v3.26.1
Financial Instruments and Fair Value Measurements
 6 Months Ended 12 Months Ended
Jun. 30, 2026
Dec. 31, 2025
Fair Value Disclosures [Abstract]    
Financial Instruments and Fair Value Measurements
3. Financial Instruments and Fair Value Measurements
Assets and Liabilities Measured at Fair Value on a Recurring Basis
The following tables present information about the Company’s financial assets and liabilities that are measured at fair value on a recurring basis and indicate the level of the fair value hierarchy used to determine such fair values (in thousands):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
Fair Value Measurements at June 30, 2026
 
 
  
Level 1
 
  
Level 2
 
  
Level 3
 
  
Total
 
Assets:
  
      
  
      
  
      
  
      
Money market funds
  
$
17,733
 
  
$
— 
 
  
$
— 
 
  
$
17,733
 
U.S. Treasuries
  
 
— 
 
  
 
16,462
 
  
 
— 
 
  
$
16,462
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Total assets
  
$
17,733
 
  
$
16,462
 
  
$
— 
 
  
$
34,195
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Liabilities:
  
      
  
      
  
      
  
      
Preferred stock warrant liability
  
$
— 
 
  
$
— 
 
  
$
1
 
  
$
1
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Total liabilities
  
$
— 
 
  
$
— 
 
  
$
1
 
  
$
1
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
Fair Value Measurements at December 31, 2025
 
 
  
Level 1
 
  
Level 2
 
  
Level 3
 
  
Total
 
Assets:
  
      
  
      
  
      
  
      
Money market funds
  
$
39,905
 
  
$
— 
 
  
$
— 
 
  
$
39,905
 
U.S. Treasuries
  
 
— 
 
  
 
40,081
 
  
 
— 
 
  
 
40,081
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Total assets
  
$
39,905
 
  
$
40,081
 
  
$
— 
 
  
$
79,986
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Liabilities:
  
      
  
      
  
      
  
      
Preferred stock warrant liability
  
$
— 
 
  
$
— 
 
  
$
3
 
  
$
3
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Total liabilities
  
$
— 
 
  
$
— 
 
  
$
3
 
  
$
3
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
There were no transfers between Level 1, Level 2 and Level 3 categories during the three and six months ended June 30, 2026.
Warrants to Purchase Redeemable Convertible Preferred Stock Subject to Conditional Redemption
There were no material changes to the terms, classification, or accounting for the Company’s warrants to purchase redeemable convertible preferred stock subject to conditional redemption during the three and six months ended June 30, 2026.
 
Cash and Cash Equivalents and Marketable Securities
The following tables summarizes the Company’s cash, cash equivalents and marketable securities as of June 30, 2026 and December 31, 2025 (in thousands):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
Fair Value Measurements at June 30, 2026
 
 
  
Amortized
Cost
 
  
Gross
Unrealized
Gains
 
  
Gross
Unrealized
Losses
 
 
Credit
Losses
 
  
Total
 
Cash and cash equivalents
  
$
17,983
 
  
$
 — 
 
  
$
 — 
 
 
$
 — 
 
  
$
17,983
 
U.S. Treasuries
  
 
16,465
 
  
$
— 
 
  
 
(3
) 
 
 
— 
 
  
 
16,462
 
 
  
 
 
 
  
 
 
 
  
 
 
 
 
 
 
 
  
 
 
 
Total cash, cash equivalents, and marketable securities
  
$
34,448
 
  
$
— 
 
  
$
(3
) 
 
$
— 
 
  
$
34,445
 
 
  
 
 
 
  
 
 
 
  
 
 
 
 
 
 
 
  
 
 
 
As reported:
  
      
  
      
  
      
 
      
  
      
Cash and cash equivalents
  
$
17,983
 
  
$
— 
 
  
$
— 
 
 
$
— 
 
  
$
17,983
 
Marketable securities
  
 
16,465
 
  
$
— 
 
  
 
(3
) 
 
 
— 
 
  
 
16,462
 
 
  
 
 
 
  
 
 
 
  
 
 
 
 
 
 
 
  
 
 
 
 
  
$
34,448
 
  
$
— 
 
  
$
(3
) 
 
$
— 
 
  
$
34,445
 
 
  
 
 
 
  
 
 
 
  
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
Fair Value Measurements at December 31, 2025
 
 
  
Amortized
Cost
 
  
Gross
Unrealized
Gains
 
  
Gross
Unrealized
Losses
 
  
Credit
Losses
 
  
Total
 
Cash and cash equivalents
  
$
40,405
 
  
$
 — 
 
  
$
 — 
 
  
$
 — 
 
  
$
40,405
 
U.S. Treasuries
  
 
40,058
 
  
 
23
 
  
 
— 
 
  
 
— 
 
  
 
40,081
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Total cash, cash equivalents, and marketable securities
  
$
80,463
 
  
$
23
 
  
$
— 
 
  
$
— 
 
  
$
80,486
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
As reported:
  
      
  
      
  
      
  
      
  
      
Cash and cash equivalents
  
$
40,405
 
  
$
— 
 
  
$
— 
 
  
$
— 
 
  
$
40,405
 
Marketable securities
  
 
40,058
 
  
 
23
 
  
 
— 
 
  
 
— 
 
  
 
40,081
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
 
  
$
80,463
 
  
$
23
 
  
$
— 
 
  
$
— 
 
  
$
80,486
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
None of the Company’s
available-for-sale
marketable securities had remaining maturities longer than one year as of June 30, 2026 and December 31, 2025.
As of June 30, 2026, the aggregate unrealized losses on the Company’s investment securities were immaterial. The Company has the intent and ability to hold such securities until recovery. As a result, the Company did not record any charges for credit-related impairments for its marketable debt securities for the three and six months ended June 30, 2026.
3. Financial Instruments and Fair Value Measurements
Assets and Liabilities Measured at Fair Value on a Recurring Basis
The following tables present information about the Company’s financial assets and liabilities that are measured at fair value on a recurring basis and indicate the level of the fair value hierarchy used to determine such fair values (in thousands):
 
    
Fair Value Measurements at December 31, 2025
  
    
Level 1
     
Level 2
     
Level 3
     
Total
  
Assets:
            
Money market funds
    $ 39,905      $ —       $ —       $ 39,905  
U.S. Treasuries
      —         40,081        —         40,081  
  
 
 
     
 
 
     
 
 
     
 
 
  
Total assets
    $ 39,905      $ 40,081      $ —       $ 79,986  
  
 
 
     
 
 
     
 
 
     
 
 
  
Liabilities:
            
Preferred stock warrant liability
    $ —       $ —       $ 3      $ 3  
Total liabilities
    $ —       $ —       $ 3      $ 3  
  
 
 
     
 
 
     
 
 
     
 
 
  
 
    
Fair Value Measurements at December 31, 2024
  
    
Level 1
     
Level 2
     
Level 3
     
Total
  
Assets:
            
Money market funds
    $ 49,733      $ —       $ —       $ 49,733  
U.S. Treasuries
      —         118,509        —         118,509  
  
 
 
     
 
 
     
 
 
     
 
 
  
Total assets
    $ 49,733      $ 118,509      $ —       $ 168,242  
  
 
 
     
 
 
     
 
 
     
 
 
  
Liabilities:
            
Preferred stock warrant liability
    $ —       $ —       $ 6      $ 6  
Total liabilities
    $ —       $ —         6      $ 6  
Warrants to Purchase Redeemable Convertible Preferred Stock Subject to Conditional Redemption
In connection with the PacificWestern Bank (“PWB”) term loan entered into May 2018, the Company granted PWB a warrant to purchase 22,124 shares of Series
A-1
preferred stock at an exercise price of $1.1291 per share. The warrant, which was deemed to be classified as a liability, expires on May 25, 2028. The term loan with PWB was fully paid in January 2019 and has since expired. As of December 31, 2025, the warrant has not been exercised.
The fair value of the preferred stock warrant liability is based on significant inputs not observable in the market, which represent a Level 3 measurement within the fair value hierarchy. The Company’s valuation of the preferred stock warrant utilized the Black-Scholes option-pricing model, which incorporates a number of assumptions and estimates. Changes in the fair value of the preferred stock warrant are recognized as other income (expense) in the consolidated statements of operations and comprehensive loss and were not material for the years ended December 31, 2025 and 2024.
As of December 31, 2025 and 2024, the estimated fair value of the Series
A-1
warrant was $0.13 and $0.28 per share, respectively. The fair value of each warrant share is estimated on the date of grant and at each reporting period using the Black-Scholes option pricing model, which requires inputs based on certain subjective assumptions including fair value of the underlying preferred stock, estimated volatility, expected term, risk-free interest rate, and expected dividend yield.
The Company assesses its financial liabilities measured at fair value on a recurring basis and transfers its financial liabilities between the relevant fair value hierarchies at the end of each reporting period, as needed. The following table represents a roll-forward of the fair value of the Level 3 preferred stock warrant liability for each of the periods indicated (in thousands):
 
    
As of December 31,
  
    
2025
     
2024
  
Fair value, beginning of year
    $ 6      $ 14  
Change in estimated fair value
      (3 )       (8 ) 
  
 
 
     
 
 
  
Fair value, end of year
    $ 3      $ 6  
  
 
 
     
 
 
  
As of December 31, 2025 and 2024 there were no transfers between Level 1, Level 2 and Level 3.
 
Cash and Cash Equivalents and Marketable Securities
The following tables summarizes the Company’s cash, cash equivalents and marketable securities as of December 31, 2025 and 2024 (in thousands):
 
    
Fair Value Measurements at December 31, 2025
  
    
Amortized
Cost
     
Gross
Unrealized
Gains
     
Gross
Unrealized
Losses
     
Credit
Losses
     
Total
  
Cash
    $ 500      $ —       $ —       $ —       $ 500  
Money market funds
      39,905        —         —         —         39,905  
U.S. Treasuries
      40,058        23        —         —         40,081  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Total cash, cash equivalents, and marketable securities
    $ 80,463      $ 23      $ —       $ —       $ 80,486  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
As reported:
               
Cash and cash equivalents
    $ 40,405      $ —       $ —       $ —       $ 40,405  
Marketable securities
      40,058        23        —         —         40,081  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
   $ 80,463      $ 23      $ —       $ —       $ 80,486  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
 
    
Fair Value Measurements at December 31, 2024
  
    
Amortized
Cost
     
Gross
Unrealized
Gains
     
Gross
Unrealized
Losses
    
Credit
Losses
     
Total
  
Cash
    $ 28      $ —       $ —      $ —       $ 28  
Money market funds
      49,733        —         —        —         49,733  
U.S. Treasuries
      118,536        30        (57 )      —         118,509  
  
 
 
     
 
 
     
 
 
    
 
 
     
 
 
  
Total cash, cash equivalents, and marketable securities
    $ 168,297      $ 30      $ (57 )    $ —       $ 168,270  
  
 
 
     
 
 
     
 
 
    
 
 
     
 
 
  
As reported:
              
Cash and cash equivalents
    $ 49,761      $ —       $ —      $ —       $ 49,761  
Marketable securities
      118,536        30        (57 )      —         118,509  
  
 
 
     
 
 
     
 
 
    
 
 
     
 
 
  
   $ 168,297      $ 30      $ (57 )    $ —       $ 168,270  
  
 
 
     
 
 
     
 
 
    
 
 
     
 
 
  
None of the Company’s
available-for-sale
marketable securities had remaining maturities longer than one year as of December 31, 2025 and 2024.