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

9. Fair Value Measurement

The Company measures its financial assets and liabilities at fair value each reporting period using a fair value hierarchy that prioritizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. A financial instrument’s classification within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement.

The Company uses the market approach to measure fair value for its financial assets and liabilities. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities.

The carrying amounts of the Company’s financial instruments, which include cash equivalents, accounts receivable, accounts payable, certain prepaid expenses, other current assets, accrued liabilities, and other current liabilities approximate fair value because of their short-term maturities.

The Company issued warrants to purchase Series J Preferred Stock (the “Series J Warrants”) in connection with the Company’s entrance into a financing agreement pursuant to which certain term loans were made to the Company (refer to Note 11. Notes Payable and Warrants for further detail). The Company used a Black-Scholes option-pricing valuation model to value the Series J Warrants as of June 30, 2026. The following table presents the key inputs applied in the valuation of the Series J Warrants:

June 30, 2026

 

Common stock price

$

 

29.40

 

Exercise price for the Series J Warrants

$

 

21.17

 

Risk-free rate

 

4.26%-4.30%

 

Volatility

 

97.5%-101.5%

 

Term (years)

 

7.05-7.89

 

Black-Scholes value (per share)

$

25.64-25.87

 

Number of warrants

 

 

646

 

Value of Series J Warrants

$

 

16,604

 

The following tables present the key inputs applied in the valuation of the Series J Warrants as of December 31, 2025:

December 31, 2025

 

Common stock price

$

 

22.37

 

Exercise price for the Series J Warrants

$

 

21.17

 

Risk-free rate

 

3.94%-4.01%

 

Volatility

 

92.5%-97.5%

 

Term (years)

 

7.55-8.39

 

Black-Scholes value (per share)

$

19.00-19.06

 

Number of warrants

 

 

646

 

Value of Series J Warrants

$

 

12,294

 

 

During each of the three and six months ended June 30, 2026 and 2025, no warrants were issued. The fair value remeasurement of the Series J Warrants resulted in an increase in fair value of $0.6 million and $4.3 million for the three and six months ended June 30, 2026 respectively. No warrants were exercised during the three and six months ended June 30, 2025.

The fair value of the Series J Warrants on June 30, 2026 was $16.6 million.

 

 

June 30, 2026

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash

 

$

294,162

 

 

$

—

 

 

$

—

 

 

$

294,162

 

Money market funds

 

 

165,655

 

 

 

—

 

 

 

—

 

 

 

165,655

 

Time deposits

 

 

175,447

 

 

 

—

 

 

 

—

 

 

 

175,447

 

Total financial assets

 

$

635,264

 

 

$

—

 

 

$

—

 

 

$

635,264

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Series J Warrants

 

$

—

 

 

$

16,604

 

 

$

—

 

 

$

16,604

 

Total financial liabilities

 

$

—

 

 

$

16,604

 

 

$

—

 

 

$

16,604

 

The fair value of the Series J Warrants on December 31, 2025 was $12.3 million.

 

 

December 31, 2025

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash

 

$

787,747

 

 

$

—

 

 

$

—

 

 

$

787,747

 

Money market funds

 

 

—

 

 

 

5,219

 

 

 

—

 

 

 

5,219

 

Time deposits

 

 

100,008

 

 

 

—

 

 

 

—

 

 

 

100,008

 

Total financial assets

 

$

887,755

 

 

$

5,219

 

 

$

—

 

 

$

892,974

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Series J Warrants

 

$

—

 

 

$

12,294

 

 

$

—

 

 

$

12,294

 

Total financial liabilities

 

$

—

 

 

$

12,294

 

 

$

—

 

 

$

12,294