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 Fair Value Measurements and Fair Value of Financial Instruments
We classify fair value-based measurements using a three-level hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: Level 1, quoted market prices (unadjusted) in active markets for identical assets or liabilities; Level 2, observable inputs other than quoted market prices included in Level 1, such as quoted market prices for markets that are not active or other inputs that are observable or can be corroborated by observable market data; and 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, including certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. Changes in the ability to observe valuation inputs may result in a reclassification of levels of certain securities within the fair value hierarchy. We recognize transfers into and out of levels within the fair value hierarchy in the period in which the actual event or change in circumstances that caused the transfer occurs. No such transfers occurred during the six months ended June 30, 2026, and June 30, 2025.
Recurring Measurements
The following table sets forth our financial instruments that were measured at fair value on a recurring basis by level within the fair value hierarchy (in thousands):
Fair Value Measurements as of June 30, 2026
TotalLevel 1Level 2Level 3
Assets:
U.S. Treasury bills$47,738 $47,738 $— $— 
U.S. government agency bonds25,680 — 25,680 — 
Commercial paper ($11,964 included in cash and cash equivalents)
20,563 20,563 — 
Money market fund investments (included in cash and cash equivalents)14,230 14,230 — 
Corporate debt securities5,607 — 5,607 — 
Total fair value of assets$113,818 $61,968 $51,850 $— 
Fair Value Measurements as of December 31, 2025
TotalLevel 1Level 2Level 3
Assets:
U.S. Treasury bills
$86,964 $86,964 $— $— 
U.S. government agency bonds
28,717 — 28,717 — 
Money market fund investments (included in cash and cash equivalents)11,361 11,361 — — 
Corporate debt securities8,663 — 8,663 — 
Commercial paper ($999 included in cash and cash equivalents)
7,140 — 7,140 — 
Total fair value of assets$142,845 $98,325 $44,520 $— 
The fair value and amortized cost of cash equivalents and available-for-sale marketable securities by major security type as of June 30, 2026, and December 31, 2025, are presented in the following tables (in thousands):
As of June 30, 2026
Amortized
Cost Basis
Unrealized
Gains
Unrealized
Losses
Estimated
Fair Value
U.S. Treasury bills$47,766 $4 $(32)$47,738 
U.S. government agency bonds25,711 — (31)25,680 
Commercial paper ($11,964 included in cash and cash equivalents)
20,566 — (3)20,563 
Money market fund investments (included in cash and cash equivalents)
14,230 — — 14,230 
Corporate debt securities5,615 — (8)5,607 
Total cash equivalents and marketable securities$113,888 $4 $(74)$113,818 
Classified as:
Cash and cash equivalents$26,194 
Marketable securities, short-term86,120 
Marketable securities, long-term1,504 
Total cash equivalents and marketable securities$113,818 
As of December 31, 2025
Amortized
Cost Basis
Unrealized
Gains
Unrealized
Losses
Estimated
Fair Value
U.S. Treasury bills
$86,872 $92 $— $86,964 
U.S. government agency bonds
28,707 12 (2)28,717 
Money market fund investments (included in cash and cash equivalents)
11,361 — — 11,361 
Corporate debt securities
8,663 2 (2)8,663 
Commercial paper ($999 included in cash and cash equivalents)
7,139 1 — 7,140 
Total cash equivalents and marketable securities$142,742 $107 $(4)$142,845 
Classified as:
Cash and cash equivalents$12,360 
Marketable securities, short-term126,980 
Marketable securities, long-term3,505 
Total cash equivalents and marketable securities$142,845 
We reviewed each of our marketable securities as of June 30, 2026, and December 31, 2025, and concluded that any decline in fair value was not related to credit losses and was recoverable. Accordingly, no allowance for credit losses was recorded and the unrealized losses are reported as a component of accumulated other comprehensive (loss) income.
Nonrecurring Measurements
On May 15, 2020, we entered into an Exclusive License Agreement for Veterinary Therapeutics (as amended, “Edge chRDNA License Agreement”) with Edge Animal Health (“Edge”), a related party private company, under which we granted Edge an exclusive worldwide license to our Cas9 and Cas12a chRDNA intellectual property and know-how in a defined field of veterinary therapeutics. As consideration for this license agreement, we received 7,500,000 shares of convertible preferred stock (“Edge Stock”) with an estimated fair value of $7.5 million, which was based on the price per share paid for similar shares by another investor, and which was an arm’s length transaction. In June 2024, we received 1,623,275 additional shares of convertible preferred stock pursuant to anti-dilution rights of the Edge chRDNA License Agreement with an estimated fair value of $1.6 million, based on management’s best estimate and judgment. We elected to apply the measurement alternative under Accounting Standards Codification (“ASC”) Topic 321, Investments - Equity Securities (“ASC 321”) for an equity security without a readily determinable fair value. Accordingly, this investment is carried at its cost minus impairment, if any, and is classified within Level 3 of the fair value hierarchy. If we identify observable price changes in orderly transactions for this investment or a similar investment, we will measure the investment at fair value as of the date that the observable transactions or events occurred.
As part of the preparation of our financial statements for the second quarter of 2025, we assessed potential indicators of impairment of our Edge Stock. As part of our assessment, we considered Edge’s planned operating cash flow requirements, available capital to fund those requirements, and ability to secure additional capital if needed as indicators of impairment. During the second quarter of 2025, we determined that impairment indicators existed, and the fair value of our Edge Stock was zero; as a result, as of June 30, 2025, our Edge Stock was fully impaired and no balance remained. We recorded an impairment expense of $9.2 million as “impairment of equity investment” in our unaudited condensed consolidated statements of operations and comprehensive loss for each of the three- and six-month periods ended June 30, 2025.