v3.26.3
Fair Value
 9 Months Ended
Sep. 30, 2026
Fair Value Disclosures [Abstract]  
Fair Value

NOTE 6 – FAIR VALUE

The Company follows authoritative guidance for fair value measurement and the fair value option for financial assets and financial liabilities. The Company carries its financial instruments at fair value with the exception of its long-term debt. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability, or an exit price, in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The established fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. There are three levels of inputs that may be used to measure fair value:

 

Level 1

Quoted prices in active markets for identical assets.

 

 

Level 2

Observable market-based inputs or unobservable inputs that are corroborated by market data.

 

 

Level 3

Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation.

When applying fair value principles in the valuation of assets, the Company is required to maximize the use of quoted market prices and minimize the use of unobservable inputs. The Company calculates the fair value of its Level 1 and Level 2 instruments based on the exchange traded price of similar or identical instruments, where available, or based on other observable inputs. There were no significant transfers into or out of Level 1 or Level 2 that occurred between December 31, 2025 and September 30, 2026.

The following sets forth the fair value, and classification within the hierarchy, of the Company’s assets required to be measured at fair value on a recurring basis as of September 30, 2026 (in thousands):

 

 

 

 

Fair Value

 

 

Quoted
Prices in
Active Markets
for Identical
Assets
(Level 1)

 

 

Significant
Other
Observable
Inputs
(Level 2)

 

 

Significant
Unobservable
Inputs
(Level 3)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Marketable securities

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds - equity securities

 

$

1,673

 

 

$

1,673

 

 

$

—

 

 

$

—

 

Corporate bonds and notes - debt securities

 

 

55,227

 

 

 

—

 

 

 

55,227

 

 

 

—

 

Commercial paper - debt securities

 

 

7,722

 

 

 

—

 

 

 

7,722

 

 

 

—

 

Treasury and agency notes and bills - debt securities

 

 

490

 

 

 

—

 

 

 

490

 

 

 

—

 

Total Assets

 

$

65,112

 

 

$

1,673

 

 

$

63,439

 

 

$

—

 

 

The following sets forth the fair value, and classification within the hierarchy, of the Company’s assets required to be measured at fair value on a recurring basis as of December 31, 2025 (in thousands):

 

 

 

Fair Value

 

 

Quoted
Prices in
Active Markets
for Identical
Assets
(Level 1)

 

 

Significant
Other
Observable
Inputs
(Level 2)

 

 

Significant
Unobservable
Inputs
(Level 3)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Marketable securities

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds - equity securities

 

$

200

 

 

$

200

 

 

$

—

 

 

$

—

 

Corporate bonds and notes - debt securities

 

 

53,784

 

 

 

—

 

 

 

53,784

 

 

 

—

 

Commercial paper - debt securities

 

 

8,113

 

 

 

—

 

 

 

8,113

 

 

 

—

 

Treasury and agency notes and bills - debt securities

 

 

1,700

 

 

 

—

 

 

 

1,700

 

 

 

—

 

Total Assets

 

$

63,797

 

 

$

200

 

 

$

63,597

 

 

$

—

 

 

Financial Instruments Not Recorded at Fair Value

The Company’s long-term debt is carried at amortized cost and is measured at fair value on a quarterly basis for disclosure purposes. The fair value of the Company’s long-term debt approximates its carrying value as of each of the periods described below. The carrying amounts and estimated fair values are as follows (in thousands):

 

 

 

September 30, 2026

 

 

December 31, 2025

 

 

 

Carrying
Amount

 

 

Estimated
Fair Value

 

 

Carrying
Amount

 

 

Estimated
Fair Value

 

Long-term debt, net (1)

 

$

380,774

 

 

$

380,298

 

 

$

418,454

 

 

$

419,501

 

(1) Carrying amounts of long-term debt are net of unamortized debt discount and issuance costs of $5.7 million and $8.3 million as of September 30, 2026 and December 31, 2025, respectively. See “Note 8 – Debt” for additional information.

If reported at fair value in the Condensed Consolidated Balance Sheets, the Company’s debt would be classified within Level 2 of the fair value hierarchy. The fair value of the debt was estimated based on the quoted market prices for the same or similar issues.

Non-Recurring Fair Value Measurements

Patents

During the nine months ended September 30, 2026, the Company received patent assets with an aggregate fair value of $2.0 million as noncash consideration under certain license agreements. The noncash consideration was received during the quarter ended June 30, 2026, and the Company determined the fair value of the patent assets at contract inception using both the market approach — estimating the value of the acquired assets by a way of comparison with other comparable transactions, and the cost approach — estimating the value of the acquired assets based on the cost the Company would incur to create a comparable set of assets through its own research and development (“R&D”) and patent prosecution efforts.

Noncash consideration received in the form of patent assets is recorded as an intangible asset and included in the transaction price for revenue recognition purposes. See “Note 3 – Revenue” for a detailed discussion on revenue and revenue recognition. The estimated fair value of the patent assets represents a Level 3 fair value measurement, and the value of the patent assets is amortized as a noncash expense over the patents’ estimated useful lives. For impairment related fair value measurements, see “Note 7 – Goodwill And Identified Intangible Assets”.

The Company did not receive noncash consideration during the nine months ended September 30, 2025.