v3.26.1
Fair Value Measurements (Tables)
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Schedule of Financial Assets and Liabilities to Fair Value Measurements on Recurring Basis

Financial assets and liabilities subject to fair value measurements on a recurring basis and the level of inputs used in such measurements by major security type as of June 30, 2026 and December 31, 2025 are presented in the following tables (in thousands):

 

 

 

Fair Value Measurements as of June 30, 2026

 

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

114,449

 

 

$

114,449

 

 

$

—

 

 

$

—

 

Total Assets

 

$

114,449

 

 

$

114,449

 

 

$

—

 

 

$

—

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Acquisition Warrants

 

 

803

 

 

 

—

 

 

 

—

 

 

 

803

 

Financing Warrants

 

 

5,480

 

 

 

—

 

 

 

—

 

 

 

5,480

 

Common warrants

 

 

9

 

 

 

—

 

 

 

—

 

 

 

9

 

Total

 

$

6,292

 

 

$

—

 

 

$

—

 

 

$

6,292

 

 

 

 

 

Fair Value Measurements as of December 31, 2025

 

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

4,402

 

 

$

4,402

 

 

$

—

 

 

$

—

 

Government and agency notes

 

 

11,943

 

 

 

—

 

 

 

11,943

 

 

 

—

 

Total Assets

 

$

16,345

 

 

$

4,402

 

 

$

11,943

 

 

$

—

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Short-term contingent consideration

 

$

12,369

 

 

 

—

 

 

 

—

 

 

 

12,369

 

Long-term contingent consideration

 

 

51,961

 

 

 

—

 

 

 

—

 

 

 

51,961

 

Debt

 

 

18,026

 

 

 

—

 

 

 

—

 

 

 

18,026

 

Common warrants

 

 

25,452

 

 

 

—

 

 

 

—

 

 

 

25,452

 

Pre-Funded warrants

 

 

6,698

 

 

 

—

 

 

 

—

 

 

 

6,698

 

Total Liabilities

 

$

114,506

 

 

$

—

 

 

$

—

 

 

$

114,506

 
Schedule of Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation

The following table reflects the changes in present value of acquisition related accrued earnouts of contingent consideration liability using significant unobservable inputs (Level 3) for the six months ended June 30, 2026 and 2025 (in thousands):

 

 

 

June 30, 2026

 

 

June 30, 2025

 

Beginning balance

 

$

64,330

 

 

$

56,691

 

Change in fair value

 

 

(64,330

)

 

 

2,456

 

Ending balance

 

$

—

 

 

$

59,147

 

The following table presents the changes in the fair value of the Level 3 EIB Loan for the six months ended June 30, 2026 and 2025 (in thousands):

 

 

 

June 30, 2026

 

 

June 30, 2025

 

Beginning balance

 

$

18,026

 

 

$

14,321

 

Change in fair value

 

 

(12,168

)

 

 

945

 

Interest payment

 

 

(29

)

 

 

(117

)

Settlement of debt

 

 

(5,545

)

 

 

—

 

Due to foreign currency translation

 

 

(284

)

 

 

1,840

 

Ending balance

 

$

—

 

 

$

16,989

 

The following table presents the changes in the fair value of the Level 3 liability classified Acquisition and Financing Warrants for the six months ended June 30, 2026:

 

 

Acquisition Warrants

 

 

Financing Warrants

 

Balance as of December 31, 2025

 

$

—

 

 

$

—

 

Issuance of warrants

 

 

1,315

 

 

 

8,847

 

Change in fair value of warrants

 

 

(512

)

 

 

(3,367

)

Balance as of June 30, 2026

 

$

803

 

 

$

5,480

 

The following table presents the changes in the fair value of the Level 3 liability classified June 2025 Warrants for the six months ended June 30, 2026:

 

 

(in thousands)

 

Balance as of December 31, 2025

 

$

32,150

 

Exercise of pre-funded warrants and reclassification to equity

 

 

(340

)

Payout of common warrants

 

 

(57

)

Change in fair value of warrants

 

 

(31,744

)

Balance as of June 30, 2026

 

$

9

 
Schedule of Quantitative Information About Fair Value Measurements

The following table summarizes the assumptions used in the valuation of the contingent consideration in the period presented:

 

 

December 31, 2025

Expected timing of milestones completion dates

 

2026 - 2038

Discount rate

 

14.2%

Probability of achievement

 

1% - 56.5%

The following table summarizes the assumptions including the unobservable inputs related to the Company's debt in the periods presented:

 

 

December 31, 2025

 

Discount rate

 

 

13

%

The following table summarizes key inputs used in the valuation of the liability classified Acquisition and Financing Warrants as of the periods presented:

 

 

As of Orphai Acquisition issuance date

 

 

As of Private Placement issuance date

 

 

As of June 30, 2026

 

Expected term

 

0.75 years

 

 

0.75 years

 

 

0.75 years

 

Warrant exercise price

 

$

19.17

 

 

$

19.17

 

 

$

19.17

 

Risk-free interest rate

 

 

3.70

%

 

 

3.70

%

 

 

3.70

%

Expected volatility

 

 

80.00

%

 

 

80.00

%

 

 

80.00

%

The following table summarizes key inputs used in the valuation of the liability classified June 2025 Warrants as of the period presented:

 

 

As of December 31, 2025

 

Expected term

 

4.45 years

 

Common stock market price

 

$

670.00

 

Common warrants exercise price

 

$

240.00

 

Pre-Funded warrants exercise price

 

$

0.20

 

Risk-free interest rate

 

 

3.63

%

Expected volatility

 

 

110.96

%