v3.26.1
Financial instruments and fair value measurements
6 Months Ended
Jun. 30, 2026
Financial instruments and fair value measurements  
Financial instruments and fair value measurements

Note 3—Financial instruments and fair value measurements

The following table sets forth the Company’s assets that were measured at fair value as of June 30, 2026 by level within the fair value hierarchy:

  ​ ​ ​

Level 1

  ​ ​ ​

Level 2

  ​ ​ ​

Level 3

  ​ ​ ​

Total

Assets:

Cash equivalents

$

42,459

42,459

U.S. Treasury

 

20,755

20,755

Corporate bonds

 

126,792

126,792

Total

$

42,459

$

147,547

$

$

190,006

The following table sets forth the Company’s assets and liabilities that were measured at fair value as of December 31, 2025, by level within the fair value hierarchy:

  ​ ​ ​

Level 1

  ​ ​ ​

Level 2

  ​ ​ ​

Level 3

  ​ ​ ​

Total

Cash equivalents

$

58,030

$

58,030

U.S. Treasury

 

 

4,606

 

 

4,606

Corporate bonds

 

 

50,655

 

 

50,655

Total

$

58,030

$

55,261

$

$

113,291

Liabilities:

Contingent consideration

3,757

3,757

Total

$

$

$

3,757

$

3,757

There were no transfers between levels during the period ended June 30, 2026. The Company uses the services of its investment manager, which uses widely accepted models for assumptions in valuing securities with inputs from major third-party data providers.

The Company classifies all of its investments in fixed maturity debt securities as available-for-sale and, accordingly, are carried at estimated fair value.

The amortized cost, gross unrealized gains and losses, and fair value of investments in fixed maturity securities are as follows as of June 30, 2026:

  ​ ​ ​

  ​ ​ ​

Gross 

  ​ ​ ​

Gross

  ​ ​ ​

Unrealized

 Unrealized 

Amortized Cost

 Gains

Losses

Fair Value

U.S. Treasury

$

20,857

(102)

20,755

Corporate bonds

 

127,332

3

(543)

126,792

Total

$

148,189

$

3

$

(645)

$

147,547

The amortized cost, gross unrealized gains and losses, and fair value of investments in fixed maturity securities are as follows as of December 31, 2025:

  ​ ​ ​

Gross 

  ​ ​ ​

Gross 

  ​ ​ ​

Unrealized

Unrealized

  ​ ​ ​

Amortized Cost

 Gains

 Losses

Fair Value

U.S. Treasury

$

4,604

$

2

$

$

4,606

Corporate bonds

 

50,578

 

83

 

(6)

 

50,655

Total

$

55,182

$

85

$

(6)

$

55,261

The following table provides the maturities of our fixed maturity available-for-sale securities:

  ​ ​ ​ ​

June 30, 2026

  ​ ​ ​ ​

December 31, 2025

Less than one year

$

70,070

$

55,261

One to five years

 

77,477

 

Total

$

147,547

$

55,261

The Company has evaluated the unrealized losses on the fixed maturity securities and determined that they are not attributable to credit risk factors. For fixed maturity securities, losses in fair value are viewed as temporary if the fixed maturity security can be held to maturity and it is reasonable to assume that the issuer will be able to service the debt, both as to principal and interest.

At June 30, 2026 and December 31, 2025, the Company had 152 and 17 available-for-sale investment debt securities in an unrealized loss position without an allowance for credit losses, respectively. Unrealized losses on corporate debt securities have not been recognized into income because the issuers’ bonds are of high credit quality (rated BBB+ or higher) and the decline in fair value is largely due to market conditions and or changes in interest rates. Management does not intend to sell and it is likely that management will not be required to sell the securities prior to the anticipated recovery of their amortized cost basis. The issuers continue to make timely payments on the bonds. The fair value is expected to recover as the bonds approach maturity.

As of June 30, 2026 and December 31, 2025, accrued interest receivable on available-for-sale investment debt securities totaling $1,478 and $393, respectively, is excluded from the estimate of credit losses and is included in prepaid expenses and other current assets.

The following is a rollforward of the components of the Company’s contingent consideration liability. See Note 7, “Commitments and contingencies.”

Milestone

Balance as of December 31, 2025

$

3,757

Changes in fair value

(3,757)

Balance as of June 30, 2026

$

-

Gadeta

Holdback Shares

Milestone

Total

Balance as of December 31, 2024

$

413

$

625

$

7,700

$

8,738

Changes in fair value

-

(264)

409

145

Balance as of June 30, 2025

$

413

$

361

$

8,109

$

8,883

The change in fair value is recorded as general and administrative expense. As of June 30, 2026, the clinical development milestone was not achieved and the earn-out period expired. As a result, the contingent consideration liability was derecognized. The following table includes quantitative information about the significant unobservable inputs for the components of the Company’s contingent consideration liability as of December 31, 2025:

December 31, 2025

Milestone:

Probability adjusted value of payments

$

4,000

Discount rate

11.2%

Discount period (years)

0.5