value of the Company's available-for-sale securities with unrealized losses that are not deemed to have credit losses (in thousands), aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2026 and December 31, 2025, respectively:

 

 

 

June 30, 2026

 

 

 

Less Than 12 Months

 

 

More Than 12 Months

 

 

Total

 

 

 

Estimated

 

 

Unrealized

 

 

Estimated

 

 

Unrealized

 

 

Estimated

 

 

Unrealized

 

 

 

Fair Value

 

 

Losses

 

 

Fair Value

 

 

Losses

 

 

Fair Value

 

 

Losses

 

Asset-backed securities

 

$

2,000

 

 

$

—

 

 

$

509

 

 

$

(1

)

 

$

2,509

 

 

$

(1

)

Commercial paper

 

 

1,738

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,738

 

 

 

—

 

Corporate debt securities

 

 

1,000

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,000

 

 

 

—

 

Total

 

$

4,738

 

 

$

—

 

 

$

509

 

 

$

(1

)

 

$

5,247

 

 

$

(1

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2025

 

 

 

Less Than 12 Months

 

 

More Than 12 Months

 

 

Total

 

 

 

Estimated

 

 

Unrealized

 

 

Estimated

 

 

Unrealized

 

 

Estimated

 

 

Unrealized

 

 

 

Fair Value

 

 

Losses

 

 

Fair Value

 

 

Losses

 

 

Fair Value

 

 

Losses

 

Asset-backed securities

 

$

1,003

 

 

$

—

 

 

$

4,337

 

 

$

—

 

 

$

5,340

 

 

$

—

 

U.S. treasury securities

 

 

992

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

992

 

 

 

—

 

Other agency securities

 

 

995

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

995

 

 

 

—

 

Commercial paper

 

 

7,683

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

7,683

 

 

 

—

 

Corporate debt securities

 

 

5,129

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

5,129

 

 

 

—

 

Total

 

$

15,802

 

 

$

—

 

 

$

4,337

 

 

$

—

 

 

$

20,139

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accrued interest receivable on available-for-sale securities were $17,000 and $0.1 million at June 30, 2026 and December 31, 2025, which are recorded in cash and cash equivalents line item on the Company's condensed balance sheets. The Company has not written off any accrued interest receivables for the three and six months ended June 30, 2026.

As of June 30, 2026 and December 31, 2025, the fair values of the Company’s assets, which are measured at fair value on a recurring basis, were determined using the following inputs (in thousands):

 

 

 

June 30, 2026

 

 

 

Total

 

 

(Level 1)

 

 

(Level 2)

 

 

(Level 3)

 

Money market funds

 

$

11,110

 

 

$

11,110

 

 

$

—

 

 

$

—

 

Asset-backed securities

 

 

2,509

 

 

 

—

 

 

 

2,509

 

 

 

—

 

Commercial paper

 

 

1,738

 

 

 

—

 

 

 

1,738

 

 

 

—

 

Corporate debt securities

 

 

1,000

 

 

 

—

 

 

 

1,000

 

 

 

—

 

Total

 

$

16,357

 

 

$

11,110

 

 

$

5,247

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2025

 

 

 

Total

 

 

(Level 1)

 

 

(Level 2)

 

 

(Level 3)

 

Money market funds

 

$

7,755

 

 

$

7,755

 

 

$

—

 

 

$

—

 

Asset-backed securities

 

 

5,340

 

 

 

—

 

 

 

5,340

 

 

 

—

 

U.S. treasury securities

 

 

992

 

 

 

992

 

 

 

—

 

 

 

—

 

Other agency securities

 

 

995

 

 

 

—

 

 

 

995

 

 

 

—

 

Commercial paper

 

 

7,683

 

 

 

—

 

 

 

7,683

 

 

 

—

 

Corporate debt securities

 

 

5,129

 

 

 

—

 

 

 

5,129

 

 

 

—

 

Total

 

$

27,894

 

 

$

8,747

 

 

$

19,147

 

 

$

—