v3.26.3
Fair Value Measurement
 9 Months Ended
Sep. 30, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurement Fair Value Measurement
Available-for-sale marketable debt securities consisted of the following (in thousands):
September 30, 2026
Amortized CostGross Unrealized GainsGross Unrealized LossesEstimated Fair Value
Commercial paper
$1,969 $— $(2)$1,967 
Corporate debt securities
$143,669 $— $(400)$143,269 
US treasury securities
59,721 — (93)59,628 
$205,359 $— $(495)$204,864 
December 31, 2025
Amortized CostGross Unrealized GainsGross Unrealized LossesEstimated Fair Value
Corporate debt securities
$159,767 $167 $(11)$159,923 
US treasury securities
49,935 40 — 49,975 
$209,702 $207 $(11)$209,898 
As of September 30, 2026, thirty-two of our available-for-sale debt securities with a fair market value of $204.9 million were in a gross unrealized loss position of $495 thousand. Thirty-two have been in a gross unrealized loss position of $495 thousand for less than one year and none have been in a gross unrealized loss position of more than one year. When evaluating an investment for impairment, we review factors such as the severity of the impairment, changes in underlying credit ratings, forecasted recovery, our intent to sell or the likelihood that we would be required to sell the investment before its anticipated recovery in market value and the probability that the scheduled cash payments will continue to be made. Based on our review of these marketable securities, we believe none of the unrealized loss is as a result of a credit loss as of September 30, 2026, because we do not intend to sell these securities, and it is not more-likely-than-not that we will be required to sell these securities before the recovery of their amortized cost basis.
Contractual maturities of available-for-sale debt securities are as follows (in thousands):
September 30, 2026
December 31, 2025
Estimated Fair Value
Within one year
$176,944 $209,898 
After one but within five years27,920 — 
$204,864 $209,898 

Equity investment gains (losses) comprised the following (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2026202520262025
Change in unrealized investment gains during the year on securities held at the end of the period
$— $495 $— $224 
Investment gains during the period on securities sold
— 2,975 — 863 
Net gains recognized on equity securities
$— $3,470 $— $1,087 

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Fair value should maximize the use of observable inputs and minimize the use of unobservable inputs. The Company determines the fair value of financial assets and liabilities using three levels of inputs as follows:
Level 1—Inputs which include quoted prices in active markets for identical assets or liabilities at the measurement date.
Level 2—Inputs (other than quoted market prices included in Level 1) that are either directly or indirectly observable, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the instrument’s anticipated life.
Level 3—Unobservable inputs for assets or liabilities and include little or no market activity.
A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.
The Company had $0.5 million in contingent consideration liabilities as of September 30, 2026 and December 31, 2025 related to the agreement to terminate its Collaboration and License Agreements with the Company’s former affiliate, Zentera Therapeutics, Inc. (“Zentera”). The contingent consideration balance is limited to one potential milestone payment measured at fair value. The fair value of the contingent consideration is estimated based on the monetary value of the milestone discounted for the probability of achieving the milestone and a present value factor based on the timing of when the milestone is expected to be achieved. The value for the contingent consideration balance is based on significant inputs not observable in the market which represents Level 3 measurement within the fair value hierarchy.
The following table summarizes, by major security type, our cash equivalents and available-for-sale marketable securities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy (in thousands):
September 30, 2026
Level 1
Level 2
Level 3
Total estimated fair value
Financial assets:
Cash equivalents:
Money market funds$9,603 $— $— $9,603 
Total cash equivalents:9,603 — — 9,603 
Available-for-sale marketable securities:
Commercial paper— 1,967 — 1,967 
Corporate debt securities— 143,269 — 143,269 
US treasury securities59,628 — — 59,628 
Total available-for-sale marketable securities:59,628 145,236 — 204,864 
Total assets measured at fair value
$69,231 $145,236 $— $214,467 
Financial liabilities:
Contingent consideration— — 500 500 
Total financial liabilities$— $— $500 $500 

December 31, 2025
Level 1
Level 2
Level 3
Total estimated fair value
Cash equivalents:
Money market funds$18,637 $— $— $18,637 
Total cash equivalents:18,637 — — 18,637 
Available-for-sale marketable securities:
Corporate debt securities— 159,923 — 159,923 
US treasury securities49,975 — — 49,975 
Total available-for-sale marketable securities:49,975 159,923 — 209,898 
Total assets measured at fair value
$68,612 $159,923 $— $228,535 
Financial liabilities:
Contingent consideration— — 500 500 
Total financial liabilities$— $— $500 $500 
The following significant unobservable inputs were used in the valuation of the contingent consideration payable to Zentera as variable consideration for a change in control milestone payment of either zero or $15.0 million pursuant to the termination of our Collaboration and License Agreement at September 30, 2026 and December 31, 2025:
Contingent Consideration Liability
Fair Value
as of
September 30, 2026
Valuation TechniqueUnobservable InputRange
(in thousands)
Milestone payment$500 Discounted cash flowLikelihood of occurrence
1.0% - 2.4%
Discount rate40%
Expected termPerpetuity
The following table reflects the activity for the Company’s contingent consideration, measured at fair value using Level 3 inputs (in thousands):
Contingent consideration at December 31, 2025
$500 
Changes in the fair value of contingent consideration— 
Contingent consideration at September 30, 2026
$500 
There were no transfers between levels of the fair value hierarchy during the nine months ended September 30, 2026. The Company had one instrument that was classified within Level 3 as of September 30, 2026 and December 31, 2025. As of September 30, 2026 and December 31, 2025, no material fair value adjustments were required for non-financial assets and liabilities.