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

Note 4. Fair Value of Financial Instruments

The carrying value of the Company’s cash, cash equivalents, accounts receivable, accounts payable, accrued liabilities, and other current liabilities approximate fair value based on the short-term maturities of these instruments. The carrying value of the Company’s notes receivable also approximates fair value based on the associated credit risk.

The Company classifies money market funds and government securities as Level 1 within the fair value hierarchy as the fair value is based on quoted prices. The Company classifies its warrant derivative liabilities as Level 3 within the fair value hierarchy as the Company estimates the fair value of the warrant liabilities using recently quoted market prices of the Company's common stock and the Black-Scholes option pricing model, refer to Note 9, Warrant Liabilities.

 

The following table sets forth by level, within the fair value hierarchy, the Company's assets and liabilities at fair value as of June 30, 2026 and December 31, 2025:

 

 

 

June 30, 2026

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

9,204

 

 

$

—

 

 

$

—

 

 

$

9,204

 

Total assets

 

$

9,204

 

 

$

—

 

 

$

—

 

 

$

9,204

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Warrant derivative liabilities

 

$

—

 

 

$

—

 

 

$

15,016

 

 

$

15,016

 

Total liabilities

 

$

—

 

 

$

—

 

 

$

15,016

 

 

$

15,016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2025

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

7,850

 

 

$

—

 

 

$

—

 

 

$

7,850

 

U.S. government securities

 

 

5,004

 

 

 

—

 

 

 

—

 

 

 

5,004

 

Total assets

 

$

12,854

 

 

$

—

 

 

$

—

 

 

$

12,854

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Warrant derivative liabilities

 

$

—

 

 

$

—

 

 

$

40,194

 

 

$

40,194

 

Total liabilities

 

$

—

 

 

$

—

 

 

$

40,194

 

 

$

40,194

 

There were no transfers between fair value hierarchy levels during the three and six months ended June 30, 2026 and 2025.

The fair value of the Company’s financial assets that are measured at fair value on a recurring basis are as follows:

 

 

June 30, 2026

 

 

 

Amortized Cost

 

 

Unrealized Gains

 

 

Unrealized Losses

 

 

Fair Value

 

Cash equivalents

 

 

 

 

 

 

 

 

 

 

 

 

  Money market funds

 

$

9,204

 

 

$

—

 

 

$

—

 

 

$

9,204

 

Total

 

$

9,204

 

 

$

—

 

 

$

—

 

 

$

9,204

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2025

 

 

 

Amortized Cost

 

 

Unrealized Gains

 

 

Unrealized Losses

 

 

Fair Value

 

Cash equivalents

 

 

 

 

 

 

 

 

 

 

 

 

  Money market funds

 

$

7,850

 

 

$

—

 

 

$

—

 

 

$

7,850

 

Short-term investments

 

 

 

 

 

 

 

 

 

 

 

 

  U.S. government securities

 

 

5,000

 

 

 

4

 

 

 

—

 

 

 

5,004

 

Total

 

$

12,850

 

 

$

4

 

 

$

—

 

 

$

12,854

 

The change in fair value of warrant liabilities measured on a recurring basis using unobservable Level 3 inputs for the period ended June 30, 2026 is set forth below:

 

 

Fair Value at December 31, 2025

 

 

Change in Fair Value

 

 

Fair Value at June 30, 2026

 

Series A Warrant

 

$

20,635

 

 

$

(12,690

)

 

$

7,945

 

Series B Warrant

 

 

19,559

 

 

 

(12,488

)

 

 

7,071

 

Total warrant liabilities

 

$

40,194

 

 

$

(25,178

)

 

$

15,016