Fair Value Measurements (Tables)
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6 Months Ended |
Jun. 30, 2026 |
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| Fair Value Measurements [Abstract] |
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| Schedule of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis |
A summary of financial assets and liabilities that are measured at fair value on a recurring basis is as follows:
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June 30, 2026
Fair Value Measurements |
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(dollars in thousands) |
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Level 1 |
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Level 2 |
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Level 3 |
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Total |
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Assets |
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Cash equivalents (money market funds) |
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$ |
589,359 |
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$ |
- |
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$ |
- |
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$ |
589,359 |
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Short-term investments |
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Publicly traded stock |
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30,490 |
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- |
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- |
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30,490 |
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U.S. Treasury securities |
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114,937 |
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- |
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- |
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114,937 |
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Fixed income (corporate fixed income and bonds, agency securities) |
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- |
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179,996 |
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- |
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179,996 |
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Certificates of deposit |
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- |
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399,913 |
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- |
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399,913 |
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Warrants in publicly traded companies |
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- |
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- |
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1,251 |
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1,251 |
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Total short-term investments |
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145,427 |
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579,909 |
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1,251 |
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726,587 |
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Equity investment in affiliate |
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- |
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- |
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26,802 |
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26,802 |
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Note receivable from affiliate |
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- |
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- |
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9,140 |
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9,140 |
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Total assets |
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$ |
734,786 |
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$ |
579,909 |
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$ |
37,193 |
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$ |
1,351,888 |
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Liabilities |
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Government grants |
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$ |
- |
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$ |
- |
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$ |
3,644 |
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$ |
3,644 |
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Warrant liabilities |
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- |
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- |
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1,043,740 |
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1,043,740 |
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Contingent consideration |
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- |
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- |
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132,423 |
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132,423 |
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Total liabilities |
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$ |
- |
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$ |
- |
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$ |
1,179,807 |
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$ |
1,179,807 |
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December 31, 2025
Fair Value Measurements |
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(dollars in thousands) |
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Level 1 |
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Level 2 |
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Level 3 |
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Total |
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Assets |
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Cash equivalents (money market funds) |
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$ |
302,688 |
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$ |
- |
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$ |
- |
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302,688 |
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Short-term investments |
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Publicly traded stock |
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17,779 |
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- |
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- |
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17,779 |
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Warrants in publicly traded companies |
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- |
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- |
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1,123 |
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1,123 |
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Total assets |
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$ |
320,467 |
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$ |
- |
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$ |
1,123 |
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$ |
321,590 |
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Liabilities |
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Government grants |
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$ |
- |
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$ |
- |
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$ |
3,657 |
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$ |
3,657 |
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Warrant liabilities |
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- |
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- |
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489,434 |
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489,434 |
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Total liabilities |
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$ |
- |
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$ |
- |
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$ |
493,091 |
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$ |
493,091 |
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| Schedule of Investment Unrealized Gains and Losses to Reflect Fair Value |
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As of June 30, 2026 |
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(dollars in thousands) |
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Amortized
cost basis |
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Gross unrealized gains |
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Gross unrealized losses |
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Fair Value |
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U.S. Treasury securities |
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$ |
114,845 |
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$ |
92 |
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$ |
- |
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$ |
114,937 |
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Fixed income (corporate fixed income and bonds, agency securities) |
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180,470 |
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- |
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(474 |
) |
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179,996 |
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Certificates of deposit |
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400,000 |
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- |
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(87 |
) |
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399,913 |
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Total |
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$ |
695,315 |
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$ |
92 |
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$ |
(561 |
) |
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$ |
694,846 |
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| Schedule of Investment Marketable Equity Securities |
The following table summarizes the Company’s Level 3 investments in marketable equity securities:
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As of June 30, 2026 |
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(dollars in thousands) |
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Fair Value
Hierarchy |
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Cost Basis |
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Accumulated Net Unrealized Gains |
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Fair Value |
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Warrants exercisable for publicly traded stock |
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Level 3 |
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$ |
706 |
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$ |
545 |
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$ |
1,251 |
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Total |
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$ |
706 |
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$ |
545 |
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$ |
1,251 |
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| Schedule of Key Assumptions of Black-Scholes Model |
For the six months ended June 30, 2026, the key assumptions used in the Black-Scholes Model are as follows:
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As of
June 30,
2026 |
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Stock price |
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$ |
4.33 |
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Risk-free interest rate |
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4.2 |
% |
Expected volatility |
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120.7 |
% |
Remaining contractual life in years |
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2.15 |
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Dividend yield |
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0 |
% |
The assumptions used to estimate the fair value of warrants during the period were as follows:
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Range |
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Weighted
average |
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Risk-free interest rate |
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4 |
% |
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4 |
% |
Expected volatility |
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91-93% |
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92 |
% |
Expected life (in years) |
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6.3-6.5 |
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6.4 |
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Dividend yield |
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0 |
% |
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0% |
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| Schedule of Warrant Asset Measured at Fair value |
The following table provides a reconciliation of the beginning and ending balances for the Level 3 warrant assets measured at fair value using significant unobservable inputs.
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(dollars in thousands) |
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Warrants |
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Balance as of January 1, 2026 |
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$ |
1,123 |
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Warrants purchased, adjusted to fair value |
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- |
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Net unrealized gain (loss) on change in fair value |
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128 |
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Balance as of June 30, 2026 |
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$ |
1,251 |
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The following table provides a reconciliation of the beginning and ending balances for the Level 3 warrant liabilities measured at fair value using significant unobservable inputs. There was no warrant liability activity during the three and six months ended June 30, 2025.
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(dollars in thousands) |
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Warrant
liability |
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Balance as of January 1, 2026 |
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$ |
489,434 |
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Fair value of warrant liability issued during the period |
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1,194,019 |
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Change in fair value of warrant liability |
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(639,713 |
) |
Balance as of June 30, 2026 |
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$ |
1,043,740 |
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The following table reconciles the beginning and ending balances of the Company’s Level 3 contingent consideration liabilities:
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(dollars in thousands) |
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Contingent
Consideration |
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Balance as of January 1, 2026 |
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$ |
- |
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Earn-out liabilities acquired at fair value |
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116,589 |
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Milestone liabilities acquired at fair value |
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25,421 |
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Changes in fair value recognized in earnings |
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19,485 |
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Payments |
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(29,023 |
) |
Balance as of June 30, 2026 |
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$ |
132,472 |
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During the three and six months ended June 30, 2026, the Company recognized changes in fair value of $0.2 million and $0.3 million through stock-based compensation in operating expenses, respectively.
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| Schedule of Liability Measured at Fair Value of Unobservable Inputs |
The following table provides a reconciliation of the beginning and ending balances for the Level 3 government grant liabilities measured at fair value using significant unobservable inputs.
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(dollars in thousands) |
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Government
Grant
Liability |
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Balance as of January 1, 2026 |
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$ |
3,657 |
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Government grant liability acquired in Bird Aerosystems Ltd. acquisition |
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58 |
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Payments made |
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(425 |
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Effect of foreign currency translation |
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69 |
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Net loss on change in fair value of liability |
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286 |
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Balance as of June 30, 2026 |
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$ |
3,645 |
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