v3.26.3
Accounting Changes and Error Corrections
 12 Months Ended
Dec. 31, 2025
Accounting Changes and Error Corrections [Abstract]  
Error Correction
A description of the errors and their impacts on the previously issued financial statements is included below. Additionally, certain other previously identified immaterial adjustments were corrected, which impacted individual line items within operating cash flows with no change to total operating cash flows in any period presented.
With respect to the warrants issued in connection with the 2025 Credit Agreement in August 2025, the Company determined that the valuation of the warrants used an expected term shorter than the remaining contractual term through August 1, 2035, and incorrectly included an illiquidity adjustment. In addition, the incremental fair value from the November 5, 2025 reduction of the warrant exercise price in connection with an amendment to the 2025 Credit Agreement should have been recorded as additional debt discount. These errors resulted in the following misstatements:
a.Initial measurement. At issuance on August 4, 2025, the warrants should have been measured at $11.3 million rather than $3.2 million. As a result, the warrant liability, which is included in Other long-term liabilities, and the related debt discount were each understated by $8.1 million, and long-term debt was overstated by $8.1 million.
b.Subsequent measurement. The warrant liability is measured at fair value at each reporting date, with changes recognized in other income (expense) (see Note 1 Summary of business and significant accounting policies and Note 4 Fair value measurements). Because the same incorrect valuation assumptions were used at each remeasurement date subsequent to initial measurement, there were valuation errors in recording the change in fair value at each measurement period resulting in an understated of the warrant liability and understatement in Other income, net as of and for the year ended December 31, 2025 of $2.2 million.
c.November 2025 repricing. On November 5, 2025, the warrant exercise price was reduced from $1.25 to $0.75 in connection with an amendment to the 2025 Credit Agreement. The valuation errors impacted the determination of the incremental fair value attributable to the modification from the repricing which resulted in the warrant liability and the related debt discount each being understated by $1.0 million, and long-term debt was overstated by $1.0 million.
d.Debt discount amortization. Because the debt discount was understated, interest expense was understated by $1.4 million for the year ended December 31, 2025.
The table below sets forth the consolidated balance sheet information, including the balances originally reported and the restated balances as of December 31, 2025.
December 31, 2025
(in thousands)As Previously ReportedAdjustmentAs Restated
Long-term debt$44,322 $(7,678)$36,644 
Other long-term liabilities9,067 6,836 15,903 
Total liabilities351,433 (842)350,591 
Accumulated deficit(775,094)842 (774,252)
Total stockholders’ equity76,550 842 77,392 
Note: The Company’s Consolidated Statements of Stockholders’ Equity were also affected by the revised accumulated deficit amounts for the period presented above.
The table below sets forth the consolidated statements of operations information, including the amounts originally reported and the restated amounts for the year ended December 31, 2025:
Year ended December 31, 2025
(in thousands, except per share data)As Previously ReportedAdjustmentAs Restated
Other income (expense):
Interest expense$(8,452)$(1,404)$(9,856)
Other income, net345 2,246 2,591 
Total other income (expense), net(8,107)842 (7,265)
Loss before income taxes(91,448)842 (90,606)
Net loss(93,487)842 (92,645)
Basic and diluted net loss per share$(0.59)$0.01 $(0.58)
Shares used to compute basic and diluted net loss per share158,579 158,579 
The restatement adjustments did not change the fact that the comprehensive income (loss) approximated net income (loss).

The table below sets forth the impact of the errors to the consolidated statement of cash flows including the amounts originally reported and the restated amounts for the year ended December 31, 2025:
Year ended December 31, 2025
(in thousands)As Previously ReportedAdjustmentAs Restated
Operating activities:
Net loss$(93,487)$842 $(92,645)
Adjustments to reconcile net loss to net cash used in operating activities:
Non-cash operating lease cost3,265 2,213 5,478 
Other1,537 (842)695 
Changes in operating assets and liabilities:
Accounts payable and other liabilities(11,134)(2,213)(13,347)
Net cash used in operating activities*(20,669)— (20,669)
*Net cash used in operating activities is unchanged by these non-cash corrections.
Quarterly Financial Information
The tables below set forth the consolidated balance sheet information, including the balances originally reported and the restated balances as of September 30, 2025.
September 30, 2025
(in thousands)As Previously ReportedAdjustmentAs Restated
Long-term debt$43,916 $(7,592)$36,324 
Other long-term liabilities8,389 13,758 22,147 
Total liabilities458,114 6,166 464,280 
Accumulated deficit(765,990)(6,166)(772,156)
Stockholders’ equity80,494 (6,166)74,328 

Note: The Company’s Condensed Consolidated Statements of Stockholders’ Equity for the three and nine months ended September 30, 2025 were also affected by the revised accumulated deficit amounts for the period presented above.
The tables below set forth the consolidated statements of operations information, including the amounts originally reported and the restated amounts for the three months ended September 30, 2025, three months ended December 31, 2025 and for the nine months ended September 30, 2025.
Three months ended September 30, 2025
(in thousands, except per share data)As Previously ReportedAdjustmentAs Restated
Interest expense$(2,715)$(519)$(3,234)
Other income (expense), net(1,881)(5,647)(7,528)
Total other income (expense), net(4,596)(6,166)(10,762)
Loss before income taxes(20,481)(6,166)(26,647)
Net loss(21,252)(6,166)(27,418)
Basic and diluted net loss per share$(0.13)$(0.04)$(0.17)
Shares used to compute basic and diluted net loss per share158,933 158,933 
Three months ended December 31, 2025
(in thousands, except per share data)As Previously ReportedAdjustmentAs Restated
Interest expense$(3,504)$(885)$(4,389)
Other income (expense), net948 7,893 8,841 
Total other income (expense), net(2,556)7,008 4,452 
Loss before income taxes(10,797)7,008 (3,789)
Net loss(9,104)7,008 (2,096)
Basic and diluted net loss per share$(0.06)$0.05 $(0.01)
Shares used to compute basic and diluted net loss per share161,046 161,046 
Nine months ended September 30, 2025
(in thousands, except per share data)As Previously ReportedAdjustmentAs Restated
Interest expense$(4,948)$(519)$(5,467)
Other income (expense), net(603)(5,647)(6,250)
Total other income (expense), net(5,551)(6,166)(11,717)
Loss before income taxes(80,651)(6,166)(86,817)
Net loss(84,383)(6,166)(90,549)
Basic and diluted net loss per share$(0.53)$(0.04)$(0.57)
Shares used to compute basic and diluted net loss per share157,747 157,747 
The restatement adjustments did not change the fact that the comprehensive income (loss) approximated net income (loss).
The tables below set forth the consolidated statement of cash flows information, including the amounts originally reported and the restated amounts for the nine months ended September 30, 2025.
Nine months ended September 30, 2025
(in thousands)As Previously ReportedAdjustmentAs Restated
Net loss$(84,383)$(6,166)$(90,549)
Adjustments to reconcile net loss to net cash used in operating activities:
Non-cash operating lease cost1,955 2,153 4,108 
Other882 6,166 7,048 
Changes in operating assets and liabilities:
Accounts payable and other liabilities(22,265)(2,153)(24,418)
Net cash used in operating activities*(36,272)— (36,272)
*Net cash used in operating activities is unchanged by these non-cash corrections.