v3.26.3
Fair Value Measurements
 9 Months Ended
Sep. 30, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
Financial Assets
The following tables present the financial asset instruments carried at fair value on a recurring basis as of September 30, 2026 and December 31, 2025 (in thousands) in accordance with the ASC 820 hierarchy.
Fair Value Measurements as of September 30, 2026
Level 1Level 2Level 3Total
Assets
Cash equivalents$117,573 $— $— $117,573 
Fair Value Measurements as of December 31, 2025
Level 1Level 2Level 3Total
Assets
Cash equivalents$106,934 $— $— $106,934 
Derivative Tranche Liability
The following table presents the derivative tranche liability (see Note 6) carried at fair value as of December 31, 2025 (in thousands) in accordance with the ASC 820 hierarchy, which was based on significant inputs not observable in the market and represents a Level 3 measurement within the fair value hierarchy.
Fair Value Measurements as of December 31, 2025
Level 1Level 2Level 3Total
Liabilities
Derivative tranche liability$— $— $44,760 $44,760 
The derivative tranche liability was valued using a Monte Carlo simulation model,, which uses certain assumptions, including annual volatility of comparable companies. The range of volatilities utilized was 49.0% - 131.3% as of December 31, 2025. The volatility utilized in the Monte Carlo option-pricing model was determined using the 75th percentile. The following table presents the assumptions used to determine the fair value of the derivative tranche liability as of December 31, 2025:
December 31,
2025
Expected volatility96.0%
Risk-free interest rate3.42%
Expected term (in years)1.03
Probability of achieving specified conditions25.0%
Share price$6.13
The following table provides a roll-forward of the aggregate fair value of the derivative tranche liability categorized with Level 3 inputs for the three and nine months ended September 30, 2026 (in thousands):
Derivative Tranche Liability
Balance as of December 31, 2025$44,760 
Change in fair value6,188 
Balance as of March 31, 2026$50,948 
Change in fair value$20,930 
Balance as of June 30, 2026$71,878 
Change in fair value$15,812 
Settlement of derivative tranche on August 3, 2026$(87,690)
Balance as of September 30, 2026$— 
The fair value of the derivative tranche liability at settlement was determined based on the number of shares of common stock and pre-funded warrants issued, multiplied by the difference between the closing price of the Company’s common stock on the settlement date and the applicable contractual purchase price.

The carrying amounts reflected in the condensed consolidated balance sheet for prepaid expenses and other current assets, accounts payable and accrued expenses and other liabilities are shown at their historical values, which approximate their fair values.