Fair Value Measurements (Tables)
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9 Months Ended |
Sep. 30, 2026 |
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| Fair Value Disclosures [Abstract] |
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| Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis |
The following tables present the Company’s assets and liabilities that are measured and recorded at fair value on a recurring basis as of September 30, 2026 and December 31, 2025 (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | September 30, 2026 | | Total | | Level 1 | | Level 2 | | Level 3 | | Assets: | | | | | | | | | Money market funds (included within “Cash and cash equivalents”) | $ | 122,189 | | | $ | 122,189 | | | $ | — | | | $ | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total assets | $ | 122,189 | | | $ | 122,189 | | | $ | — | | | $ | — | | | | | | | | | | | Liabilities: | | | | | | | | | Warrant liability (included within “Accrued expenses and other current liabilities”) | $ | 1 | | | $ | — | | | $ | — | | | $ | 1 | | | Derivative liability (included within “Long-term debt, net”) | 8,600 | | | — | | | — | | | 8,600 | | | Contingent value rights liability | 346,000 | | | — | | | — | | | 346,000 | | | Total liabilities | $ | 354,601 | | | $ | — | | | $ | — | | | $ | 354,601 | |
| | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2025 | | Total | | Level 1 | | Level 2 | | Level 3 | | Assets: | | | | | | | | | Money market funds (included within “Cash and cash equivalents”) | $ | 122,724 | | | $ | 122,724 | | | $ | — | | | $ | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total assets | $ | 122,724 | | | $ | 122,724 | | | $ | — | | | $ | — | | | | | | | | | | | Liabilities: | | | | | | | | Warrant liability | $ | 141 | | | $ | — | | | $ | — | | | $ | 141 | | | | | | | | | | | Contingent value rights liability | 392,100 | | | — | | | — | | | 392,100 | | | | | | | | | | | Total liabilities | $ | 392,241 | | | $ | — | | | $ | — | | | $ | 392,241 | |
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| Schedule of Cash and Cash Equivalents |
The Company’s consolidated statements of cash flows include the following as of September 30, 2026 and 2025 (in thousands): | | | | | | | | | | | | | | | | | | September 30, | | | 2026 | | 2025 | | | | | | | Cash and cash equivalents | $ | 122,975 | | | $ | 143,384 | | | | | | | | | | | | | | | | | Long-term restricted cash | 1,735 | | | 1,735 | | | | | | | | Total cash, cash equivalents, and restricted cash | $ | 124,710 | | | $ | 145,119 | | | | | | |
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| Schedule of Restricted Cash |
The Company’s consolidated statements of cash flows include the following as of September 30, 2026 and 2025 (in thousands): | | | | | | | | | | | | | | | | | | September 30, | | | 2026 | | 2025 | | | | | | | Cash and cash equivalents | $ | 122,975 | | | $ | 143,384 | | | | | | | | | | | | | | | | | Long-term restricted cash | 1,735 | | | 1,735 | | | | | | | | Total cash, cash equivalents, and restricted cash | $ | 124,710 | | | $ | 145,119 | | | | | | |
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| Schedule of Fair Value Measurement Inputs and Valuation Techniques |
A summary of the Black-Scholes pricing model assumptions used to record the fair value of the 2022 Warrants liability is as follows: | | | | | | | | | | | | | September 30, 2026 | | December 31, 2025 | | Risk-free interest rate | 4.33 | % | | 3.48 | % | | Dividend yield | 0.00 | % | | 0.00 | % | | Expected life (in years) | 0.53 | | 1.28 | | Expected volatility | 79.81 | % | | 87.36 | % |
The following table sets forth the inputs to the models that were used to value the Conversion Option as of September 30, 2026 and the Closing Date: | | | | | | | | | | | | | September 30, 2026 | | May 22, 2026 | | Model utilized | Binomial lattice | | Black-Scholes | | Stock price | $ | 7.21 | | $ | 6.75 | | Strike price | $ | 8.2526 | | $ | 8.2526 | | Expected volatility | 98.00 | % | | 89.94 | % | | Risk-free interest rate | 5.00 | % | | 4.21 | % | | Credit spread | 20.10 | % | | N/A | | Time to maturity (in years) | 3.67 | | N/A | | Expected term (in years) | N/A | | 3.69 | | Dividend yield | 0.00 | % | | 0.00 | % | | | | | | N/A - Not applicable. The input was not an explicit input into the model utilized | | | |
| | | | | | | | | | | | | September 30, 2026 | | December 31, 2025 | | Estimated cash flow dates | 2027 - 2038 | | 2026 - 2037 | | Estimated probability of success | 95.0% - 100.0% | | 95.0% - 100.0% | | Expected volatility of future revenues | 23.0 | % | | 23.0 | % | | | | |
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| Schedule of Roll-Forward of Fair Value for the Company’s Level 3 |
The following table reflects a roll-forward of fair value for the Company’s Level 3 warrant liability (see Note 10, “Equity” to these unaudited consolidated financial statements) for the nine months ended September 30, 2026 (in thousands): | | | | | | | Warrant liability | Fair value as of December 31, 2025 | $ | 141 | | | | | | Change in fair value | (140) | | Fair value as of September 30, 2026 | $ | 1 | | | | | | | |
The following table reflects a roll-forward of fair value for the Company’s Level 3 Compound Derivative for the nine months ended September 30, 2026 (in thousands): | | | | | | | Compound Derivative | Fair value as of December 31, 2025 | $ | — | | | Initial recognition on the Closing Date | 7,405 | | | Change in fair value | 1,195 | | Fair value as of September 30, 2026 | $ | 8,600 | | | | | | | |
The following table reflects a roll-forward of fair value for the Company’s Level 3 CVR liability for the nine months ended September 30, 2026 (in thousands): | | | | | | | CVR liability | Fair value as of December 31, 2025 | $ | 392,100 | | | | | | Change in fair value | (46,100) | | Fair value as of September 30, 2026 | $ | 346,000 | |
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